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

American Back Doors No Longer Trusted by Europeans
Has the EU paid attention, for a change?
When Energy Prices Double in About a Month the Slop Bros Won't Sleep at Night
Unhinged leadership does not seem eager to end a conflict that it started
Newer is Not Better, Lunar Edition
Maybe in 57 years (2083, after all these wars) we'll managed to launch a capsule with a human and a dog above the stratosphere again
 
Ubuntu More Honest Than Microsoft Windows
If you don't like the direction Ubuntu has taken, then try something else
Azure is Dying, the "Entertainment" (Slop) Couldn't Lift Up Fake 'Demand' For Azure
Azure has had mass layoffs every year since 2020 and even earlier this year
2026 Starting to Feel Like 2020
Can Wall Street survive this?
Growing Awareness of Techrights' Importance
We're not an individual's blog but a community project
Harassment by Microsoft, Then a Cover-up
That Microsoft relies on blackmail, bribes and harassment (even against its own people) isn't surprising given the roots of the company and its toxic, deceitful management
SLAPP Censorship - Part 37 Out of 200: The Correct Suspicion Garrett and Graveley Were Collaborating in Overseas Litigation Against Critics
Microsofters and back doors' boosters from America frivolously sue Brits
Microsoft Has Lost Nearly 20% in "Desktop Operating System Market Share" Since COVID-19 Began
Add Android and iOS, then Windows falls to 24%
Maintenance Later This Month
Apr 24, 2026 21:00 - Apr 25, 2026 09:00 BST
Microsoft: Move Over, XBox, Slop is the New "Entertainment" and We Demote Our "Entertainment" CEO
Marketers, marketers, marketers, as a CEO called Ballmer put it
linuxbuz.com is a Slopfarm, It Depends on LLMs
In the more distant past it could be said that linuxbuz.com was an OK site
Links 07/04/2026: Patent Trolls Leigh M. Rothschild, Bolstered by GNOME and OIN, Continues to Attack; ‘Retaliatory Antitrust Suit’ by MElon
Links for the day
Gemini Links 07/04/2026: Copyleft Revisited, Killing Linux Processes With FZF
Links for the day
It Would be Good for Debian to Have a Female DPL, But...
Debian isn't exactly selecting people for quality or policing bad behaviour
IBM Insiders Say What's Wrong With IBM in Albany (and Yes, There Are Layoffs)
promotions boil down to what insiders now call "brown-nosing" and nepotism
After Killing OpenSource.org IBM Together With OSI Told Us It Would Carry on OpenSource.net, But the Site Has Been Essentially Dead for 9 Months (Effectively Abandoned)
OpenSource.org has been dormant for 4 weeks already and OpenSource.net last had a new page 9 months ago (it'll be 9 months tomorrow) [...] That's IBM in a nutshell
A Lot of What Happened to OSI is Because of Reporting by Techrights
Half a year since Stefano Maffuli (Executive Director) "left"
Public Presentations by RMS Hardly Interrupted Anymore
We'll carry on covering those sorts of topics throughout the year
Links 07/04/2026: US Wants to Put Journalists in Prison for Reporting Facts, Artist ‘Bale’ Arrested Over Rape Allegation in Social Control Media
Links for the day
To IBMers, IBM Has Failed and is Fast Becoming a Book of Jokes and One-Word Punchlines
How else can one make it obvious that IBM is circling down the drain?
"AI Revolution" Was a Lie: Microsoft CEO Admits What He Calls "AI" is Sometimes Sloppy and Microsoft Admits That Slop is for "Entertainment Purposes Only" (Not for Any Serious Work)
if it gets "memory-holed", we can bring it up again and again
Social Control Media is Not a Viable Business Model
The future of the Web might not be the Web
From Datacentres Boom to Actual Booms That Target Datacentres, Now Struggling to Justify Humongous Energy and Water Consumption
Datacentres that are used for mindless "entertainment" (as Microsoft calls it) like slop are not a priority at this time
Gemini Links 07/04/2026: Aircraft Lift Force, Editor History, and Consumer Hardware Stagnation
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, April 06, 2026
IRC logs for Monday, April 06, 2026
What Matters is Software Freedom, Not the Brands
The important thing is to speak about Software Freedom
Wikileaks is About to Turn 20
~2 days ago it turned 19.5
The Cloud of Smoke
Will 2026 be the year that "The Cloud" openly confesses the risks it brings about?
