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000-743 - IBM Storage Sales, Version 7 - BrainDump Information

Vendor Name : IBM
Exam Code : 000-743
Exam Name : IBM Storage Sales, Version 7
Questions and Answers : 158 Q & A
Updated On : April 25, 2019
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000-743 IBM Storage Sales, Version 7

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000-743 exam Dumps Source : IBM Storage Sales, Version 7

Test Code : 000-743
Test Name : IBM Storage Sales, Version 7
Vendor Name : IBM
Q&A : 158 Real Questions

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IBM IBM Storage Sales, Version

IBM's Mainframe income Crashed. That’s usual. | killexams.com Real Questions and Pass4sure dumps

One purpose IBM (NYSE:IBM) suffered a revenue decline in the first quarter turned into slumping demand for its mainframe computers. revenue from mainframes tumbled 38% yr over year, dragging earnings within the programs phase down 9% on a forex-adjusted foundation.

whereas mainframes don't seem to be as critical to IBM these days as they were in the past, the hulking systems, with a big install base and huge switching prices, are a key element of the enterprise's aggressive advantages. That makes the steep decline in revenue seem the entire more concerning.

IBM's z14 mainframe system.

photo supply: IBM.

here's ordinary

there isn't any rationale to be troubled in regards to the precipitous decline in mainframe sales. IBM's mainframe revenue spike every time the business launches a new model -- the third quarter of 2017 marked the delivery of the newest surge in revenue with the z14 device. After four or five quarters of sturdy 12 months-over-year increase, driven with the aid of purchasers upgrading from older models, that growth is lapped, and earnings begin to say no.

This cycle has played out diverse times over the last decade as IBM refreshed its mainframe programs each few years. And despite the steep income declines IBM is now seeing, the present cycle is the strongest in a long time.

A chart showing IBM's year-over-year mainframe growth.

Date supply: IBM. Chart with the aid of creator.

"we are seven quarters into the z14 cycle and the program continues to music forward of the prior application. We had amazing growth in volumes or shipped MIPS, and new workload MIPS continue to outpace our regular MIPS," said IBM CFO James Kavanaugh all the way through the first-quarter salary name. (MIPS stands for million instructions per 2d, a measure of processing power.)

Kavanaugh introduced that the only-frame version of the z14, launched closing 12 months and designed to healthy into usual statistics facilities, is a increase driver for the mainframe enterprise.

IBM greater than doubled mainframe earnings on a 12 months-over-year basis within the 2nd quarter of 2018, so an additional large decline in earnings within the second quarter of this year is inevitable. The business will then start to lap these declines within the second half of this year.

Given the general gap between mainframe launches, IBM's next-gen mainframe system doubtless might not arrive unless someday in 2020. That capacity three or 4 extra quarters of weak mainframe efficiency before yet another yr-lengthy surge in income.

2020 is shaping up to be a big yr

now not handiest will IBM seemingly get a income boost in 2020 due to the next mainframe launch, however the company will additionally add a couple of billion greenbacks of salary from its acquisition of crimson Hat. That deal is scheduled to shut earlier than the end of this yr.

pink Hat is starting to be at a double-digit rate, and its software strengthens IBM's hand because it goes after the hybrid cloud computing market. there may be a mainframe connection here, too -- pink Hat offers a version of its enterprise Linux operating gadget for IBM's mainframes. Kavanaugh mentioned right through the revenue name that Linux is a key increase driver for the mainframe business.

IBM's total earnings will probably decline this yr, on the whole on account of a significant foreign money headwind, however additionally as a result of slumping mainframe sales. but subsequent yr will appear an awful lot better.

IBM posts blended Q1 effects but stresses cloud revenue | killexams.com Real Questions and Pass4sure dumps

IBM posted its first quarter economic document on Tuesday, posting combined outcomes with each company phase down or flat year-over-12 months. Shares had been down in after-hours trading.  

besides the fact that children, IBM concentrated on the performance of its cloud company. The enterprise has posted $19.5 billion in cloud earnings over the last 365 days, up 10 percent yr-over-12 months, it talked about. IBM's as-a-provider annual exit run rate for cloud salary now stands at $eleven.7 billion, up 10 percent yr-over-year.

