Because the System i can run at redline speed all day long . . .
When IBM reorganized its System i and System p divisions last summer, it was just a tuneup compared to the new overhaul going on at IBM. In an internal memo, IBM Senior Vice President and Group Executive for the IBM Systems and Technology Group (STG) William Zeitler announced IBM's third and final step to move to a "client-centered structure -- top to bottom."
So what were the first two phases?
Phase one was to align development around the building blocks of leadership and competitiveness in our industry, Zeitler notes. Hard to say exactly what that phase was all about, but the second was IBM's "pilot" and rollout of a new team-based, client-focused coverage model in the field. This second phase would have included IBM's push to combine the System i and p and reorganize into the Enterprise Systems (large clients) and Business Systems (SMB) units, and it may have included the Vertical Industry Program (VIP) as well.
The Client Segments
IBM is now aligning its business around four client sets:
These four executives will report to Zeitler, and they'll be responsible for running the businesses, with one interesting note: they'll also provide requirements for future systems and technology solutions. The executives and divisions for IBM's technology platforms will also be moved to four platform units:
These general managers will also report to Zeitler, and they'll be tasked with providing solutions that are technologically competitive and meet the needs of the client-facing business units.
In this new business plan, there's no mention of Mark Shearer, who was the general manager of the System i division for the first half of last year and later moved to vice president and business line executive for Power Systems Products, where he would have been driving the product strategy and plans for the high and low-end of IBM's POWER systems.
Marc Dupaquier, who was essentially the new System i general manager and/or the Business Systems unit manager (the unit announced this summer), also doesn't have a clear position in this newly reorganized IBM. Incidentally, late last year, I spoke with Dupaquier, who hinted at further changes coming in early 2008, but this latest move didn't seem to be on the table -- at least not so quickly.
Either way, there was one area that Dupaquier was bullish about -- and indicated that IBM was, too -- and that's BladeCenter solutions geared for SMB customers. So IBM will definitely be continuing its BladeCenter S efforts, and I would expect them to be integrated into IBM's sales and Business Partner models.
IBM's sales team model will mirror the new units worldwide. It's hard to say at this point how Business Partners will react or change their customer-facing strategies to work with the new IBM.
Clearly, for the System i world, IBM is opening 2008 with a whole new set of questions.
Posted by cmaxcer at January 7, 2008 8:53 AM

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