After divesting server and chip fab units, is IBM still too big to succeed?


With Hewlett-Packard and eBay breaking themselves up, there is renewed speculation about which legacy IT company will be next. Some are putting their money on Cisco. Others posit that IBM, especially after its tenth-consecutive sub-par quarter, should do the same — an idea that IBM CEO Ginni Rometty discounted out of hand on CNBC.

Depending on how you look at it, you could argue that [company]IBM[/company] is well along this road. It sold off its server lineup to Lenovo earlier this year and its chip-making business to GlobalFoundries (well, it’s actually paying GlobalFoundries $1 billion or so to take on that fabrication business.)

But some wonder if this will be enough to restore IBM’s luster. Big Blue still runs a ton of diverse businesses, many of which appear to be on the wrong side of history. The move to incremental SaaS software rentals and the transition of more workloads to public clouds that do rely on no-name…

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