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January 28, 2019 Timothy Prickett Morgan
The vigour systems line, buoyed through the bring of excessive-conclusion energy E980 programs for massive AIX and IBM i jobs, a gentle circulation of IBM i rig upgrades, and some traction in vigor-based Linux clusters for HPC and records analytics workloads, became in a fine looking estimable remaining quarter for 2018, and capped three prior quarters of growth everyone through 2018 to demonstrate in a replete yr of increase.
that you may’t inform how a whole lot boom, of direction, however in the lead chronicle of this concern of The 4 Hundred, I took my most profitable stab at modeling the quarterly earnings movement of the energy methods line on account that the starting of 2018, and in accordance with that model, I reckon that the vim techniques line booked only a tad over $1.6 billion in revenue, up eight.8 % compared to 2017’s figures and marking the primary 12 months of growth considering that 2011 and probably the most melodramatic enlarge we've doubtless viewed in a imposing deal longer.
Jim Kavanaugh, IBM’s chief economic officer, talked in short with Wall road analysts about how the vigour methods line did in this autumn 2018. “energy earnings was up 10 percent, driven via Linux and persevered powerful adoption throughout their current Power9-primarily based architecture,” Kavanaugh talked about. “in the fourth quarter, they accomplished the unlock of their subsequent era Power9 processors within the inordinate conclusion, and they had stalwart adoption in each the low and high-conclusion systems. Their Power9 programs are designed for managing advanced analytics, cloud environments, and facts intensive workloads in AI, SAP HANA, and Unix markets and they now Have prolonged HANA certification to their Power9 inordinate end. within the fourth quarter, they had potent preparatory traction with their current offerings that optimize both hardware and software for AI, such as PowerAI imaginative and prescient, which they introduced within the second half of 2018. And they now Have very nearly achieved the deployment of their supercomputers on the U.S. offshoot of power labs within the quarter.”
That turned into a $325 million deal, which IBM has been reserving everyone through 2018 as machines rolled in and the “Summit” desktop at o.k.Ridge national Laboratory and the “Sierra” machine at Lawrence Livermore country wide Laboratory passed stages of qualification exams.
What they would in reality relish to comprehend is how 2019 is calling, and here is everyone Kavanaugh had to express when poked that query: “We proceed to carry current innovation to market to bring cost for their valued clientele in their Power9 structure, which is resonating well within the industry. And they got wonderful acceptance, and grew 10 p.c within the fourth quarter. They predict on the course to continue to play out in 2019. So we've got a fine publication of company here and a few tailwinds at us.”
Tailwinds are always respectable, if you try to figure up for lost time in specific, so that’s first rate.
So how did the ease of massive Blue fare? Let’s grasp a glance. within the remaining quarter of 2018, IBM’s revenues dipped by using three.5 percent to $2176 billion and web income changed into $1.95 billion, which was twice as large in magnitude as the loss that IBM suggested in q4 2017 because of some write-offs. IBM pushed $2.62 billion in system and storage hardware and operating programs to exterior purchasers within the fourth quarter, down 21.3 p.c, plus a different $238 million in iron to other IBM instruments. IBM had $551 million in pre-tax profits for the mixed inside and exterior earnings, which became 19.3 percent of revenue. My best guess, when you account that IBM doesn’t give out genuine numbers, is that IBM offered $2.17 billion in hardware (servers and storage) plus a different $447 million in operating programs.
should you add the entire ground working system, middleware, database, programming equipment, tech assist, and financing on suitable of the rig z and vim programs strains, plus external disk, flash, and tape storage, IBM has fairly an mind-blowing business. an terrible lot larger than the rig hardware and working system figures that it reports on a quarterly foundation to Wall street. privilege here is the breakdown of IBM’s income throughout its divisions, which is the starting ingredient for estimating IBM’s actual and precise methods enterprise:
From this, I drill down into every division and evaluate how tons of every division’s revenue is principally for IBM’s personal device z and vim methods platforms and the related storage product earnings. if you figure some guesses – and that i must, as carry out they everyone backyard of the enterprise – then a believe for the precise techniques industry emerges. And this doesn't embrace compute, storage, and networking potential bought on the IBM Cloud, which is yet another animal completely.
