blog Things haven’t been going well at IBM Australia recently. The world’s biggest diversified enterprise IT supplier is engaged in an ongoing war of words with a hostile Queensland Government over the Queensland Health payroll disaster, it’s had a high-profile e-health contract terminated, and its long-running contract at the Federal Department of Health and Ageing is having the ruler run over it. And now, according to this juicy article in The AustralianIT (we recommend you click here for the full story), things have gone from bad to worse:
“IBM Australia has recorded one of its worst quarterly results in its history, with profit plunging by 62 per cent on the back of a sharp decline in its money-spinning global technology services unit and a dispute with major client BHP Billiton.”
Like many people in the IT industry, we’ve got a love/hate relationship with IBM. This century-old technology giant has produced some of the greatest innovations the sector can boast, and some great people work there. IBM has its finger in virtually all of the Australian technology sector’s major pies, and it normally does a pretty good job at its work. But there is no doubt that it’s also plagued by internal bureaucracy and continues to struggle in some areas in a highly competitive market — for example, with respect to its Lotus/Domino collaboration suite. In any case, we hope this downward trend doesn’t last for IBM. The truth is that Big Blue is one of the bellwethers of the industry. When it suffers, many other organisations tend to suffer as well, so we hope it gets back on its feet soon.