logoalt Hacker News

JSR_FDEDtoday at 3:03 PM18 repliesview on HN

IBM have an absolutely stellar record of blowing acquisitions. The highly motivated newly acquired team will be in honeymoon phase for 3 months, and then it slowly dawns on them that they’ve joined an unbelievably rigid organization where things like customer satisfaction and great products don’t matter at all. Then they’ll be in shock and disbelief at the mind boggling Byzantine rules and internal systems they have to use, whose sole purpose is to make sure nobody does anything. Finally, the core IBM sales force will start to make demands on them and will short to ground any vestiges of energy, time, opportunity and motivation they might have left. The good team members will leave and join a former business partner, or decide to spend more time with the family. They’ll meet often at the beginning to relive the glory days of pre-acquisition and recount times where they went went above and beyond for that important early customer. But then these meetings will become fewer and fewer. Finally they’ll find a way of massaging their resumes to cast the last years as being “at the heart of AI infrastructure”.


Replies

AMerrittoday at 7:24 PM

I worked for a small company acquired by IBM in 2011. We had a good 5-6 year run where our product sales went up (largely because so many IBM people were selling it) and we were largely left alone. Once things slowed down a bit the IBM rot set in quick though. These days I think all that's left is a skeleton crew maintaining the obligatory long term contracts around the main product, every other part of the original company has been picked clean.

show 1 reply
jhallenworldtoday at 8:09 PM

>mind boggling Byzantine rules

Hint: by all means possible, make sure you are not the owner of (or manager of the person who owns) any assets beyond your personal laptop. If, for example, you end up being the owner of all the development and test servers of the original company, then it will become your responsibility to ensure that each OS (of each LPAR of each VM) is security compliant, is running the end-point asset manager, and has up to date OS patches, that the DASD is encrypted, and you must periodically show physical proof that the asset still exists and indicate where it's located- photos of assets tags or whatever. It will be your responsibility to dispose of the asset (with all associated paperwork) at the end of its life.

It helps if such machines are not actually on the 9. network, or are behind an internal firewall (then they don't care about the security compliance as much).

show 1 reply
diobtoday at 4:45 PM

Yeah, they acquired the company I worked at and left us alone for a year or two. Each year would get worse though, and each year we swapped nearly all bureaucratic things around. Always a different way to do performance reviews goals, etc.

A lot of the successful projects at the original company are now dead.

It's also weird being in IBM, because if your "contract" ends they put you on the bench. Then you basically have to job hunt within IBM, and if you can't find anything within a month or so you are out. It's super weird.

show 2 replies
embedding-shapetoday at 3:14 PM

Surely by now everyone, including non-developers and non-software people, know exactly what IBM is, and you don't sell to IBM/join IBM without knowing exactly what's about to happen. No one joins IBM today and thinks there will be a huge focus on customer satisfaction or focus on great product design, it's all about squeezing maximum profit out of products until you need to discontinue them because you chased away all of the customers.

show 1 reply
viccistoday at 7:04 PM

Yep, this is a classic acquisition story. You go from a hungry company out there to fight to succeed and join a big corp where most projects are just endless series of meetings people have about what they want to do without any real timeline or immediate plan to start.

The worst is when your sales team (and all of its super valuable institutional knowledge of your specific market) are cut, and all your management is laid off so that the new corp's managers (who have embedded themselves into the corporate bureaucracy like a trichinosis worm) can treat all your teams as free headcount.

Soon, your company, which was acquired for growth, can't do anything and turns into an albatross around the new corp's neck. So the layoffs begin.

nosefurhairdotoday at 6:30 PM

I'm with a company that was acquired by IBM ~2.5 years ago. The internal systems are definitely rough, but for the most part it's business as usual.

I've heard chatter from our engineering leadership that IBM is trying to push some silly initiatives, but we've been able to prioritize the right work so far.

I also get more equity (one time award + employee stock purchase plan) than I did previously, and with how IBM stock has been performing lately this has been a net positive for me.

