Hardware shines for IBM in third quarter

Hardware sales overshadowed software and services last night as IBM unveiled a decent set of financials for the third quarter. Turover grew 4% on a constant currency basis to $24.3bn as profits went up 12% to $3.6bn for the three months ended 30 September. "This quarter, we continued the tren

Hardware sales overshadowed software and services last night as IBM unveiled a decent set of financials for the third quarter.

Turover grew 4% on a constant currency basis to $24.3bn as profits went up 12% to $3.6bn for the three months ended 30 September.

"This quarter, we continued the trend of improving business performance," said Mark Loughridge, CFO at Big Blue.

Total Global Services revenues grew 2% to $14.1bn; Global Technology Services sales were up 1% to $9.5m, Global Business Services grew 5% to $4.6b and Outsourcing signings were down 14% to $5.7bn.

Software revenue rose 2% to $5.2bn; Websphere grew 16%, Information Management
was up 7%, Relational Database was up 5%, Tivoli grew 9% and Lotus returned to modest growth.

However, it was the Systems and Technology segment that outshone the other business units, up 10% to $4.3bn. This included a 15% rise in System z sales as Power revenues declined 13%, though sales of mid-range systems unveiled in Q3 grew 11%.

"We continued the roll out of Power7 with the high end and entry products in mid-September. Shipments were limited though, with just two weeks of general availability in the quarter," said Loughridge.

Storage hardware revenue grew 8%, disk grew 14 driven by the DS8000 and XIV. Tape declined 8%.

The revitalisation of System x sales continued with revnues growth of 30%, following a restrucutre of the business unit at the top of 2009.

MicroScope+

Content

Find more MicroScope+ content and other member only offers, here.

Read more on Desktop PCs

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

ComputerWeekly

SearchITChannel

Close