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IBM's hardware sales have been on a slow decline for some time. The last time STG reported sales growth was in the third quarter of 2011. In 2012 hardware sales plunged 13 percent in the third quarter but stabilized in the fourth quarter, dropping just 1 percent and actually increasing 4 percent when factoring out the company's retail store systems sold to Toshiba in August.
Several channel partners have said that sales of IBM's PureSystems converged systems product line, launched nearly one year ago, have been slow to take off. PureSystems competes with converged system products from Hewlett-Packard, Oracle and Cisco and is widely seen as a critical product for IBM in the hardware arena.
IBM has not disclosed its PureSystems sales. But during a panel session Tuesday at the conference, Andy Monshaw, IBM PureFlex general manager, said most PureSystems sales have been to enterprise customers and to managed service providers.
Adkins is scheduled to address PartnerWorld Leadership Conference attendees Wednesday.
Last week several channel partners said they were hoping to hear more about IBM's PureSystems plans at the conference. Ernie Yenke, president of Lighthouse Computer Services, a Lincoln, R.I.-based IBM Premier Business Partner, said his company has nine PureSystems certified employees. "On the hardware side, it's a big focus for us. IBM's bet a ton on it."
Waka Digital Media, a Cambridge, Mass.-based MSP that provides security, compliance and IT life-cycle services, isn't using the PureSystems servers yet, said Jacob Braun, president and COO. But in an interview after he spoke on a conference panel about MSPs, he said adopting PureSystems is "on the road map" for Waka Digital.