Suffice it to express that here's a estimable looking massive industry certainly, with vulgar gains throughout the mixed platforms which are in the latitude of 55 percent to 60 % of revenues typically. here is relatively decent, and is a plenty stronger techniques enterprise than IBM itself talks about. in the fourth quarter, I reckon that this industry definitely declined through eleven p.c or so, to $7.41 billion, however that become mainly because of the gadget z14 mainframe improve cycle working its path after 5 quarters of revenue. IBM referred to in its record that rig z revenues had been down 44 % yr-on-yr in the fourth quarter at regular forex, and that really damage. power programs income can not, as yet, figure up the difference.
That stated, vim programs sales are on the rise, and Have exquisite potentialities in HPC, information analytics, desktop getting to know. in-reminiscence processing, and other advanced workloads as smartly as the regular freddy ERP applications that Have been on IBM i and AIX systems for a long time. it's intricate to reflect about that IBM can push income up as inordinate as they Have been back in 2010 via 2012, nevertheless it can come by some of the course again there. One other component: I haven't any conception what vim methods running IBM i income are, but what I carry out comprehend is that IBM i revenue had been riding earnings enlarge everyone through 2018, and should you add within the software, capabilities, and financing atop of this, here is nonetheless a fairly large and definitely ecocnomic company. Which is a very estimable issue for the long-time period prospects of IBM i.related reviews
programs A vibrant Spot In combined outcomes For IBM
The Frustration Of now not realizing How they are Doing
energy programs Posts growth within the First Quarter
IBM’s systems group On The economic Rebound
huge Blue gains, Poised For The Power9
The energy Neine Conundrum
IBM Commits To Power9 enhancements For massive power systems shops
Nicole Lewis, Senior news writer
The news that income in IBM's storage programs company fell by means of 1% in its most synchronous quarter has caused many IBM partners to believe cautiously about their future in the storage enterprise with huge Blue.
during IBM's convention call on Tuesday, sequel Loughridge, senior vp and chief fiscal officer (CFO) mentioned: "Storage had a susceptible quarter after a fanciful second half of 2006. external disk became down year to 12 months basically pushed through declines within the U.S.," Loughridge referred to. "We did not execute in a really aggressive market in elevated conclusion and mid-range storage. Their tape enterprise turned into flat year to year, maintaining participate in that market. They accept as actual with they held participate in complete storage this quarter," Loughridge brought.
Forrester analysis Inc. analyst Stephanie Balaouras observed that several vendors had been having difficulties with their tape enterprise as valued clientele proceed to stagger from from tape to disk -- together with disk-based mostly digital-tape libraries -- for backup and archiving.
"that's where I've viewed some declines in other vendors since it seems businesses are favoring decrease can freight disk technologies, modular disk applied sciences and are buying a lot more mid-tier storage systems," Balaouras said.
whereas Balaouras eminent the one-quarter decline isn't specially troubling, she did concur that IBM suffers from a want of helpful bailiwick operations. IBM's failure to build a convincing case or helpful earnings crusade for its DS3000-collection of entry-level disk arrays for petite and midsized agencies is just one instance of a disconnect between engineering and box revenue.
"One mistake that IBM made with these items is that they concentrated on the speeds and feeds as hostile to talking about what SMBs truly care about, which is ease of use," Balaouras referred to. "distinction that with what HP did with the All-In-One. HP concentrated on the All-In-One as a product that is going to be a storage platform it really is going to be remarkably simple for anybody devoid of storage capabilities to impulsively configure and installation," Balaouras added.
Eric Vonderhaar, techniques engineer at Mainline tips techniques, said the DS3000 sequence are current products and there are nevertheless just a few kinks to determine.
