Change is inevitable

There have been a number of actions at Dell in the last few days that have resulted in people leaving the company. One of my key team members left last Friday on a voluntary basis, when we discussed her request for voluntary separation, I told her I was disappointed but given her reasoning, I said I wouldn’t act to stop her. She’s going west…

Then yesterday the remainder of one of my former teams were let go through an involuntary program, a shift of business requirements, and technology changes. I’m disappointed to see him go, but since he was in a different division, I was pretty much powerless to do anything. I wouldn’t hesitate to hire him back if and when I can. Interestingly, one of my original Austin contacts, is back at Dell after being laid off a number of times.

There has been the usual “link-bait” style hysteria about the Dell layoffs, and today, they turned to IBM. Reading through the comments(I Know , I know), there are the usual “shock horror” comments. After reading the comments on IBM today, I decided it was worth posting in the hope to move the discussion on, really, you are surprised by these layoffs?

Here is the comment I posted [with only minor typographical corrections.]

It’s a massive challenge for the technology companies, just asserting it’s for this or that reason, looking for easy finger pointing to associate blame is just naive.We have to understand that all the former hardware behemoths are suffering from the innovators dilemma. As much as HP, IBM, Dell, Oracle et al. have been broadening their products and services, changing their business models, with differing degrees of success.

Unless y’all are prepared to pay the price for traditional hardware and software, and stop migrating to the “cloud”, these things are inevitable and you are part of the problem. Thats not blame, it’s fact, after all your business is also focused on EPS or expense/revenue ratio too.

IBM made a significant shift to being a software and services company almost 20-years ago, none of this should be unexpected. Shifting workloads, skills, people is hard enough much less in an economy where there are massive geographic shifts as whole continents stabilize,  and others shift in terms of how they consume and use technology, as well as their skills and employment practices.

Even simple things like the continued shift to home working has potential huge impact on employment trends, locations and skills.

If IBM, HP, Dell, Oracle were cities, governments etc. you might be right to hold them to a different standard. But I don’t see anyone voting Goverments out because they are paying too little tax?

It’s not simply about focusing on earnings per share. While there is an argument that for the whole western industrial economy that  the CEO, Executive pay has got out of proportion, it’s important to remember that at least IBM, HP, Oracle are still public companies. Unless you’ve been paying very close intention, their EPS and share price have more than likely a direct impact on you, even if you work for a competitor. They are both direct and indirect investment funds for pension funds, Government/Health/Insurance investments etc. If they all take a dive, you can be hurt anyway, even if you don’t work at those companies.

So lets stop pretending we are surprised this is happening. Understand that everyone in the “industry” from customers to design, R&D and the Execs are responsible for finding a ways to find new opportunities and help and support good employees both those where we are working, and also for those that have been, and are being let go. It’s also going to come over time to facebook, google et al eventually they won’t be able to buy and innovate their way into markets forever in just the same way the more traditional companies can now.

And yes, I’m an Executive at Dell.

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About & Contact

I'm Mark Cathcart, formally a Senior Distinguished Engineer, in Dells Software Group; before that Director of Systems Engineering in the Enterprise Solutions Group at Dell. Prior to that, I was IBM Distinguished Engineer and member of the IBM Academy of Technology. I'm an information technology optimist.


I was a member of the Linux Foundation Core Infrastructure Initiative Steering committee. Read more about it here.

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