It's Big, it's Blue and it's down for 3Q: Whomp... there goes IBM's storage hardware revenue

IBM has posted a third sequential quarter of storage hardware revenue decline as part of its first 2019 quarter's results. Storage hardware revenues were 11 per cent down year-on-year to a calculated $350.9m. IBM's overall revenues were $18.2bn, down 4.7 per cent y-o-y. Storage hardware is part of IBM's Systems business, which …

[Gil Grissum]

"Competitive dynamics and pricing pressures. To El Reg, that means Big Blue's storage products were beaten by rivals' products more often than not." That's a great excuse for not making money while eliminating experienced techs and replacing them with millennials. Great Strategy for Ginny, as for how many quarters, IBM has lost money, while her bonuses haven't been tied to performance. Great deal, if you can get it. Any other companies just handing out bonuses that aren't tied to performance?

[Sir Loin Of Beef]

"Cloud". Why do we BS ourselves?

"Cloud". Why do we bullshit ourselves?

These are replicated data centers, not some magical sphere running systems.

I guess taking the term cloud from all of the WAN diagrams in the 90's, when drawing out how you connected to a server you went through the WAN "cloud" because people didn't want to explain how routers and protocols worked.

I know, our society has always dumb downed things for the masses, but we, who either like or love IT, should know better than to fall for all of Marketing's crap.

[Anonymous Coward]

Re: "Cloud". Why do we BS ourselves?

Be careful here - we have “cloud” in the AWS/Azure/Google sense and then we have “cloud” as in IBM-speak for rebranding older, inefficient data centres to bump the share price.

AWS/Azure/Google attempt to automate their offerings to simplify cost models (I know...it may not seem like it) while IBM lay off people, say their data centres are now automated (well they must be, there’s hardly anyone left to run them...), attempt to charge the customer for “premium services and facilities”, stand up services in the blink of a long drawn out hiring process and charge per reason for why they (IBM) shouldn’t/can’t/won’t do what the customer requests.

Did I mention IBM have AI and quantum computing? I’m sure they will improve your business. Yes...the one that’s failing due to IBM cloud...

[a_yank_lurker]

The Trend Continues

Now how many quarters out of the last 5 or 6 years has Itsy Bitsy Moron had a decline in revenue? It seems like there is the odd, one-off every 5 or so years that there is no decline.

[Anonymous Coward]

The Downward Spiral.....

The weaker storage performance was "driven by markets and competitive dynamics"............. ROUGHLY TRANSLATES AS: "We laid off most of our best storage reps years ago who rapidly joined EMC then poached our best clients."

[Anonymous Coward]

Posting IBM

I'll know when IBM no longer matters, one day no-one will post a comment on an IBM story.

[FozzyBear]

Re: Posting IBM

In fact IBM hasn't mattered for a while now. All we are doing is the IT equivalent of poking the dead carcass with a stick.

Whilst IBM might be waiting for the next mainframe cycle to inject some revenue and confidence into the business, they better lower their expectations. There are two companies that I know that are moving their mainframe systems to other platforms. No doubt there are others.

To be honest their other products and/or services just aren't compelling. In fact in many instances they are second rate on price, performance. Long gone the days when no one got fired for choosing IBM.

Shame really, but what do you expect when you tie CxO bonuses to share price only.

[JBird]

IBM Storage?

IBM sells storage?