"once they come by the containers on web site they are doing very well, but there Have been some roadblocks for relieve considerations," Vonderhaar talked about.
on account that the DS3000 collection grew to become purchasable on Jan. 30, IBM has revisited the items and simply this week introduced it will bundle controllers, cables and host bus adapters (HBAs) into selected configurations to figure it less complicated for client to use.
IBM companions relish Francis Poeta, president of Cliffside Park, N.J.-based mostly P&M computer systems Inc., observed he too isn't concerned about a the 1% decline and believes the chronicle of storage gains continues to be unfolding, primarily as a result of no dealer can claim it really is has cornered the SMB market.
"I don't account or not it's a style. subsequent 12 months the salary numbers may be higher. within the marketplace there may be a massive amount of storage deals that may proceed down in the midmarket house and nobody knows who is going to buy what items from what supplier," Poeta observed. "the verdict is out. each dealer has an SMB play, but no dealer has traction yet within the house and IBM silent has a haphazard to win there," Poeta introduced.
in the meantime, if IBM does boost its footprint among SMB valued clientele it might now not depend on former IBM reseller Modcomp who this yr replaced IBM with Hitachi records techniques.
disenchanted Modcomp president, Victor Dellovo, observed his company had misplaced $500,000 expense of contracts after the company had registered a few offers and fallen sufferer to competitor IBM companions that reconfigured points of the rig and re-register the deal.
"dealing with IBM grew to become inconceivable. we'd register a chance, and one other reseller would alternate the configuration, for instance by course of a tough force, and provides it a brand current registration," Dellovo said. "On one constrict their earnings adult spent 9 months engaged on the deal," Dellovo added.
Modcomp, used to sell IBM's DS4000, that was then. "IBM registers a configuration; they carry out not register an opportunity," Dellovo observed.
by course of comparison, EMC's synchronous channel alterations are being felt at Modcomp, where Dellovo referred to his enterprise is reaping the advantages of a channel program the site deal registration is not tampered with.
"lately working with EMC has been very decent. everything they Have labored on and everything that has been an EMC win Modcomp has acquired the deal," Dellovo referred to.
IBM moreover announced that revenues from its Tivoli application, which enables consumers to centrally manage records safety and storage, multiplied with the aid of 18%. On the server facet revenues from the programs z server products elevated 12% in comparison to the identical perios final 12 months. The gadget p Unix server products experienced a 14% raise and device x servers elevated 7%. The system i servers lowered by using 13% compared to a yr ago.
let us know what you reflect about this story; email Nicole Lewis, Senior news writer
even though far from best, IBM's (IBM) newest income document contained adequate decent news to give the IT tremendous's battered stock a lift.consequences and information
After the bell on Tuesday, large Blue pronounced q4 revenue of $21.seventy six billion and non-GAAP EPS of $4.87, a petite bit topping consensus analysts estimates of $21.73 billion and $4.eighty two. salary fell about three.5% in dollars and 1% in regular forex (CC).
IBM additionally guided for 2019 EPS of "as a minimum" $13.ninety, which is just a petite above said 2018 EPS of $13.81 and favorable to a $13.eighty consensus. then again, the company is guiding for 2019 free cash flow (FCF) of roughly $12 billion, which is below a $13 billion consensus. An IBM spokesperson notes the FCF consensus is skewed through one analyst evaluate of round $sixteen billion and might not account for recent offers to sell seven utility companies and IBM's Seterus mortgage servicing unit, which are expected to shut within the coming months.
whereas IBM's assistance bills for the asset earnings, it would not account for the company's synchronous $34 billion deal to purchase open-source utility large crimson Hat (RHT) , which should be paid for with cash and is expected to shut in the 2d half of 2019.
With IBM's shares down 25% everyone through the twelve months prior to its q4 file and over forty% from their 2013 highs, Wall highway is responding positively to the company's newest numbers. In pre-market buying and selling on Wednesday, IBM became up 7.four% to $131.50.
