IBM System i revenue slumps hard

IBM yesterday announced revenues for the servers plunged 22% in the first quarter of 2006, the second consecutive quarterly drop for a platform that saw its numbers surge last year alongside substantial company backing in the form of upgrades and vigorous marketing. Sales in the fourth quarter fell 12% at the end of 2005.

Though disappointing, analysts said the results weren't necessarily an indicator of doom, as the iSeries is a product line in transition that could cause potential customers to hold out for a few months before an assumedly attractive new release. But this latest decline, even sharper than before, may be an indicator that last quarter's dip was more than a hiccup