The business's non-GAAP salary per share (EPS) got here to $2.25 over profits of $18.2 billion.


Wall highway was anticipating revenue of $2.22 per share on earnings of $18.51 billion. Shares were down a bit of in after-hours trading.

"in the first quarter, our cloud income growth accelerated, and we again grew in key, high-price areas in Cloud and Cognitive software and in consulting," CEO Ginni Rometty referred to in an announcement. "IBM's investments in imaginative technologies coupled with our trade skills and our commitment to believe and protection position us well to assist customers move to chapter two of their digital reinvention."

In a convention call, CFO James Kavanaugh  mentioned that IBM these days adjusted its segments structure in order that it "superior aligned our portfolio to the market and to underlying enterprise models."

"As our valued clientele develop into digital enterprises, they want tighter integration between hybrid cloud and their records and AI structures to liberate price," he noted. "And so we recently made alterations to our administration gadget to greater without difficulty handle our shoppers' evolving wants and in practise for the acquisition of RedHat."



IBM's Cloud & Cognitive software section -- which contains cloud and records platforms, cognitive functions and transaction processing structures -- introduced in revenues of $5 billion, down 2 percent. inside that category, cognitive applications salary turned into up 2 p.c, while cloud and facts structures income become down 2 %.

The global business functions phase -- together with consulting, utility management and world system services -- earned $4.1 billion in earnings, flat year to 12 months.

international expertise capabilities -- together with infrastructure and cloud services and technology guide functions -- introduced in revenues of $6.9 billion, down 7 p.c. despite the fact, the segment did see increase in hybrid cloud profits.

The programs segment -- including programs hardware and operating programs utility -- performed revenues of $1.3 billion, down eleven percent. The decline become mostly due to the affect of the IBM Z product cycle dynamics and weak point in Storage.

The international Financing segment -- which comprises financing and used device revenue -- brought in revenues of $406 million, flat year-to-12 months.

Kavanaugh highlighted how IBM has invested in including capabilities throughout areas together with IBM Cloud, IBM Cloud inner most and IBM Cloud private for information; the IBM Multicloud manager; cloud grudges; cloud migration features; and cloud optimized methods.

"Over the ultimate a few months, we've talked about the subsequent chapter of cloud, which focuses on moving mission-critical work to the cloud and optimizing every little thing from provide chains to core banking techniques," he talked about. "To address this opportunity, companies need to be able to flow and manipulate statistics, features and workflows across multiple clouds and on-prem. and they need to be capable of tackle protection issues, information protection and protocols, availability and the cloud administration. This requires a hybrid, multi-cloud open strategy." 

For the whole 2019 fiscal yr, IBM expects non-GAAP earnings of at the least $13.90 per share. 

IBM Unveils software-described version Of Its Storwize All-Flash Storage, targets Dell And EMC With Migration equipment | killexams.com Real Questions and Pass4sure dumps

IBM on Tuesday delivered a software-described edition of its all-flash storage array the company referred to will at last work on most primary server manufacturers.

massive Blue additionally extended the capabilities of one of its higher-conclusion flash arrays, and made it less complicated for companions to order its present flash storage arrays. The company additionally brought a brand new migration software geared toward making it less complicated for companions to circulate valued clientele off aggressive storage techniques, specifically from Dell and EMC, onto to IBM systems.

The IBM Spectrum Virtualize software-defined storage device, which until now has been accessible handiest as a part of an built-in all-flash storage equipment, may be obtainable next month to run on clients' own bare steel servers, noted Eric Stouffer, director of offering administration for IBM's Spectrum Virtualized family.

