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Test Code : C9020-568
Test Name : IBM Enterprise Storage Technical Support V5
Vendor Name : IBM
Q&A : 60 Real Questions

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IBM Enterprise Storage Technical Support V5 book

The Contradictions Of IBM’s Platform strategy | C9020-568 Real Questions and VCE Practice Test

The factor about systems that have a wide adoption and deep background is that they are inclined to persist. they've such economic inertia that, provided that they could retain morphing and grafting on new technologies, that they persist long after alternatives have emerged and dominated data processing. every company in the end wants to build a platform because of this, and has seeing that the dawn of business computing, for precisely this cause, for this inertia – it takes too lots effort to trade or substitute it – is what generates the profits.

it's with this in mind that we consider the state of IBM and its equipment z and power programs structures and its emerging IBM Cloud (previously SoftLayer) public cloud, in all probability its last platform, in the wake of big Blue reporting its economic consequences for the primary quarter of this yr.

approach down inner, if you peel lower back the entire Cognitive and Watson mumbo-jumbo and the speak of “strategic imperatives” and other such things that IBM likes to talk about to are trying to prove it's a fast-moving and cool enterprise, IBM is a methods enterprise with a very large element of its revenues and an excellent higher a part of its profits coming from these two platforms, the gadget z mainframe and the vigor techniques – now every now and then referred to as the Cognitive techniques – line. The core systems enterprise – that means the servers, storage, and networking hardware and the operating systems and transaction processing application plus any financing needed for it – includes about a 3rd of IBM’s revenues and more than half of its gross profits, by means of our estimates. numerous database and middleware stacks up on proper of this, generating even more platform revenues and gains, however here is tougher to peel away.

The relaxation of IBM is really diverse. The enterprise has a wide portfolio of functions and services, and a few functions (like Watson records analytics and utility that may safely be referred to as cognitive in the loosest sense of that note) are offered only as functions. Like Hewlett Packard business and Microsoft and now defunct corporations like solar Microsystems, IBM has appeared like it become in a perpetual state of consternation and transformation within the three decades we have been watching it closely. there is always a set of personnel rebalancings, all the time a brand new strategic route that appears to be imposed on IBM from the backyard in preference to created by means of the business itself and published to the area, at all times a new set of hopes that salary will grow and profitability, although nothing like IBM enjoyed when it changed into the blue chip stock of the 1960s and Nineteen Seventies, may be maintained in some trend. for the reason that that the heart of big Blue goes again to 1890, it is fantastic that it remains around at all, a whole lot much less an organization that generates round $80 billion a year in revenue. Google and Microsoft bypassed IBM because the latter changed into on the way down and they have been rising, but here's nevertheless a extremely massive platform company and it will possibly – and does – nevertheless do wonderful and significant issues. Apple handed IBM returned in 2011, on stratospheric income of iPhones, and is greater than twice the measurement of both Google or Microsoft. All 4 groups are platform providers in their personal rights.

again, this is not an accident.

within the quarter led to March, IBM’s revenues rose with the aid of 5.1 p.c to $19.1 billion, and its gross earnings were up by 6.1 p.c to $eight.25 billion. there have been an entire bunch of issues that affected the final analysis in the quarter, together with a settlement of two audits via the united states inside salary carrier that gave it back $810 million, however IBM then took $610 million in restructuring costs for unspecified layoffs. The enterprise additionally took some charges – IBM’s chief fiscal officer, Jim Cavanaugh, did not say how an awful lot – that pushed its ordinary programs enterprise into the pink ink. This was astounding, considering the z14 mainframe refresh turned into in full swing beginning closing quarter and the Power9 rollout is simply getting started. exactly what this restructuring is is still to be seen, nonetheless it had a big impact on the systems enterprise.

in the thirteen weeks making up the first quarter, IBM bought $1.5 billion of servers and storage plus a smattering of networking equipment it resells and operating techniques, up 4 % (at regular foreign money) in comparison to the prior 12 months’s first quarter. systems hardware accounted for roughly $1.1 billion of that, up 6 % (once again at constant currency), and operating systems accounted for pretty much $four hundred million extra. We reckon that IBM had $627 million in gross gains for its techniques company (as it studies it), but it had a pre-tax loss of $203 million after restructuring, which is not a great thing. That’s bigger than the $186 million pre-tax loss that it posted within the year ago period when everybody knew that the system z14 and Power9 platforms have been coming and earnings slowed. here is no longer a superb signal.

within this techniques business, gadget z mainframe income rose by way of 54 p.c with the mixture quantity of MIPS capability bought more than doubling. What this tells you is that IBM has to sell z14 mainframe capability at a reduced cost – about 25 p.c or so if you do the mathematics – in comparison to the prior z13 generation if it desires to get consumers to purchase.

