Facebook and the Republocrats - burst 6

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To chat a bit about Ginny Rometty the CEO of IBM am announced yesterday. Thursday that she was going to be stepping down to the company announced she was going to be stepping down. And I guess my first question for you is was this surprising surprising I was surprised and also not surprised. Start with not surprised there There's been a fair amount of analysis in the media. Lately about the fact fishy sixty two and IBM has it unofficial retirement age for CEO's of sixty okay However you know she just made a very big the big bat with IBM's thirty four billion dollar acquisition of red hat which closed last summer and it is kind of unusual? It seems kind of unusual you will for a CEO to make such a huge bat and then leave especially when in the press release announcing that deal she was quoted saying this will change everything in the cloud market writing to that. Yeah it was it was very you was allowed statement. Yeah so I was surprised I mean I think that in some ways I was expecting her to stick around to at least through right. That's the way successful growth figures. Red Hat is certainly is a promising acquisition for IBM There's a lot of areas that can make you can make them more relevant in the hybrid cloud market for example but You know a lot of people thought they overpaid and that's still out there. They're going to need to Really show a lot to kind of quell those critics so and and then on the surprised part which did you say do td surprise. I covered them both. Okay Okay Great. But let's talk more about not surprised. I I mean let's face it. You can't really get around the numbers IBM Stock is down. Twenty three percent right since she took over as CEO A lot of the problems are not her fault. They're ones ones that she inherited She is credited with kind of turning. IBM in two or more modern businesses like cloud computing data analytics but even on the cloud side. It's hard hard to say that. IBM's cloud strategy has worked out so far because they tried to become a public player and compete with Amazon head to head and that didn't work out so so red hat in many ways is kind of a retreat from that it's a strategy not Yaji one of the things you've written a lot about in in the past few years that seemed to be a big deal during during her. Her tenure was Watson and kind of hanging their hat on the idea. There on red hat on on Watson being like a major is your product for their business. And that's

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