IBM is the stock of the Day on actual cash, their top class web site for vigorous traders. For Stephen Guilfoyle's tackle IBM's income, gratify click on here.
listed below are some imposing takeaways from IBM's income report and call.1. software sales were improved Than anticipated
Going over smartly with traders: IBM's totally ecocnomic Cognitive solutions (CS) phase, which covers a large component of its software operations, posted q4 income of $5.forty six billion, topping a $5.27 billion consensus. CS profits became flat yearly and up 2% in CC, after having dropped 6% in Q3.
more advantageous deal closings for IBM's age-old transaction processing utility industry assist out: After having dropped 10% in Q3, transaction processing profits fell simply 1% in q4. CS additionally benefited from greater sales for IBM's DB2 database application family unit, and from a 4% enlarge in cloud earnings.
despite the fact, IBM's utility boom nonetheless trails that of a broader enterprise utility market forecast in October via analysis company Gartner to develop 9.9% in 2018 and 8.3% in 2019. And when asked whether CS would hit an extended-term target of mid-single digit profits growth in 2019, Kavanaugh declined to affirm whether it might, as an alternative noting (even though IBM has frequently backed out the Have an sequel on of divestitures when reporting boom quotes) that IBM's pending software asset income will act as "a 4 to five-point headwind" to the segment's 2019 income boom.2. Mainframe revenue Fell Sharply
IBM's methods section, which covers income of hardware and operating device software, saw salary drop 21% to $2.sixty two billion, below a $2.77 billion consensus. using lots of the decline: IBM's Z mainframe revenue fell 44%, after having risen seventy five% a yr earlier thanks to the Sep. 2017 rollout of IBM's z14 mainframe.
though mainframe salary became expected to plunge thanks to cyclicality, the magnitude of the drop looks to had been larger than expected. systems earnings changed into moreover harm by using an 8% drop in IBM's storage revenue, which were damage through competitive pressures. On the colorful facet, income of IBM's vim servers, which are making the most of felicitous uptake for techniques using IBM's giant Power9 CPUs, rose 9%.3. features had been a mixed Bag
IBM's international enterprise features (GBS) side noticed profits rise four% to $4.32 billion, topping a $4.15 billion consensus. A 5% boost in consulting profits offset petite declines in industry manner and application outsourcing salary.
however, IBM's technology capabilities & Cloud systems (TS & CP) section saw earnings drop 3% to $8.ninety three billion, missing a $9.04 billion consensus. Declines in one of the most phase's older functions businesses offset a 19% boost in its cloud earnings. On the name, CFO Jim Kavanaugh mentioned IBM is determining to walk away from some "lessen-price" infrastructure capabilities contracts.
IBM's complete features signings -- they tend to fluctuate a imposing deal from quarter to quarter -- grew 21% in CC to $15.8 billion, after having dropped 21% in CC in Q3. The company's services backlog rose with the aid of $three billion sequentially to $116 billion, but was down 1% annually in CC and four% in greenbacks.4. Free cash stream remains beneath pressure
In 2018, IBM posted non-GAAP net earnings of $12.7 billion, however FCF of simplest $eleven.9 billion. And with IBM forecasting modest 2019 increases for both EPS and FCF, it appears relish FCF will another time be below non-GAAP web profits, even after accounting for the enhance that inventory buybacks are more likely to supply to EPS.
each IBM's mentioned 2018 and expected 2019 FCF, it be expense noting, are below said 2017 FCF of $13 billion, and smartly under a 2012 height of $18.2 billion.5. IBM's Tax rate and profit Margins Are both anticipated to Tick bigger
Kavanaugh forecast IBM will notice an "all-in" tax fee of about eleven% to 12% for 2019. That compares with non-GAAP tax costs of eight% and 7% for 2018 and 2017, respectively.
