IBM’s Jetter to Helm Troubled Global Technology Services Unit

Martin Jetter, IBM’s (IBM) Japan operations lead and a 28-year company veteran, is the vendor’s new Global Technology Services (GTS) boss, taking over for Erich Clementi Jan. 1, according to an internal memo from chief executive Ginni Rometty, the Wall Street Journal reported.

In his new role, Jetter, who also garnered a senior vice president title, will hold worldwide responsibility for cloud computing services, IT and business process outsourcing, project-based services and technical support services. In the interim period until he assumes GTS command, Jetter will report to Clementi, a 30-year IBM veteran who has run GTS since 2010.

Clementi will be shuttled off to another role in an impending wider reorganization, Rometty said in the notice.

She credited Jetter with building IBM’s business in Japan, following similar positive results in Europe, specifically in Germany, where he headed the vendor’s operation for four years.

“Martin has led a remarkable transformation of IBM Japan, returning it to growth as he did previously as our leader of IBM Germany and GBS in Europe,” Rometty wrote. “In each case, he and his team have moved quickly to embrace new approaches and new thinking.”

IBM has reported spotty revenue for its GTS unit for each of its three quarters this year. In its most recent Q3, the vendor posted GTS sales of $9.2 billion for a 3 percent year-over-year decline. In Q2, the GTS unit generated $9.4 billion in sales for a 1 percent slide from the same time last year, while in Q1 the vendor took in $9.3 billion for a 1 percent dip.

In the wake of IBM’s 10th consecutive quarter of declining revenue, as the vendor’s Q3 2014 sales tumbled 4 percent year over year to $22.4 billion with a 17 percent downturn in GAAP net income to $3.5 billion, Rometty said, “We are disappointed in our performance. We saw a marked slowdown in September in client buying behavior, and our results also point to the unprecedented pace of change in our industry.”

Rometty’s plan to resurrect IBM includes three focal points: remix to higher value, improve agility and accelerate productivity.

As for IBM’s much-publicized vow to deliver $20 EPS in 2015, well, forget that, as the vendor said in light of its poor Q3 performance it no longer expects to meet that long-stated goal.