IBM Rental News: Big Blue Remains Formidable Force with Positive Profits

Our business partner and 100-year-old established IT manufacturer IBM has reported an increase of 8 percent in net income for this year’s second quarter from last’s year’s same period.

While providing an array of products and services, like the extensive storage and server rental offerings we offer to businesses who want to trial the company’s technology, IBM remains today’s biggest maker of mainframe computers.  The company reported a $3.66 billion (£2.27 billion) this year, according to the BBC, up from $3.39 billion a year earlier.

The news organization further reported IBM has increased its predictions for full-year earnings for the second quarter running.  The report further indicated a 12 percent increase of revenue at $25.7 billion.

The company accredits its growth to new signings for its services division—up by 16 percent in the quarter—a sign it says shows that companies are still spending money on technology.  We can attest to this with the increased interest in trying some of IBM’s energy efficient products like its POWER7 server line—especially by those currently looking to upgrade from POWER6.

The BBC reported a surprising drop in IBM’s shares on the results, despite the fact that the company performed better than expected.  The dip was slight and short-lived as they rose 2 percent in the hours after.

Senior Analyst at Fort Pitt Capital Group, Kim Caughey Forrest told reporters, “The margins were very strong and the revenue, especially in the second quarter when you expect softer revenue, makes it look like they did well in the quarter.”

Kudos to our friends at Big Blue.  To learn more about renting IBM products from Hamilton Rentals, contact us today.

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