IBM expects the influence of an improved tax rate to be offset via reasonable development in its pre-tax income margin, which became a petite above 17% for carrying on with operations in each 2017 and 2018. lower operating fees -- the outcome of each spending cuts and the repercussion of a better dollar on non-U.S. costs -- gave a elevate to IBM's margins in this autumn: The company's non-GAAP working costs fell 5% to $5.7 billion.6. Buybacks and Dividend Hikes Are expected to continue
IBM spent $2.05 billion on inventory buybacks in this plunge (that boosted EPS somewhat), and $four.4 billion over the whole of 2018. On the call, Kavanaugh indicated IBM, which had $3.3 billion left on its buyback authorization on the finish of 2018, will continue repurchasing shares.
He additionally reiterated that IBM, so as to soon ought to reduce a gargantuan check to pay for pink Hat, is silent committed to starting to be its dividend every yr. in accordance with its current after-hours buying and selling price, IBM activities a forward dividend defer of 4.9%.
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09:13:59 - 04 February 2019OpenSDS Bali provides multi-cloud data control for Amazon Web Services, Microsoft Azure and Huawei Cloud protest storage using a single controller with yardstick S3 interface
SAN FRANCISCO -- /PRNewswire/ -- The Linux Foundation, the non-profit advancing professional open source management for mass collaboration, today announced that Click2Cloud, GMO Pepabo, Intel, Internet Initiative Japan and KPN Have joined the OpenSDS Project.
Today, the OpenSDS community moreover announced the release ofBali, the 2nd version of its open source software for software-defined storage control.Balifeatures advocate for multi-cloud data control with a single S3 protest ease API across multiple clouds, allowing finish users to combine protest storage services from AWS, Azure, and Huawei into a single solution. On-premise Ceph S3 protest is in development and will be available as an update to theBalirelease.Balialso supports manual data migration from on-premise storage to cloud storage. Policy-based multi-cloud data control and advocate for Google, IBM, and other cloud service providers are planned for 2019.
The OpenSDS community worked closely with the Container Storage Interface (CSI) community to define the latest CSI v1.0 Specification which added advocate for advanced data services snapshot creation and volume creation from snapshot. The Kubernetes CSI v1.0 plug-in is available in theBalirelease.
This release moreover added advocate for multi-OpenStack deployment using the OpenSDS storage controller to provision block storage for multiple clusters of OpenStack, bringing the benefits of storage consolidation to finish users.
"We are excited to welcome so many leading global organizations into the OpenSDS project to relieve deliver on their vision of a vendor neutral knowing data storage management framework for the cloud era." saidSteven Tan, OpenSDS TSC Chairman, and Vice President and CTO of Cloud Storage Solution at Huawei. "Balimulti-cloud is another step in their path to offer finish users the freedom to pick services that best suits the needs of finish users."
"OpenSDS Bali release brings hybrid features to customers' private clouds and traditional data centers. Given that some workloads work best on premise and some in different public clouds, the latest features of federated orchestration across multiple clouds in OpenSDS Bali release is one of the most knowing features in any product today", saidRakesh Jain, OpenSDS TSC vice-chair and Senior Researcher & Architect at IBM. "Our objective in the next releases is to further site OpenSDS in the modern storage hierarchy, in particular with NVMEoF".
The current contributors to the OpenSDS project will relieve accelerate the project's evolution, including development of glisten management, and the adoption of NVMe and NVMe over Fabric in cloud endemic environments. The addition of these industry leaders is a testimony to the value the project brings to open source data storage management.
OpenSDS current members:
Click2Cloud, a cloud migration technology company with having expertise in cloud comparison, CMP, infrastructure automation and cloud migration, is a Multinational Corporation incorporated in theState of Washington.
"Click2Cloud Inc., a Cloud Migration Technology Company, is committed in extending the OpenSDS capabilities for Data Storage and Migration for a Multi-Cloud Design and Multi-Cloud Providers." Prashant Mishra | CEO, Click2Cloud Inc
GMO Pepabo, Inc. is aTokyoandFukuoka-based technology company. Since its foundation the company has focused on consumer-targeted Internet services, and today it comprises four industry segments: Hosting which operates consumer domain registration and web hosting services, Ecommerce advocate which provides ecommerce platform solutions, Customer to customer (C2C) marketplace for handmade products, and Community that facilitates communication among Internet users through blogging.
