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Executive Perspective Generating Demand Infrastructure Partner Experience Worldwide

You did it! Together, we grew storage in the first half of 2017

Make it a perfect year by taking your business further in 2H 2017

The results are in, and things are going well for IBM Storage in the first half of 2017, as revenue grew 7 percent in Q1 ’17 and 8 percent in Q2 ’17. This growth was led by all-flash storage systems and software defined storage. In the past eight quarters, these segments—the two fastest-growing in the storage industry—have doubled to almost 30 percent of IBM’s total storage revenues.

One negative has been that our Business Partners have not grown in these new segments as fast as IBM Storage has. To get back to the right growth pace for 2H, we recommend that you focus your business on all-flash storage systems and software defined storage. IBM has already signaled with our powerful increases in the past two quarters that we are laser-focused on these growing segments of the storage market, and you should be too!

IBM’s leadership in the storage market continues to be strong. Not only is IBM the #2 company in total storage1, but IBM is also #1 in overall storage software2, #1 in software defined storage2, #1 in archiving software2, #1 in branded tape3, and a market leader in object storage4. And as we head into the second half of 2017 IBM has already received numerous accolades across the globe:

  • July 2017: IBM Spectrum Protect was named to the “LEADERS” Quadrant in the 2017 Gartner Magic Quadrant for Enterprise Backup, achieving “LEADER” status in 14 of the past 15 years5
  • July 2017: IBM all-flash solutions were named to the “LEADERS” Quadrant in the 2017 Gartner Magic Quadrant for solid-state arrays. It is the fourth consecutive year IBM has been named a LEADER6
  • June 2017: IBM moves to #1 in overall storage software, overtaking Dell/EMC (IDC’s 1Q 2017 storage software tracker)
  • June 2017: IBM named #1 in software defined storage and #1 in archiving software, while passing EMC to take the #2 position in backup software (IDC’s 1Q 2017 storage software tracker)
  • March 2017: IBM FlashSystem V9000 is named winner of this year’s iF DESIGN AWARD
  • January 2017: CRN names IBM Spectrum Virtualize Software-Defined Flash Storage to CRN’s Top 10 List of Coolest Flash Storage and SSD products
  • January 2017: Intersect360 Research names IBM Spectrum Scale as the Top File Management Storage Software Package for AI, ML, Cognitive, and Big Data Analytic workloads
  • January 2017: IBM FlashSystem A9000, A9000R and IBM Storwize V7000F all named as finalists in the All-flash systems category for Storage Magazine’s 2016 Product of Year

 
I want to bring your attention to a few spotlight areas such as DS8000, software defined storage, and tape.

For decades, the IBM z and the IBM DS8880 family of solutions have run mission critical applications as a finely tuned duo. With the new IBM z family this only gets better, as it accelerates insights and enables real-time decision with unmatched performance by combining the all-flash DS8880 and z through IBM’s zHyperLink (technology that reduces application response times and latency). Customers and prospects can dramatically lower cost by using the DS8880’s Transparent Cloud Tiering to move older data to hybrid clouds. And the DS8880 and IBM tape with keep your end users’ data always safe with 256-bit encryption for primary storage and archive data sets.

Announcing a new member of the IBM Spectrum Storage software family

Can you keep a secret? IBM Storage is announcing a new member of the IBM Spectrum Storage software family on August 22 and will be featuring the new solutions for virtualized environments at VMworld from August 27–31 in Las Vegas, and again at VMworld Barcelona from September 11–14. This new data protection and application availability solution will be of strong interest to all of your end users with virtualized environments. The new solution can be set up in minutes and begin protecting a customer environment within an hour. One of our Business Partner’s Vice President of Technology was briefed on the pre-release version a few weeks ago and he commented, “This is a Veeam killer.” And two other Business Partners pre-briefed on our new solution both said it was one of the most important launches in the IBM Spectrum Protect portfolio in the past 10 years. So expand your sales opportunities by selling this offering as a stand-alone solution, or integrating it with IBM Spectrum Protect. This is a great opportunity to help customers make data availability easy and to go get new customers for you and IBM.

Leverage our launch at the two VMworld conferences

Take advantage of our major launch at the two VMworld conferences to set up meetings for your clients and prospects. Join IBM at VMworld in Las Vegas and Barcelona. Bring your clients to our booths at VMworld Las Vegas (#506 and #1225) and at VMworld Barcelona (#D315). Show prospects and customers the deep IBM/VMware integration at the IBM Storage booths, featuring SDS VMware data protection, FlashSystem A9000 VersaStack for Horizon VDI, and of course, the entire family of award-winning IBM storage and software defined solutions.

Tape remains the lowest-cost storage medium. If I had a dollar for every prediction of the demise of tape-based storage I have heard over the years, I would be a very rich man. In fact, tape continues to be used by the majority of the world’s largest organizations and cloud service providers, and tape ships more capacity than external hard disks. IBM remains the #1 global supplier of tape storage solutions, according to IDC: research showed that between 2015 and 2016, IBM increased its tape revenue share from 36 percent to 43 percent, while our three closest tape competitors all lost ground.3 You can read more about why selling IBM tape is good for business at this site.

We couldn’t have done all this without you, our channel allies. Please increase your velocity with IBM’s industry-acclaimed storage solutions. It’s important that you sell the entire portfolio, offering your customers and prospects a total solution that solves their business needs. All-flash solutions, software defined storage, object storage and the VersaStack converged infrastructure should all be in your IBM storage solutions sales kits. Ride the wave of our announcements and press coverage over the next few months to drive opportunities. And reach out to me and my team for help—no customer is too big or too small for a visit from the Zog. Remember to fill up our proverbial “dance card” at the two upcoming VMworld conferences. This is an ideal way to not only impress our existing clients but a great opportunity to get new ones.

Eric Herzog (@zoginstor)
Vice President, Product Marketing and Management
Vice President, Worldwide Storage Channels
IBM Storage Systems
 

 

Footnotes:
(1) International Data Corp (IDC) 1Q 2017 Disk Storage Systems Tracker + 1Q 2017 Storage Software QView
(2) IDC 1Q 2017 Storage Software QView
(3) IDC Custom tape report 2H16
(4) IDC MarketScape WW Object based storage 2016, Dec 2016.
(5) Gartner, Magic Quadrant for Data Center Backup and Recovery Solutions, July 2017, (G00311191)
(6) Gartner, Magic Quadrant for Solid-State Arrays July 13, 2017 (G00315723)

Eric Herzog is Vice President, Product Marketing and Management and Vice President, Worldwide Storage Channels for IBM Storage Systems and Software Defined Infrastructure. Eric’s responsibilities include worldwide product marketing and management for IBM's award winning family of storage solutions, software defined storage, integrated infrastructure, and software defined computing, as well as responsibility for global storage channels. Herzog has over 30 years of product management, marketing, business development, alliances, sales, and channels experience in the storage software, storage hardware, and storage solutions markets, managing all aspects of marketing, product management, sales, alliances, channels, and business development in both Fortune 500 and start-up storage companies. Herzog holds a B.A. degree in history from the University of California, Davis, where he graduated cum laude, studied towards a M.A. degree in Chinese history, and was a member of the Phi Alpha Theta honor society.

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1 Comment

  1. ccolle@ca.ibm.com'

    Claire Colle

    Eric, thanks for your post. I can’t wait for the Top Secret announcement on August 22 (not so Secret anymore!). And I want to remind our Partners to join us at VMworld in Las Vegas and Barcelona. IBM Storage is a Diamond sponsor with all the bells and whistles, bring your clients and together we’ll wow ’em.

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