FWIW I have heard that IBM used to force their management style on acquisitions in years past, so perhaps this is a fairly recent shift towards a less hands-on approach.

show 1 reply
CharlieDigitaltoday at 3:50 PM

    > ...and internal systems they have to use, whose sole purpose is to make sure nobody does anything
I once had to use Lotus Notes after the company I was at was acquired by the now defunct Computer Sciences Corporation. I decided I would never, ever work for another company that used Lotus Notes.
show 1 reply
wetwatertoday at 4:06 PM

In defense of Byzantines. Their rules and amazing diplomatic prowess is what let them be an empire for so long. The negative connotations to Byzantine comes from the negative perception the west had of them. Byzantines were very practical in regards to who they allied with.

show 1 reply
cr125ridertoday at 3:18 PM

I hope Hashicorp survives. A few higher ups I’ve talked to there made it seem like IBM wants to learn from them, not force their old ways onto Hashicorp. We’ll see. That one is still pretty new.

show 6 replies
coliveiratoday at 3:12 PM

IBM is designed to milk every last bit of money from their clients. So they need to add new products every now and then to add new money flows.

godzillabrennustoday at 4:25 PM

I've heard IBM is really just an external government agency. If you look at it through the lens of being acquired by a government bureaucracy, then your explanation makes perfect sense. IBM is too entrenched to fail and too poorly run to be acquired.

justin66today at 4:55 PM

> They’ll meet often at the beginning to relive the glory days of pre-acquisition and recount times where they went went above and beyond for that important early customer.

Yeesh. Which level of hell is that?

methuselah_intoday at 8:04 PM

This is what is happening with red hat also?

gnatmantoday at 3:18 PM

Pretty bleak, and describes my experience to a T (although involving other companies). Has there ever been an example where a company has been acquired and culture/morale/conditions have actually improved rather than dissolved?

show 2 replies
ChrisMarshallNYtoday at 5:17 PM

There were a series of Dilbert comics that spoke to this.

Dilbert’s company buys an “artsy” startup (represented by a chap with a goatee and a ponytail).

Dilbert comments something like “We get your energy and skill, and we provide … an endless supply of 3-ring binders.”

To which the chap replies “I hear that if your name goes into a binder, you lose your soul.”

senderistatoday at 5:47 PM

I had friends that worked at a high-profile IBM acquisition a decade ago and this is exactly what happened.

samivtoday at 5:07 PM

That's a very cynical take. Unfortunately likely correct.

It's a fact that a publicly traded company is beholden to Wall Street and any time such a company would use their earnings for R&D the P/E and margins go down (i.e. spending more money to earn the same) and this is considered a negative signal at Wall Street and the company gets punished in the market.

So the only way a company can spend their earnings is to pay dividends or buy assets such as other companies, which then must be squeezed for margins.

More here:

https://www.cringely.com/2015/06/03/autodesks-john-walker-ex...

bgrotoday at 5:59 PM

IBM isn’t really a tech company anymore. More of a legal trolling company that cosplays as tech.

They seem to primarily benefit from kickbacks in the form of both leasing and technical contracts for things like opening offices in a location for tax benefits or to promote local economy.

Then they see how far they can cut back their end of the contract after the first few months (e.g. Maybe we agreed to have 500 employees in an office, but since nobody is allowed in, we think we can get away with 100 employees.) Then this turns into trolling about how the contract never defines what in office means so can we offshore… Too much undefined confusion, so I guess we get to break the contract but keep what the mayor paid us… Then they just shut down the office and move on to the next location.

It seems like the local government must be in on these schemes for leasing. Otherwise this wouldn’t be going on for decades as it has been.

The other part of business, technical contracts, is similar except instead of leasing it’s providing some sort of infrastructure coverage for something big. It starts off with good faith fulfilling the contract. Then a few months later it’s like well we have a US military contract that demands US employees but US employees are too expensive. What if we offshore but all the traffic is technically going through a single US employee’s computer which is what the contract technically demands.

Then it turns into well we have offshore people working on this anyway, why not just give them direct access and we’ll have a US person overseeing them. Lay everyone else off.

Then they see how long they can get away with this until someone gets mad. Then they take one step back to see how close to the technical contract they can get while threatening to abandon the whole thing at the same time.

Along with this sort of atmosphere and attitude for the law, it seems we see them constantly doing everything possible to constantly fire old people or anyone else that has legally protected status. So you’ll get statistical analytics on ways to fire protected people based around the constant performance reviews with statistics being used to see how close groups of protected people can be removed without statistically breaking the law. Whatever that algorithm is.

That plays into just straight up cutting people, but it also goes into a lot of other subsystems of skirting the law, like if old people can’t relocate as easily then hopping offices and forcing people to relocate 5000 miles is a way they can be eliminated. Part of this might be moving people onto new teams and then saying that team has to be in office for some made up reason, and then firing them for not relocating or using some made up metric like badging timestamps to get them, or some other technicality like leaving for lunch 5 minutes early despite being a salaried employee which is reported as hourly because of tax trolling.

I don’t know how IBM still exists because from my perspective it’s pretty clear they’re breaking or at best on razor thin gray line on ice on just about every possible law you could break.