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Friday, July 29, 2011

IBM i in IBM 2010 Financials

I just came across a break out of IBM Revenue posted by Bob Djurdjevic on his Annex Research web site.  The link above is the data source that I obtained from his site and added the percentages.

The URL for the full report from Annex Research is:
http://djurdjevic.com/2011/Bulletins2011/ibmseg10.pdf


This report is extremely significant.  It shows that IBM i revenue has dropped to 3/10ths of 1% of IBM total revenue or 282 Million out of 99.9 Billion in revenue.  Note that hardware sales once what IBM was all about has dropped to number 3 at 18% of total sales below Software 22.5% and Global Services 56.5%.

A statistic that IBM remains very quiet about is the fact that xSeries or Windows based Intel compatible servers dominate server sales with a whopping 5.4 Billion or 30.5% of server revenue.  Contrast that to IBM i based hardware sales of 6/10ths of 1%.  Note that sale of disk storage surpasses IBM's System z sales and System p is behind z.

This does not bode well at all for the future of IBM i as I have been saying for nearly a year now.
Believe what you will, but note that IBM has become a consulting company.  When IBM withdraws support for IBM i, they will be most happy to sell you services to move your applications to Windows on System x or Linux on System p. 

IBM is Microsoft's biggest service provider!  It is also IBM's biggest business partner!  Go figure...

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