For the third straight quarter, Lotus Software saw double-digit revenue growth.
Lotus' revenue gain was pegged at 17%, IBM said in its quarterly financial report, which was released Monday. In the first quarter of 2005, amid news that Big Blue fell short of revenue expectations, Lotus nonetheless gained 11%.
During a conference call with reporters this week, Ambuj Goyal, former general manager of IBM Lotus software, also noted that the quarter marked the third consecutive quarter of double-digit growth for Notes itself. In a round of executive moves announced yesterday, Goyal was named general manager of IBM Information Management solutions.
"We have amazing strength in our Notes business, our Portal business has been having double-digit growth for a long period of time and our Workplace business is gaining traction in the marketplace, almost doubling its revenue in this quarter," Goyal said. His remarks preceded the announcement that IBM acquired e-forms firm PureEdge Solutions Inc.
The entire WebSphere family of software products, which facilitates customers' ability to manage a wide variety of business processes using open standards to interconnect applications, data and operating systems, performed well in the second quarter, with revenue rising 18 percent, IBM said.
Overall, revenues from IBM's Software Group were $3.8 billion, an increase of 10 percent (7 percent, adjusting for currency) compared with the second quarter of 2004. Revenues from IBM's middleware brands, which include WebSphere, DB2, Tivoli, Lotus and Rational products, were $3.0 billion, up 11 percent versus the second quarter of 2004. Operating systems revenues increased 3 percent to $592 million compared with the prior-year quarter.
As a result of the growth, the company said in its report, IBM expects to gain market share in collaborative software, systems management, Web services and data management..