• Subject: The only hope to save the AS/400 (was: IBM knows how to treat it's employess.....)
  • From: "Al Barsa, Jr." <barsa2@xxxxxxx>
  • Date: Tue, 23 Nov 1999 16:57:16 -0800

At 02:52 PM 11/23/1999 -0600, you wrote:

SOAPBOX(*ON)

I happen to think that the only hope to save the AS/400 is for IBM to sell 
the division.  No one in Armonk truly understands the value of the 
AS/400.  There's a thought process that says if it isn't Netfinity (which 
IBM only lost a billion dollars on last year), it isn't computing.

I would invest if the AS/400 company were spun off.

Lou runs IBM to manage the stock price, and could care less about 
technology, or the future value of the company and product lines.  Selling 
the AS/400 Division would give the stock a good high, and that's what Lou 
wants.

The IBM Corporation will continue to run in this fashion until the day that 
the stock is hopelessly overpriced, and that's the day that Lou will 
quit.  The day Lou quits, sell your IBM stock, and sell it short.

SOAPBOX(*OFF)

Al


>I received the following note from one of the Rochester employees.  Do any
>of you view this as a practical suggestion?  I'll be interested to hear
>your thoughts...
>
>Janet Krueger
>Rochester Technology Center, part of D H Andrews Group
>
>
>Janet,
>     The attached note got me to thinking.  AS/400 has some of the most
>committed customers and business partners in the industry.  What if one or
>all of the following took place:
>
>     1)  A significant number of large customers and business partners
>petitioned the board of directors, complaining of the lack of advertising
>and marketing support for AS/400.
>
>     2)  A group of customers and business partners formed a consortium and
>kicked off an advertising campaign of their own.  You might ask, why should
>a non-IBM group step up to take responsibility for advertising an IBM
>product?  Well, the answer is in the attached note.  Our business partners
>in particular make a lot of money selling AS/400s, and their livelihood is
>threatened by the bizarre actions of these clueless IBM executives who have
>never even tried to understand the AS/400 or, for that matter, the I/T
>industry in general.  You too, though you're no longer an IBMer, have a
>vested interest in seeing the AS/400 continue and in fact flourish.
>
>     3)  A group of customers and business partners formed a consortium to
>purchase the AS/400 business from IBM.  This one may be really far-fetched.
>I have no clue whether any of our business partners would have the
>financial wherewithal to pull something like that off.
>
>     Janet, you have a lot of contacts and enormous respect with COMMONers
>and business partners.  Maybe if you could make this sort of suggestion to
>certain key people we would at least see 1) and I think even 2) is not
>really that far-fetched.  I suppose 3) is so far-fetched it would be best
>not even to mention it to anyone so as not to damage credibility.  Still,
>it's an interesting thought.  Someone in my department suggested that Al
>Barsa might be one that could pull some people together to get started on
>something like 1) or 2).  If you like any of these ideas and want to push
>them, please remove references to my name.  As a current IBM employee, I'm
>not sure what sort of retaliation from execs I might be opening myself up
>for by suggesting any of this. I'm legally protected for union organizing
>or EEOC filings, but I'm not so sure about this.  I don't want to give
>anybody any excuses.
>
>
>Subject:  IBM knows how to treat it's employess.....
>
>If nothing else, it's nice to see that at least some of our customers can
>see the effects of last week's announcement.  (For those who don't know,
>midrange-l is an e-mail discussion list about "midrange" computers, which
>contains lots of discussion about the AS/400.)
>
>This is from the midrange forum from a non-IBMr..........
>-------------------------------------------------
>Subject:  IBM knows how to treat it's employess.....
>
>First they mess around with the pension and then this.....
>
>Workforce cuts!  Looks like Palmisano's first move is to be a hatchet man
>and reduce the Server group workforce.  Supposedly the cuts affect all
>server groups but Rochester may face the worst of it.
>
>Let's see now.  Create a great machine.  Than market it like anthrax.  When
>things get a little tough take it out on the people's who's work and
>efforts you didn't market properly.  I hope Stephenson gets a equitable
>action taken against him.....
>
>This will be real interesting.  These cuts could be beneficial but they
>could spell more trouble.  There is a great risk that good people will
>leave (as they already have), that more will be let go, and that certain
>projects will be cut. All for what is essentially a management
>problem.......
>
>Sorry for the digression on this technical list but I feel this may all
>impact us eventually.
>
>Respectfully
>
>Mike Crump
>
>
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+--------------------------------------------------+
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| Private mail should go to barsa@ibm.net.         |
+--------------------------------------------------+

Al Barsa, Jr. - Account for Midrange-L
Barsa Consulting, LLC.  
400 > 390

Phone:          914-251-1234
Fax:            914-251-9406
http://www.barsaconsulting.com
http://www.taatool.com

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