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January 28, 2019 Timothy Prickett Morgan
The vigour systems line, buoyed by the deliver of excessive-end vigour E980 programs for massive AIX and IBM i jobs, a gradual circulation of IBM i device improvements, and a few traction in vigour-based Linux clusters for HPC and statistics analytics workloads, grew to become in a gorgeous first rate ultimate quarter for 2018, and capped three prior quarters of growth throughout 2018 to show in a full yr of boom.
which you could’t inform how lots increase, of direction, however within the lead story of this situation of The four Hundred, I took my most appropriate stab at modeling the quarterly salary move of the vigor programs line on the grounds that the beginning of 2018, and in keeping with that model, I reckon that the power programs line booked just a tad over $1.6 billion in revenue, up 8.8 percent in comparison to 2017’s figures and marking the first yr of increase seeing that 2011 and probably the most dramatic increase we now have likely considered in lots longer.
Jim Kavanaugh, IBM’s chief monetary officer, talked in brief with Wall highway analysts about how the power methods line did in this autumn 2018. “power earnings turned into up 10 %, pushed by Linux and persisted powerful adoption throughout our new Power9-primarily based architecture,” Kavanaugh stated. “in the fourth quarter, we achieved the liberate of our next technology Power9 processors in the high end, and we had powerful adoption in both the low and high-end programs. Our Power9 systems are designed for managing advanced analytics, cloud environments, and statistics intensive workloads in AI, SAP HANA, and Unix markets and we have prolonged HANA certification to our Power9 excessive end. within the fourth quarter, we had potent initial traction with our new offerings that optimize both hardware and utility for AI, reminiscent of PowerAI vision, which we introduced in the 2d half of 2018. And we now have virtually achieved the deployment of our supercomputers on the U.S. branch of power labs in the quarter.”
That become a $325 million deal, which IBM has been reserving all the way through 2018 as machines rolled in and the “Summit” computer at very wellRidge country wide Laboratory and the “Sierra” desktop at Lawrence Livermore national Laboratory passed stages of qualification exams.
What we'd definitely like to know is how 2019 is asking, and here's all Kavanaugh needed to say when poked that question: “We proceed to convey new innovation to market to bring value for our shoppers in our Power9 structure, which is resonating smartly within the marketplace. And we received first rate acceptance, and grew 10 % in the fourth quarter. We expect on the way to proceed to play out in 2019. So we have received an outstanding book of company here and some tailwinds at us.”
Tailwinds are always first rate, if you are attempting to make up for misplaced time in selected, in order that’s decent.
So how did the relaxation of big Blue fare? Let’s take a look. in the final quarter of 2018, IBM’s revenues dipped by three.5 percent to $2176 billion and net salary changed into $1.ninety five billion, which was twice as big in magnitude because the loss that IBM stated in this fall 2017 as a result of some write-offs. IBM pushed $2.62 billion in equipment and storage hardware and working techniques to exterior consumers within the fourth quarter, down 21.three %, plus yet another $238 million in iron to different IBM devices. IBM had $551 million in pre-tax revenue for the mixed inner and external revenue, which changed into 19.3 % of revenue. My premiere guess, considering that IBM doesn’t supply out precise numbers, is that IBM offered $2.17 billion in hardware (servers and storage) plus a further $447 million in working methods.
should you add the entire base operating gadget, middleware, database, programming tools, tech support, and financing on accurate of the equipment z and energy techniques traces, plus exterior disk, flash, and tape storage, IBM has fairly an astonishing enterprise. lots better than the equipment hardware and operating gadget figures that it stories on a quarterly foundation to Wall highway. here is the breakdown of IBM’s revenue throughout its divisions, which is the starting factor for estimating IBM’s genuine and true methods company:
From this, I drill down into each division and estimate how lots of every division’s sales is chiefly for IBM’s own equipment z and vigor techniques systems and the linked storage product revenue. if you make some guesses – and that i need to, as do we all outside of the enterprise – then a think for the real programs business emerges. And this doesn't consist of compute, storage, and networking ability sold on the IBM Cloud, which is an extra animal utterly.