"Our IT infrastructure consists their own private cloud and on-premise storage. They hope to leverage technologies from OpenSDS to improve the efficiency of their storage management", Shinya Tsunematsu, CTL of GMO Pepabo, Inc.
"Software-defined storage is a cornerstone of the modern data seat because it helps organizations better manage the growing data being generated by connected devices and services. OpenSDS fills a key requisite in the storage ecosystem by enabling multi-cloud advocate and enhanced back-end control. Intel looks forward to working with the OpenSDS community to drive the project's evolution and adoption,"Mark Skarpness, Vice president, Intel Architecture Graphics and Software, and director of Systems Engineering, System Software Products
Internet Initiative Japan
IIJ (Internet Initiative Japan) is Japan'sfirst ISP. Since the creation of the company, it has expanded its industry portfolio as a total solutions provider, now offering elevated performance network services, value-added outsourcing services, cloud services, WAN services and systems integration services.
"Software-defined storage will be essential piece of the operation of large-scale data centers in the future. OpenSDS is aiming to provide practical and innovative solution for modern storage management. The collaboration with OpenSDS will relieve to accelerate the modernization of their data center."Michitaka Terada, Manager, Distributed System Engineering Section, CSD2, CD, IIJ
"KPN is the leading supplier of telecom and IT services inThe Netherlands. The KPN marketing vision to position a Managed Hybrid Cloud portfolio based on on-Premise, Private Cloud and Public Cloud Solutions, requires a uniform storage interface from the application layer to the actual storage Infrastructure, completely decoupled on each layer and based on SNIA Swordfish standards. Adopting Open SDS will combine the ability to combine SNIA standards and add own logics at the identical time to act as One-Platform",Niels Hoffmann, Director Technology Roadmaps, KPN
About the OpenSDS CommunityOpenSDS is the world's first open-source community focused on software-defined storage. It is dedicated to providing unified SDS controller framework and APIs for cross-cloud workloads. OpenSDS is supported by a number of leading storage vendors and carriers including Click2Cloud, CyberAgent, Dell-EMC, Fujitsu, GMO Pepabo, Hitachi, Huawei, IBM, Intel, Internet Initiative Japan, KPN, Linbit, NTT Communications, Toyota ITC, Vodafone, Western Digital, Yahoo!Japan. The OpenSDS community welcomes anyone who is interested in helping to build the open yardstick for software-defined storage. It embraces suggestions and proposals from members and developers, who are helping to build comprehensive SDS solutions and API standards.
For more information, visit https://www.opensds.io/ and https://github.com/opensds/.
About The Linux FoundationThe Linux Foundation is the organization of choice for the world's top developers and companies to build ecosystems that accelerate open technology development and industry adoption. Together with the worldwide open source community, it is solving the hardest technology problems by creating the largest shared technology investment in history. Founded in 2000, The Linux Foundation today provides tools, training and events to scale any open source project, which together deliver an economic repercussion not achievable by any one company. More information can be institute at www.linuxfoundation.org.
The Linux Foundation has registered trademarks and uses trademarks. For a list of trademarks of The Linux Foundation, gratify notice their trademark usage page: https://www.linuxfoundation.org/trademark-usage.
Linux is a registered trademark of Linus Torvalds.
Sarah ConwayThe Linux Foundationsconway@linuxfoundation.org
SOURCE The Linux Foundation
The latest external storage system revenue numbers are in from IDC and Gartner, showing that trends they saw in the first half of 2010 continued into final quarter.
Those embrace the rise of Ethernet in networked storage at the expense of Fibre Channel, and market participate gains by NetApp and EMC at the expense of IBM, Hewlett-Packard and Dell.
According to IDC, Ethernet-based NAS and iSCSI SANs outgrew the market again in the third quarter of 2010. NAS increased 49.8% over final year and iSCSI jumped 41.4%. Those numbers compare to overall SAN revenue growth of 18.5% and an external storage enlarge of 19%.
