The Cloud is Still Merciless to Enterprise Hardware Firms, But Security is a Strong Point

For much of 2016, numbers from industry research firms painted a bleak picture for enterprise IT hardware demand, as cloud adoption and changing spending priorities did a number on corporate purchases of servers, storage, switches and much else. First-quarter earnings reports from the likes of IBM (IBM) , Intel (INTC) and F5 Networks (FFIV)  suggest conditions haven't improved much, at least outside of one particular market.

IBM's Systems unit, which sells servers, storage and server operating system software, saw revenue drop 16.8% annually in Q1 to $1.4 billion, missing a $1.53 billion consensus. Cyclical pressures for IBM's age-old mainframe business were a factor -- the Z Systems mainframe line was last refreshed in early 2015 -- but hardly the only one. Sales also fell for IBM's proprietary Power servers, as growth in Linux workloads (a nascent business) failed to offset UNIX declines. Storage was a strong point, with hardware sales growing 7% due to flash storage demand....748 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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