When my children were little and cried due to a scraped knee, I would examine it gravely and then say: “This looks bad! Time to amputate!”
That quieted them right down and, to my relief, they’ve grown up to be functional human beings working – of all things – in high tech.
But that was a joke. With IBM storage I wouldn’t be joking.
Amputation is imminent. And needed to keep shareholders happy.
According to Storage Newsletter, IBM storage revenue is in an accelerating slide:
The StorageMojo take
My, that looks grim. But why?
The sale of the IBM’s server business was a wake up call to dyed-blue customers that their usual buying choices weren’t going to look too good at the next annual review. So they started looking elsewhere. As did IBM sales.
In the short term good for EMC – who seems to be sweeping up most of the lost market share of the 7 dwarves – but in the longer term even better for upstarts like Nimble, Nutanix and Coho Data who offer modern architectures and strong value props.
With the low-end server business gone, management’s spotlight falls on storage. As StorageMojo noted a year ago:
IBM‘s storage business is at risk. While they have great technology, none of their hardware products are even a strong #2. Two thirds of IBM’s Systems and Technology group business is servers, and it is clear that IBM management isn’t happy with how some product lines are performing.
They’re less happy today.
Courteous comments welcome, of course. And to think that 20 years ago IBM dominated the storage industry.