|Exam Name||:||IBM Midrange Storage Technical Support V3|
|Questions and Answers||:||150 Q & A|
|Updated On||:||February 20, 2019|
|PDF Download Mirror||:||Pass4sure 000-451 Dump|
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vp of Editorial
With nip-and-tuck battles in essentially each rating category, IBM prevails on the Storage journal/SearchStorage.com fine Awards clients’ provider and reliability scores.
With only 1 suitable-three finish on the primary six quality Awards for midrange arrays surveys, IBM may well be considered a depressing-horse winner this time round. however whatever thing the color of its horse, IBM galloped to victory within the seventh version of the quality Awards for midrange arrays by means of outdistancing the box in four of 5 rating classes. And it’s a particularly strong box of finalists this time, with a splendid common rating of 6.60 -- simply 0.03 aspects off the excessive mark set a few surveys in the past. As we’ve seen during the years, user pride with this class of storage equipment is high and hiking as companies roll out new items that elevate the bar for high-quality and reliability.
IBM just missed the 7.00 mark while garnering a extremely surprising overall ranking of 6.ninety one. And it became a great component for massive Blue to tally such a high rating because the competition turned into fierce. Oracle Corp. snared a category and nipped at IBM’s heels in three others to conclude an in depth 2nd with an basic rating of 6.86. Following Oracle there changed into a small hole within the ratings earlier than NetApp Inc. (6.sixty five) and Dell Inc. (6.sixty four) accomplished in a virtual useless heat.income-drive competence
revenue-force competence: Midrange array carriers
step one in any midrange array implementation is the sales technique. For an IT corporation, this experience will frequently set the tone of the connection with its product dealer. For a dealer, it’s a chance to show the depth of its expertise and dedication to the client. Oracle netted a 6.seventy five by scoring highest on three of the six category statements and tying on a fourth. It tied IBM for the maximum observation rating (6.ninety three) for “The seller’s revenue assist group is knowledgeable.”
Breaking down the numbers
6.sixty five: The community’s optimum usual observation rating for having a knowledgeable income support team.
@pbinitial product fine
preliminary product best: Midrange array carriers
If the income procedure sets the tone, flipping the “on” change for the primary time is probably going to be a defining experience as well. the entire providers appear adept at making an excellent affect with their midrange ware, with an normal category common of 6.70 -- barely a whisker off the outdated excessive of 6.71. The neighborhood turned into led by means of IBM, which posted the most effective 7.00-plus class ranking with a 7.09. Dell (6.97) and Oracle (6.ninety) finished an in depth 2nd and third, respectively, with the rest of the neighborhood inserting up strong scores as neatly.
Breaking down the numbers
6.95: IBM’s “lowest” remark rating (for “The product requires very little supplier intervention”) nonetheless very nearly received.Product facets
Product elements: Midrange array companies
while there are lots of factors contributing to the ultimate influence of a product, aspects and capabilities can trump all other considerations. however clients can be harsh judges and, consequently, the universal class normal for these midrange product lines tied for the neighborhood’s second lowest at 6.56. That’s not to imply the scores have been bad, just just a little reduce with IBM (6.eighty four) and Oracle (6.83) finishing in a virtual lifeless heat at the suitable of the stack, followed via yet another close-useless-warmth finish between Dell (6.67) and NetApp (6.66) to fill out the precise 4 spots.
Breaking down the numbers
5: The number of statements that IBM scored highest on (out of seven).
Product reliability: Midrange array companies
There’s no sterner measure than the examine of time for a storage gadget. A product may fall brief function-shrewd, but if it shows up for work each day, those shortcomings is frequently unnoticed. As a bunch, this crop of midrange products is a stalwart bunch, with an standard average commentary score of 6.seventy two -- just shy of the 6.seventy four posted two years in the past. IBM once again led the way, with a sterling ranking of 6.ninety eight, which changed into enough to nose out persistent Oracle’s 6.94. Dell (6.76), Hitachi (6.seventy five) and NetApp (6.seventy two) followed in a good scoring cluster.
Breaking down the numbers
6.ninety one: The group’s optimum standard rating turned into for experiencing little downtime.Technical support
Technical support: Midrange array companies
across all fine Awards categories, IBM usually earns excessive marks for its technical assist. during this midrange array neighborhood, IBM continues that tradition with a profitable mark of 6.92. Oracle once more proved to be a dogged competitor, finishing complicated on the heels of IBM with a 6.89. the entire vendors fared well, demonstrating their attentiveness to consumer needs with an overall standard of 6.56 for the category, simply 0.03 off the most appropriate previous ranking.