Suffice it to claim that this is an attractive big business indeed, with gross profits across the mixed systems which are in the latitude of fifty five % to 60 percent of revenues usually. this is relatively respectable, and is a much more suitable systems enterprise than IBM itself talks about. in the fourth quarter, I reckon that this business truly declined by way of eleven p.c or so, to $7.forty one billion, however that become above all because of the system z14 mainframe upgrade cycle operating its path after five quarters of revenue. IBM spoke of in its file that gadget z revenues have been down 44 % yr-on-12 months in the fourth quarter at regular currency, and that really harm. power systems revenue can't, as yet, make up the difference.
That noted, power systems revenue are on the upward thrust, and have incredible potentialities in HPC, facts analytics, machine studying. in-reminiscence processing, and other superior workloads as neatly because the consistent freddy ERP functions which have been on IBM i and AIX systems for a long time. it is elaborate to think about that IBM can push sales up as high as they had been back in 2010 through 2012, however can get some of the way lower back there. One different thing: I don't have any conception what vigour systems working IBM i earnings are, however what I do know is that IBM i income were driving revenue boom during 2018, and in case you add in the utility, features, and financing atop of this, here's nonetheless a fairly large and in reality profitable business. Which is a pretty good component for the long-term possibilities of IBM i.connected reports
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For now, AI methods are more often than not desktop learning-primarily based and “slim” – potent as they're by using these days’s necessities, they’re confined to performing a few, narrowly-described initiatives. AI of the next decade will leverage the superior vigour of deep learning and become broader, solving a greater array of greater advanced complications. in addition, the generic-goal technologies used nowadays for AI deployments will get replaced by means of a expertise stack that’s AI-specific and exponentially quicker – and it’s going to take some huge cash.IBM’s Mukesh Khare
searching for to take middle stage in AI’s unfolding, IBM – in combination with big apple state and a couple of expertise heavies – is investing $2 billion in the IBM research AI Hardware center, focused on setting up subsequent technology AI silicon, networking and manufacturing if you want to, IBM referred to, deliver 1,000x AI performance effectivity development over the subsequent decade.
“today, AI’s ever-expanding sophistication is pushing the boundaries of the business’s latest hardware programs as clients locate more easy methods to include quite a few sources of information from the facet, cyber web of issues, and extra,” stated Mukesh Khare, VP, IBM research Semiconductor and AI Hardware neighborhood, in a blog asserting the task. “…nowadays’s techniques have achieved better AI efficiency through infusing desktop-studying capabilities with high-bandwidth CPUs and GPUs, really good AI accelerators and high-performance networking gadget. To hold this trajectory, new thinking is required to accelerate AI performance scaling to healthy to ever-expanding AI workload complexities.”IBM roadmap for 1,000x growth in AI compute efficiency efficiency.
IBM talked about the core may be the nucleus of a new ecosystem of analysis and business partners collaborating with IBM researchers. partners announced nowadays encompass Samsung for manufacturing and analysis, Mellanox technologies for high-efficiency interconnect device, Synopsys for utility platforms, emulation and prototyping, and IP for constructing excessive-efficiency silicon chips, and semiconductor equipment corporations applied materials and Tokyo Electron.
Hosted at SUNY Polytechnic Institute, Albany, ny, in collaboration with neighboring Rensselaer Polytechnic Institute middle for Computational innovations, IBM referred to the company and its partners will “boost more than a few applied sciences from chip stage contraptions, materials, and structure, to the application supporting AI workloads.”
large Blue referred to research at the core will center of attention on overcoming existing computing device-getting to know barriers via approaches that consist of approximate computing via Digital AI Cores and in-reminiscence computing through Analog AI Cores. These applied sciences will give the thousand-fold raises in efficiency efficiency required for full realization of deep gaining knowledge of AI, in response to IBM.
