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IBM 4Q 2007 Financials: Software

IBM Announced 10% revenue growth in the 4th quarter of 20007. 6% of the growth came from currency fluctuations (as the value of overseas income rose in dollar terms due to the dollar's decline). In other words, 4% is a better measure of business growth.

Software revenues grew 12% in dollar terms in the 4th quarter; 6% in constant currency terms. The interesting news is in the software segments:

- Websphere (application platform and portal) grew 23% in dollar terms

- Information Management (Database, the biggest segment by far) -- 11%

- Tivoli (Systems Management) -- 19%

- Lotus (Collaboration) -- 7%

image

Lotus significantly lagged the other IBM software businesses, and  after accounting for currency fluctuations, showed no growth in the fourth quarter of 2007.

image

It's only one quarter. It's possible these results reflect customers postponing purchases until the new Eclipse-based Notes/Domino 8 (which launched in August last year) is proven out.

<updated with supplemental segment information from IBM>

Published Friday, January 18, 2008 11:20 AM by Cliff Reeves

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About Cliff Reeves

I was born in Sri Lanka (then it was called Ceylon) of British parents. I lived in Sri Lanka, England, and Malta before moving to the US in 1973. In the US I have lived in NC (Raleigh), TX (Dallas and Austin), MA (Boston), and WA (Kirkland). At present I roam between my family home in NC and my work home in WA I am married, with two daughters and one wife. I worked at: -- IBM -- Lotus (Lotus was IBM too … well, sort of). I am presently working in the Emerging Business Team at Microsoft. We work with start-up companies, and VCs to help them and our customers get the best out their relationship with Microsoft. I focus mostly on collaboration software, broadly defined. I plan to write -- mostly -- about software and the companies I really like. Like, that is, for any number of reasons. Maybe they do something really new, or really well, or maybe they signal a new trend. Or all of those things. I'm a Microsoft employee ... so expect both bias and insight in that respect. I worked at IBM and Lotus for a long time ... so same caveats apply.
Cliff Reeves
Collaboration
I was born in Sri Lanka (then it was called Ceylon) of British parents. I lived in Sri Lanka, England, and Malta before moving to the US in 1973. In the US I have lived in NC (Raleigh), TX (Dallas and Austin), MA (Boston), and WA (Kirkland). At present I roam between my family home in NC and my work home in WA I am marri...

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