- #Ironfell not working 2017 full#
- #Ironfell not working 2017 software#
- #Ironfell not working 2017 plus#
This group largely sells batch and online processing software, to tell the truth.
Calling this “cognitive,” which implies machine learning or some form or artificial intelligence, is an obvious stretch. That profit level is more or less in line with its Global Business Services group, and about a third of what it derives from its Cognitive Solutions group, which sells its database, data warehousing, data analytics, and transaction processing wares.
#Ironfell not working 2017 full#
For the full year, IBM sold just over $8 billion in Systems products, and brought $934 million to the middle line as pre-tax income. This presentation does not include internal revenues for servers shipped to other IBM divisions and groups.
#Ironfell not working 2017 plus#
In the Systems group, this includes Power Systems and System z mainframes and their operating systems plus storage hardware. Here is a table below that summarizes how IBM did in the past four quarters in the new divisions and groups it set up in early 2015 after it sold off the System x server business to Lenovo. IBM wanted these strategic imperative businesses to reach $40 billion and 40 percent of revenues by 2018, and in this quarter it already hit the 40 percent mark, with $33 billion in revenues for 2016–as much because of its overall revenue decline as for the growth in these businesses.
#Ironfell not working 2017 software#
IBM’s efforts to promote SoftLayer cloud and Watson cognitive computing, mobile and social and marketing software and tools, and security wares – what it calls its strategic imperatives – are almost filling in the gap left behind as the core businesses shrink. The good news is that IBM’s declines in this core systems business are slowing, even if it is not at quite the same pace as the overall business. (That’s our estimate IBM does not break out sales this way, but we have some pretty good guesses on how it all breaks down.) For the full 2016 year, IBM’s revenues were off 2.1 percent to $79.85 billion, but its “real” systems business, which includes servers, storage, switching, systems software, databases, transaction monitors, and tech support and financing for its own iron, fell by 8.3 percent to $26.1 billion.
This is sure a lot better than a year ago, when IBM’s revenues fell by 8.4 percent to $22 billion and its net income fell by 18.6 percent to $4.46 billion. In the final period of 2016, IBM’s overall revenues were $21.77 billion, down 1.1 percent from a year ago, and net income rose by nearly a point to $4.5 billion. The most obvious thing is that IBM’s revenues and profits continue to shrink, but the downside is getting smaller and smaller, and we think that IBM’s core systems business will start to level out this year and maybe even grow by the third or fourth quarter, depending on when Power9-based Power Systems and z14-based System z mainframes hit the market. It is with this in mind that we ponder IBM’s fourth quarter financial results, which were announced last Thursday, and more specifically think about what may be in the cards for the Power Systems platform in 2017 and beyond. It is a new year, and we are all looking forward to a growing economy and some much needed competition for compute in the datacenter as there is a resurgence of interest in the Power processor and a growing probability that ARM server chip makers, particularly Qualcomm and Applied Micro, are going to see some traction this year.
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