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

Intercontinental Brigading - Part XXVIII - Microsoft Doesn't Want People to Speak About Microsoft-Controlled Restricted ('Secure') Boot, a Silent Injustice and Back Door/Kill Switch
Can we please stop treating this as normal or acceptable?
Links 01/11/2026: Digital Minimalism and "Palantir Cofounder Announces Cruel Plan to Breed Thousands of Lab Monkeys for Medical Experiments"
Links for the day
 
By Killing the "Linux News Section" in Softpedia (the Most Popular Section, Based on Its Editor) Softpedia Killed Itself
Enjoy Ballmer
Linkspam in "It's FOSS" Today (and It's Not Even FOSS)
free-to-access ad for some dodgy companies and the URLs are 'tampered' for cashback
Links 02/11/2026: Slop Destroying Mathematics and "Democracy is Not on the Ballot" (in US)
Links for the day
Celebrating Photography, Celebrating Life, Celebrating Magnificent Humanity, Not Plagiarism Disservices
Any time we adopt or spread slop imagery we are participating in the problem
Year-Long Celebration Starts on Saturday
This coming Saturday we turn 20
On Desktops/Laptops, Clownflare Sees Windows at Under 60% and GNU/Linux at 15% This Past Weekend
Impressive if accurate
Microsoft Lunduke is Slop
Microsoft Lunduke is just trying to stir up hatred
Intercontinental Brigading - Part XXVII - Shooting the Messengers (People Who Oppose Microsoft Back Doors), Even Across the Atlantic
Keep this in mind later this week when a dictator either discredits the voting or covertly tampers with the voting process
Microsoft Wants 60,000 Employees Gone (One Way or Another)
At IBM, 15% of staff got marked as candidates for removal; at Microsoft it's almost 30%
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, November 01, 2026
IRC logs for Sunday, November 01, 2026
Jean-Claude Van Linus
Claude talking?
Gemini Links 01/11/2026: OpenBSD, Broken MicroHDMI, Nextcloud, and More
Links for the day
IBM Vapourware on a Budget (to Grab Bailouts From US Taxpayers)
Anderon is the sort of thing that makes IBMers uncomfortable
Microsoft Accenture in Trouble, Accenture’s Debt Skyrockets
Seeing a wave of adoption of Free software in Europe, it's not exactly shocking that "consultants" from Microsoft Accenture are no longer in demand
Microsoft Says Its "Goodwill" Value Has Been Declining for Years, But It Also Claimed That Doubled in One Year
Wall Street deserves far more criticism or scepticism (at the very least)
SkyChatz: From Nothing to #2 in IRC (in Less Than a Year)
Second only to Libera.Chat
Making Up Words or Inventing a Vocabulary
Or why Large Language Models are useless
Assange on What Lula Means to Free Press
Here in the UK we've also found our 'Lulas'
GNU/Linux is No Underdog (But There Are Attempts to Put It "To Sleep")
There's a moral imperative
Intercontinental Brigading - Part XXVI - The "Law and Order" Candidate Who Crushes Both Law and Order and Even Rejects Election Outcomes (Insurrection Follows)
A world without real technical security is a world void of democracy, justice, and human rights
Links 01/11/2026: Malaysian Media Perishing, France Belatedly Identifies Social Control Media as Weaponised Yellow Press
Links for the day
Gemini Links 01/11/2026: "Trick-or-Treating seems to be dead, at least in our neighborhood"; BaseFree Numerical System and Human Emacs
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 31, 2026
IRC logs for Saturday, October 31, 2026
Gemini Links 31/10/2026: MangoWM, Qutebrowser and Codeberg, Plugh
Links for the day
Massive Cuts Inside Microsoft (the Media Does Not Talk About That)
It is in many ways like IBM a decade ago
In US Government Sites, GNU/Linux Measured at New All-Time High of 7% (or About 10% Across Desktops/Laptops Alone)
There's no doubt GNU/Linux is growing
Intel Has Just Lost in One Single Day Over 150 Billion Dollars in 'Value' (Market Cap), Intel is Also Over 50 Billion Dollars in Debt
This really says a lot about Wall Street and the slop bubble, doesn't it?
They Hate Him Because He's Effective
Effective voices invite more aggressive censorship attempts
Audience Growing in Spite of the Deluge of Webslop
We probably benefit from the rejection of LLM slop
The Munich FUD Tactics (Microsoft Modus Operandi): Microsoft-Connected Sites Claim Denmark Failed With Free Software, But That's Not What Actually Happened
With Microsoft, it almost always boils down to politics
Links 31/10/2026: John Romero Comeback After Being Shafted by Microsoft, Google Faces Criminal Probe Over Deforestation in Finland
Links for the day
Gemini Links 31/10/2026: Rambling on Self-hosting and Ad Video Screens Don’t Make Money
Links for the day
Can't Trust Big Banks, Let's Try 'Bros' Instead?
But let's blame "North Korea"
IRC's Growing Popularity in 2026
No company controls or profits from IRC, it is in the Commons
"AI" as Surrogate for Debt and Distraction From Computing (Bots Described as "Agents" and/or Any Form of "Intelligence" is More Like a Religion)
We're letting people without even college degrees game the "market" (Wall Street) by lying to it
Intercontinental Brigading - Part XXV - Election Integrity at a Time of Back Doors and Very Severe Bugs in UEFI
How dare British media comment on insurrection following a US election?
"The Judge Accepted That Mrs Schestowitz Had Been the Subject of a Vicious Campaign of Online Harassment"
That's consistent with how they men treat women
Gemini Links 31/10/2026: Hallowe'en and "Thinking About People"
Links for the day
Links 31/10/2026: The Hinge on Apple's Constantly Breaking New Foldable iPhone Was "Built With Slop", Slop Causes Cash Squeeze GAFAM
Links for the day
Amazon's Debt Skyrockets by Almost 100 Billion Dollars in 9 Months
On top of that there is additional (secret, kept stealth by accounting tricks) debt
Google Illegally Destroyed a Quarter Million Trees Without a Permit for a Hypothetical Project That Might be Cancelled, Debt Has Soared by 30 Billion Dollars in 3 Months ($10 Billions Borrowed Per Month)
Google is bleeding from slop
Slavery at Microsoft
illegal if true
Many People "Left" Red Hat This Month, Including Yesterday
We already saw this with SUSE
Gemini Links 31/10/2026: "Where I Draw the Line With" Slop Plagiarism and "Nobody Cares That You're Leaving Proton" (Over Slop)
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 30, 2026
IRC logs for Friday, October 30, 2026