I'm biased but think it speaks highly that Cloudant people (Adam Kocoloski and Derek Schoettle) were tapped to lead this group.
HN often lives in the startup + Facebook + Google + latest tech trend bubble. But there is a whole world of enterprise + government (DoD) tech world out there that exists, but it is not talked much about here, unless it is being made fun of perhaps.
I think it is really great to see a company of their size and age change course and adapt.
He probably won't move from IBM completely, but they'll be getting less and less business from him. I mean, the other day their entire datacentre's network link was flapping, for hours and hours. It wasn't just his company that was affected, it was affecting even larger companies.
IBM's ability to deliver is going down the plughole. They've always been very expensive, but have been able to justify it because they were able to handle your issues effectively. That's increasingly showing to be not the case.
For instance. Once upon a time I had an internship there, working with a particular product dealing with server management. As part of the setup process required to customize servers, users were directed to go to a random university user's home directory to download one particular older version of some open-source boot-utility software (newer versions wouldn't work). This is, of course, a terrifying distribution mechanism.
Actually hosting and distributing this file wasn't something that IBM people were willing to do; you'd need to run it through the Lawyers. (This probably feeds a Not Invented Here syndrome.)
That said! At least the internship was with the Software division. The way I heard it, Services was 90% of the revenue and Software was 90% of the profit. Things are a lot better in Software. Still a damnable maze of cubicle farms, though.
This is smart, given that hardware is a commodity with low and falling margins, whereas it's very hard to price heterogeneous services such as consulting, integration, etc. They've done some shady things to cut costs, but they needed to pivot pretty drastically in order to maintain their position and restart a growth cycle.
Ultimately, I think the "big data" market is overhyped, and that IBM is playing into this hype. People are gobbling up data storage and analytics services left and right, but are the valuations equivalent to the value added to a company by storing and sorting a ton of (potentially useless) data?
IBM is a large company that does a lot. They put more money and people towards pure tech than most firms, especially in places like IBM Research.
I'm not as much of a fan of their software, though that's probably because I haven't really used a whole lot of it.
Unfortunately for them, they suffer that big company type of thinking that kills innovation. It's why they've had to acquire more. They're were also late to the cloud market. Their last CEO also practically ran it into the ground to prop up stock price before exiting with almost $300 million personal gain. They're facing hard times and it will be interesting to see how they adapt. Their recent push for innovation and agile is interesting. Hopefully a sign of things to come.
– The Tao of Programming, chapter 8, Geoffrey James, 1987