IBM’s POWER based system revenue was also down significantly during the first quarter of 2013 suffering a 31 percent decline.
“Our declines were driven by both the high performance computing segment, where we had a strong performance last year, and the impact of the transition to POWER7+,” IBM CFO Loughridge said.
The POWER7+ server lineup was expanded in February of this year with a new range of entry level server systems.
While POWER based systems are often associated with IBM’s AIX UNIX operating system, it can also be used for Linux workloads. Loughridge said that IBM’s plan is to expand the POWER platform to go after the Linux opportunity.
“This opportunity is of similar size to Unix but growing faster,” Loughridge said. “We’ve already had some key successes with wins this quarter in China and in Europe and in fact Watson is based on Power Linux. Though this will take time to mature, it provides a real opportunity for future growth.”