Monday, February 03, 2014

IBM's X86 Exit Strategy: IT Jungle Talks to UCG's Jim Kandrac

IBM's X86 Exit Strategy: Arguing The Good And Bad 



"The news that IBM is selling its X86 business traveled like a flash of lightning. Then comes the thunder, which lasts longer and speaks louder. The thunder is the interpretation, the explanation, and the ramifications of the X86 decision. IBM, no doubt, puts considerable effort into making major business decisions like this one and then an equal amount of effort into making the decisions sound good to as many people as possible."

"I do not believe that it will negatively affect the IBM Power i business," says Jim Kandrac, the founder and president of United Computer Group, an IBM business partner located in Independence, Ohio. "Power and Intel really haven't played together in years. In some cases, UCG provided the 'X' as a service to clients. In other cases, the clients sourced their own, because of a brand preference, and it was handled by a different IT unit. Many mid-market shops have different sandboxes and i and Intel boxes are separate. Due to politics or religion, those purchases are separate in most cases. I view IBM selling off X as a proper strategic move. It apparently was not 'core' to the growth of IBM and at the end of the day it may be better for IBM, their clients, Lenovo, and partners. Unless hardware is blended with software and services, it is a commodity."  Read more.