IBM increases storage sales despite market decline

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IBM increases storage sales despite market decline

IBM reported its storage business grew 4 percent year-over-year in contrast to the overall decline in storage sales by the traditional top vendors.

IBM's overall hardware in its third fiscal quarter of 2017, which ended 30 September, grew 14 percent year-over-year to US$1.3 billion, driven by growth in the company's storage and z Systems mainframes. 

That included a 4 percent rise in storage revenue and a 62 percent year-over-year rise in z Systems mainframe sales, thanks to the product line's latest version which focuses on high-performance with encrypted data. The gains were partially offset by an 8 percent drop in Power-based server sales.

IBM no longer offers general-purpose x86-based servers since it sold that business to Lenovo in 2014.

The storage business has seen slower growth recently, with second-quarter calendar year 2017 worldwide storage revenue up 2.9 percent, year-over-year, to US$10.8 billion, according to IDC.

The growth in the business has shifted away from the traditional leaders in the business, with NetApp the only traditional vendor to see a significant increase in storage sales. The original design manufacturer, or ODM, part of the market grew by 73.5 percent year-over-year.

NetApp had sales of US$695 million, up 16.7 percent over last year. That made NetApp the only branded storage vendor among the top five companies to see growth, according to IDC. IBM had US$556 million in storage sales during the quarter, which was down year-over-year by 0.4 percent, which was still much better than the other top-five storage vendors, IDC said.

IBM, however, said on Tuesday that its third fiscal 2017 storage sales represented the third consecutive quarter of storage growth.

This article originally appeared at crn.com

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