[Related: IDC: All-Flash Storage Array Sales Soar In First Quarter, Enterprise Storage Sales Stumble Badly]

IBM Spectrum Virtualize application will over the following few months be qualified to run on naked metallic Lenovo, Cisco, HPE, and Supermicro servers, Stouffer instructed CRN. Future versions could be encapsulated in a digital computing device for expanded flexibility, he stated.

"with the aid of working our IBM Spectrum Virtualize utility on different organizations' hardware, we give more flexibility and a reduce cost of deployment," he said. "enterprise information facilities or MSPs are looking to suit their servers. They want flexibility."

by using bringing IBM Spectrum Virtualize to market as a application-described providing, IBM is displaying forward considering, noted Mark Wyllie, CEO of Flagship options community, a Boca Raton, Fla.-based mostly solution provider and IBM channel accomplice.

"IBM storage goes into blended environments," Wyllie instructed CRN. "to maximize ancient storage investments and leverage new ones, application-described is the important thing. Being ahead-considering is important. The more you manage what purchasers bought, the more they want to hear about it."

IBM Spectrum Virtualize is on the core of IBM's whole Storwize flash storage line, constituents of which have been additionally updated on Tuesday.

These encompass the IBM Storwize V7000F and IBM Storwize V5030F, which are new all-flash types of IBM's current V7000 and V5030.

Eric Herzog, vice chairman of product marketing and administration for IBM storage systems, instructed CRN that the V7000 and V5030 could in the past be ordered in all-flash types, however required ordering distinct materials. The "F" in the mannequin numbers V7000F and V5030F signify all-flash storage to simplify the order manner, he observed.

IBM also extended the flash potential of its flagship Storwize V9000 with the addition of recent, better-potential 7-TB and 15-TB flash drives anticipated to be obtainable within the fourth quarter, Stouffer mentioned.

additionally new to IBM is "Flash In," a program aimed at assisting Dell and EMC customers effortlessly migrate to IBM all-flash storage programs.

With Flash In, IBM will deliver as much as 40 hours of free migration functions to stream purchasers from EMC or Dell storage apparatus, even if it is tough drive-based mostly, flash-primarily based, or hybrid, Herzog talked about.

"Migration is a pain," he said. "everyone hates it. however we're the 2d-biggest storage supplier, and we have finished a whole lot migrations. Our storage hardware and utility have built-in migration tools."

The IBM Storwize platform is top of the line for migration since it already has application virtualization as a core function, Herzog spoke of. Storwize can enrich storage effectivity by means of adding such functions as real-time compression, skinny provisioning, and snapshotting across pretty much 400 diverse storage arrays from a variety of companies, he spoke of.

When asked why a client would agree with relocating records from Dell or EMC storage to IBM, Herzog stated uncertainty over Dell's deliberate EMC acquisition and the quickly increase of the flash storage market..

"valued clientele have EMC VNX solutions they purchased in 2011," he talked about. "They had been incredible solutions at the time. but they may be now slow. When purchasers migrate to Storwize, it's free migration. They get a quicker, fresh box. and they can re-intention their historic storage array in order that they store on capex [capital expenses]."

Herzog talked about that IBM has a fast-growing to be flash storage company, with a product line that has already passed through the entire necessary revisions to make it work with future flash applied sciences. IBM is also the largest application-defined storage supplier by means of IDC's count, he noted.

IBM storage has a superb future, particularly in how it is able to control multi-vendor storage ability, Wyllie mentioned.

"once we run our managed services, once in a while we run our consumers' physical servers, but we use our own manage module related to IBM storage so we don't use any more WAN bandwidth than necessary," he noted. "we will join multiple structures, including IBM storage, to interface with valued clientele' gadget."

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IBM Storage Sales, Version 7

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IBM Reports Storage Revenue Growth In Q3 | killexams.com real questions and Pass4sure dumps

IBM on Tuesday reported its storage business grew 4 percent year-over-year in contrast to the overall decline in storage sales by the traditional top vendors.