“Our analog AI cores are a part of an in-reminiscence computing approach in performance effectivity which improves by suppressing the so-known as Von Neuman bottleneck by using putting off data switch to and from reminiscence,” noted IBM. “Deep neural networks are mapped to analog move aspect arrays and new non-risky fabric characteristics are toggled to store network parameters within the go features.”
“A key enviornment of research and construction could be methods that meet the calls for of deep discovering inference and training processes,” Khare said. “Such techniques present colossal accuracy advancements over more standard laptop discovering for unstructured statistics. those extreme processing calls for will grow exponentially as algorithms become extra complex in order to carry AI programs with multiplied cognitive advantage.”
Khare talked about the research middle will host R&D, emulation, prototyping, trying out and simulation activities for brand new AI cores mainly designed for working towards and deploying advanced AI fashions, including a look at various mattress wherein participants can display innovations in actual-world functions. specialized wafer processing for the center should be finished in Albany with some help at IBM’s Thomas J. Watson analysis core in Yorktown Heights, big apple.
today, at IBM PartnerWorld leadership convention 2015 in Las Vegas, IBM introduced the One Channel group, which consolidates the business's global business associate operations to enhanced align with IBM's meaner and leaner strategic focus for companions on larger-price options in areas comparable to cloud, analytics, mobile, social and security. There are 950 business associate corporations from 89 international locations in attendance on the accomplice conference.
The One Channel group -- with Marc Dupaquier, common manager with IBM world enterprise partners, in can charge -- consolidates IBM channel earnings and advertising groups across the company's distinct divisions into one group.
Anurag Agrawal, CEO and analyst at Techaisle, spoke of that One Channel group represents a resounding remark of IBM’s commitment to the channel for reselling cloud, analytics, cell, social, safety, and so on.
"[The new IBM channel group] conveys now not simplest team spirit of thought however also team spirit of execution," he spoke of, including that it displays the way products and capabilities are bought today -- not in isolation but throughout options. "in case you consolidate all these channel groups and allocate substances, depending on which commercial enterprise and which channel member requires what class of aid and skills -- analytics, application construction on Bluemix, and many others. -- it'll assist companions a whole lot because they don’t sell solutions in isolation either," Agrawal talked about.
As One Channel crew brings improved simplicity to doing company with the channel, IBM is focused on growing an easier IBM PartnerWorld application that revamps how the business permits, incents and educates companions to drive elevated possibility and revenue.
The company wants to turbo-charge the tempo at which companions capture new market opportunities in response to IBM Cloud marketplace, SoftLayer and Bluemix, in addition to application building around the Watson ecosystem and IBM methods.
IBM also made it clear that it intends to expand its accomplice ecosystem and is asking to recruit new company companions, builders and unbiased utility vendors (ISVs), with a keen focus on programs integrators, ISVs and born-in-the-cloud businesses.
if you happen to consolidate all these channel teams … it'll assist companions a whole lot as a result of they don’t promote solutions in isolation.
Anurag Agrawal, CEO and analyst, Techaisle
to be able to inspire enterprise companion transformation and greater in-depth advantage acquisition and practicing, IBM stated it rolled out a number of initiatives, together with an extra 300-plus workshops in IBM's business Transformation Initiative (BTI), a program to help partners transform their company; a greater intuitive education and practicing platform, with new modules and a broader roadmap of certification classes; and extra tutorial incentives via an greater know Your IBM gaining knowledge of portal. The incentives triple the reward for particular person revenue and technical body of workers who pursue education across the IBM Infrastructure portfolio and strategic increase areas akin to cloud and analytics.
