IBM selling mainframe division?

The mainframe is dead. Long live the mainframe!

Rumors are flying within IBM this week that the z Systems (mainframe) division is up for sale with the most likely buyer being Hitachi. It’s all a big secret, of course, because IBM management doesn’t tell IBM workers anything, but the idea is certainly consistent with Big Blue’s determination to cut costs and raise cash for more share buybacks. And the murmurs are simply too loud to be meaningless. Think of this news in terms of a statement made last week by an IBM senior executive: “In a world of Cloud Computing, it does not matter what equipment or whose hardware the cloud runs on. We are a Cloud company…”

This move by IBM would not surprise me in a bit. It is my guess IBM wants someone else to make and support the hardware. They’ll be happy to sell time sharing services, AKA cloud services. They’ll be happy to let someone else sell and maintain systems.

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