SLAPP Censorship - Part 36 Out of 200: Claim KB-2024-003529 in a Nutshell (Microsoft Employee Does Terrible Things, Then Sues the Reporter in Another Continent)
It commences with more of an overview
Gemini Links 06/04/2026: Solar Panel Story and Centralisation
Links for the day
"Free Speech, Free Press": What the World Needs to Improve
Darkness breeds corruption
IBM prioritises a "lot of smoke and hype and use of trending buzzwords"
IBM can pretend all it wants things are fine
GAFAM Paying the Price for Pursuing US Military Money (Taxpayers' Money as 'Stimulus' With Strings Attached)
The "cloud" in cloud computing is a cloud of smoke
Observing Slop's Demise
If energy becomes more scarce, then one rare/side perk (or upside) will be slop companies screaming for lifeboats
Links 06/04/2026: Crackers Breached the European Commission, Why "Old Way of Campaigning Won’t Cut It Anymore"
Links for the day
Enron Versus NVIDIA (the Cost of Circular Financing, or Funding Your Own Customers to Buy Your Products) - “The Inventory Paradox” or “The Vibe Revenue Admission”
Round-tripping (finance)
You Know "The Economy" is Fake When 6 Months After Oracle Says Debt-Saddled 'Open' 'AI' (Slop) Will Pay It $300,000,000,000 Oracle Says It Must Lay Off 30,000 Workers at 6AM
Oracle is in deep debt, which increased at a pace of almost 4 billion dollars per month lately
Free Software Will Outlive GAFAM
GAFAM is overhyped
Techrights Was Further Decentralised Three Years Ago
In 2020 we began working on IPFS stuff
The Military Attacks on Dubai Internet City as Reminder That GAFAM Isn't Safe (Disregard the "Nobody Gets Fired for Buying GAFAM" Mindset)
These are all realistic and foreseeable scenarios that GAFAM sceptics have long warned about
The Wars Aren't Ending, Now We See GAFAM Facilities Being Bombed
This is becoming a tech issue
Links 06/04/2026: Turning 34, Throwing Things Away, and Printing in GNU/Linux
Links for the day
Links 06/04/2026: Ex-Microsoft Engineer Explains Why Azure Fails, Germany Prepares for War
Links for the day
EPO "Cocaine Communication Manager" - Part XI - EPO Strike Enters Its Second Week, EPO Sheds Off Qualified Staff to Make Way for Nepotists
More than six months ago the "Cocaine Communication Manager" got arrested for cocaine use
Another Microsoft Outlook Downtime
Microsoft has sloppy code, it's not something suitable for mission-critical things
Week 2 of April IBM Layoffs Accelerate Based on Rumours
"Heard about Layoff at IBM"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, April 05, 2026
IRC logs for Sunday, April 05, 2026
Culture of Harassment Inside Microsoft, Says Former Director at Microsoft
listen to Microsoft insiders
Drone Strikes on Amazon (GAFAM) Datacentres Highlight Azure's Miniscule Share
Azure is failing
SLAPP Censorship - Part 35 Out of 200: How to Make ~10,000 Pound Sterling (13,220.50 United States Dollars) by Copy-Pasting and Editing 10 Pages
Today it's Easter Sunday, so we'll keep this part relatively short
Gemini Links 05/04/2026: Artemis II Mission Tracker, Meditation on Copyright, Alhena 5.5.5, "Gemini as the Final Frontier of Human Cognition"
Links for the day
Microsoft Windows Falls to All-Time Low of ~60% in Switzerland, GNU/Linux Among Top Gainers
What will it take for mainstream media (not just geeks' site) to cover it?
Mainstream Media on "Practical Survivalism"
Suffice to say, panic buying begets more panic and price surges
Cloud Computing as a Cloud of Smoke (Your Hosting Provider is a "Legitimate" Military Target)
When a French datacentre went up in flames people joked that the "cloud" meant a cloud of smoke
Andreas Tille Congratulates Sruthi Chandran Before the Election for Debian Project Leader (DPL) is Even Over
Andreas Tille, the current Debian Project Leader (DPL) who has been in this role for nearly 24 months
When You Try to Change the World for the Better and Somehow They Find a Way to Say You Are the Villain
Don't be a fool. Don't fall for inversions of narratives.
Slop Was a Flop and Energy Crisis Will be Slop's Final Blow
Today we see no slopfarms in Google News
Links 05/04/2026: "Taiwanese Airlines to Hike Fuel Surcharges 157%" and Openly Racist Voter Suppression Starts in the US
Links for the day
Gemini Links 05/04/2026: Playing with Hyprland and Migrating Antenna Filters
Links for the day
Links 05/04/2026: "Confidential Computing" as Proprietary Bundle of False Promises and "The Web Is an Antitrust Wedge"
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, April 04, 2026
IRC logs for Saturday, April 04, 2026