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IBM Chases old OS/400, HP-UX Servers with the i5

This e-newsletter has spent the past few weeks delving into the center of the eServer i5 “Squadron” servers, their Power5 processors, and i5/OS V5R3. This week, I are looking to discuss IBM‘s marketing and revenue plan for the platform. in accordance with the top brass within the iSeries division, IBM goes to be pushing on a number of fronts to try to grow the OS/four hundred server enterprise and pump up the OS/four hundred ecosystem on which it relies upon.

I these days had an opportunity to talk to Al Zollar, everyday manager of the iSeries line, and Cecelia Marrese, vice chairman of advertising for the iSeries, about what they hope to achieve with the brand new product line. now not that here's necessarily indicative of the fitness of the iSeries line, but from those meetings i will be able to inform you that they both seem to be a lot more at ease and positive about the place the iSeries is and the place it goes. here is mirrored as much in physique language as in what they spoke of.

Zollar advised me that he desired to hold the iSeries line, now the eServer i5, within the press and within the minds of valued clientele as they agree with structures. And one aspect IBM will do to make this turn up is to preserve large iSeries bulletins coming out at a gradual tempo and with the latest IBM technologies. “we're relocating faraway from large bang bulletins and relocating on a roadmap the place they now have some thing significant to say to their customers each quarter,” he defined. “this may preserve a level of interest and vitality in the platform.” it's going to also support with publicity, because the IT change press that's consumed through IT worker's, from device admins to chief suggestions officers, will see a gradual flow of i5 bulletins.

however the approach goes a ways past that. whereas the consideration is decent, the top-quality type of sales pitch is a competitive rate for OS/400 servers and their connected software. To that end, as they defined just a few weeks in the past, IBM reduce memory expenses by means of 20 to 60 % and cut storage prices by 20 percent, it dropped the fee of activating Power4 and Power5 processors on the iSeries and i5 line, and referred to that it could retain the usual add-ons (corresponding to server processors, reminiscence, and disks) at parity with the pSeries (soon to be “eServer p5”) Unix server line, which has historically had a good deal reduce record expense tags and an awful lot larger discounts than for the iSeries. while IBM will practically certainly not close the hole at the retail stage (however purchasers bring in sun Microsystems and Hewlett-Packard with aggressive Unix, Linux, or home windows techniques), the gap is significantly smaller, and the pleasing benefits of the iSeries over the options make it viable to sell towards those alternate options. before, the sticker expense changed into so high on the iSeries that company companions couldn’t even get their foot in the statistics core door to make a pitch. With these expense cuts, which americans like me have been clamoring for on the grounds that the mid-Nineties, the data middle door has opened a crack, and the i5, with its subtle partitioning and assorted operating system assist, has an honest probability of actually compelling CIOs and VPDPs no longer most effective to open the door but additionally to herald companions to pitch the computing device to remedy their problems.

IBM has at all times understood that the field count number for the iSeries needed to remain excessive if the OS/400 ecosystem became to not most effective survive, however to thrive. And the rate cuts are key to IBM’s plan to increase the field count coming out of the iSeries factories in Rochester, Minnesota, and in Dublin, eire.

Of direction, with such big fee cuts for servers, reminiscence, disk, and other core components, this begs the question of how IBM can maintain iSeries hardware salary, lots much less raise it. I even have argued for years that the OS/400 server market is greater elastic than IBM’s advertising model suggested. IBM had its causes for charging excessive-fees–it needed the margins as a result of its manufacturing costs have been excessive, and to assist pay for its very aggressive battle against solar and HP within the Unix market, the place it is controversial that IBM might also not have damaged even because it makes use of pricing as a method of gaining market share.

Now that IBM has massive credibility with the energy-AIX servers, and sun and HP have backed off somewhat on rate cuts, IBM has a bit extra space. (I talked about a little.) IBM also has a bit bit more space considering that the iSeries and i5 machines bought in Asia/Pacific are now being in-built ireland, the place labor is cheaper and transport fees to Asia are lessen. (The pSeries manufacturing for Asia/Pacific valued clientele additionally has been moved to eire, and IBM additionally has a bulk contend with United Parcel carrier to ship from eire to Asia. This, mixed with a whole lot of tiny changes within the deliver chain of constituents that go into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to get iSeries prices lessen.

IBM cares an awful lot about profits growth, however has at all times cared extra about earnings growth. So with costs on the iSeries nearly cut through forty p.c with the i5 launch, can IBM grow revenues and retain gains?

The reply appears to be yes. Zollar says that IBM’s plan is to sell greater packing containers, which is evident satisfactory, but that he also expects IBM and its companions to be in a position to sell richer configurations of the bins. My guess is that the standard promoting price of a field isn't as low as you may consider, because the attitude shift from spending as little as viable to do the bare minimal of labor on an iSeries to spending in regards to the identical amount of cash or a bit of greater to do a lot more issues with an i5. this is the bet i'd make, and it is clearly the guess IBM is now making. (Heaven aid us all. and that i desire IBM had executed it five years ago.) “I suppose there is a massive pent up demand for reminiscence and disk storage,” says Zollar.

