Robert X. Cringely

IBM's reorg-from-Hell launches next week

IBM logo

IBM’s big layoff-cum-reorganization called Project Chrome kicks-off next week when 26 percent of IBM employees will get calls from their managers followed by thick envelopes on their doorsteps. By the end of February all 26 percent will be gone. I’m told this has been in the planning for months and I first heard about it back in November. This biggest reorganization in IBM history is going to be a nightmare for everyone and at first I expected it to be a failure for IBM management, too. But then I thought further and I think I’ve figured it out…

I don’t think IBM management actually cares. More on this later.

Continue reading

2015 Predictions: It's about the money, stupid!


It’s time, finally, for my long-delayed 2015 predictions. Things just kept changing so fast I had to keep re-writing, but have finally stopped. 2015 will definitely be the Year of Monetization, by which I mean it’s the year when the bottom line and showing profits will become a key motivator in almost every market. And while profit -- like beer -- is generally good, it isn’t always good for everyone.

So here are my 10 predictions in no particular order.

Continue reading

2015 will be the year when nothing happens


This was supposed to be time for my technology predictions for 2015, which I’ll get to yet, I promise, but first I want to explain the major trend I see, that 2015 will become known as The Year When Nothing Happened. Of course things will happen in 2015, but I think the year of truly revolutionary change will be 2016, not 2015. It takes time for trends to develop and revolutionary products to hit the market. I’d say the trends are clear, it’s the products and their manufacturers who aren’t yet identifiable.

So here are three areas where I’ll disagree with most of my peers and say I don’t expect to see much visible progress in 2015.

Continue reading

But first a look back at Bob's predictions for 2014


This is the time of year when when I typically write my technology predictions, an annual exercise in ego and humiliation I’ve been doing for about a dozen years. Historically I’ve been around 70 percent correct, which is more accurate than a random walk and therefore maybe -- maybe -- worth reading. You decide.

But first let’s look back at my predictions from a year ago to see how I did. Understand that I’m the only pundit who actually reviews his previous year’s predictions. If only I could be a weasel like those other guys!

Continue reading

Executive ego and the Sony Pictures network hack


Readers have been asking me to write about the recent network hack at Sony Pictures Entertainment. If you run a company like Sony Pictures it has to be tough to see your company secrets stolen all at once -- salaries, scripts, and Social Security numbers all revealed along with a pre-release HD copy of Annie, not to mention an entire database of unhappy Sony employees who want to work anywhere Adam Sandler doesn’t. But frankly my dear I don’t give a damn about any of that so let’s cut to the heart of this problem which really comes down to executive privilege.

Sony was hacked because some president or vice-president or division head or maybe an honest-to-God movie star didn’t want something stupid like network security to interfere with their Facebook/YouTube/porn/whatever workplace obsession. Security at Sony Pictures wasn’t breached, it was abandoned, and this recent hack is the perfectly logical result.

Continue reading

TV 3.0 is already here


Ethernet inventor Bob Metcalfe, when I worked for him 20 years ago, taught me that we tend to over-estimate change in the short term and under-estimate it in the long term. So it can be pretty obvious what is coming but not at all obvious when. And what we know about the when of it is that making money from new technologies is often a matter of investing right before that bend upward in the hockey stick of exponential change.

We all know television is bound to enter a new era sooner or later. Heck, I’ve written dozens of columns on the subject over my 17 years in this job. But this is the first time I feel confident in saying when this TV transition will take place. It already has. Forces are already in motion that will completely transform TV over the next 24 months. Come back two years from today and it will all be different with at least a few new leaders and a few icons gone bust. Get ready for TV 3.0.

Continue reading

How to fix IBM


Given IBM’s earnings miss last week and the impact it had on company shares I thought rather than just criticizing the company it might make better sense to consolidate my ideas for how to fix IBM. Here they are.

Early in his tenure as CEO, Sam Palmisano made changes that created IBM’s problems today. IBM customers are buying fewer products and services. Revenue has dropped each quarter for the past ten. Sam’s changes alienated IBM customers, many of whom are ending what has been in many cases a multi-decade relationship. No amount of earnings promises, no amount of financial engineering, will fix this problem.

Continue reading

Ginni comes to her senses, but too late for IBM?


This week, of all weeks, with IBM seemingly melting-down, you’d think I’d be writing about it and I have been, just not here. You can read two columns on IBM I published over at, here and here. They are first day and second day analyses of IBM’s earnings announcement and sale of its chip division to GlobalFoundries. I could publish them here three days from now but by then nobody will care so instead I’ll just give you the links.

