Inside IBM's Enduring Revenue Challenge

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Part 9
Inside IBM's Enduring Revenue Challenge PART 9 OF 21

Behind IBM’s Storage Hardware Growth in 2Q17

Storage: IBM’s silver lining?

Although International Business Machines’ (IBM) Systems segment revenue fell more than other segments in 2Q17, the storage hardware business appears to have emerged as a silver lining. Storage rose 8% YoY (year-over-year) and also reported growth on a sequential basis.

Fiscal 2Q17 marked the business’s second-straight quarter of growth, after more than five straight years of storage revenue declines. In fiscal 1Q17, storage hardware reported growth of 7%. Double-digit growth in company’s all-flash array sales drove growth in storage hardware.
Behind IBM&#8217;s Storage Hardware Growth in 2Q17

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IBM CFO (chief financial officer) Martin Schroeter stated: “This is the second quarter in a row with growth in storage. Our Power declines moderated, and our mainframe business is consistent with what you would expect at the end of a cycle. Mainframe and Storage margins grew year to year and Power margins improved sequentially.”

IBM’s flash storage is used in Watson, its AI (artificial intelligence) offering for big data applications.

A leader in flash storage solutions

Earlier this week, Gartner positioned IBM as a leader in its Magic Quadrant for Flash Storage Solutions. This announcement came after IBM has strengthened and expanded its FlashSystem portfolio with its DeepFlash and Storwize offerings.

IBM holds the record of having the maximum patents, and 2016 marked the 24th-straight year for IBM to top the list of companies with the maximum patents. IBM has around 380 patents related to flash offerings. Notable among these are its FlashCore and MicroLatency technologies.


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