IBM Revenues Continue to Lose Steam

The Systems and Technology segment, which accounts for 13.7% of total revenues, declined the most. Two of the segment’s subcategories, Power Systems and System X, saw sales fall 38% and 18% respectively, most of which was because of a slowdown in demand from growth markets.
The Software segment fared only slightly better, posting revenue growth of 0.6% but reported the highest gross margins of 88%. In this segment, sales from Operating Systems reported a 4% drop while Middleware’s revenues increased 3%.
The Global Technology Services segment declined due to a fall in revenues from existing accounts and low margin contracts. Revenues from the Global Business Services segment improved marginally by 0.4% backed by initiatives like Analytics, Cloud and Smarter Planet.

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IBM

HP Serves Up Aces to Take The Lead From IBM

Hewlett-Packard Company (HPQ) overcame intense competition to take back the number one position in the global server market by securing a 28.1% factory revenue share in the third quarter (3Q) of fiscal year 2013 (FY13), an year-over-year (YoY) increase of 1.5%. This jump was the result of increased demand for the x86 architecture based ProLiant servers.

IBM (IBM) slipped down to number two with a 23.4% factory revenue share, a decline of 4.5% from 3Q of last year. The decrease in demand for IBM’s System X and Power Systems was the main reason for the decline. Dell Inc. (Dell) maintained its position in third place but its market share declined 6% to 16.2% due to lower sales of servers and custom built systems. Oracle Corporation (ORCL) also saw its market share fall due to a decrease in the demand for Unix servers while ODM Direct gained market share, moving up to 6.5% from 4.3%. Cisco's (CSCO) market share also increased from 3.3% to 5.0%.

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