System i revenues drop again - The iSeries Blog
» VIEW ALL POSTS Apr 25 2007   8:09AM GMT

System i revenues drop again



Posted by: Mark Fontecchio
System i revenue

This is getting to be like a broken record, but System i revenues dropped again, this time 13 percent, in the first quarter of this year. It is the sixth consecutive quarter that year-over-year revenue has gone down. IBM said weak upgrade sales on the platform caused the decline.

Compared to the same quarter two years ago, System revenue is down about 33 percent. That’s a hard slump.
This time, System i’s drop was in the midst of gains on all other platforms: systems z, p and x. It’s not for lack of investment by IBM. In the last year it introduced a VoIP solution with 3Com exclusively on the System i, as well as new entry-level System i boxes.

But analysts say System i suffers from a marketing problem.

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Get ready for a shocker: IBM System i revenues dropped again — The iSeries blog  |   Oct 24 2007   8:49AM GMT

[...] The question, of course, is why? Why does revenue continue to free fall? There must be reasons other than a marketing problem tied to a couple of name changes. Some think IBM hasn’t been pricing and engineering the System i correctly to target it at a different customer base than System p, IBM’s Unix boxes. [...]