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

European Patent Office (EPO) Series: Czech Mate: EPO Kingmaker or Merely a Pawn in the Game?
recent "missions" of the EPO President
SLAPP Censorship - Part 131 Out of 200: A Big Win for the Media in the United Kingdom (UK) Today
In a democratic society the Right to Know, which is closely connected to freedom of the press (or what one might label "blogging" or "blag"), comes above all else, except where there are lives being put at risk
IBM's Fedora Plans to Integrate Slop Into "Fedora Workstation as a Default Feature."
IBM does not care whether the community wants this or not
The Media Talks a Lot About XBox Layoffs, a Closer Look at the Data Shows Microsoft 'Bloodbath'
'Bloodbath' is the term insiders use
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 07, 2026
IRC logs for Tuesday, July 07, 2026
Links 07/07/2026: Microsoft Cuts Doom "id Software" and Turkey Detains Journalists
Links for the day
Gemini Links 07/07/2026: Old Computer Challenge (OCC) and Hardware Tests
Links for the day
A Break From the Routine
What matters is what whistleblowers keep feeding information to us
SLAPP Censorship - Part 132 Out of 200: When You Cannot Pay a Million Pounds (1,335,520.00 United States Dollar) to Lawyers But Have a Strong Community
Techrights compensates for its fiscal poverty with a wealth of community spirit
Fame is Not the Goal
"Fame" kills
Mental Health in Free Software Communities
clearly there is a subject that merits debate and it ought not be a taboo anymore
The Era of Sponsored Spam
There is no "era of AI", there is era of BRIBES to PRETEND there is an "era of AI"
Gemini Links 07/07/2026: Cleaning, Old Computer, and More
Links for the day
Links 07/07/2026: Le Monde Combats LLM Slop Plagiarism, "ACLU Launches Largest Ever Midterm Electoral Program"
Links for the day
Extremism in the Free Software World is Mostly a Myth
Only the firm belief that justice applies to all will produce a just society
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, July 06, 2026
IRC logs for Monday, July 06, 2026
Links 07/07/2026: Kernelized Secure Operating System (KSOS) and "Exploiting Thoughtcrime in LLMs"
Links for the day
SLAPP Censorship - Part 130 Out of 200: Jealousy, Envy, Hubris
This site is primarily about Free software
Gemini Links 06/07/2026: Still Mostly Dry, GoToSocial, and More
Links for the day
European Patent Office (EPO) Series: Effective Dispute Resolution… But Not For EPO Staff
Slovenia fielded one of the few Administrative Council delegations which managed to maintain its own independent line against the tyrannical EPOnian "Sun King"
Community Sites Need Genuine Collaboration and True Autonomy
People who want to communicate, federate and organise for effective change need to evolve
Free Software Foundation (FSF) Covers Quibble, Free Software for Secure Communications, in the FSF Summer Bulletin
The Georgia Tech folks are bringing Free software education and contributions to one of the better known Computer Science hubs in the US
Microsoft Layoffs Include Windows, Bing, Slop (CoPilot etc.) and There Will More More Rounds (or Waves) to Come
"43% of Xbox laid off"
Obscene Contradiction in Microsoft's Layoffs Tally ("Official" Numbers Do Not Add Up)
Notice how they treat "LinkedIn" as separate
Preserving Comments About the Real IBM Before They Get Deleted
IBM in the 1980s is not what it is right now
Cybershow on "Escaping Prisons For Your Mind"
"THE CYBER SHOW: Stealing technofascism's boots, and stomping on its own face with them."
Links 06/07/2026: At Least 20% Staff Reduction in XBox (Microsoft), Taiwan Sees Uptick in Chinese Aggression/Provocation, Senator Rodante Marcoleta Arrested
Links for the day
Confirmed: Microsoft Layoffs Come in Two Waves, Just Like Last Summer
To us, what stands out is the admission from Microsoft that there are two (or more) waves
In Praise of the UK's Stance on Free Speech (but Some Reservations)
At the moment there is a healthy discussion going on with the objective of disrupting attacks on British press
Exposing Corruption at the European Patent Office (EPO), a Call for More Whistleblowers
We predict that, provided enough whistleblowers speak out, António "the unready" won't even finish his current term
Leaving Our Pets for Several Days
This week our pets will be worried that "mommy and daddy" are away
Dating Trees and Dating 'Apps'
several high-profile stories in the news about scandals in "dating apps"
DW Documentary About Julian Assange Turns 2
It was released just days after Assange had turned 53 and about two weeks after he had left the UK
Independent Media is the Only Form of Legitimate Media
Independent media is, indeed, what we need to demand more of
The Story of the European Patent Office (EPO) Wagging the Dog (EU)
The aim of the series is to properly inform the world - not just Europeans - how Europe's second-largest institution is run [...] How did a corporate hub of monopolies become so detached from the Rule of Law?
GNU/Linux Up to New High in Libya, Windows Down to All-Time Low
GNU/Linux touches 5% there, based on statCounter
Links 06/07/2026: Artists Reject Slop (or Even de Facto Bribes to Market/Endorse Slop)
Links for the day
SLAPP Censorship - Part 129 Out of 200: Iranian Tactics
Hunger for revenge compels people to do overzealous, irrational things
Quiet Week
Many in the US are still enjoying an extended weekend
The Media Needs to Speak of Slop as a Climate Issue Like It Did With Bitcoin
But the slop industry keeps paying the media to play along with the hype
IBM's Fall
IBM's fate is closely connected to that of the Free software movement because of the salaries
Social Dialogue at the European Patent Office (EPO) is Dead, the Strikes and Work Stoppage-Like Actions Carry on
What next for the EPO?
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, July 05, 2026
IRC logs for Sunday, July 05, 2026
Links 05/07/2026: Shadows of the Upper Peninsula and 2026 Old Computer Challenge
Links for the day