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

Summer Plans in Tux Machines
July is nearly upon us
Saying "No" is Not a Bad Thing
Society benefits from people who say "No!" even when it seems impolite (and possibly inconvenient) to say so
Next Week's "Bloodbath" at Microsoft Includes "Silent Layoffs" (Which Microsoft Won't Count)
The notion of "silent layoffs" is fast becoming the "new normal"
 
SLAPP Censorship - Part 120 Out of 200: Garrett Undermines His Own Application Because His Friend Graveley Failed to Accomplish What They Had Both Aimed For
Hold off the "popcorn"
Don't Settle for Slop
Slop is a bit of a symptom of where society is told to go
Gemini Links 27/06/2026: Photography From Interlaken to Shynige Platte, Slop 'Code', and Distro Hopping
Links for the day
TIGER COMPUTING LTD Sent Us Threats Half a Decade Ago (Because of Criticism of Their In-House Debian Developer), Now the Company's Debt is Deepening
So what is they're connected to the military?
GNU/Linux in Mexico Near All-Time High
With all the tourists packing the place (or hotels) we can imagine big changes to be seen next month (many portable devices)
Gopher (Protocol) Turns 35, Gemini is 28 Years Younger
Bad technology comes and goes very fast
Be Like Stallman and Assange, Not Like MElon or Bill Epsteingate
these people treat women like worse than dirt
Exposure Leads to More Whistleblowing
In areas like IBM or European patent affairs we've always earned a lot of trust
European Patent Office (EPO) Series Will Run Well Into July
We still have a very significant chunk of EPO "trench" stories
Links 27/06/2026: Journalists Kicked Out of China, Torture in Iran and Turkey
Links for the day
How Microsoft is Preventing or Slowing Down Adoption of GNU/Linux (Fake 'GNU' Controlled by GitHub in Windows, WSL, Sabotage at Boot Level, Not Limited to Dual-Booting)
Microsoft is still at it
Rising Computer Prices Good News for GNU/Linux and Free Software
This can greatly assist the adoption of BSDs and GNU/Linux
Links 27/06/2026: More Restrictions on Social Control Media and Russia is Leveraging Cellebrite/Back Doors
Links for the day
Akira Urushibata on the Likely False (Unverifiable) Claims Anthropic Makes About Defects for Marketing/Hype
Some pro-LLM person has managed to derail the discussion on this topic
European Patent Office (EPO) Series: "Team Campinos" in Split
The EPO team was of course headed by Campinos himself who delivered a "forward-looking" keynote speech to the assembled audience consisting mainly of Administrative Council delegates from the national IP offices
Supporting Women in the Free Software Community
The common theme here is abuse of women
Left IBM After Many Years, Came to Microsoft/XBox, Now Silent Layoffs at XBox
many inside XBox will have their last day next week
Gemini Links 27/06/2026: Homeworlds and Tarot Cards
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, June 26, 2026
IRC logs for Friday, June 26, 2026
Links 26/06/2026: SoftBank Forbids Mentioning That Slop is a Scam, "'We Need Courageous People' to Combat Greed and Corruption"
Links for the day
Gemini Links 26/06/2026: "Negativity of Reddit" and "Moving Blog to Gemini"
Links for the day
Same MIT Site That Fabricated the Fake News for IBM is Still Being Paid to Produce Fake "Reports" That Prop Up a Ponzi Scheme
If this is the media we deserve as a society and believe keeps us informed, then we are all doomed
'Social' Slop: The Social Control Media and Slop Crises Are Converging
Social Control Media and slop may have a shared fate. People will shun them both.
XBox Being Discontinued, Some Models of XBox Canceled, Not on Sale Anymore
First some of the largest retailers quit stocking/selling XBox, now a 2TB model is axed
Union Syndicale Fédérale (USF) Speaks Out Against Campinos and Informs the Chairman of the EPO Administrative Council
Does Mr. Kratochvíl pay any attention at all?
'António the Pretender' Campinos is Digging His Own Grave With Grotesque Lobbying Intended to Undermine Democracy in Europe's Second-Largest Institution
One way or another, the EPO will never be the same again
The Principle of "Do No Harm"
"Do No Harm" is a common saying
After Years of Bluewashing People Who Are Still Labelled "Red Hat" Suddenly 'Leave' (Might be PIPs), IBM in "Forever Layoffs" Loop
Remember that Red Hat had mass layoffs this year
Microsoft Staff Bracing for Impact Ahead of "Layoffs Lottery"
some people start to assess who will get culled next
Donald Trump and IBM's CEO: Twins Separated at Birth, Saturating the Media With False Reports About Things That Don't Exist
Every "journalist" that went ahead with this fake news should be sacked on the spot for a rejection of fact-checking
The Register MS Will Become Indistinguishable From Spamfarms at This Current Pace
Follow the money...
