Link: The Contradictions Of IBM’s Platform Strategy

“IBM is a systems company with a very large portion of its revenues and an even larger part of its profits coming from these two platforms, the System z mainframe and the Power Systems – now sometimes called the Cognitive Systems – line. The core systems business – meaning the servers, storage, and networking hardware and the operating systems and transaction processing software plus any financing needed for it – comprises about a third of IBM’s revenues and more than half of its gross profits, by our estimates. Various database and middleware stacks up on top of this, generating even more platform revenues and profits, but this is tougher to peel away.”
Original source: The Contradictions Of IBM’s Platform Strategy

Link: The Contradictions Of IBM’s Platform Strategy

“IBM is a systems company with a very large portion of its revenues and an even larger part of its profits coming from these two platforms, the System z mainframe and the Power Systems – now sometimes called the Cognitive Systems – line. The core systems business – meaning the servers, storage, and networking hardware and the operating systems and transaction processing software plus any financing needed for it – comprises about a third of IBM’s revenues and more than half of its gross profits, by our estimates. Various database and middleware stacks up on top of this, generating even more platform revenues and profits, but this is tougher to peel away.”
Original source: The Contradictions Of IBM’s Platform Strategy

Link: OLPC’s $100 laptop was going to change the world — then it all went wrong

“Ames says the real question isn’t whether laptop programs help students, but whether they’re more effective than other programs competing for the same money. “I think that given unlimited funding, absolutely … Learning about technology is very important,” she says. “That said, there’s always a tradeoff. There’s always some project that will be defunded or de-emphasized as a result of this.”

Thirteen years ago, OLPC told the world that every child should get a laptop. It never stopped to prove that they needed one.”

Original source: OLPC’s $100 laptop was going to change the world — then it all went wrong

Link: OLPC’s $100 laptop was going to change the world — then it all went wrong

“Ames says the real question isn’t whether laptop programs help students, but whether they’re more effective than other programs competing for the same money. “I think that given unlimited funding, absolutely … Learning about technology is very important,” she says. “That said, there’s always a tradeoff. There’s always some project that will be defunded or de-emphasized as a result of this.”

Thirteen years ago, OLPC told the world that every child should get a laptop. It never stopped to prove that they needed one.”

Original source: OLPC’s $100 laptop was going to change the world — then it all went wrong

Link: Dell Technologies’ “essential infrastructure” strategy

“We divested Dell services. We divested [VMware’s] vCloud Air, and really began to clean up the portfolio to drive forward Michael [Dell’s] vision that the world is going to need an essential infrastructure company. It might not be the sexiest play in IT, but absolutely at the end of the day, all this stuff has got to run on something. We’re proud to be that something.”
Original source: Dell Technologies’ “essential infrastructure” strategy

Link: The Server Market Booms, And It Could Last For A While

“Datacenters certainly came to the fourth quarter of last year hungry, and according to the latest statistics from IDC, they consumed 2.84 million units of iron, a 10.8 percent increase over the prior year’s final quarter. Thanks to IBM’s big bump up with System z14 mainframe sales and to a general trend of buying beefier boxes for hefty machine learning, analytics, and HPC workloads (admittedly but a slice of the server shipment pie), revenues for those servers shipped rose by 26.4 percent to $20.65 billion. This is the first time ever that server sales broke through the $20 billion barrier, and after IDC finishes restating its ODM server revenues for the first quarter of 2017, it is likely that it will report revised sales for all of 2017 to kiss $67 billion. Over that same period, Intel’s Data Center Group will account for $19.1 billion in sales and $8.4 billion in operating profit, just to give you a sense of the chip giant’s slice of the pie. If you are generous and assume that there is a 10 percent operating margin on servers – and that is because big iron NUMA machines and mainframes bring up the class average bigtime even as the ODMs do maybe 5 points of profit at best – that is a potential operating profit for the server industry of around $7 billion. If that is close to reality, then Intel will have around 27 percent of server revenues passed back to it by its OEM and ODM partners as a cost for compoents. If you add Intel’s profit to the server industry’s aggregate profit, and then add in the profit for memory and flash makers, Intel could account for 40 percent of the profit and as much as 50 percent back when memory and flash cost half as much as it did a year ago.”
Original source: The Server Market Booms, And It Could Last For A While

Link: Dell EMC Restructures Infrastructure Organizations To ‘Streamline’ Product Road Maps, Speed Go-To-Market

“In a major initiative to streamline Dell EMC’s infrastructure product road maps and go-to-market speed, the company is ending its Converged Platforms and Solution Division and moving its hyper-converged and converged infrastructure teams into Dell’s core server and storage business units.”
Original source: Dell EMC Restructures Infrastructure Organizations To ‘Streamline’ Product Road Maps, Speed Go-To-Market

Highlights from: IBM’s continuing quest to refresh its revenue mix

TPM has one of his usual, great round-ups of IBM’s business:

For the full 2016 year, IBM’s revenues were off 2.1 percent to $79.85 billion, but its “real” systems business, which includes servers, storage, switching, systems software, databases, transaction monitors, and tech support and financing for its own iron, fell by 8.3 percent to $26.1 billion.

Changing the revenue mix:

IBM’s efforts to promote SoftLayer cloud and Watson cognitive computing, mobile and social and marketing software and tools, and security wares – what it calls its strategic imperatives – are almost filling in the gap left behind as the core businesses shrink. IBM wanted these strategic imperative businesses to reach $40 billion and 40 percent of revenues by 2018, and in this quarter it already hit the 40 percent mark, with $33 billion in revenues for 2016–as much because of its overall revenue decline as for the growth in these businesses.

And, some info on their hardware revenue:

IBM sold just over $8 billion in Systems products, and brought $934 million to the middle line as pre-tax income

Also:

Schroeter said that Linux-based Power Systems machines now drove 15 percent of revenues, and that is pretty good considering that two years ago it was a few percent of sales.

Source: ”Drilling Down Into IBM’s System Group”( https://www.itjungle.com/2017/01/23/drilling-ibms-system-group/)