IBM: Fiscal 1Q17 Financial ResultsStorage revenue up Y/Y, for first time since 4FQ11 !
By Jean-Jacques Maleval on 2017.04.19
IBM Corp. announced 1FQ17 earnings results for the period ended March 31, 2017.
As usual, the company revealed only one figure for its storage business: +7% growth Y/Y.
This percentage were down each quarter since 4Q11 (see table blow), a dramatic trend, but IBM is finally coming back to a relatively small growth.
This change is led by double-digit growth in all-flash arrays. Flash contributed to storage revenue growth in both mid-range and high-end. In storage, Big Blue continues to see the shift in value towards software-defined environments. It again had double-digit revenue growth in this segment.
Storage software now represents more than 40% of total storage revenue. But storage gross margins were down, as hardware continues to be impacted by price pressure.
Last year we estimate IBM storage revenue at $447 million for 1Q16. Then +7% means $478 million for its most recent three-month period.
Revenue Growth of IBM Storage Products
| Fiscal period
|| Y/Y growth