Bonum Certa Men Certa

IBM Shows That Collaborations With the NSA Are a Company's Death Knell

Summary: China refuses to buy from IBM because of its "special relationship" with the NSA and shortly thereafter China takes over IBM's server business

IBM recently reported a sharp decline in sales, blaming this on a slump/collapse of contracts with China after the NSA leaks. Perhaps realising that trust is impossible to regain now, IBM, which does not exactly support software freedom on its servers [1], is selling its server business -- just like the desktop business -- to China [2-4]. It shows the ongoing decline of IBM, which added NSA-oriented extensions such as TPM to Linux-centric agenda. IBM claims to be "hardening the Linux server" these days [5], but historically its agenda inside Linux has been even more dubious than Red Hat's or Intel's because it pushed into Linux (the kernel) software patents agenda and artificial limitations, as we have demonstrated here for years. Linux is used extensively for server security [6], but when Linux itself becomes less secure, then we have a real issue in our hands. Air France now turns to HP [7] -- not IBM -- for its private server farm needs. Knowing that Boeing is the benefactor of industrial espionage (aided by US diplomats and the NSA), Air France would be wise to dodge IBM. HP has back doors too, but suffice to say, this is less obvious than IBM's publicly-advertised NSA collusion.

"For many years now IBM has been outsourcing its workforce to India and China and now it's actually selling parts of its business to the East."Techrights has historically been friendly towards IBM but also highly critical of the company's patent agenda (lobbying for software patents), marketing tactics, and promotion of freedom- and privacy-infringing technology. The impact of the NSA on IBM is not at doubt [8], and it's far from negligible [9,10]. For many years now IBM has been outsourcing its workforce to India and China and now it's actually selling parts of its business to the East. Can clever people in the West (perhaps former IBM workers) outdo IBM by providing a freedom-respecting stack and consulting services around GNU/Linux and Free software? The term FUD comes from IBM, as IBM used these tactics to demonise a former employee who had gone independent with IBM expertise.

At this stage, despite deceiving marketing, IBM needs GNU/Linux and Free software more than GNU/Linux and FOSS need IBM. Recently, the President of the Open Source Initiative (OSI) called IBM a patent troll. IBM can carry on openwashing its business with OpenStack [11,12], Hadoop [13] and so on (even OpenOffice.org), but until it stops serving the NSA, the software patents agenda and various other conflicting interests (causes that harm software freedom and GNU/Linux) we are better off nurturing "true" (as in completely) Free software companies.

Going a few months back (as we mentioned at the time), we have reports such as:



IBM found black budget from the military/surveillance industrial complex too intoxicating to refuse. It sure it alluring to many companies and IBM is no exception; in the 1930 IBM famously did business with the Nazis, helping Hitler's party profile people (before the data was used for imprisonment and genocide).

For those who did not know about the IBM/NSA relationship, here is a quick wakeup call. It's not news. It was made known even in the NSA's Web site. IBM boasted about it. To quote the page about TAPO:

What the Trusted Foundries have to offer:

Accreditation of Trusted Suppliers, with the list available at the DMEA website http://www.dmea.osd.mil/trustedic.html. Potential customers should engage directly with the listed suppliers (except IBM) for all services. Through TAPO, a contractual relationship with IBM to produce leading-edge microelectronics parts in a trusted environment. IBM maintains world-class facilities in both Vermont and New York, providing a broad range of capabilities to the government in support of the Trusted Foundry contract.


Who can use TAPO services? Any government-sponsored program can use TAPO to access the IBM Trusted Foundry:

DoD Sponsored Programs may qualify for subsidized pricing on specific MPW runs, provided funding is available. Other government agencies will need to provide full funding for access. Contractors working on IR&D projects may access the foundry provided they have a government sponsor.


What services are available? Through industry partnership at IBM, TAPO offers:

Foundry Services including Multi Project Wafer runs, dedicated prototypes, and production in both high- and low-volume models. Intellectual Property (IP) development, including standard prepurchased IP. Packaging and test services. Custom Logic Service: Cu-08, Cu-65HP, Cu-45HP, and Cu-32.


