IBM 4Q Server Revenue Outpaces Overall 4Q Server Market Growth

 IDC reported that IBM (NYSE: IBM) achieved worldwide factory revenue growth and outpaced the overall server market by more than 3% year-over-year in the fourth quarter of 2015. 

According to IDC, IBM achieved revenue growth for its z Systems along with strong growth for Linux on IBM Power Systems year-over-year in 4Q15. [2] This performance is evidence of the transformation of the IBM server portfolio. The IDC report further builds on a successful 2015 for z Systems and Power Systems –helping to propel IBM Systems to a full year of revenue growth.

z Systems saw double digit growth due to a number of new portfolio enhancements. The next-generation z13 mainframe, optimized for digital businesses and hybrid cloud environments, is designed to handle mobile transactions securely and at scale, while enabling clients to run analytics on the system and in real time. IBM expanded its commitment to offering open-source on the mainframe by launching a line of Linux-only systems in August of 2015. LinuxONE is based on the latest generation of z Systems technology and enables popular open-source tools and software on the mainframe. The LinuxONE Community Cloud gives developers, students and system administrators access to a virtual LinuxONE system in the cloud to build and test their applications at no cost.

The strong growth in Linux running on Power Systems is due in large part to optimized solutions such as DB2 BLU, SAP HANA, and other industry big data software, built on Power Systems running Linux. In October of 2015, IBM expanded its Linux on Power Systems portfolio with the LC line of servers. These servers are infused with OpenPOWER Foundation technology and bring the higher performance of the POWER CPU to the broad Linux community. The OpenPOWER Foundation, an organization with more than 180 members worldwide, builds solutions on top of the open architecture of IBM’s POWER processor. This open and collaborative model allows for rapid innovation not currently available using alternative, x86 technology.

“Two years ago, as part of a wide-ranging IBM Systems transformation effort, we launched a bold strategy around IBM Power Systems,” said Doug Balog, General Manager, Power Systems, IBM. “Aggressively embracing open models of innovation like Linux, Open-Source software and OpenPOWER has not only spurred growth in our business, but it has enabled our clients to leverage new workloads as they continue on a journey to becoming cognitive businesses.”

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