Breaking down the numbers
6.40: The group’s lowest regular observation score for offering sufficient working towardsTwo extra measures of midrange prowess
buy this midrange seller array again?
buy it again? The ultimate question on our satisfactory Awards surveys always asks: Given what you now know, would you buy this product again? often (as is the case this time), the purchase-once more numbers don’t appear to jibe with the class rankings. Chalk it as much as brand loyalty or to sticking with what you understand, or possibly it’s just that the entire product strains rated here fared reasonably smartly.
records stored on midrange array dealer
Heavy lifters: We also like to know the way the rated methods are getting used and how a lot groups count on them. Some insight in these areas can be derived from realizing how a good deal facts organizations have saved on these items. It’s not a measure of features or performance, however it will also be one other way to gauge reliability.
BIO: prosperous Castagna is editorial director of the Storage Media community.
February 6, 2019 Alex Woodie
It’s a new 12 months, which capacity a new crop of champions has emerged from IBM. more than 600 souls can call themselves IBM Champions this year, however handiest 64 determine as IBM Champions for energy programs. We whittled away the AIX and Linux consultants to go away you with the folks who will lead the IBM i cost in 2019.
IBM doesn't have a specific class for IBM i Champions. massive Blue breaks out its system z leaders, along with champion categories for facts & Analytics, Cloud, Collaboration options, Storage, Watson IoT, Blockchain, and security.
For the Champion software, IBM lumps the IBM i individuals in with their Linux and AIX brethren who share the vigour programs platform. because the IBM i platform is exciting and the IBM i group is, in significant part, break away AIX and Linux, IT Jungle works to figure out which of the IBM Champions for vigor programs are there as a result of their work on IBM i.
here are the 12 new IBM Champions for vigour programs who're involved with the IBM i server and the IBM i community:Larry Bolhuis
Bolhuis holds the title of Chief i-entist at Frankeni know-how Consulting in Middleville, Michigan. Bolhuis has been engaged on the IBM midrange platform on the grounds that the early 1980s, beginning with S/34.Bastien Boudot de la Motte
Boudot de la Motte is a enterprise unit manager for hybrid IT solutions at SCC France. He works with a number of operating methods on vigour, including IBM i and AIX.Nathanaël Bonnet
Bonnet is an IBM i skilled at Gaia, an IT consultancy primarily based in France. Bonnet is also the president of common France.Steve Bradshaw
Bradshaw is the founder of at Rowton IT options, an IBM business companion in the UK that offers IBM i software and functions. Bradshaw also writes a regular function for PowerWire.ecu.David Brault
Brault is a product advertising supervisor with LANSA, the Chicago, Illinois IBM i construction tool maker that was simply bought via Idera. Brault has been at LANSA more than twenty years.Charles Guarino
Guarino is the president of central Park statistics, an IBM i consultancy in ny city. Guarino is an expert on Rational Developer for IBM i (RDi) and a sought-after speaker on the IBM i speakme circuit.Josh hall
hall is a expert with Seiden group and a 2018 “sparkling Faces” member. The South Dakota resident also launched a user group referred to as HUGi.Michael Karasienski
Michael Karasienski is an IBM i supervisor at Carhartt, a $600-million attire enterprise based mostly in Dearborn, Michigan. Karasienski became featured in an October 2017 story in IBM methods magazine about Carhartt’s server migration.Niels Liisberg
Liisberg is a major utility architect at device and components, an IBM business associate based mostly in Hørsholm, Denmark, that works extensively with the IBM i platform.Jesper Hemmet Omer
Omer is an IT manager with HT Bendix A/S, a Danish wholesaler of furnishings and kitchen elements. He’s additionally the president of the national IBM i-concentrated user community usual Denmark.Stephanie Rabbani
Rabbani is a senior consultant with Seiden community, an IBM i consulting neighborhood based close manhattan metropolis. Rabbani turned into named one of the “sparkling Faces” for IBM i in 2017.Robin Tatam
Tatam is the director of safety technologies for aid techniques, the IBM i utility seller based in Eden Prairie, Minnesota. Tatam is an IBM certified advisor and has greater than twenty years of adventure with the IBM i and predecessor platforms.
