Posts Tagged ‘Power’

IBM Insists Storage is Generating Positive Revenue

May 19, 2017

At a recent quarterly briefing on the company’s storage business, IBM managers crowed over its success: 2,000 new Spectrum Storage customers, 1,300 new DS8880 systems shipped, 1500 PB of capacity shipped, 7% revenue gain Q1’17. This appeared to contradict yet another consecutive losing quarter in which only IBM’s Cognitive Solutions (includes Solutions Software and Transaction Processing Software) posted positive revenue.

However, Martin Schroeter, Senior Vice President and Chief Financial Officer (1Q’17 financials here), sounded upbeat about IBM storage in the quarterly statement: Storage hardware was up seven percent this quarter, led by double-digit growth in our all-flash array offerings. Flash contributed to our Storage revenue growth in both midrange and high-end. In storage, we continue to see the shift in value towards software-defined environments, where we continue to lead the market. We again had double-digit revenue growth in Software-Defined Storage, which is not reported in our Systems segment. Storage software now represents more than 40 percent of our total storage revenue.

IBM Flash System A9000

Highly parallel all-flash storage for hyperscale and cloud data centers

Schroeter continued: Storage gross margins are down, as hardware continues to be impacted by price pressure. To summarize Systems, our revenue and gross profit performance were driven by expected cycle declines in z Systems and Power, mitigated by Storage revenue growth. We continue to expand our footprint and add new capabilities, which address changing workloads. While we are facing some shifting market dynamics and ongoing product transitions, our portfolio remains uniquely optimized for cognitive and cloud computing.

DancingDinosaur hopes he is right.  IBM has been signaling a new z System coming for months, along with enhancements to Power storage. Just two weeks ago IBM reported achievements with Power and Nvidia, as DancingDinosaur covered at that time.

If there was any doubt, all-flash storage is the way IBM and most other storage providers are heading for the performance and competitive economics. In January IBM announced three all flash DS888* all flash products, which DancingDinosaur covered at the time here. Specifically:

  • DS8884 F (the F designates all flash)—described by IBM as performance delivered within a flexible and space-saving package
  • DS8886 F—combines performance, capacity, and cost to support a variety of workloads and applications
  • DS8888 F—promises performance and capacity designed to address the most demanding business workload requirements

The three products are intended to provide the speed and reliability needed for workloads ranging from enterprise resource planning (ERP) and financial transactions to cognitive applications like machine learning and natural language processing. Doubt that a lot of mainframe data centers are doing much with cognitive systems yet, but that will be coming.

Spectrum Storage also appears to be looming large in IBM’s storage plans. Spectrum Storage is IBM’s software defined storage (SDS) family of products. DancingDinosaur covered the latest refresh of the suite of products this past February.

The highlights of the recent announcement included the addition of Cloud Object Storage and a version of Spectrum Virtualize as software only.  Spectrum Control got a slew of enhancements, including new cloud-based storage analytics for Dell EMC VNX, VNXe, and VMAX; extended capacity planning views for external storage, and transparent cloud tiering for IBM Spectrum Scale.  The on-premises editions added consolidated chargeback/showback and support for Dell EMC VNXe file storage. This should make it clear that Spectrum Storage is not only for underlying IBM storage products.

Along the same lines, Spectrum Storage added VMware 6 support and the certified vSphere Web client. In the area of cloud object storage, IBM added native NFS access, enhance STaaS multi-tenancy, IPV6 support, and preconfigured bundles.

IBM also previewed enhancements coming in 2Q’17.   Of specific interest to DancingDinosaur readers will likely be  the likely updates to the FlashSystem and VeraStack portfolio.

The company is counting on these enhancements and more to help pull IBM out of its tailspin. As Schroeter wrote in the 1Q’17 report: New systems product introductions later in the year will drive improved second half performance as compared to the first. Hope so; already big investors are cashing out. Clients, however, appear to be staying for now.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

 

IBM z System Shines in 3Q15 Quarterly Report

October 23, 2015

IBM posted another down quarter this past Monday, maybe the thirteenth in a row; it’s easy to lose track. But yet again, the IBM z System provided a bright spot, a 15 percent increase compared with the year-ago period. Last quarter the z also came up a winner. Still the investment analysts went crazy, the stock tumbled, and wild scenarios, inspired by Dell’s acquisition of EMC no doubt, began circulating.

ibm-z13

IBM z13

However, don’t expect IBM to be going away anytime soon. DancingDinosaur is a technology analyst and writer, absolutely not a financial analyst (his wife handles the checkbook).  If you look at what has been going on in the past two years with z System and POWER from a technology standpoint these platforms are here for the long haul.  Most of the top 100 companies rely on a mainframe.  Linux on z has become a factor in roughly 70 percent of the leading shops. When DancingDinosaur last ran the numbers there still are about 5000-6000 active mainframe shops and the numbers aren’t dropping nearly as fast as some pundits would have you believe.

primary-linuxone-emperor

IBM LinuxONE

The z13 and LinuxONE are very powerful mainframes, the most powerful by any number of measures in the industry.  And they are a dramatically different breed of enterprise platform, capable of concurrently running mixed workloads—OLTP, mobile, cloud, analytics—with top performance, scalability, and rock solid security. The Open Mainframe Project in conjunction with the Linux Foundation means that IBM no longer is going it alone with the mainframe. A similar joint effort with the Open POWER Consortium began delivering results within a year.