Microsoft Layoffs Have Already Begun in Its PR Department
It is called Waggener Edstrom
Techrights Community as Litigants in Person (LIPs)
Unwittingly and due to circumstances we're had to step in to protect women abused by monstrous men who lack empathy
European Patent Office (EPO) Series: Rest and Recuperation on the Adriatic Coast
The EPO President's connections with the Croatian SIPO date back to his days as head of the EU trademark agency EUIPO
Firehose of Spam (Fake News) From The Register MS Today
This is how awful the state of news sites really is
Slopfarms Becoming Scarce and Few (or Inactive)
we'll try to refrain from even giving the remaining slopfarms any visibility
The Register MS Promotes Things That Do Not Exist... for Money
How much more ZTE spam will come out before 5PM?
Links 26/06/2026: RIP, Om Malik, 1966-2026
Links for the day
Memory Leaks Suck
Slop ('vibe') coding means lots of bad programs
Natural Disasters and Personal Disasters
Thank you, Om Malik, for the positive memories
Gemini Links 25/06/2026: Life Philosophy and Misery
Links for the day
GAFAM Became a Mainstream Term, and Why Words Matter
Conveying problems in useful terms [...] Impairing propaganda attempts (e.g. calling parrots "intelligence", back doors "confidential", and outsourcing "cloud") should be the first step
European Patent Office (EPO) on Strike Today, Next Week Another Historic Week
If you live in Europe, contact your delegates today
FSF FreeJS Project (Part of the GNU Project's Goals) Advanced Further in 2026
They're moving to reduce dependence on anything to do with Microsoft
SLAPP Censorship - Part 119 Out of 200: Our Suggestions to Our Politicians and Heads of State
coverage about SLAPPs and related matters
Microsoft Already Closing Down Studios, According to Some Publishers
It is being compared to what happened in Intel
IBM PIP Stories Told in Public, Fake IBM News (Fabricated Claims) Drown Media Sites
IBM is seeding fake news to help justify the bailout
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, June 25, 2026
IRC logs for Thursday, June 25, 2026
Microsoft Falls to Lowest Value Since 2023
Microsoft can come back down to somewhere below $100
This Could be the Start of Microsoft's Biggest Wave of Layoffs in 50+ Years
This is what it looked like for Intel a few years ago
The Register MS is Promoting a Pyramid Scheme for Money, But It Is Over 6 Million Pounds in Debt
How much lower can the reputation of this publisher sink?
Gemini Links 25/06/2026: Unix-like People and NeoGeo
Links for the day
Members of the Delegations in the EPO's Administrative Council Told That Amid Unrest Campinos Must Go; a Year of EPO Strikes Means It's Time to Change Leadership
Which strategy is needed for the European Patent Organisation?
The Cyber Show on How Data is Misused and Broadcast is Abused to Crush Resistance to Harmful Technology
We recently published a number of articles about how Computer Science is coming under attack
Increasing Participation Rates in Staff Representatives' Elections at the European Patent Office (EPO)
The industrial actions seem to have brought colleagues closer together
Microsoft's Mass Layoffs Have Already Begun (Could Not Wait 'Til July)
Microsoft's biggest layoffs round in 50+ years?
Assessing the "Worth" of a Life
Don't let blunt plutocrats decide whether Venezuelans deserve sympathy or not
Planning 20-Year Techrights Event
Interested people can contact us in IRC
Links 25/06/2026: Earthquakes Strike Venezuela, Conflict of Interest in Kangaroo Court UPC
Links for the day
More Weight of IBM's Stock is Ascribed to Lies and Things That Do Not Exist
Turning stones into gold?
SLAPP Censorship - Part 118 Out of 200: Exposing Crimes is Not a Crime, It is a Public Service
We will soon enter the sixth year of lawfare
Links 25/06/2026: "Why We Need Seed Legislation" and XBox Chaos Predicted by Insiders
Links for the day
Gemini Links 25/06/2026: Hobbies Change, Young love, Strange Encounter, and Raspberry Pi Zero W
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, June 24, 2026
IRC logs for Wednesday, June 24, 2026