EMC led the NAS market with 46.6% participate followed by NetApp with 28.9%, according to IDC. Both vendors picked up participate over final quarter. EMC is moreover in the process of acquiring clustered NAS vendor Isilon, which had 0.75% of the overall storage participate final quarter.
Dell silent leads the iSCSI market on the force of its EqualLogic platform. Dell had 33.8% market participate final quarter, well ahead of EMC at 13.8% and HP at 13.7%. Dell increased its iSCSI participate from 32.9% in the second quarter.
In the overall vendor horse race, EMC kept its lead in external storage with 26.1% of the market revenue, followed by IBM at 12.9%. NetApp, which edged ahead of HP in the second quarter, stayed third with 11.6%. HP was fourth at 11.1%, followed by Dell with 9.1%
EMC and NetApp gained total participate over the previous quarter and final year while the other three of the top five lost share. NetApp revenue grew a whopping 54.9% since final year while EMC grew 28.3%. HP had the lowest growth at 11.3% over final year. Maybe that’s why HP spent $2.35 billion to acquire SAN vendor 3PAR, which had 0.83% of the market final quarter.
IDC said total external storage sales for final quarter were $5.2 billion.
Gartner reported similar numbers, placing the total external storage revenue at $4.6 billion — up 16% from final year.
Gartner added Fujitsu to the list of vendors who outgrew the market, and shed more light on specific vendor successes and failures. Gartner’s top five was the identical as IDC’s, and it listed Hitachi Data Systems, Futjitsu and Oracle/Sun as the next three leaders. Gartner said Oracle/Sun revenue declined 36.3% from final year, attributing it to Oracle’s ending the OEM deal Sun had with HDS for its 9000 high-end monolithic array platform.
Other information in the Gartner report:
Lenovo has rebooted its entire datacenter portfolio with what it described as its largest and broadest rollout of current and refreshed hardware with the introduction of 26 current servers, storage and network gear and a current line of engineered appliances and hyper-converged systems. At a one-day event in current York City for hundreds of customers, analysts and press, Lenovo's top brass declared the company intends to extend its footprint in datacenters and become the leading supplier of high-performance and super-computing systems.
The company's event was more than just a large rollout of datacenter, client and workstation products but rather an assertion that Lenovo is gunning to outpace rivals Cisco, Dell EMC and HPE. Such competitive chest thumping of course is common, and Lenovo's assertion is ambitious considering its rivals currently Have much broader and modern datacenter portfolios (and, consequently, greater market share).
Nevertheless, Lenovo officials at yesterday's event eminent that the company will deliver its 20 millionth server next month. Best known for taking IBM's struggling PC industry 12 years ago and achieving market leadership, Lenovo is relatively current to the datacenter after large Blue again decided to offload its commodity x86 server industry in January of 2014 for $2.3 billion, a deal that was completed a year later.
While Lenovo has rolled out various upgrades since and has signaled its blueprint to extend its datacenter footprint, yesterday's Lenovo Transform event was the kickoff of a strategy that brings together current products and revamped development, manufacturing, distribution, marketing and service capabilities. "We are going to disrupt the status quo and accelerate the pace of innovation -- not just in their legacy server solution but moreover in the software-defined market," said Kirk Skaugen, president of Lenovo's Data seat Group.
Skaugen, a former senior executive at Intel who was tapped late final year to lead Lenovo's datacenter business, believes Lenovo has some sever advantages over Cisco, Dell EMC and HPE -- notably that it doesn't Have those companies' legacy businesses. "We don't Have a huge router industry or a huge SAN industry to protect," he said. "It's that want of legacy that's enabling us to invest and come by ahead of the curve on this next transition to software-defined. You are going to notice us doing that through building their internal IP, through some significant joint ventures [and] moreover through some mergers and acquisitions through the next several quarters."
