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Big Blue's Buried News
Look closely: A storage flag waves inside IBM's hardware results
October 18, 2005
1 Min Read
6:00 PM -- IBM's understated earnings report is a mixed message. Net income is down, and overall revenues slipped 8 percent year-over-year, thanks in part to IBM's abandonment of the PC business. (See IBM Releases Results .)
Inside IBM's many-layered revenue structure, storage gleams a bit better:
Hardware revenues for the Systems and Technology Group totaled $5.0 billion for the quarter, up 7 percent... In addition to eServers, revenues from Storage Systems and Microelectronics increased 11 percent and 14 percent, respectively. [Emphasis added]
There's more good news on the software side:
Revenues from Tivoli software, infrastructure software that enables customers to centrally manage networks and storage, increased 8 percent... [Emphasis added.]
Now for the fine print: In the first quarter of 2005, storage systems revenue was up 5 percent year on year, and Tivoli software was up 3 percent. But during Q2, storage systems sales rose 19 percent year on year, and Tivoli software rose 11 percent.
Now there's a mixed message!
Mary Jander, Site Editor, Byte and Switch
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