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Also, while the gradual move to the cloud will definitely hurt certain segments of IBM (mainly the big mainframe hardware segment), there are certain segments of IBM that will benefit from companies moving into the cloud (the consulting and software segments). I am not saying the benefiting segments will completely offset the declining ones (they probably won't), but it isn't like the whole company is likely to go extinct.

I do not get this.

While the clients in the cloud will surely be pipsqueak machines, such as minimal PC type machines (of whatever type, even cell phones, glorified washing machines, and the like (remember all those available IP addressed under IPv6), some other machines will have to be more than a bunch more PC type machines. 30 years ago, it was already practical to run a UNIX server capable of serving hundreds or even a thousand or so users on an Ahmdal or large System/360 class machine. It is surely possible to do the same today. Nowadays, you might not do it quite that way, but by using large numbers of virtual machines on such a system might be a better way to do it. But some tasks really are better off running on mainframes. Big database management systems for example. I have run IBM's DB2 relational database management system on an 8 GByte RAM PC and it works fine, but for people who really need something like that, they probably have need of handling 1000s of users working on the same database (think of the IRS, the bureau of the census, the FBI, some parts of the national weather service). They are not going to put in 1 million larger PCs to do all that work, surely not for those requiring multi-user concurrent access to large databases, and there is a real lot of that going on. I bet even a "small" outfit like L.L.Bean's catalog service with on-line real-time inventory and ordering (by them from their suppliers) would more likely need to be run on a main-frame. Now the main frame might well be somewhere in the cloud, but IMAO, there will be more of those main frames in the cloud than the average home-user might suspect.
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