Foundry Services: TAPO offers several production options in the foundry business area depending on the schedule and the quantity desired. Designs up to the secret level are accepted.

Multi Project Wafer (MPW) Prototyping - MPW prototype runs have multiple designs on a single reticle and are targeted to customers in need of low volume with no production quantities. Dedicated Prototype is a dedicated single design prototype run that includes the mask build. IBM guarantees a minimum of two wafers will be delivered to the customer. Production phase produces unlimited chip quantities, following a successful prototype phase.


Custom Logic Services: TAPO now has a contract in place for IBM's commercial Custom Logic flow on digital chips. The customer provides a netlist of RTL hand off and IBM will do the physical layout, package, design, and GDSII generation, and provides tested packaged parts. Design submissions are accepted in Cu-08 Cu-65HP, Cu-45HP, and Cu-32. IBM's Custom Logic methodology is also available for classified designs.

Intellectual Property: TAPO has bought pre-paid access to certain roadmap IP that it makes available to customers on an as-needed basis. A complete list of available IP can be obtained from TAPO. IP orders can also be placed for existing IBM IP, custom IP, and certain non-IBM IP.


No company should brag about working with above-the-law spies who engage in industrial espionage, lists for assassination, political coups, etc. IBM's affairs with the NSA are not new; what's news is public disapproval (even inside the US) of the NSA and its actions.



Related/contextual items from the news:



  1. IBM Stays Committed to the Cloud, But What of OpenStack?
    While there have been questions about IBM's true commitment to the OpenStack cloud computing platform, the company definitely remains focused on cloud computing. Today IBM announced plans to commit more than $1.2 billion to significantly expand its global cloud footprint. The investment includes a network of cloud centers that clients can apparently leverage, including allowing businesses to run their IT operations in the cloud.
  2. Lenovo Confirms Purchase Of IBM x86 Server Business For €£1.4 billion


  3. Lenovo Agrees to Buy IBM Server Business for $2.3 Billion


  4. IBM Sells Server Business to Lenovo for $2.3 Billion


  5. Hardening the Linux server


  6. A10 Networks Debuts Thunder DDoS Hardware
    ACOS is a Linux-based networking operating system.


  7. Air France builds private cloud with HP for Linux server farm
    Air France says it has automated and increased the reliability of its 1,500 Linux servers by deploying a private cloud solution.

    The deployment is based on HP's Cloud Service Automation (CSA) software to accelerate deployment times for physical and virtual infrastructures.



  8. IBM's Full Year Revenues Hit by NSA Scandal
  9. IBM Earnings – Don’t Expect Big Blue to Get Out of Its Slump
  10. IBM: At Least 10% Downside To Fair Value


  11. IBM Explains Its Participation on the OpenStack Foundation Board of Directors
    Todd Moore, director, IBM Standards and Partnerships, discusses his participation as a member of the OpenStack board of directors.


  12. IBM Optimizes OpenStack Cloud Performance with Scheduler
    In a nod to the need for more efficient resource management for public and private cloud computing, IBM (IBM) has unveiled a new product for its OpenStack platforms. Called the Platform Resource Scheduler, the resource provides a virtualized programmable interface for automating the allocation of cloud resources.


  13. IBM's Watson Fails To Compute In A World Of Open-Source Hadoop


    IBM has big plans for Watson, but its proprietary, developer-free approach is under-delivering.


