IBM Expects iSeries Server Sales to Recover Despite 28% Q2 Drop

Strategic Insights -

IBM officials have pinned the second-quarter decline in sales of its iSeries server range to poor timing, citing customer decisions to wait for the release of the new i5. The company is optimistic that the loss will be temporary, expecting a significant increase in orders this month and next, driven by server consolidation and the appeal of running AIX and Linux on the new POWER5 chip.

Key Takeaways:

  • IBM's iSeries server sales declined by 28% in the second quarter, with customers holding off on orders to wait for the release of the new i5.
  • The company expects orders to pick up this month and next, driven by server consolidation and the appeal of running AIX and Linux on the new POWER5 chip.
  • The new iSeries computers now run both AIX and Linux on the new POWER5 chip, addressing a significant drawback of earlier models.
  • IBM officials expect to win customers from rivals Hewlett-Packard and Sun Microsystems with the new i5.
  • IDC analyst Avneesh Saxena notes that server sales in Asia-Pacific excluding Japan grew about 7% last year.
  • The new i5 was released on June 11, and customers were waiting until they could evaluate the new hardware and software.
  • iSeries chief scientist Frank Soltis attributes the decline to poor timing, citing customer decisions to wait for the release of the new i5.

Statistics:

  • iSeries server sales declined by 28% in the second quarter.
  • The company expects orders to pick up this month and next.
  • Server sales in Asia-Pacific excluding Japan grew about 7% last year (IDC analyst Avneesh Saxena).
  • The new iSeries computers now run both AIX and Linux on the new POWER5 chip.

Sources:

  • "IBM Expects Sales to Recover from Server Drop Due to Timing", by Danyll Wills.