Thread regarding IBM layoffs

IBM Was the Worst Hit by the Decline in the Server Market

POWER will be gone or carved-up very soon. . .

http://marketrealist.com/2017/07/ibm-was-the-worst-hit-by-the-decline-in-the-server-market/

By: Anne Shields | Jul 13, 2017 6:48 pm EDT

IBM reported the largest decline in its server revenue

Earlier in this series, we discussed how the consistent decline in the server market has impacted IBM’s (IBM) Systems segment, which is likely to report another fall in revenue in fiscal 2Q17.

While all players but Dell EMC reported a decline in their revenue, IBM’s revenue fell the most. IBM reported a 34.6% decline in revenue, and as a result, its market share fell to 6.6% in 1Q17 from 9.7% in 1Q16.

Cisco Systems benefited from this fall in IBM’s market share and improved its position by a minor ten basis points. Despite a ~3% fall in revenue growth—smallest among the top five players—Cisco’s market share stood at 6.6% in 1Q17, compared with 6.5% in 1Q16. It seems smaller players managed to increase their market share in the server market due to larger players losing their share. Smaller players’ market share rose to 37.9% in 1Q17 from 34.7% in 1Q16.

Dell EMC surpasses Hewlett Packard Enterprise in shipments

With $3 billion in revenue and a 24.1% market share, Hewlett Packard Enterprise (HPE) continued to lead in the global server market based on revenue. It was followed by Dell EMC with a 19% market share. Moreover, it was the only player in the top five to register revenue growth in the first quarter of 2017.

However, in terms of server shipments, Dell EMC led the market with a 17.9% market share. IBM, Cisco Systems (CSCO) and Lenovo (LNVGY), with market shares of 6.6%, 6.6%, and 5.8%, respectively, were the other top five players.

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| 1146 views | | 2 replies (last July 19, 2017) | Reply
Post ID: @OP+Oksizdt

2 replies (most recent on top)

Ibm does not want to be in the HW business anymore!!!! Look for a sell off of the HW business for a One time infusion of revenue for the present value of the legacy business. An IP deal will also be structured to capture the "sunk costs of development" of those legacy products. THUS a OT infusion of cash, plus a stream going forward. Besides dumping the HW business, IBM will offload approx 7500 - 10,000 headcount mostly out of the USA (think POK, RST, and AUSTIN legacy head count, along with the HW marketing team including the channel).

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Post ID: @1yvu+Oksizdt

Every single company dealing with servers is hurting right now. And we have a very special place in that pack!

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Post ID: @jbl+Oksizdt

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