These new IBM Champions for vigor techniques be a part of a suit returning classification. listed below are the 24 IBM Champions for vigour programs from 2018 who work primarily in the IBM i box and are IBM Champions once once again in 2019:
Liam Allan, open supply RPG developer by means of Works of Barry and an long-established “clean Faces” member from 2017
Torbjörn Appehl, founder of IBM i Competence in Stockholm, Sweden
Jim Buck, the founding father of Impower applied sciences in Kenosha, Wisconsin
Koen Decorte, proprietor of IBM i consultancy CD make investments based in Belgium
Roberto De Pedrini, is an IBM i coach at FAQ400, an IBM i training enterprise based mostly in Italy.
Shrirang “Ranga” Deshpande of usual Europe in Belgium
Kim Greene, an IBM i Lotus Domino knowledgeable and fundamental at Kim Greene Consulting
Susan Gantner, a founding father of PARTNER400 in Mississauga, Canada
Bartlomiej Grabowski, the IBM energy most important assist expert at DHL IT features in Prague, Czech Republic
Midori Hosomi, a manager at iGUAZU, an IBM business partner primarily based in Japan
Tom Huntington, vp of technical solutions for support programs
Scott Klement, a specialist with Profound logic who’s based in Wisconsin
Richie Palma, IBM vigour programs answer consultant with iTech options community
Christian Massé, a teacher with VOLUBIS, an IBM enterprise accomplice based in France
Peter Massiello, the founding father of iTech options community in Danbury, Connecticut
Jon Paris, a founder of PARTNER400
Michael Pavlak, a options architect with Fresche options who’s based mostly in Illinois.
Trevor Perry, chief strategist at Fresche solutions
Steven Pitcher, methods engineer at iTech options neighborhood who’s primarily based in Nova Scotia, Canada
Kody Robinson, a developer at Arkansas Electrical Cooperative business enterprise and an original member of the 2017 “clean Faces”
Alan Seiden, essential of Seiden group
Paul Tuohy, creator of the regularly occurring “iTalk with Tuohy” characteristic on IBM systems magazine
Laura Ubelhor, the essential at Consultech functions in Detroit, Michigan
Carol Woodbury, vice chairman of world security capabilities at HelpSystems
Congratulations to all 36 IBM i Champions (technically, the IBM Champions for vigour programs, with a forte in IBM i). that you would be able to read greater about this yr’s classification of champions right here.connected stories
Massiello Named First Lifetime Champion for energy
IBM vigor Champions: displaying passion For The Platform
A early life movement For IBM i Champions
John Teltsch (IBM)credit: IBM
IBM has revealed a string of latest channel initiatives and investments because it seeks to build key accomplice talents and alternatives within the 12 months forward.
Unveiled during PartnerWorld at suppose in San Francisco, big Blue rolled out new initiatives including its Watson-based collaboration engine known as IBM company accomplice connect; My PartnerWorld; new utility deal registration and IBM vigour programs, LinuxONE and Z ‘In It to Win It’ incentives.
On suitable of this, the dealer also particular the way it was additional investing in associate abilities and enablement, in addition to riding increase opportunities in market segments similar to security and hybrid cloud.
chiefly, IBM company associate join specializes in helping companions tap into the international ecosystem to collaborate on client opportunities, increase new enterprise and produce new solutions to market.
meanwhile, the Watson-primarily based engine will enable partners with complementary capabilities to discover each different, get to market quicker and promote more together, based on John Teltsch, normal manager of associate ecosystem at IBM.
My PartnerWorld, set to launch on 15 February, aims to present a personalised on-boarding and enablement experience, giving companions the probability to manipulate PartnerWorld equipment and shortcuts in one location. This comprises My income undertaking (MySA), the PartnerWorld Console, Co-marketing Centre and company partner connect platform.
moreover the brand new application deal registration will offer companions with precedence entry to particular bid pricing with the intention to reduce battle between technology providers whereas enhancing monetary consequences.
Teltsch added this was a part of the seller's ongoing transformation efforts, which it kicked off closing 12 months, to enrich associate journey and profitability, including projects round channel pricing, incentives and streamlined resale authorisation.
In April last year, large Blue, restructured its companion engagement models throughout the channel.
moreover, the IBM energy programs, LinuxONE and Z 'In It to Win It' incentives have now been made accessible to partners, which also extends the motivation for IBM storage into 2019, together with deploying new demand technology strategies to drive exclusive leads.
On correct of these new initiatives, the supplier is additionally launching an ESA co-advertising providing for partners embedding IBM know-how, and throughout third-birthday celebration marketplaces, moreover bettering its digital APIs amid plans to double the number of digital choices.
"We continue to support partners on their journey to SaaS, with greater than 400 as-a-carrier offerings, coupled with new demos, trials and incentives to accelerate boom,” Teltsch referred to.
