1Q2009 IBM Earnings

IBM reported 1Q2009 earnings earlier today. IBM does not report System z software results separately, but System z hardware revenue declined 19 percent year to year (12 percent at constant currency). However, MIPS shipments grew by 18 percent — the fifth consecutive quarter of double digit MIPS (mainframe capacity) growth as mainframe customers continue to expand their installations aggressively. (Simple math suggests they enjoyed lower per-MIPS pricing in the process.) And, while North America and particularly Western Europe were weak performers, System z revenue grew a whopping 37 percent in growth markets (up 60 percent in constant currency).

The System z10 EC model started shipping in 1Q2008, so this past quarter is the first with a year-to-year System z10 comparison.

by Timothy Sipples April 20, 2009
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