NAND then there was a second growth quarter… IBM reports flash surge

19 juli 2017

Analysis IBM’s systems segment brought in $1.7bn, 10 per cent down year-on-year. Systems hardware was $1.3bn with operating systems software at $400m.

  • z Systems – down 33 per cent annually
  • Power – down 3 per cent year-on-year
  • Storage – up 8 per cent annually at, we estimate, $592m

CFO Martin Schroeter said: “The Power growth rate improved sequentially, but was still down. The improvement reflects our transition to a growing Linux market, while continuing to serve a high value, but declining, Unix market. Our Linux on Power revenue grew and we gained share.

“In Unix, declines were driven by our low-end and midrange systems. High-end systems grew.”

Revenues in storage were “led by strong double-digit growth in our all-flash array offerings. Flash was the growth catalyst in our Storage midrange and high-end offerings. Storage hardware margins increased, both year to year and sequentially.” IBM has now enjoyed two quarters of year-on-year storage revenue growth.


IBM quarterly storage hardware revenues, showing two most recent growth quarters

The company highlighted that z Systems’ performance reflected the mainframe cycle, with a new product, the z14, introduced after the quarter ended. Storage grew for second consecutive quarter, led by flash, and gross margin expanded in z Systems and Storage; but an overall margin decline (down 3.9 points to 52.7 per cent) reflects the product mix.

IBM believes the core of storage revenues are moving to software while the growing part of on-premises storage hardware is getting focussed on flash, which is reflected in its results. There is also a growth in data being stored in the cloud and IBM’s own cloud is being steadily expanded, now reaching almost 60 data centres around the planet.

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Bron: The Register Lees het complete artikel hier:

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