Feeds

Hardware slowdown sours IBM numbers

Services, software soar but mainframes really hurting

Top 5 reasons to deploy VMware with Tegile

IBM's customers are putting off big hardware buys until the firm refreshes its processor line, the company's latest financials show.

Figures out yesterday showed overall revenues at the giant were $24.1bn for its third quarter ending 30 September, up 6.6 per cent on the year. Net income was up 6.3 per cent to $2.4bn.

The company trumpeted the performance of its services and software arms. Global technology services turned in revenues up 12.8 per cent to $9.5bn with pre-tax income of $1bn, while global business services turned in $4.8bn, up 13.2 per cent, generating pre-tax income of $521m. New contracts totalled $11.6bn, up 12 per cent on the year, while the total backlog stands at $116bn.

Software had total revenues of $5.3bn, with pre-tax income of $1.3bn. The software business generates the biggest gross margin of all IBM's units, a whopping 84.4 per cent.

However, systems and technology saw revenues drop 10.3 per cent to $5.1bn, with pre-tax income coming in at a paltry $361m, down 12.4 per cent. The big brake on the unit's growth seems to be from its System z platform, with "a difficult comparison" seeing revenues on the mainframe business down 31 per cent year on year. The system p and x lines both showed six per cent year on year growth.

In a conference call, CFO Mark Loughridge said customers were putting off server buys while they waited for new processors to hit IBM's ranges and he didn't expect things to pick up in the current quarter.

However, he gave a fillip to the market as a whole, saying it didn't look like recent economic turmoil was affecting sales – other than to the financial sector proper. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.