Industry exit suggest integrators won't compete with Startups | 9SEP25

IBM demonstrates a lack of conviction in novel technology development with the exit of the software laboratory leader, inherited from Octo Acquisition.

This isn't an update on a Defense startup. Instead, an industry movement that signals large integrators cede ground to the mission technology development fight and fight themselves in favor of enterprise and traditional contracts. This space is unique and ripe for defense startups, and more so today than before, as integrators can't afford balance sheet internal investments.

To set the scene, IBM's defense business is a cash cow of ERP systems and ultra-large customers like the military base commissary system. Not the development of mission technology.

Rob Albritton moves from IBM, where he spearhead "oLabs" that served as a novel technology hub and scene-setter for many in SOF/IC and a premium for acquisition. Both worked out, and Rob is largely responsible for the marketing, general awareness, and success that is and was oLabs. It was likely a strong factor and tangible asset for the IBM team in its acquisition of OCTO, for however many billions it was. A total runaway success as a government contractor - OCTO - in the rear view and at the time. Some of their success came from the agile, nimble small teams deployed to the original Kessel Run opportunity, federal civilian enterprise, and VAR contracts. These contracts remain powerful today when building a business. Things like Salesforce implementation. These remain robust methods to go to market. It's boring for most people, and they flake out, and it's not a startup terrain in government work. Tough to stick with it without the proper dopamine and emotions to keep you going. Regardless, Rob was embraced by OCTO and allowed to build a small garden of technology, dedicated hosting services, and a venue for group meetings that were attended in the "oLabs at night" series (or something like that) - yes, it sounds like pornographic.

With Rob departing oLabs/OCTO/now IBM, that will crater the potential of the AI/ML projects that were in-flight and rumors in the budget for outyears with SOCOM. This link has a live demonstration of the software project posted on LinkedIn—a project with multiple interested parties in SOF and through reputation, customer relationships.

Rob was the spirit animal and driver for that project. And, as a believer that organizations are functions of their leaders, the single leader, I predict lackluster performance and eventual drown of that software if not handed over at GOTS into its cusomter ether to be minatianed as a potential software capabiltiy that lingers on and, or, as a research tool for rapid assessments and tooling - while the joint-force figures out how to integrate Palantir as it's DOD-wide C2 interface. The professional will assume the project and the oLabs responsibility will struggle to fill Rob's unique shoes there and be forced to "utilize" his time, other pursuits, manage the PMP tasks, and simultaneously manage the software and development mandate.

It's impossible because that is what a startup CEO does. It requires something different, a paper experience, and an environment motivated to succeed with an end in sight. I suspect more integrators will cede ground to startups, whether startups realize it or not. That's why they must be detail-oriented on small moves on the contract-customer nexus with tools like Pryzm.

So what?

The BAA budget and RDT&E dollars resident in S&T and PEO SDA are up for grabs, or at the minimum, there is room for argument for another technology with its fearless leader intact to offset. Herein lies the issue with large integrators and software product adventures. It is counter-intuitive to the customer, but the large integrator, consulting business is the flight risk compared ot the startup. The startup is a bushido for its' technology - the large integrator entertains it like Sparta's professional military and warrior society versus the Greeks' conscripts. The latter does not win wars or react positively to extreme stress and circumstances. Rob likely did not get the full buy-in required to "GTM" from IBM, because it's an empire. And startups are rebels. It begs the question - should S&T even go to large integrators? From an economic perspective, probably not.