To support partners increase their profitability with IBM, the company rolled out a couple of new incentives. For starters, there is a brand new application for companions who sell IBM vigor methods and IBM Storage that presents quarterly incentives that double when definite requirements are met and a quarterly bonus for attaining specific skills and certifications. Compensation is during the accomplice boom Incentive (PGI), a application for IBM consultants. IBM has additionally simplified certification necessities for choose application-as-a-carrier (Saas) offerings, enabling companions to earn incentives quicker with the brand new IBM SaaS Entry Product neighborhood. And, the enterprise's new Remarketer Margin Enhancer application improves rewards by means of a 10% margin increase on incremental earnings for companions who achieve profits increase ambitions when selling IBM capabilities. IBM also introduced a brand new functions Consumption application to assist companions pressure demand for carrier answer suppliers. at last, IBM expanded eligibility for its solution Accelerator Incentive (SAI), which makes it possible for partners to earn an additional bonus on IBM-described solutions with the SAI solution Bonus Reward.
companions are additionally getting two new advertising and marketing and developer equipment offerings, the IBM Digital content material advertising platform and the OpenPower Developer equipment. in the IBM Digital content material advertising and marketing platform, companions will find more digital and social campaigns with co-marketing money to supply them greater internet-based advertising and social media content material across a broad latitude of IBM items and solutions. And IBM has expanded the variety of technical assets to help companions and developers construct and port custom-made server and storage options with OpenPower Developer equipment.
in order to expand is accomplice ecosystem, IBM has improved its developer engagement community with dW solutions, a site where IBM field remember consultants and friends deliver assist. participants will find new topic and solution-specific Developer facilities. companions can also present Watson Explorer, which has a combination of data exploration and content analytics capabilities that provide a bridge between cloud-based services and on-premises proprietary tips.
In a recent annual examine of channel partners with the aid of Techaisle, Agrawal said that fifty four% of midmarket channel partners rated IBM as having essentially the most chopping-side technology compared with rivals corresponding to Cisco, Dell, Hewlett-Packard and Microsoft. besides the fact that children, he mentioned that IBM, when rated via channel companions as a great and relied on enterprise, fell a number of notches in the most recent survey compared with a year in the past.
Will efforts equivalent to those outlined today increase IBM's score among companions? "The proof is within the pudding, and in a yr from now we’ll see," Agrawal observed.
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January 28, 2019 Timothy Prickett Morgan
The Power Systems line, buoyed by the deliver of high-end Power E980 systems for big AIX and IBM i jobs, a steady stream of IBM i system upgrades, and some traction in Power-based Linux clusters for HPC and data analytics workloads, turned in a pretty good final quarter for 2018, and capped three prior quarters of growth during 2018 to turn in a full year of growth.
You can’t tell how much growth, of course, but in the lead story of this issue of The Four Hundred, I took my best stab at modeling the quarterly revenue stream of the Power Systems line since the beginning of 2018, and based on that model, I reckon that the Power Systems line booked just a tad over $1.6 billion in sales, up 8.8 percent compared to 2017’s figures and marking the first year of growth since 2011 and the most dramatic growth we have probably seen in a lot longer.
Jim Kavanaugh, IBM’s chief financial officer, talked briefly with Wall Street analysts about how the Power Systems line did in Q4 2018. “Power revenue was up 10 percent, driven by Linux and continued strong adoption across our new Power9-based architecture,” Kavanaugh said. “In the fourth quarter, we completed the release of our next generation Power9 processors in the high end, and we had strong adoption in both the low and high-end systems. Our Power9 systems are designed for handling advanced analytics, cloud environments, and data intensive workloads in AI, SAP HANA, and Unix markets and we now have extended HANA certification to our Power9 high end. In the fourth quarter, we had strong initial traction with our new offerings that optimize both hardware and software for AI, such as PowerAI Vision, which we introduced in the second half of 2018. And we have essentially completed the deployment of our supercomputers at the U.S. Department of Energy labs in the quarter.”
That was a $325 million deal, which IBM has been booking throughout 2018 as machines rolled in and the “Summit” machine at Oak Ridge National Laboratory and the “Sierra” machine at Lawrence Livermore National Laboratory passed stages of qualification tests.
What we would really like to know is how 2019 is looking, and this is all Kavanaugh had to say when poked that question: “We continue to bring new innovation to market to deliver value for our clients in our Power9 architecture, which is resonating well in the marketplace. And we got great acceptance, and grew 10 percent in the fourth quarter. We expect that will continue to play out in 2019. So we have got a good book of business here and some tailwinds at us.”