IBM has also launched SaaS deal registration and P360, which is a device enabling companions to peer their customer’s analytics.
partner expertise and enablement
Delving deeper, IBM additionally showcased its new revenue enablement answer, Seismic@IBM, a tool that aspects income kits, performs, presentations, use circumstances and different property.
The value kit guide bundle is additionally being improved into edition 2.0, whereby partners can double their IBM cloud credit; deliver access to a construction sandbox environment; entry cut price vouchers for select education movements and additional subscription discounts.
as a result, Teltsch talked about it changed into additionally doubling the number of equipment channel technical sellers to aid companions in the container.
Going forward, a brand new managed functions safety provider program (MSSP) aims to support partners construct protection practices and bring solutions in either an embedded or reseller model.
A ‘comprehend Your IBM’ protection earnings incentive will serve up reloadable IBM Rewards debit cards to partners who sell new protection licenses and SaaS.
Teltsch noted it has additionally enabled companions to build ‘Cloud Paks,’ that are business-grade container application packages with advice and step-by means of-step guidance for partners to right now construct with open requirements with a purpose to enable hybrid and multi-cloud deployments.
“built for Kubernetes on the IBM Cloud and IBM Cloud private, IBM Cloud Paks are designed to speed up time to production and enrich readiness at decrease cost than containers on my own,” he explained.
additionally, a new Cloud Digital Technical Engagement program will provide companions with access to technical property concentrated on product demos and tutorials.
“These belongings deliver a deep understanding of product choices and the way they could assist clients along their journey to Cloud and AI," Teltsch brought. "Our new Seismic@IBM will encompass a hyperlink to this Cloud Digital Technical Engagement software so companions can effortlessly entry this important suggestions while getting ready for customer engagements."
in accordance with Teltsch, the new initiatives and investments had been a response to the "continual comments" from companions and clients.
Teltsch printed that all through the previous 12 months, companions had doubled their variety of specialist and skilled knowledge throughout its technology stack.
“We’ve also seen big momentum within the variety of partners constructing their expertise and selling solutions in strategic areas like IBM protection, Cloud, IoT and Watson AI, with our 2d Watson build problem producing greater than 500 AI solutions and prototypes that run on the IBM Cloud,” Teltsch noted.
all through its fourth quarter effects, large Blue brought up that its cloud enterprise, grew 12 per cent to US$19.2 billion in 2018.
in addition, the company's cognitive software business, including its artificial intelligence platform Watson, analytics and cyber security functions and is its second greatest, stated revenue of US$5.forty six billion, in comparison with analysts' expectation of US$5.25 billion.
Julia Talevski attended PartnerWorld at suppose in San Francisco as a visitor of IBMbe part of the publication!
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IBM dropped its quarterly wave of storage products this week, focusing mainly on latency-lowering NVMe technologies and managing growing volumes of unstructured data.
IBM followed through on its roadmap to broaden support for end-to-end NVMe from application servers to storage arrays with the launch of a new Storwize V7000 system. The Storwize V7000 is the first IBM midtier system to add support for NVMe-oF, offering a Fibre Channel (FC) option.
Other IBM storage products launched or upgraded include Spectrum Virtualize, Spectrum Discover, Storage Insights, IBM Cloud Object Storage, a FlashSystem A9000R array and a TS1160 enterprise tape drive.
"This is just another example that we're in the year of NVMe," said Scott Sinclair, an analyst at Enterprise Strategy Group. "Storage vendors are embracing the benefits of NVMe technology to provide higher storage performance and more efficient data access."
Eric Burgener, an IDC analyst, said it's important for IBM to extend NVMe support across its portfolio. IDC research predicts that, by 2021, systems that use NVMe rather than SCSI as a foundation technology will generate at least half of external primary storage revenue.
"We've had all this infrastructure modernization going on and the new workloads that need to be managed include a lot of real-time big data analytics that you just really can't run on SCSI," Burgener said. "There are workloads that absolutely have to have NVMe in the mix."
IBM's FlashSystem 900 enabled NVMe over InfiniBand early this year, and the FlashSystem 9100 shipped in August with end-to-end NVMe support.IBM Storwize V7000 is a midrange all-flash array that supports end-to-end NVMe. NVMe over Fibre Channel support
IBM now supports the NVMe over FC transport option in storage products that use its Spectrum Virtualize software, including the new Storwize V7000. Customers that purchased IBM's SAN Volume Controller, FlashSystem 9100 and V9000 or Storwize V7000F after September 2016 can enable NVMe over FC through a nondisruptive update of the IBM Spectrum Virtualize code. IBM plans to add support for NVMe over Ethernet through Spectrum Virtualize in 2019, according to Eric Herzog, chief marketing officer and vice president of worldwide storage channels at IBM.