IBM’s vigour systems company has no longer yet been uplifted through the approximately 9,000 hefty “Newell” vigour techniques AC922 nodes as a way to go into the “Summit” supercomputer at all rightRidge country wide Laboratory and the ‘Sierra” sibling to it at Lawrence Livermore country wide Laboratory. only about 1 / 4 of the nodes were installed so far, but that nevertheless doesn’t do the IBM bean counters any decent; the company, which is the prime contractor on the take care of the united states branch of power for these machines, doesn’t get paid until they're accredited by using the labs, now not after they ship from the manufacturing unit. IBM simplest started delivery the accepted goal “ZZ” power methods machines, additionally based on Power9, on the end of March, so these didn't truly support all that a lot, both. still, the energy system enterprise, which has a tons smaller IBM application part than the gadget z stack, still managed to develop by using three p.c in the quarter – albeit in opposition t a very convenient evaluate because sales had been no longer all that tremendous for energy methods a year ago.

IBM’s storage company, which is related to the z and power lines however now not firmly attached to them, had a 15 % decline in the first quarter after turning in four consecutive quarters of increase. Cavanaugh counseled that this became because of a shift faraway from storage utility to application described storage (which means it runs on ordinary server clusters) and cloud object storage (which IBM resells on its cloud), however it really is foolish. If IBM really counted storage software as, let’s just say, storage instead of putting these two objects in its transaction processing application class (which is simply plain silly and an obtrusive ploy to pump up increase there), it could have a better – and more sincere – story to inform. Frankly, if IBM did its books in a way that mirrored its enterprise more than it reflected the story it desires to inform Wall street, it might be more straightforward to consider what's going on. and that's precisely why IBM – and certainly, most public businesses – behave like they do. They provide the phantasm of revelation, asserting just satisfactory to power up the inventory rate or at least hold it from falling.

it is why we all the time take the difficulty to are attempting to work out what the “actual” underlying programs business is at IBM. We want to try to reckon how that core systems business is actually doing.

To calculate the “true” methods sales every quarter, we take all of IBM’s techniques hardware, working equipment, and transaction software income, plus 90 percent of its integration utility, 75 percent of its technical help and economic revenues, and then add all of it up. This actual programs enterprise, we reckon, grew by 3.6 % to $5.sixty four billion within the first quarter, and represented 29.6 % of IBM’s total income and had a gross earnings of $3 billion, which works out to fifty three.2 % of income.

It is not clear how big the IBM Cloud is, because IBM once again conflates what we might accept as true with outsourcing and software hosting deals with real infrastructure and platform cloud capabilities on the former SoftLayer public cloud. but clearly huge Blue wishes this IBM Cloud to be its third platform. The irony is, this platform isn't even built by itself iron, but rather X86 servers that it sources from Supermicro. here is not exactly a selling element for those device z and power systems platforms, now is it? If Power9 is first rate satisfactory for Google, very wellRidge, and Livermore, how come it is not first rate ample for IBM and its cloud customers? We admit that this would have all been a lot more convenient if home windows Server became still working on the energy structure, and the proven fact that it isn’t is not a accident. (Microsoft and Intel definitely didn’t need this.) another irony is that home windows Server is coming to Arm, and IBM has no play there.

IBM has a couple of big problems. First, nobody really is familiar with the full extent of the IBM utility and capabilities portfolios, and that's a limiting ingredient to IBM’s recuperation. And 2d, IBM has spent 25 years promoting anything else to anyone at any price, simply to shut the offers, and it really doesn’t have the type of conviction for its personal systems that it used to have when it was the cutting edge of enterprise computing. The companies that do have that degree of conviction about their platforms have names all of us appreciate: Google, Amazon, fb, Microsoft, Alibaba, Tencent, Baidu, and China mobile. now not best that, they have platforms that you can describe – and subscribe to in a heartbeat, no fuss, no muss. this is the benefit of no longer having a legacy enterprise that stretches again both five or three many years, we recognize. one day, these organizations will all get their flip. Or, AI will eat every thing and there won’t be a lot of discussion about guidance know-how or facts processing, which should be ubiquitous, clear, pervasive, and even perhaps invasive.


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