Marrese says that the green Streak promotions in late 2000, which at last led to the revamping of the iSeries line in January 2001, have been the 1st step within the transformation of the OS/four hundred server into a aggressive container. however a beta examine in March of this 12 months for the mannequin 520 and OS/400 specific packaging that debuted in early may appears to have been what pushed IBM over the aspect to beginning chopping expenses. Italy, Marrese explained, has a labyrinth of tax legal guidelines that make it painful to run a huge enterprise, and that is one of the most explanation why the nation is teeming with small corporations. lots of these small companies, it turns out, have got AS/400 mannequin one hundred fifty and mannequin 170 servers. and they just maintain the usage of them and don’t improve as much as IBM would like. within the beta application, IBM took an iSeries mannequin 800, packaged it like the mannequin 520 specific computer (low cost, lots of software, able to run out of the box), and found out that if it cut the expense of this configuration in half, compared with the can charge of building it with normal iSeries mannequin 800 pricing, it bought twice as many boxes.

an extra area that Zollar says he's focusing the iSeries division on is likely one of the general drivers of the product line: high availability. “as a result of the historically excessive reliability of the AS/400 and iSeries, their consumers are very under-invested in excessive availability and resiliency.” while excessive availability and device clustering utility have been the largest drivers of AS/400 and iSeries earnings in the past decade, my wager is that handiest about 10,000 of the 215,000 OS/400 stores on earth have implemented excessive availability options. With more cost-effective and less complicated-to-use excessive availability software, and a lot cheaper i5 packing containers, IBM should be able to make it up in extent.

Zollar says he has applied just a few other changes to aid enhance earnings. For one issue, he talked about that the enterprise is reaching out to the legion of small iSeries partners with handiest a couple of dozen accounts to try to get them lower back into the video game. IBM is giving first rate coupon codes to partners that buy model 520 express configurations in blocks of 10 or 20, and the enterprise will not promote the brand new i5 machines direct in competition with its channel, which accounted for about eighty five percent of iSeries salary in 2003, in accordance with Zollar. while iSeries earnings growth in 2003 become within the “healthy double digits” for midrange and high-end iSeries machines (Zollar stated the quantity “all started with a two” when I pressed him to nail it down somewhere between 10 and 99 %, and my wager is round 25 percent income boom), it's the low volumes of entry machines that has been a drag on both iSeries shipments and iSeries profits. Shipments had been flat and income had been up 7 p.c in 2003 throughout the iSeries line. certainly, getting partners excited about selling the i5 mannequin 520 categorical configurations is a key to the new strategy.

nevertheless it isn't the most effective possibility IBM is asking at. Marrese says that IBM booked around $a hundred million in Linux-linked iSeries server revenue in 2003, an element of six greater than Linux sales on the field in 2002. She says income to help normal eco-friendly-reveal functions changed into flat or down, and that Domino, excessive availability, home windows integration, and WebSphere are key drivers. however what has Marrese smiling is the arrival support for native AIX inside logical partitions on the i5 machines. as it seems, just about forty,000 OS/four hundred customers also have Unix servers in their stores, of which the tremendous majority are operating HP-UX applications. Getting even a percentage of those consumers to port their HP-UX functions to AIX and flow them onto the i5 helping both their OS/four hundred and AIX workloads will go a protracted means toward boosting ordinary iSeries income.

most likely greater than anything else, the timing of the i5 announcement with a healing within the global economic system is auspicious. Marrese says that, in 2003, iSeries income in Italy, German, and France picked up, that North america all started off amazing, and that Asia/Pacific international locations like China are exploding (albeit from a extremely small put in base). “consumers have been purchasing to do the naked minimum,” she says, “but now they have become the eco-friendly easy to spend again.” | carding forum - carders forum - professionally managed community | | is fully featred carding forum . lot of profassionals carders already joined us. they have 000-851 dumps with pin, western union transfer, etc. | dumps, sell, cvv2, cards, credit, fraud, good, track2, dump, carding, shop, carders, forum, card, best, check, online, fresh, with, skimmer | sanidumps: rv dumps, sani station, dump points comprehensive directory | rv dump stations, sani dump stations, dump points - comprehensive directory of recreational vehicle dump sites. when rvs have to go... | | cvv & 000-851 dumps t1/t2 shop | online 000-851 dumps shop, buy cc :: buy 000-851 dumps :: sell cc :: sell 000-851 dumps t1-t2 :: cvv :: 000-851 dumps :: paypal :: ssn :: dob :: full cc info :: bank logins | sell, good, dumps, fresh, track2, cvv2, dump, carders, paypal, market, check, online, cards, shop, cheap, best | freshexam - 100% real it certification exam questions and answers. easily pass with a high score. | freshexam helps you pass all it certification exams. 100% real and update according to the latest real exam. | dumps, brain, exams, brainitdump, certification | exams4sure exams question answers dumps | get exams questions answers 000-851 dumps with 100% passing guarantee. exams4sure real exam questions & answers pdf and test engine. | | tsoft it - free online learning center in bangladesh | tsoft it, which is organized by some helping young talent. its a modern information technology learning center. this organization wants to help people who have | ccna, tutorial, mikrotik, exam, training, bangla, video, answers, bangladesh, book, academy, full, configuration, router, free, list, dumps, questions, course, study

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