One thing I can do here is consider the way IBM CEO Ginni Rometty is spinning this story. She was all over the news on Monday repudiating the 2015 earnings target set by her predecessor Sam Palmisano and more or less claiming to be a victim -- along with the rest of IBM -- of Sam’s bad management. Well she isn’t a victim. Ginni was an active participant in developing the Death March 2015 strategy. And as CEO -- now CEO and chairman -- it’s laughable to contend, as Ginni apparently does, that she has been somehow bound by Sam’s bad plan.

Continue reading

IBM's Power8 servers are less than meets the eye


Two weeks ago IBM told the IT world it was taking on Intel in the battle for server chips with new Power8 processors incorporating advanced interconnection and GPU technology from NVIDIA. This followed an announcement earlier in the year that Google was using Power8 processors in some of its homemade servers. All this bodes well for IBM’s chip unit, right?

Not so fast.

Continue reading

To stop data theft, pull the plug


Back in the 1980s, when I was the networking editor at InfoWorld, one of my jobs was to write profiles of corporate networks. One of those profiles was of the Adolph Coors Brewing Company of Golden, Colorado, now known as Molson Coors Brewing. I visited the company’s one brewery at the time, interviewed the head of IT and the top network guy, then asked for a copy of the very impressive network map they had on the wall.

"Sorry, we can’t give you that," they said. "It’s private".

Continue reading

Why I have grown to hate


A son of mine, I’m not saying which one, borrowed from my desk a credit card and -- quick like a bunny -- bought over $200 worth of in-game weapons, tools, etc. for the Steam game platform from, which is owned by Valve Corp. Needless to say, the kid is busted, but the more important point for this column is how easily he, for a time, got away with his crime.

I would have thought that vendors like would not want children to be buying game stuff without the consent of their parents, yet they made it so easy -- too easy.

Continue reading

One way (maybe the only way) Yahoo can succeed


Alibaba’s IPO has come and gone and with it Yahoo has lost the role of Alibaba proxy and its shares have begun to slide. Yahoo’s Wall Street honeymoon, if there ever was one, is over, leaving the company trying almost anything it can to avoid sliding into oblivion. Having covered Yahoo continuously since its founding 20 years ago it is clear Y! has little chance of managing its way out of this latest of many crises despite all the associated cash. But -- if it will -- Yahoo could invest its way to even greater success.

Yahoo CEO Marissa Mayer, thinking like Type A CEOs nearly always seem to think, wants to take some of the billions reaped from the Alibaba IPO and dramatically remake her company to compete again with Google , Microsoft , Facebook, and even Apple. It won’t work.

Continue reading

The enemy in HR

Finger Pointing

Right now, depending who you speak with, there is either a shortage or a glut of IT professionals in the USA. Those who maintain there is a shortage tend to say it can only be eliminated by immigration reform allowing more H1-B visas and green cards. Those who see a glut point to high IT unemployment figures and what looks like pervasive age discrimination. If both views are possible -- and I am beginning to see how they could be -- we can start by blaming the Human Resources (HR) departments at big and even medium-sized companies.

HR does the hiring and firing or at least handles the paperwork for hiring and firing. HR hires headhunters to find IT talent or advertises and finds that talent itself. If you are an IT professional in a company of almost any size that has an HR department, go down there sometime and ask about their professional qualifications. What made them qualified to hire you?

Continue reading

Apple proves that moats are for dummies


As we all know, Apple last week announced two new iPhones, a payment service (ApplePay), and a line of Apple Watches that require iPhones to work. There’s not much I can say about these products that you can’t read somewhere else. They are bigger and better than what preceded them and -- in the case of ApplePay and the AppleWatch -- just different. They are all topnotch products that will stand out in the market and have good chances of being successful. So instead of writing about products we already know about, I’d like to write about moats to protect products from competition.

Moats, as you know, are defensive fortifications typically built to surround castles, making them harder to storm. In order to even get to the castle, first you have to get past the moat which might be filled with water and that water might, in turn, be covered with burning oil.

Continue reading

Mobile carriers are trying to control your texting


Who owns your telephone number? According to Section 251(b) of the Communications Act of 1934, you own your number and can move it to the carrier of your choice. But who owns your texting phone number? It’s the same number, just used for a different purpose. The law says nothing about texting so the major wireless carriers (AT&T, Sprint, T-Mobile, and Verizon) are claiming that number is theirs, not yours, even if you are the one paying a little extra for unlimited texting. And the way they see it, unlimited is clearly limited, with carriers and texting services not offered by the Big Four expected soon to pay cash to reach you.

Those who’ll pay to text you include mobile carriers not in the Big Four led by the largest independent, US Cellular, as well as so-called over-the-top texting service providers that presently offer free texting services. These companies include,,,, and Service continues for now but the incumbents are threatening to shut it down any day. T-Mobile started trying to impose fees several weeks ago and Sprint, I’m told, will start trying to charge next week.

Continue reading

© 1998-2015 BetaNews, Inc. All Rights Reserved. Privacy Policy.