IBM's overall hardware in its third fiscal quarter of 2017, which ended September 30, grew 14 percent year-over-year to $1.3 billion, driven by growth in the company's storage and z Systems mainframes.

That included a 4 percent rise in storage revenue and a 62 percent year-over-year rise in z Systems mainframe sales, thanks to the product line's latest version which focuses on high-performance with encrypted data. The gains were partially offset by an 8 percent drop in Power-based server sales.

[Related: IBM's New z14 Almost Halted Big Blue's Revenue Slump]

IBM no longer offers general-purpose x86-based servers since it sold that business to Lenovo in 2014.

The storage business has seen slower growth recently, with second-quarter calendar year 2017 worldwide storage revenue up 2.9 percent, year-over-year, to $10.8 billion, according to IDC.

The growth in the business has shifted away from the traditional leaders in the business, with NetApp the only traditional vendor to see a significant increase in storage sales. The original design manufacturer, or ODM, part of the market grew by 73.5 percent year-over-year.

NetApp had sales of $695 million, up 16.7 percent over last year. That made NetApp the only branded storage vendor among the top five companies to see growth, according to IDC. IBM had $556 million in storage sales during the quarter, which was down year-over-year by 0.4 percent, which was still much better than the other top-five storage vendors, IDC said.

IBM, however, said on Tuesday that its third fiscal 2017 storage sales represented the third consecutive quarter of storage growth.

Champion Solutions Group, a Boca Raton, Fla.-based solution provider and IBM channel partner, has of late been enjoying strong IBM storage sales growth, said Mike Piltoff, senior vice president for strategic marketing for the partner. IBM has an excellent storage portfolio, particularly with its all-flash storage technology, Piltoff told CRN.

"IBM has a lot of nice flash storage," Piltoff said. "And that business is going mainstream."

IBM's storage business is growing despite IBM's not having an x86-based server business, Piltoff said.

About 75 percent of Champion's storage business goes attached to x86-based servers, while only 25 percent was attached to IBM Power-based servers, he said.

"We've been good at focusing on storage and data management regardless of whose logo is on the servers," he said. "And everything is going VMware anyway, so the server brand is not so important."

Another big advantage IBM has in its storage business, Piltoff said, is Eric Herzog, the company's chief marketing officer and vice president of worldwide storage channels.

"IBM has good leadership in Eric Herzog," he said. "It seems he has been changing the pace, the dissemination of information, the pricing, and the bundles. Eric is big on not selling storage, but on selling solutions. With Eric, it's not about the speeds and feeds. It's, 'Let's sell solutions.'"

IBM increases storage sales despite market decline | killexams.com real questions and Pass4sure dumps

IBM reported its storage business grew 4 percent year-over-year in contrast to the overall decline in storage sales by the traditional top vendors.

IBM's overall hardware in its third fiscal quarter of 2017, which ended 30 September, grew 14 percent year-over-year to US$1.3 billion, driven by growth in the company's storage and z Systems mainframes. 

That included a 4 percent rise in storage revenue and a 62 percent year-over-year rise in z Systems mainframe sales, thanks to the product line's latest version which focuses on high-performance with encrypted data. The gains were partially offset by an 8 percent drop in Power-based server sales.

IBM no longer offers general-purpose x86-based servers since it sold that business to Lenovo in 2014.

The storage business has seen slower growth recently, with second-quarter calendar year 2017 worldwide storage revenue up 2.9 percent, year-over-year, to US$10.8 billion, according to IDC.

The growth in the business has shifted away from the traditional leaders in the business, with NetApp the only traditional vendor to see a significant increase in storage sales. The original design manufacturer, or ODM, part of the market grew by 73.5 percent year-over-year.

NetApp had sales of US$695 million, up 16.7 percent over last year. That made NetApp the only branded storage vendor among the top five companies to see growth, according to IDC. IBM had US$556 million in storage sales during the quarter, which was down year-over-year by 0.4 percent, which was still much better than the other top-five storage vendors, IDC said.

