IBM Guides Strong, Salesforce Guides Weak, And Cisco Begins Layoffs


A few afternoon tech items worth noting:

Shares in IBM (IBM) soared as high as 5% per cent today on news as the computer giant reiterated its surprisingly strong guidance of $9.20 a share. We’re glad revenue is hanging in there, but we’ve noted IBM has been quietly aggressive on the expense side, eliminating thousands of positions (without publically saying so) and even trying to get its employees to move to India, at India-prevailing wages. (CRM) hit the $1 billion mark in revenue for the first time, but shares slipped on a lowered outlook. We did learn in a recent survey that 80% of companies not yet on the cloud said they had no plans to do so in the next year. (Or you could read that same survey as 20% will go cloud for the ‘glass-is-half-full’ approach.)

And Cisco (CSCO) began job cuts this afternoon, with 250 employees at the company’s San Jose HQ let go. That’s in line with what CEO John Chambers said that would happen in his most recent earnings call, while insisting it’s not “layoffs” unless 10% of the company is affected.