View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
December 18, 1997updated 03 Sep 2016 8:51pm

MERRILL LYNCH & CO CHECKS IBM’S FIGURES

By CBR Staff Writer

Merrill Lynch & Co has been taking a closer look at the revenues IBM Corp generates from software, and reckons sales of applications now amount to around $1bn, while systems software sales amount to $12bn. Of that figure, host software accounts for $9bn – 30% from operating systems, 70% from other software, including DB2 database sales – while $3bn of revenue comes from distributed software such as Lotus Development Corp and Tivoli Systems Inc products. Steve Milunovich of Merrill Lynch estimates IBM’s software operating margin comes out at 23% and contributes around a third of Big Blue’s overall operating profit. DB2, he figures, is now a $1.7bn business.

Content from our partners
Rethinking cloud: challenging assumptions, learning lessons
DTX Manchester welcomes leading tech talent from across the region and beyond
The hidden complexities of deploying AI in your business

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU