Friday, October 27, 2006

IBM Second in Software Sales

The San Francisco Chronicle reported today that IBM is officially the second largest software provider, bypassing former number two Oracle, but still behind number one Microsoft:

In its most recent quarter, IBM software generated $4.4 billion in revenue, and it's the company's main profit generator, with an 85 percent profit margin. Thirty-seven percent of IBM's profit comes from software. In 2005, it sold $15.8 billion worth of software, topping the $14.4 billion that Oracle posted in fiscal 2006, which ended June 30.

I find this news interesting. Often times IBM is excluded from software company discussions because they also sell hardward and services, so they are not always viewed as an ISV (independent software vendor). But I always thought this was unfair to IBM. After all, Oracle sells services, too. And Microsoft sells hardware, too - I mean, what is an XBOX if not hardware?

So give IBM their due... they are number two!

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