Like many IBM storage products, the new Storwize V7000 ships with Spectrum Virtualize software to deliver enterprise data services to IBM and third-party storage systems. These services include snapshots, replication, at-rest encryption and artificial intelligence-based data tiering.
The Storwize V7000 now includes hardware-based compression and encryption to minimize the performance impact of those functions. Herzog said IBM uses extra processor chips in its new FlashCore Modules to enable the hardware-based at-rest data encryption and compression.
A new NVMe-based 19.2 TB FlashCore Module also serves to boost the density of the Storwize system. The all-flash Storwize V7000 offers a maximum raw capacity of 461 TB per control enclosure and as much as 32 PB in a four-way cluster. Flash drive capacity options are 4.8 TB, 9.6 TB and 19.2 TB, and IBM claims it can deliver 5-to-1 data compression.Enabling off-the-shelf NVMe SSDs
Storwize ships with IBM's new 2.5-inch FlashCore Modules by default, but customers can choose industry standard NVMe-based SSDs or add HDDs from third-party vendors. Herzog said IBM's FlashCore Modules offer higher performance, lower latency and a longer seven-year warranty than open-market SSDs that are typically guaranteed for three to five years.
Burgener said IBM's shift to enable the use of off-the-shelf NVMe SSDs "basically shows that they don't feel there's that much of a performance difference associated with custom hardware anymore."
"If you want to run inline data services, like compression and encryption, you can do that with lower latencies on those FlashCore Modules. But if you're not interested in that, then the NVMe SSDs are actually a less expensive option. That, to me, is their future direction," Burgener said.
Also among new IBM storage products is a new 18 TB custom flash module that can double the maximum capacity of its FlashSystem 900. A new 15.36 TB flash module boosts storage density in IBM's high-end DS8880F arrays targeting the Unix, Linux and mainframe markets. A new DS8880 zHyperLink card improves latency.
IBM also added an entry-level configuration of the FlashSystem A9000R system designed for cloud storage.Spectrum Discover product aimed at 'data oceans'
IBM's new Spectrum Discover product is designed to automate the cataloging of unstructured data through standard metadata and newly created custom metadata to facilitate data analytics, governance and storage optimization. The software deploys as a VMware virtual appliance and includes an API to enable data analytics, compliance and other applications to access the metadata.
"Forget data lakes. You've now got oceans of data. How are you going to leverage that ocean of data to get value out of it?" Herzog said.
Using custom metadata tags, Spectrum Discover can help to speed the data scanning process, especially with compliance applications that need to search through potentially billions of files, Herzog said. With analytics workloads, data scientists often must work with storage administrators to prepare the data, and Spectrum Discover could automate and streamline the process, he added.
"The fastest array in the world won't help if you don't know what your data is," wrote Steve McDowell, an analyst at Moor Insights & Strategy, in an email. "IBM's Spectrum Discover will solve real-world problems in data management. I think we'll see others emulating IBM on this front."
Spectrum Discover is based on technology from IBM Research and supports unstructured data in IBM Cloud Object Storage System and IBM Spectrum Scale. IBM plans to add support for Dell EMC Isilon next year.More updates to IBM storage products
An update to IBM's free cloud-based Storage Insights resource management tool adds capabilities to create and schedule customized reports and diagnose SAN bottlenecks. AI technology can detect storage network gridlock, triggering an alert for an IBM support technician to contact the customer. The first version of Storage Insights became generally available last February.
IBM's pay-for-what-you-use Storage Utility Offering can now enable dual-system high-availability configurations at a starting monthly rate that's only 20% more than the cost to lease a single system. The IBM Storage Utility Offering also added support for a data protection product, the TS7760 virtual tape library.
Updates to IBM storage products aren't restricted to flash. The new entry-level TS1160 enterprise tape drive improves performance; supports write once, ready many (WORM) for users in regulated industries; and boosts capacity to 20 TB, a doubling of the prior TS1150 model. IBM's TS3500 and TS4500 libraries support the new tape drive.
IBM Cloud Object Storage also adds new WORM capability for low-cost mirrored and concentrated dispersal mode configurations. The product also supports more concurrent use cases with a 50% increase in the maximum number of support vaults per system.
