Feeds

Reg man crunches IBM's storage hardware revenues

A tale of two charts

HP ProLiant Gen8: Integrated lifecycle automation

Analysis IBM's under-performing storage hardware business can be understood better if we look at the quarterly revenue numbers.

For that to be made possible someone has to dive into IBM's results over the past few quarters and work out the storage hardware revenue numbers, seeing as IBM doesn't present them on a plate. That's what El Reg storage desk has done. For the past 12 quarters, we have compiled likely revenues, having worked them out on the basis of a storage segment percentage of an overall Systems and Technology group revenue number, entered these computed numbers into a spreadsheet, and generated two charts to present them.

IBM Storage Q1 2013

IBM Q1 2013 results slide showing storage segment percentage.

Here is the first chart and it shows IBM's quarterly storage hardware revenues since the second quarter of 2010:

IBM Quarterly Storage HW Revenues

We can see a steady seasonal pattern, with, for example, bumper fourth quarters as IBM sales management drives the reps hard at the end of the year. But we can also detect a falling off of storage revenues if we compare the same quarters in 2011 and 2012. If we annualise the chart then the decline in storage revenues from 2011 to 2012 becomes clearer:

IBM annual storage HW revenues

Our computed numbers behind this chart are:

  • 2010 - $3.633bn
  • 2011 - $3.668bn
  • 2012 - $3.406bn

The fall in storage HW revenues from 2011 to 2012 is probably not acceptable to the IBM number-crunchers, and may well have prompted the appointment of Ambuj Goyal as IBM's new storage biz boss in January.

IBM Storage Q12 2012

IBM Storage segment percentage Q1 2012

Now, three months into Goyal's stewardship, the first 2013 quarter's storage hardware business is 11 per cent down on the year-ago quarter according to IBM's release, which confirms the rot is continuing. With all this clear, it's easy to see why IBM CFO Mark Loughridge said that "substantial actions" were going to be taken in the storage area, and in the under-performing server area too.

We don't know what the profit and loss numbers are for the storage hardware business and are not likely to find them out.

It would be fascinating to see the overall storage hardware revenue numbers broken down further, by IBM storage product lines, but those numbers are not being made public. All we can deduce is that, if Storwize and XIV revenues grew strongly, the under-performing products must have performed quite badly. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
THUD! WD plonks down SIX TERABYTE 'consumer NAS' fatboy
Now that's a LOT of porn or pirated movies. Or, you know, other consumer stuff
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
FLAPE – the next BIG THING in storage
Find cold data with flash, transmit it from tape
Seagate chances ARM with NAS boxes for the SOHO crowd
There's an Atom-powered offering, too
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.