IBM, however, said on Tuesday that its third fiscal 2017 storage sales represented the third consecutive quarter of storage growth.

This article originally appeared at crn.com

IBM Earnings: Sales Down, Margins Up | killexams.com real questions and Pass4sure dumps

International Business Machines (NYSE: IBM) reported mixed results on Tuesday, beating analyst estimates for earnings but missing on revenue. A strengthening U.S. dollar knocked down revenue by almost four percentage points, and mainframe sales tumbled as the product cycle ran its course.

Profitably improved in most of IBM's segments, and both gross and operating margins edged up. Earnings per share declined on a year-over-year basis, but a higher tax rate was to blame.


Q1 2019

Change (YOY)

Compared to Average Analyst Estimate 


$18.2 billion


Missed by $330 million

Adjusted earnings per share



Beat by $0.01

Data source: IBM. YOY = year over year.

Currency and mainframes

Adjusted for currency, IBM's revenue declined by just 0.9% year over year in the first quarter. The U.S. dollar strengthened substantially against foreign currencies, particularly the euro and the British pound. The company now sees a negative revenue impact of about 2 percentage points for the full year from currency.

On a constant-currency basis, two of IBM's main segments grew, and the other two shrank.



Change (YOY, constant-currency)

Cloud and cognitive software

$5.0 billion


Global business services

$4.1 billion


Global technology services

$6.9 billion



$1.3 billion


Data source: IBM. YOY = year over year.

In the global technology services segment, IBM is de-emphasizing lower-value services. That's hurting sales, but also improving margins.

Within the systems segment, mainframe sales slumped 38% year over year, and storage sales fell 11%. Steep mainframe sales declines are typical at this point in the product cycle. The latest z14 mainframe system began shipping in the third quarter of 2017, so the initial growth has been fully lapped at this point.

Cloud revenue, which spans all four segments, totaled $19.5 billion over the past 12 months. That's up 12% adjusted for currency. The cloud as-a-service exit annual revenue run rate is now $11.7 billion, up 15% adjusted for currency.

IBM's Global Center for Watson IoT in Munich, Germany


Image source: IBM.

Rising margins

While IBM's revenue took a hit in the first quarter, margins were a different story. Gross margin rose by a percentage point from the prior-year period, and operating margin jumped 4.4 percentage points. It was a bit of a mixed bag within the four main segments, but the net result was overall margin expansion.


Gross Margin

Gross Margin Change (YOY)

Operating Margin

Operating Margin Change (YOY)

Cloud and cognitive software


(1.2 percentage points)


2.3 percentage points

Global business services


2.8 percentage points


4.5 percentage points

Global technology services


1.1 percentage points


3.0 percentage points



0.5 percentage points


(1.3 percentage points)

Data source: IBM. YOY = year over year.

Some good, some bad

IBM's results are often complicated, and the first quarter was no exception. While slumping revenue is certainly a negative, currency effects and the mainframe product cycle accounted for most of the decline.

The cloud business is still growing at a double-digit pace, even as hardware sales decline. Cloud revenue associated with the systems segment fell 15% from the prior-year period, but growth was strong enough elsewhere to pick up the slack. When IBM completes its acquisition of Red Hat later this year, the cloud business will get a jolt.

IBM reiterated its full-year earnings and free-cash-flow guidance, which calls for adjusted earnings of at least $13.90 per share and roughly $12 billion of free cash flow. Margin expansion, particularly in the services business, will help IBM hit its guidance even though revenue will likely decline in 2019.

While the mainframe cycle helped IBM in 2018, it's hurting the company's results this year. Add in the negative effect of currency, which seems to be never-ending at this point, and you have a recipe for some rough-looking results.

IBM stock isn't going to recover until this era of slumping revenue ends for good. The company isn't there yet, although margin expansion is a silver lining.

More From The Motley Fool

Timothy Green owns shares of IBM. The Motley Fool is short shares of IBM. The Motley Fool has a disclosure policy.

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