Next year, IBM plans to support NVMe in its Cloud Object Storage, as the supported servers that run the software add NVMe-based flash drives. NVMe over Ethernet support is on IBM's 2019 roadmap for Spectrum Accelerate, with the FlashSystem A9000/R, and Spectrum Virtualize.
FlashSystem A9000/R is also expected to use AI technology to automate data deduplication and ease capacity management next year.
Also in 2019, IBM plans to expand its AI reference architectures with an Nvidia option, building on the Power AI reference architecture the company unveiled in June.
The latest updates to IBM storage products also included SAP HANA certification for its FlashSystem 9100 and new Storwize V7000, Spectrum Protect, Spectrum Copy Data Management and Spectrum Virtualize. IBM certified FlashSystem 9100 with Epic electronic healthcare records management software this year and plans to add support for Meditech next year. IBM also expects to extend solutions support to blockchain next year.
IBM has announced to expand its storage portfolio with the introduction of new and faster systems, enhanced products, and a new enterprise choice warranty service option for the IBM System Storage DS6000 series.
Enhancements across the company’s high-end disk systems, as well as its N series portfolio, data retention solutions, and offerings for SMBs, are designed to provide customers with increased performance and management capabilities, infrastructure simplification, and lower costs.
Shailesh Agarwal, Country Manager, IBM Storage said, “We’re turbo charging our storage systems and accelerating our NetApp relationship to help customers manage their information on demand needs. Today’s announcement further demonstrates IBM’s commitment to provide our clients with increased flexibility and increased choice that enables them to take control of their storage infrastructures. The choice for customers is clear - more powerful and faster storage solutions from IBM, versus proprietary solutions from EMC.”
Updating its flagship DS8000 series, the company is introducing new DS8000 Turbo models. The new models - the IBM System Storage DS8100 Turbo and DS8300 Turbo systems - are based on POWER5+ processors, with the addition of 4Gbps Fibre Channel and FICON technology allowing for the reduction of the number of network resources.
DS8000 Turbo models include improved tiered storage options, functions to enable greater performance and efficiency for DB2 applications on IBM System p servers, and support for three-site business continuity solutions.
Enhancements to the System Storage DS6000 are also announced. The S6000 Series will also come with one-standard warranty and the option for customers to take advantage of a new flexible Enterprise Choice option for warranty extensions.
IBM has also announced high-end enterprise and gateway solutions, IBM System Storage N7000 family. With this, the company has introduced a complete line of unified storage products based on NetApp technology designed to provide end-to-end solutions for environments needing enterprise class NAS, FC SAN, and iSCSI offerings, from the smallest of businesses to the largest data centers.
The N series models, IBM System Storage N7600 and N7800, offer Fibre Channel and SATA disk drive support and provide simultaneous NAS, iSCSI and 4Gbps FC SAN (FCP) attachment. Additionally, they offer over 35 advanced software features with FlexShare and MetroCluster capabilities, and are scalable up to 504 terabytes of physical capacity.
Also enhancing IBM’s compliance and archiving solutions, designed for long-term data retention, including retention driven by regulation or corporate governance requirements, the IBM System Storage DR550 V3.0 and DR550 Express is designed to offer increased flexibility, capacity and price performance by including the IBM System Storage DS4700 storage controller and the EXP810 storage expansion as its disk storage subsystem
The announcement completes a major expansion of IBM’s storage line, which started earlier this month. IBM recently expanded its DS4000 line of midrange storage servers with the introduction of the IBM System Storage DS4200 Express Model, a powerful and affordable storage server that is ideal for small and medium-sized businesses. It also added new features and functionality across its entire DS4000 family of products to increase capacity, speed and overall performance, helping clients to create optimal tiered data storage strategies and offer robust data protection and duplication features.
The DS8000 Turbo models and enhancements for the DS6000 series will both be available on September 9, 2006, the N series enterprise appliance models will be available on September 1, 2006 and the N series enterprise gateway solutions on September 22, 2006.
Single server and express model configurations are currently available. Dual-server models will be available on September 15, 2006. The DS4200 Express will be available on August 25, 2006.
International Business Machines Corp IBM delivered fourth-quarter 2018 non-GAAP earnings of $4.87 per share, which beat the Zacks Consensus Estimate of $4.81 per share. However, earnings per share (EPS) decreased 5.9% from the year-ago quarter. The year-over-year decline in EPS can be attributed to higher tax rate.
