What’s driving IBM’s z14 platform?
International Business Machines Corporation (IBM) is the pioneer in the enterprise mainframe business. The company’s System segment, which contributes nearly 10.0% to its overall revenues, has gained from the huge demand from z14 mainframe platform.
The ongoing trend of digital transformation of data warehouse functions in various enterprises to the cloud has spurred demand for the IBM Z platform. Higher usage of smartphones for transactions led to the increased need for such a platform, supporting faster service and secured storage of data.
The IBM Z mainframes are well supported with z14 microprocessors, delivering a clock speed of 5.2 GHz. In order to be more competitive, the company continues to upgrade it from Linux to mobile computing, pervasive encryption, and blockchain.
Performance in detail
From the graph above, we can see the revenue trend of the System segment in the last five quarters. It shows an increasing trend in the last two quarters, driven by strong growth in the IBM Z business. During this period, the segmental revenues grew at a CAGR (compound annual growth rate) of 7.1%.
In fiscal 4Q17, the System segment’s revenue witnessed its highest YoY (year-over-year) growth of 31.7% in the last four quarters, buoyed by a 71.0% YoY increase in IBM Z revenues. IBM shipped its highest MIPS[1. Microprocessor without Interlocked Pipeline Stages] in the company’s history. At the end of fiscal 2018, its System segment’s revenues came in at nearly $79.1 billion, up 6.0% YoY.
IBM added 14 new customers to the IBM Z platform in ten countries in 4Q17, driven by strong demand in North America.