Another key edge is that Lenovo manufactures its own systems, he emphasized. Bold as the statements Lenovo made yesterday might sound, which moreover includes wanting to be the top player in supercomputing in the next several years, the company has the resources to disrupt the status quo if it can execute. "I've never seen a big, bold statement from Lenovo on the datacenter side," said Patrick Moorhead, principal analyst with Moor Insights and Strategy, during a brief interview privilege after the keynote presentation. Moorhead, who said he needs to drill deeper into the roadmap, said Lenovo has been building toward this focus for over a year. "They've thrown down the gauntlet and are definitely at the table," he said.
Moving away from IBM's chain x brand, Lenovo launched two current brands: ThinkSystem and ThinkAgile. ThinkSystem is a broad portfolio of current platforms consisting of current servers, storage and network switches that will roll out with this summer's release of Intel's current Xeon Scalable Family Platforms.
The current rack-based ThinkSystem offerings embrace the SR950 4U system, which is targeted at mission-critical workloads such as transactional systems, ERP and in-memory databases, and is scalable from two to eight processors. The denser SN850 blade server compute node is designed for the company's Flex System chassis. The SD530, the company's elevated performance computing entry into the 2U4N figure factor, is designed for its current D2 chassis. moreover added to the ThinkSystems line is its current DS chain entry-level to mid-range storage offering, available in everyone glisten and hybrid SAN configurations.
ThinkAgile is what Lenovo describes as its software-defined infrastructure based line consisting of engineered systems targeting modern hybrid cloud workloads that embrace hyper-converged systems based on platforms from Microsoft, Nutanix and VMware. Lenovo's planned Azure Stack appliance will plunge under the ThinkAgile portfolio and will be called the ThinkAgile SX for Microsoft Azure Stack.
Both the ThinkSystem and ThinkAgile portfolios are based on Lenovo's current systems management platform, XClarity Controller, which the company said offers a modern and intuitive interface that can provide centralized configuration, policy and systems management across both.
Lenovo officials said that while the company plans to accelerate the release of current products and partnerships, the company has made some key operational changes over the past year that will give its datacenter group better focus. Among the changes, Skaugen said the company has moved to a dedicated sales and marketing organization. "In the past, they had people that were shared between PC and datacenter," he said. "Now thousands of sales people around the world are 100 percent dedicated end-to-end to their datacenter clients."
Skaugen added that Lenovo now has a dedicated supply chain, procurement organization and has brought in current leadership that can focus on various technology and industry segments. Lenovo has moreover revamped its channel organization. A year ago, Lenovo's datacenter group had five different channel programs around the world. "We now Have one simplified channel program for dealer registration," he said. "I reflect their channel is very, very energized to proceed out to market with Lenovo technology across the board. And they Have a whole current set of system integrator relationships [and] a whole current set of partnerships to build solutions together with their system integrator partners."
Moorhead said the moves were long overdue. "While I reflect Lenovo should Have done this two or three years ago, privilege after they chewed up IBM's xSeries business, these moves should relieve them become more successful," he said.
Despite some operational miscues in the past, unfortunately for Lenovo, it picked up the IBM xSeries industry at the peak of the market, Charles King, principal analyst with Pund-IT, observed in a research note. Lenovo acquired IBM's x86 industry in January 2015, when global server sales had grown just 2.3%. But the x86 systems market grew at twice that rate, according to IDC, King recalled, noting that two years later the global server market declined 4.6% to $14.6 billion in the 4th quarter of 2016.
"While Lenovo was working to integrate IBM's System x x86 systems and personnel with its own strategies, products and company culture, it was moreover navigating a notable decline in hardware sales and revenues," King noted.
Now that Lenovo has rebooted, King said despite its carriage that the company doesn't Have the legacy of some of its rivals, given its success in the PC business, it would be premature to underestimate the company's ability to extend its footprint in the datacenter over time. "It would be a mistake to assume Lenovo isn't fully ready and able to grasp its efforts in datacenter solutions and sales to the next level."
Posted on 06/21/2017 at 1:35 PM
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