IBM confirmed that it’s cutting jobs as it concentrates its efforts on “cloud, analytics.  “While IBM isn’t revealing the scale of the layoffs, a source tells CNET that they include as much as 25 percent of the Systems and Technology division that produces servers. It’s a sad day for those affected by the cuts, but there is a silver lining here.”   According to IBM, the cloud side of the business is now hiring.

This is a trend we’ll see play out many times over the next few years, as the traditional hardware providers find there is a diminishing demand for traditional hardware and software.  This will be true around the rise of cloud computing, but also stems from the fact that international hardware manufacturers have been putting pressure on the US-based hardware providers, with lower priced gear.

IBM killing off 25 percent of the hardware jobs will send a clear message.  Cloud computing is here, and for some it’s not a good thing.