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IBM’s track record with those customers and that style of secure, mission-critical application marries up with the strategy to make Red Hat OpenShift and containers as the standard choice for an enterprise customer’s hybrid Microsoft with Azure are obvious competition in the hybrid multi-cloud space, along with some of the other players, but maybe the closest to IBM’s platform strategy are VMware, now part of Dell EMC. Plunging from one of the market leader during 70’s and 80’s to almost a market looser in the 90’s, IBM’s rebranding aims at the value proposition in the mind of the consumers. IBM utilizes a consistent approach to technology and innovation, and has a positive impact on the communities in which it operates. Can its plan to solve some of the world’s most challenging problems succeed? IBM's organizational structure is typical of multi-product or multi-business companies. ... Gerstner says he estimated it would take five years to turn around IBM's culture… Some catalysts to cultural change could be such things as changes in the economy, external events, internal shortcomings, restructuring of leadership, or growth of technological capabilities. There is company’s background, employment, issued facing the company. * Background They have a significant amount of revenue in customers using VMware – they will have to balance those revenues with Red Hat OpenShift inside the cloud and cognitive software business and make it work.And that leads me to the next key point, which is the significance of two of the leadership changes Arvind just announced. Importantly, Krishna comes from a technical rather than sales or operations background, ran IBM’s cloud and cognitive software unit and was the architect of the Red Hat purchase.

The other leadership surprise was bringing in How will Jim influence the IBM culture? This book touches on Gerstner’s life before joining IBM, highlighting his years in McKinsey & Company, American Express and RJR Nabisco, but is primarily centered on his IBM experience particularly relating to the turnaround strategies he implemented which took IBM from less than $18 per share in 1993 to $78 per share in 2003 (Reuters, 2014). The 1990’s included a large cultural shift for this organization driven by a new CEO and new technological capabilities. In this “new normal” there are plenty of lessons to learn, unlearn and relearn. In 1992 when Lou Gerstner was hired to be CEO, IBM's mainframe sales were plummeting, and most people inside and outside of IBM advised Gerstner to break up the company. Arvind’s predecessor, Ginny Rometty, has been helping IBM shift gears over the last couple of years, handing off collaboration and other software products to HCL, repositioning their approach to the Cloud after some early missteps, mentioning the Watson brand a bit less and AI and cognitive a bit more, and then making the most In the letter Arvind references the mainframe and other successful platforms in their history, and he says:Putting aside what he talks about as platforms two and three, he is quite rightly referencing that IBM I particularly like the continuous innovation message made explicit that underpins the third strand of the strategy. No one ever looked at the IBM ‘s PC as being inferior, but IBM did nothing to sell it. Q1. This isn’t any sort of pivot or change from the recent direction of travel, it’s just laying it out with refined clarity. According to the Tushman-O-Reilly Congruence Model, for an organization to "successfully transform for the next generation, its four key organizational building blocks of critical tasks, people, organizational structure and culture must be aligned and in congruence" (Fan 2006). Thereby hangs an interesting proposition and internal coopetition challenge for IBM. The human capabilities that are most critical to success – the ones that can help your organization become more resilient, more creative, and more, well, awesome – are precisely the ones that can’t be managed.”The foreword, obviously written before the acquisition like the rest of the book, goes on to explain how Red Hat is one of the small but growing number of companies that have transcended the old trade-offs between scale and agility, efficiency and innovation, and discipline and empowerment.

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