Comments

Recent Techrights' Posts

If Your Company Lost About 30% of Its 'Value' in 3 Months, Then Maybe It Was Never Worth What You Claimed
Does that make sense?
Pleroma is Dying
The last social control media that I joined was Pleroma
Asia and Social Control Media
statCounter reckons it's down from over 10% to just 3% since it began tracking those things
Anonymous Threats Against My Wife and Against Yours Truly
Promoting GNU/Linux and condemning people who attack GNU/Linux is not a crime
Decades-Long Microsofter (Darryl K. Taft) and TIOBE Conflate Microsoft GitHub (Proprietary) With FOSS in Microsoft-Sponsored 'News' Site
We do not intend to do a lengthy debunking because we covered this subject several times in the past
Microsoft Cuts Continue, Visitor Center in Redmond Shut Down
This goes on and on, leading up to the next giant wave of mass layoffs
IBM Bubble Deflating After James Kavanaugh's Accounting Trick With 'Toxic Assets' Comes Under SEC Scrutiny
If something goes up based on false speculations, bonus numbers and self-serving lies, then it'll come back down, eventually...
The EPO's Corruption and Violation of Rules is Spreading to the United Kingdom (Software Patents)
Yesterday a letter was sent to the chief regarding salaries while reminding him of the next strike, which is only 11 days away
IBM Continues Tanking Today, Already $58+ Lower Than Recent High, Insiders Explain Why
The same CFO from the inception of Kyndryl is still the CFO at IBM
Put Criminals in Prison, Not People Who Report the Crimes
Can people be sent to prison for opposing crime?
 