Revenues of $21.76 billion were almost in line with the Zacks Consensus Estimate of $21.74 billion and declined 3.5% on a year-over-year basis. At constant currency (cc), revenues dipped 1%. The year-over-year decline can primarily be attributed to currency fluctuation and headwinds from IBM Z product cycle.
Notably, IBM stated that signings surged 21% on cc basis to $15.8 billion. Services backlog declined 1% year over year and came in at $116 billion.
Shares of IBM have lost 25.9% year over year, compared with the industry’s decline of 21.5%.
Geographic Revenue Details
Revenues from Americas were down 4%, reflecting the headwind from the IBM Z product cycle. However, continued growth in Latin America was a positive.
Europe, Middle-East and Africa increased 2% from the year-ago quarter mainly due to growth in Spain, Germany, Italy and the U.K.
Asia-Pacific revenues declined 1% on a year-over-year basis with modest growth in Japan.
Strategic Imperatives Growth Continues
Strategic Imperatives (cloud, analytics, mobility and security) grew 5% at cc from the year-ago quarter to $11.5 billion. Excluding IBM Z product cycle impact Strategic Imperatives grew 11% year over year.
Security revenues surged 17% (excluding IBM Z product cycle impact) and declined 3% on cc basis. On a trailing 12-month basis, Strategic Imperatives revenues were $40 billion, up 9%.
Cloud revenues surged 6% from the year-ago quarter to $5.7 billion and 19% (excluding IBM Z product cycle impact). The annual run rate for cloud as-a-service revenues increased 21% at cc on a year-over-year basis to $12.2 billion.
Cloud revenues of $19.2 billion on a trailing 12-month basis increased 12% year over year.
Cognitive Revenues Surge
Cognitive Solutions’ revenues-external increased 2% year over year (on cc basis) to $5.5 billion. Revenues from Cognitive Solutions (including solutions software and transaction processing) increased primarily due to growth in solutions software, including analytics and artificial intelligence (AI).
Segmental revenues pertaining to Strategic Imperatives and Cloud increased 9% and 5%, respectively. Cloud as-a-service revenue annual run rate was $2 billion.
Solutions Software includes offerings in strategic verticals like health, domain-specific capabilities like analytics and security, and IBM’s emerging technologies of AI and blockchain. The segment also includes offerings that address horizontal domains like collaboration, commerce and talent. In the reported quarter, Solutions Software revenues increased 3% year over year.
IBM stated that the integration of AI into offerings like customer experience analytics in commerce domain helped SaaS signings to grow in double digit in the reported quarter.
Transaction Processing Software includes software that runs mission-critical workloads, leveraging IBM’s hardware platforms. Revenues were up 1% on a year-over-year basis.
IBM witnessed growth in industry verticals like health, key areas of analytics and security in the quarter. Watson Health witnessed broad-based growth in Payer, Provider, Imaging and Life Sciences domains.
During the fourth quarter, IBM expanded partnership with Vodafone Group. Per the deal, IBM’s advanced hybrid cloud platform, AI, Internet of Things (“IoT”) capabilities will aid Vodafone Business with digital transformation initiatives.
IBM stated that analytics performed well in the quarter, driven by data science offerings and IBM Cloud Private for Data offering.
Security growth was driven by offerings in orchestration, data security and endpoint management.
In blockchain, IBM announced addition of several new clients during the quarter, which includes “work with Smart Dubai on the Middle East’s first government-endorsed blockchain platform.” The company also unveiled an on-prem offering during the reported quarter, the IBM Blockchain Platform for IBM Cloud Private. Several new deal wins is also aiding IBM to strengthen its foothold in blockchain technology.
Global Business Services Revenues Increase
Revenues from Global Business Services-external segment were $4.3 billion, up 4% from the year-ago quarter (up 6% at cc). The year-over-year increase was primarily due to growth across all three business areas namely consulting, application management and global process services.
Segmental revenues pertaining to Strategic Imperatives grew 14%. Cloud practice surged 34%. Cloud as-a-service revenue annual run rate was $2.1 billion.
Application Management revenues increased 4% from the year-ago quarter. Global Process Services revenues climbed 5%. Moreover, Consulting revenues increased 10% year over year, driven by strong performance from IBM’s digital business.
Technology Services & Cloud Platforms: Revenues Dip
Revenues from Technology Services & Cloud Platforms-external decreased 3% from the year-ago quarter (flat at cc) to $8.9 billion. Segmental revenues pertaining to Strategic Imperatives advanced 13%, driven by hybrid cloud services. Cloud surged 22% from the year-ago quarter. Cloud as-a-service revenue annual run rate was $8 billion.
