Total WW external OEM storage systems shipped was up 27.9% YoY for 2Q21. Revenue grew 9.7% YoY for 2Q21. Somehow IBM's revenue (current market share 4.7%, down from 8% last year) managed to grow -36% YoY. That's negative 36%!! Hitachi also declined -4% but pulled in more revenue than IBM.
Is anything going to be done about this continual decline in storage? IBM continues to post bad Systems numbers, only bolstered by new Z rollouts.
Thanks for the source @1fej+1cPE0HId. The numbers in that table are downright scary. IBM is soon almost out of this list if this continues.
Yeah, everyone knows Power has been in trouble for some time. Beginning of 2020 before the pandemic there were Power RAs, some of them got rehired into ds8000 for a little while. P10 looks like a great chip, but they've got to be getting close to spinning Power off. I wonder if they haven't because nobody wants to buy it? Such a shame. IBM does make some pretty good chips, the new z16 chip with inference on board is amazing, read about it if you want (https://www.nextplatform.com/2021/08/23/ibm-bets-big-on-native-inference-with-big-iron/). And they've only just recently made the new 2nm chip. It's like in every stage IBM discovers, celebrates, then gets zero market share.
I live in a very remote part of the USA. The county, court, power company, and parks dept all ran on Power boxes. (P20 and P30 sized boxes) They were quite happy with the reliability and performance, BUT just inked a contract with “workday” to replace all of the boxes. Why? Because the ISV’s couldn’t commit to support the legacy SW going forward, and because the IBM business partner recommended getting off of Power even though P9 boxes and soon P10 boxes could replace their current P8 boxes. (NOW thats a partner IBM should be proud of). So what are the lessons learned here? Partners gravitate to what serves them best (the rep made more commission selling workday) and Power is shrinking because IBM is not investing in the ecosystem (the ISV invested in Intel). NOTE this is the story of Power. It peaked at 6 billion in sales, and has steadily shrunk to its current approx 1 billion a year with a continued shrink rate of 10-15% a year. Please note, I’m not saying it’s bad, FAR FROM IT, but I am saying the marketplace has passed it by
I don't know if this was the source for OP, but it contains similar information:
https://www.storagenewsletter.com/2021/09/14/ww-enterprise-external-oem-storage-systems-market-revenue-increased-9-7-in-2q21-to-6-9-billion/
Not storage related, but similar story for servers from IDC:
The global market for servers was mostly steady in the second quarter of 2021, according to analyst firm IDC, as the market recovers from 2020's unusual demands.
The headline figures of IDC's Worldwide Quarterly Server Tracker are $23.6 billion and 3.2 million. The former represents Q2 server revenue, a 2.5 per cent year on year decline, while the latter is shipment numbers and grew 0.1 per cent year-on-year.
HPE and Dell were rated jo--t leaders of the market as measured by revenue, as they racked up $3.704 billion and $3.680 billion respectively. Dell shipped 529,804 servers for the quarter, handily topping HPE's 446,168.
IBM had a different story to tell, as its $1.17 billion quarterly revenue made it the fifth-placed vendor on that metric – but it didn’t crack the top five for shipments. Power boxes ain't cheap, after all. And perhaps they aren't very in-demand, either – Big Blue's revenue was down 19.5 per cent year-on-year.
At least IBM wasn't alone in struggling to do deals for big iron. IDC found that high-end server revenue declined by 32.7 per cent to $1.3 billion. Mid-range server revenue also fell, by 30.0 per cent to $2.4 billion and volume server revenue was up 5.6 per cent to nearly $20 billion.
Source: can OP perhaps provide a link, or is it only available to registered users?
I thought other vendors such as Hitachi and Dell (EMC) license code, or get the specs to make their own versions of mainframe DS8 functions such as GDPS, albeit some period after IBM. I know of several well known companies using Hitachi for mainframe storage. Tape may be a little different but I believe there are niche companies that sell mainframe virtual tape options too.
I wonder what the Z/open systems revenue ratio is.
Yes, storage has Ds8000 and others made to work better with Z than others. I would say most storage only exist to serve Z better.
Storage… one more thing IBM can jettison and make another claim that a new beginning is just starting!
Does IBM storage give a competitive advantage to Z vs other competitive products? If not, we are talking commodity and a rush to the bottom
The Systems numbers are heavily influenced by the Z release cycle, which in turn drives Z-attached storage.
I'm not pretending that Storage is strong, but to actually understand what's going on you need to factor out Z.
This is what happens when you license out your IP.