Rejuvenated IBM cloud computing commitment forces major layoffs

As IBM shows its cloud commitment, it made major layoffs to traditional IT jobs. Learn about this and Salesforce's CFO commitment in this podcast.

If you're an expert who doubts IBM's commitment to cloud, the vendor hopes to change your mind with recent announcements. IBM has moved forward with a strong focus on cloud with its acquisitions of BlueMix, SoftLayer and others, but now it's showing its commitment with its staff. The provider has cut what has been estimated as 25% of its workforce, mostly in the technology and systems groups, and is rehiring on the IBM cloud computing side.

In this podcast, David Linthicum and his guest Mike Kavis, vice president and principal architect at Cloud Technology Partners, discuss IBM's cloud future, as well as the resignation of Salesforce's CFO and why Microsoft should buy Red Hat.

  1. IBM is cutting jobs. People always like to say that the cloud won't hurt existing staff, but apparently for hardware providers, it will. IBM admits to "rebalancing its workforce" but won't give up numbers. The CNET website estimates the layoffs are around 25% of existing staff, mostly in its Systems and Technology Group. However, IBM is hiring on the cloud side. IBM is definitely moving forward with a strong focus on cloud with its acquisitions, and now so with staff. What does this mean for IT pros without cloud skills? Does IBM have a choice? What does this mean for IBM competitors?
  2. Salesforce.com's chief financial officer has resigned, amid major losses. Is this the fault of the cloud and Software as a Service (SaaS) market, or is this the CFO's fault? Will this lead to a Salesforce acquisition? How can the SaaS innovator bounce back? Are we setting the barrier too high for what publicly traded public cloud companies can do?
  3. Microsoft has built its services around Windows, but to keep its enterprise cred moving forward, should it think about purchasing Red Hat? Both of these brands have "religious" followers, according to Kavis, so, is this something that would realistically happen?
This was first published in March 2014

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