The iSeries Blog

Apr 16 2008   5:32PM GMT

System i revenues down 21% in first quarter

Mark Fontecchio Mark Fontecchio Profile: Mark Fontecchio

This may be the last time IBM reports System i hardware revenues on their own. Seeing as the platform is now officially merged with System p into a new Power Systems, future hardware revenue figures will probably reflect that.

It’s probably a good thing.

System i revenues dropped 21 percent compared to the year-ago period. That compares to increased or flat revenue numbers from the other platforms — System z was up 10 percent, System p up 2 percent, and System x flat. Aside from a small blip at the end of last year, hardware revenues for the System i platform have been dropping steadily for a while now. Let’s take a look at the last three years per quarter:

  Q1 Q2 Q3 Q4
2005 +1% +10% +25% -18%
2006 -22% -7% -22% -10%
2007 -13% -15% -21% +2%
2008 -21%      

Compare that to System p revenues in the same period:

  Q1 Q2 Q3 Q4
2005 +12% +36% +15% +4%
2006 -9% -10% +10% +4%
2007 +14% +7% +6% +9%
2008 +2%      

Are there anymore questions about why IBM decided to merge the two platforms? Aside from the benefits of having a single hardware platform on the Power processor, the merger will eliminate those ugly-looking, often double-digit revenue decreases that System i was experiencing quarter after quarter after quarter.

1  Comment on this Post

 
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  • Mark Fontecchio
    If you invested $100 in the system i in 2005 it would be worth less than $28 now. A pretty scary return
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