Posts Tagged ‘VNX’

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.

 


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