Tailwinds are always good, if you are trying to make up for lost time in particular, so that’s good.
So how did the rest of Big Blue fare? Let’s take a look. In the final quarter of 2018, IBM’s revenues dipped by 3.5 percent to $2176 billion and net income was $1.95 billion, which was twice as big in magnitude as the loss that IBM reported in Q4 2017 due to some write-offs. IBM pushed $2.62 billion in system and storage hardware and operating systems to external customers in the fourth quarter, down 21.3 percent, plus another $238 million in iron to other IBM units. IBM had $551 million in pre-tax income for the combined internal and external sales, which was 19.3 percent of sales. My best guess, since IBM doesn’t give out precise numbers, is that IBM sold $2.17 billion in hardware (servers and storage) plus another $447 million in operating systems.
When you add all of the base operating system, middleware, database, programming tools, tech support, and financing on top of the System z and Power Systems lines, plus external disk, flash, and tape storage, IBM has quite an impressive business. Much larger than the System hardware and operating system figures that it reports on a quarterly basis to Wall Street. Here is the breakdown of IBM’s sales across its divisions, which is the starting point for estimating IBM’s true and real systems business:
From this, I drill down into each division and estimate how much of each division’s sales is specifically for IBM’s own System z and Power Systems platforms and the related storage product sales. If you make some guesses – and I have to, as do we all outside of the company – then a feel for the real systems business emerges. And this does not include compute, storage, and networking capacity sold on the IBM Cloud, which is another animal entirely.
Suffice it to say that this is a pretty large business indeed, with gross profits across the combined platforms that are in the range of 55 percent to 60 percent of revenues typically. This is pretty good, and is a much stronger systems business than IBM itself talks about. In the fourth quarter, I reckon that this business actually declined by 11 percent or so, to $7.41 billion, but that was mainly due to the System z14 mainframe upgrade cycle running its course after five quarters of sales. IBM said in its report that System z revenues were down 44 percent year-on-year in the fourth quarter at constant currency, and that really hurt. Power Systems sales cannot, as yet, make up the difference.
That said, Power Systems sales are on the rise, and have great prospects in HPC, data analytics, machine learning. in-memory processing, and other advanced workloads as well as the steady freddy ERP applications that have been on IBM i and AIX platforms for decades. It is difficult to imagine that IBM can push sales up as high as they were back in 2010 through 2012, but it can get some of the way back there. One other thing: I have no idea what Power Systems running IBM i sales are, but what I do know is that IBM i sales have been driving revenue growth throughout 2018, and when you add in the software, services, and financing atop of this, this is still a reasonably large and definitely profitable business. Which is a good thing for the long-term prospects of IBM i.RELATED STORIES
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IBM Commits To Power9 Upgrades For Big Power Systems Shops
Jan 31, 2019 (Heraldkeeper via COMTEX) -- Research Report on Network Management Software provides Market Size, CAGR Analysis, Types, Application, Analysis of Key Players like CA Technologies, IBM, NetScout Systems, Spiceworks, Manage Engine, Paessler, Solarwinds and More.
Global Network Management Software Market report provides a detailed market overview of the industry including definitions, classifications, applications, challenges, competitive scenario and industry chain structure. The report also analysis the Network Management Software Market verticals and horizontals, Market Size and CAGR comparison by region.
The study objectives are to provide the Network Management Software market trends, future opportunities, SWOT analysis, development, key drivers, top players and their analysis etc. Major regions covered in this report are as United States, Europe, Central & South America, China, Japan, Southeast Asia and India.
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The Global Network Management Software Market focuses on global major leading industry players providing information such as company profiles, product picture and specification, Manufacturing Base, Sales Area and its Competitors. Upstream raw materials and equipment and downstream demand analysis is also carried out.
Key Players covered in this report are CA Technologies, IBM, NetScout Systems, Spiceworks, Manage Engine, Paessler, Solarwinds, HP, Auvik Networks, GFI Software, Ubiquiti Networks, Beijer Electronics, Micro Focus.