Integration Software increased 4% from the year-ago quarter. During the reported quarter, more than 100 companies around the world selected IBM Cloud Private offering. Infrastructure Services revenues were flat on a year-over-year basis.
Technical Support Services revenues decreased 3% from the year-ago quarter.
Power & z14 Drive Systems Revenues
Systems revenues decreased 21% on a year-over-year basis (down 20% at cc) to $2.6 billion, primarily owing to impact of the IBM Z product cycle. Segmental revenues pertaining to Strategic Imperatives plunged 22%, while Cloud revenues declined 31%.
IBM Z revenues decreased 44% year over year. However, MIPS capacity has increased around 20%, driven by broad-based adoption of the z14 mainframe.
Power revenues increased 10% from the year-ago quarter. The upside was mainly due to Linux and robust adoption across the latest POWER9-based architecture.
During the fourth quarter, IBM completed the launch of its next generation POWER9 processors for midrange and high-end systems that are designed for handling advanced analytics, cloud environments and data-intensive workloads in AI, HANA, and UNIX markets.
IBM also introduced new offerings optimizing both hardware and software for AI. Management believes that products like PowerAI Vision and PowerAI Enterprise will help drive new customer adoption.
However, storage hardware revenues declined owing to weak performance in the mid-range end, partially offset by strong growth in All Flash Arrays. IBM stated that pricing pressure in the immensely competitive storage market is hurting revenues. The company announced its new FlashSystems with next generation NVMe technology during the reported quarter.
Operating Systems Software revenues declined 3%, while Systems Hardware slumped 23% from the year-ago quarter.
Finally, Global Financing (includes financing and used equipment sales) revenues decreased 11% year over year and 9% at cc to $402 million.
Non-GAAP gross margin remained unchanged from the year-ago quarter at 49.5%. The gross margin benefited primarily by 190 basis points (bps) expansion in services margin. However, unfavorable mix in IBM Z product cycle fully offset this expansion.
Operating expense declined 5.3% year over year, due to realization of acquisition synergies and improving operational efficiencies. IBM continues to invest in rapidly growing fields like hybrid cloud, artificial intelligence (AI), security and blockchain.
Pre-tax margin from continuing operations expanded 50 bps on a year-over-year basis to 23.1%.
Cognitive Solutions and Global Business Services segment pre-tax margins expanded 290 bps and 520 bps, respectively, on a year-over-year basis. However, Technology Services & Cloud Platforms segment pre-tax margin contracted 20 bps.
Non-GAAP operating margins from continuing operations contracted 90 bps and came in at 20.3%.
Balance Sheet & Cash Flow Details
IBM ended fourth-quarter 2018 with $11.99 billion in total cash and marketable securities compared with $14.70 billion at the end of third-quarter 2018. Total debt (including current portion) was $45.8 billion, down from $46.9 million from the previous quarter.
IBM reported cash flow from operations (excluding Global Financing receivables) of $7.3 billion and generated free cash flow of $6.5 billion in the quarter under review.
In the reported quarter, the company returned $3.5 billion to shareholders through dividends and share repurchases. The company returned more than $10 billion to shareholders through dividends and share repurchases for the full fiscal year.
At the end of the year, the company had $3.3 billion remaining under current buyback authorization.
Fiscal 2018 Highlights
IBM reported fiscal 2018 non-GAAP earnings of $13.81 per share, where as revenues came in at $79.6 billion, up 1% each year over year.
Revenues from Cognitive Solutions, Global Business Services, Technology Services & Cloud Platforms, Systems and Global Financing came in at $18.48 billion, $16.82 billion, $34.46 billion, $8.03 billion and $1.59 billion, respectively.
IBM expects non-GAAP EPS forecast for 2019 to be at least $13.90. The Zacks Consensus Estimate is currently pegged at $13.86.
IBM still anticipates 2019 free cash flow of $12 billion.
Zacks Rank & Stocks to Consider
IBM currently carries a Zacks Rank #3 (Hold).
Few better-ranked stocks in the broader technology sector are STMicroelectronics N.V. STM, Marvell Technology Group Ltd. MRVL and Twitter, Inc. TWTR, all flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for STMicroelectronics, Marvell and Twitter is currently pegged at 5%, 9.4% and 22.1%, respectively.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Twitter, Inc. (TWTR) : Free Stock Analysis Report Marvell Technology Group Ltd. (MRVL) : Free Stock Analysis Report STMicroelectronics N.V. (STM) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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