CIO Magazine: IBM Will Win the War With Amazon


Rob Enderle has been analyst for too long and has mostly been wrong about his favorite target, Apple (s AAPL). And now he has turned his guns on Amazon (Web Services) and points out that IBM is going to win the war with AWS. I think we all have a different definition of winning,  especially considering the troubled cloud effort by IBM. Anyway read the piece, if nothing, for a chuckle!


Tom Blackstock

IBM have in-house processor design, servers, networking hardware and software and tons of system management software. They have swathes of services personnel and experience in implementing a operating huge networks both for themselves and other large agencies and corporations. On paper, they were perfectly positioned to be the premier cloud provider. Unfortunately this was not the case. An inability to execute, mostly lead by short-sighted senior execs whose only goal is EPS and who are terrified of harming any existing cash-cow part of their businesses meant that once again the opportunity passed them by. In typical IBM manner they are now playing catch-up and having to pay to acquire market share. Unfortunately once IBM impose their archaic business processes and a legion of lawyers and accountants on SoftLayer to squeeze down costs as much as possible, what will be left is something existing SoftLayer staff will not recognize. The leaders and visionaries of SoftLayer will leave once they realize that there is no way for them to progress at IBM (seriously, look at the self-protective circle of senior IBM execs getting rich while they cut the business back to reach EPS goals – how many are from acquisitions?). If IBM spent as much on product engineering as they do on financial engineering and marketing of half-truths, they’d have a much better long term outlook.


Not a surprising perspective–to your very point, those who predict the outcome of innovation by using conventionally-observed performance will miss the Apples and Googles of the world. Amazon may yet fail, but they’ll do it on their terms and not the staid approach of IBM, Rackspace or any other cloud competitor.

Robert Welbourn

Ah, yes. Rob Enderle was the guy backing SCO throughout that “We own Unix and Linux is just a rip-off of Unix” trollfest.

He has quite a track record, doesn’t he?

Paul Mathews

Rob, Thank you very much for the great article and looking forward to see many similar articles from you. Sometimes we become too serious with our daily work and we get carried away by focusing too much on business and read serious articles. Thanks to you, you have shown that life is not to be taken seriously and we should always attempt to be humorous. You have managed humor in even serious issues such as cloud, and it is certainly inspirational. Looking forward to see similar articles from you. Here are some suggestions. Sorry, if you have already thought about these.
Microsoft makes a serious comeback with windows 8. Tablet manufacturers in serious trouble.
Blackberry with their strong patent portfolio and strong foothold with business users cause serious panic for Apple.
Blockbuster invests heavily in video over internet delivery, making Netflix investors nervous.
Affordable healthcare act causes extreme dissident and country prepares for civil war.

Ray johnson

Ha ha…love your comments. Being an ex IBM er I know that the company is making a mistake by spending advertising dollars instead of innovating and being truthful. Face it IBM your goose is cooked. .notwithstandibg softlayer..which will surely give you a hard time. Shame on you guys for ruining a 100 yr old company.


Enderle used to offer reflective geek understanding about products and producers. He’s wandered away from fact and reality-based analysis for quite a while, now.

His brain still seems to govern normal human functions. Maybe he’s fallen into the trap of trying to screw the round pegs of reality into little square ideological holes. His writing has become useless, ideas out of touch, not worth examining.

He’s not the only one of his peers, his generation to wander so – but, they consign themselves to obscure corners unwilling to communicate seriously with the mainstream.

Cloud gal

Hilarious. Rob is so wrong that for a while, I thought that he wrote the article as a joke. If he is serious, he is way out of touch with reality. AWS is now the premier name in cloud, and does not need to spend the kind of marketing dollars IBM is spending on a misleading campaign. And AWS features such as IAM does allow centralized IT to retain control.

Seriously Rob..

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