Network Management Software Market is analyzed by types like Fault Management, Performance Management, Security Management, Configuration Management.Network Management Software Market is also analyzed by Application like Banking, Healthcare, Telecom and IT, Government and Public Utilities, Education, Retail.
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The study objectives of this report are:To analyze global Network Management Software status, future forecast, growth opportunity, key market and key players.To present the Network Management Software development in various regions like United States, Europe and China.To strategically profile the key players and comprehensively analyze their development plan and strategies.To define, describe and forecast the market by product type, market and key regions.The Network Management Software Market report provides Market Effect Factors Analysis such as Technology Progress/Risk, Substitutes Threat, Customer Preference Change, Economic and Political Environmental Change. With the tables and figures the report provides key statistics on the state of the industry and is a valuable source of guidance and direction for companies and individuals interested in the market.
Table of Contents:
1 Report Overview
2 Global Growth Trends
3 Market Share by Key Players
4 Breakdown Data by Type and Application
5 United States
9 Southeast Asia
11 Central & South America
12 International Players Profiles
13 Market Forecast 2018-2025
14 Analyst’s Viewpoints/Conclusions
IBM will spend $100 million over the next five years to make the mainframe easier to use.
The program will focus on such areas as greater automation, modernizing the user interface and easing the way users manage the software on the machines.
It kicked off Oct. 4 with the release of the new z/OS V1.8 on System z operating system, which offers a host of new features and tools designed to make running the systems easier.
"We want the IT community to be aware that we are now working to reduce the complexity and making it easier to manage these systems," said Bob Hoey, worldwide vice president of sales for IBM's System z business.
The initiative is the latest from IBM to modernize its mainframe technology and keep the business moving forward. The Armonk, N.Y., company sees the mainframe—once thought to be a fading business line being overrun by smaller and less costly RISC and x86 systems—a growth technology, most recently highlighted in April by the release of the low-end System z Business Class mainframe. IBM announced the release at an event in China, signaling its belief that emerging countries are a key growth area for the mainframe.
Data center consolidation of multiple Unix and Windows systems is a key target area, Hoey said.
"We believe the z9 is a growth platform and that customers who don't have a mainframe today … should consider bringing in a mainframe to consolidate these disparate systems," he said.
IBM continues to have success with the mainframe. In the second quarter, the company saw revenues for the business and the MIPS (million instructions per second) shipped both jump about 7 percent over the same period last year. And while Hoey couldn't talk about specific numbers for the third quarter—IBM is scheduled to release its quarterly earnings Oct. 17—he said sales figures were ahead of projections.
The new z/OS V1.8 is the latest move to keep the mainframe business moving forward. The operating system includes the Health Checker for z/OS, which monitors systems running the OS and recommends configuration changes that can improve the performance and security, and the Omegamon z/OS Management Console, which offers a more modern GUI.
In addition, enhancements to the Hardware Configuration Manager include new configuration wizards, the ability to import and export I/O definition files, and the integrated ability to speed up the detection and resolution of performance bottlenecks. A new manual with V1.8 helps guide users though problem-solving steps.
IBM's drive to make it easier to use the mainframe comes at the same time that it is undertaking a program—dubbed zNextGen—to encourage university students to train on the platform, a move designed to stem the drain of IT professionals who work on the mainframes.
Another tact IBM is taking to keep the platform moving forward is the rollout of various specialty processors, such as the zIIP (z9 Integrated Information Processor), which help business more easily centralize back-end workloads on the mainframe.
Other such specialty engines include the IFL (Integrated Facility for Linux) chip, dedicated to Linux workloads, and the zAAP (zSeries Application Assist Processor), which incorporates Java applications into the mainframe.
Hoey said IBM's goal—as stated in its Mainframe Charter issued three years ago—is to deliver a 20 percent price/performance improvement to the platform every year, something he said the company has done for the past three years.
Check out eWEEK.com's for the latest news, views and analysis on servers, switches and networking protocols for the enterprise and small businesses.
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