Links 13/02/2026: SUSE Uses Microsoft Internally, MElon's Company Helps Turn Epstein Files Into Child Abuse (After the Pornography Scandals)
Links for the day
African Browser Choices Show a Growing Problem in the World Wide Web
World Wide Web (WWW) becoming little but a transport layer for a particular proprietary application (Google Chrome) [...] we're back to the late 1990s
If You Want Digital Freedom, Then Follow Richard Stallman, the "Linux" Brand Has Changed and OSI is Microsoft (GitHub)
If you want something stable and predictable, then stick with GNU, the GPL, and GCC
Solicitors Disciplinary Tribunal and SRA Failing to Curb SLAPPs Against People Who Expose Wrongdoing
We'll soon show messages that we transmitted to politicians
Beware the Latest IBM SPAM, IBM is Already Down "After Hours"
After a harsh day in Wall Street IBM's shares area already down again (after trading hours)
Radicalism in Our Communities is Mostly Corporate, Not Grassroots
Infiltration and systematic destruction can be shallowly painted as "inducing manners"
Life Gets Better After Social Control Media
Don't become part of these experiments
statCounter Suggests Americans Are Dumping Social Control Media
Are Americans getting fed up with social control media and quitting in droves?
Back Doors and Fake Security
They've militarised everything, even people's home computers
Cost-Cutting and Book-Cooking at IBM
It's like cutting salaries by more than 50%
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, February 12, 2026
IRC logs for Thursday, February 12, 2026
Mainstream Media Intentionally Ignoring EPO Strikes
“EPO on Strike!”
Jeffrey Epstein crypto disclosure: uncanny timing, Bitcoin demise, pump-and-dump, ponzi schemes
Reprinted with permission from Daniel Pocock
Gemini Links 12/02/2026: Avoiding Coffee, Trying Ubuntu, and "Open Source Robot"
Links for the day
Microsoft Slop CEO Speaks of Layoffs
They will go along with the "replaced by AI" baloney
In Systematic Contempt of the British High Court, Brett Wilson LLP Spent Two Years Lying to Courts and Breaking Rules Against Us
We criticise Brett Wilson LLP quite lot because of its conduct
IBM Kyndryl as "Aggressive “Enron” Accounting"
IBM Kyndryl continues to nosedive today
Relationships evidence: Tiago, Tassia, Thais, Antonio & Debian favoritism, nepotism
Reprinted with permission from Daniel Pocock
Debian pregnancy cluster: why it is public interest
Reprinted with permission from Daniel Pocock
State of the Slop, Slopfarms Containment
Slopfarms still exist this year, but their visibility is limited
Links 12/02/2026: Pushback Against, "NATO Is Expected to Step Up Arctic Security"
Links for the day
Links 12/02/2026: "Microsoft Just Forked Windows" and Windows Notepad is a Giant Security Hole
Links for the day
Windows Has Become Increasingly Irrelevant
There's a very massive wave of layoffs coming Microsoft's way
Our Most Successful Year Ever
The hired guns in London are eager to turn the UK into another China
Slopfarms Waning, But Not Extinct Yet
Metrics show that usage of LLMs is declining
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, February 11, 2026
IRC logs for Wednesday, February 11, 2026
IBM's Stock is Crashing
If it follows the trajectory of its satellite Kyndryl, it can fall and reach as low as $75
Gemini Links 11/02/2026: Sunny Morning and "KiCad Aims to Ease Linux Installation"
Links for the day
Microsoft Loses Ground in Switzerland
One issue is, Google and Apple seem to gain at Microsoft's expense
Microsoft Layoffs Must be Very Near (and Very Large)
just like IBM
Bringing Attention/Awareness of EPO Corruption and Cocaine Use to the Mainstream Media
What has Europe become? Prey to vultures?
The Solicitors Regulation Authority (SRA) Delusion - Part V - Everyone Seems to Agree That SRA is a Sham
We're going to start a new series soon
A Can of WORMS - Part V - Up Next: The Comeback of RMS in the United States
Guess who funds the cancellers
Threats From 'Former' Red Hat (Now IBM) Staff While IBM's Likely Accounting Fraud Attracts Public Scrutiny
We must be getting "warm"
Matthew J. Garrett Has Just Sent a Threat to Put My Wife and I in Prison Because His Own Spouse Says He's a Rapist
What really intimidates him is his own spouse
Gemini Links 11/02/2026: Terminator Trilogy and Lagrange in the Apple App Store
Links for the day
Links 11/02/2026: Fentanylware (CheeTok) for ICE, Jimmy Lai Shows Journalism Became 'Crime' in Hong Kong
Links for the day
With Firefox Measured at 2% in the United Kingdom Time is Running Out for Web Site Support for Gecko/Servo Users
The open Web is rapidly dying while Mozilla celebrates and champions slop
Lawsuit reactions: EFF behaviour reveals zombification, censorship
Reprinted with permission from Daniel Pocock
Links 11/02/2026: $700 Billion Slop Bill, Social Control Media Under Political Fire for Deliberate Health Harms
Links for the day
Amended Input From Software Freedom Institute for EU Consultation on Free Software
"On 3 February 2026 Software Freedom Institute lodged a submission with the European Commission's inquiry into Open Digital Ecosystems"
Mobbing at the European Patent Office (EPO) - Part VI - Attacks on Staff and Attacks on the Law Merit Another New Series
new series coming shortly
Nadella's Mindless PR Spam Ahead of the Layoffs 'Snowball' (Adding Up Batches) Turning Into an Avalanche
Based on recent observations, the more puff pieces we see about Nadella, the closer we get to Microsoft "pulling the trigger" on mass layoffs
When Happens to Red Hat If (or When) IBM Collapses
IBM is in flux because its CFO is now implicated in what seems like accounting fraud
IBM's Financial Engineering (Accounting Fraud) Shell, Kyndryl Holdings Inc, is Insolvent
If this was done by the very same people who still run IBM, can we expect any better from "Sugar Daddy" IBM?
2026 a Very Productive Year and We Have Many Big Stories to Tell
maybe we'll produce 8,000 new articles/pages by year's end
Clownflare is in Trouble as Its Debt More Than Doubled in Less Than a Year, Expect Further Enshittification
Clownflare isn't free
After the Next Wave of Microsoft Layoffs Washington State Could be #1 for US Layoffs
Microsoft Corp shares were down yesterday
EPO's Local Staff Committee The Hague (LSCTH): The EPO is Generally “Managed by Excel” (Microsoft)
The current management has basically defined corruption to be "success"
With an IBM Company Down Over 75% After Apparent Accounting Fraud the IBM Insiders Want Answers From James Krabanaugh
He has no technical qualifications
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, February 10, 2026
IRC logs for Tuesday, February 10, 2026