The Dell-EMC comparison is not a valid one. EMC’s primary business was storage and the business at the enterprise level has changed dramatically. It has changed for IBM too; the company’s revenues from System Storage decreased 19 percent. But storage was never as important to the company as the z, which had long been its cash cow, now diminished for sure but still worth the investment. The dozens and dozens of acquisitions EMC made never brought it much in terms of synergy. IBM, at least, has its strategic imperatives plan that is making measurable progress.

IBM’s strategic imperatives, in fact, were the only business that was doing as well as the z. Strategic imperatives revenue: up 27 percent year-to-year; Cloud revenue up more than 65 percent year-to-date.  Total cloud revenue hit $9.4 billion over the trailing 12 months. Cloud delivered as a service had an annual run rate of $4.5 billion vs. $3.1 billion in third-quarter 2014.  Business analytics revenue was up 19 percent year-to-date. Be interesting to see what cognitive computing and Watson can produce.

Besides storage, the other dim spot in the IBM platform story is Power Systems.  Revenues from Power Systems were down 3 percent compared with the 2014 period. DancingDinosaur, long a fan of Power Systems, anticipates the platform will turn positive next quarter or the first quarter of 2016 as some of the new technology and products coming, in part, from the Open POWER Consortium begin to attract new customers and ring up sales. The new Power Systems LC Server family should attract interest for hybrid Cloud, Hyperscale Data Centers, and Open Solutions, hopefully bringing new customers. With online pricing starting around $6600 the LC machines should be quite competitive against x86 boxes of comparable capabilities.

DancingDinosaur is Alan Radding, a veteran information technology analyst and writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at technologywriter.com and here.

 

IBM Boosts System z Job Hunting

June 12, 2011

People looking for a mainframe job got a big boost from IBM this month with the introduction of a new System z job website called the System z Job Board. After registering for the site you get to review job postings or post one.

A quick glance at the first few pages of job posts show a range of mainframe jobs from entry-level to advanced. Companies listing System z job openings included: IBM, EMC, state of Colorado, Blue Cross/Blue Shield of Colorado, Tata, Unum, Fidelity, Humana, GT Software, state of Minnesota, CVS, and more. Even Apple was there, looking, it appeared, to fill an education and marketing position.

The zEnterprise, what amounts to a hybrid cross-platform, cross-OS enterprise server (z/OS, z/VM, Linux on z, Power, AIX, Linux, x, and soon, Windows), promises to mix up the demand curve for mainframe people and, hopefully, open new opportunities. This comes alongside the purported wave of job vacancies expected from a surge of retirement among aging mainframe veterans. That this massive wave of retirements, seemingly in defiance of demographics, has yet to materialize is puzzling. DancingDinosaur suspects the big hits many 401k plans took in recent years dampened any rosy dreams of retirement and led many to delay plans.

Momentum for the System z mainframe also continues, IBM reports, mainly in emerging markets with shops in Brazil, Mexico, Russia, China, Africa, and India having selected IBM mainframe servers in the past year, but also in North America. Payment Solution Providers (PSP), Toronto, consolidated its entire IT infrastructure on the System z after the 11-year-old company determined that an HP and Oracle infrastructure lacked the security PSP required,

 The jobs website is an extension of IBM’s Academic Initiative for System z program, a global project by IBM to align with colleges, universities and businesses across the globe to develop mainframe and large enterprise skills among college students with an eye toward future employment with Fortune 500 companies worldwide. The Academic Initiative for System z program currently involves 814 colleges and universities across the globe.

The question of mainframe skills demand has been an ongoing debate among various LinkedIn mainframe groups for years. The tenor of the debate has turned generally more positive in recent months. You can follow it here. Or join LinkedIn for free here and subscribe to any or all of the various mainframe groups.

Finally, for job hunters a number of independent mainframe people have begun to compile a worldwide registry of mainframe shops as a Wiki. When DancingDinosaur last checked nearly 500 companies were listed. You can find the list here; you will need to register if you want to submit the names of any mainframe shops not currently listed. Granted the list is incomplete; there probably are several thousand active mainframe shops in the world. Even DancingDinosaur noticed several it had covered that weren’t listed. Still, it is a terrific start; as a Wiki you can bet it will evolve, especially if you contribute.

Among unemployed mainframers looking for work, the hardest hit judging from comments posted on LinkedIn are the 50-somethings. Their problems probably have more to do with the current job market in general and attitudes toward middle-aged workers than with anything specifically to do with the mainframe.


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