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This newsletter has spent the previous few weeks delving into the guts of the eServer i5 “Squadron” servers, their Power5 processors, and i5/OS V5R3. This week, I need to talk about IBM‘s advertising and income plan for the platform. in response to the exact brass within the iSeries division, IBM is going to be pushing on several fronts to try to develop the OS/400 server company and pump up the OS/400 ecosystem on which it relies upon.
I these days had an opportunity to consult with Al Zollar, common manager of the iSeries line, and Cecelia Marrese, vice chairman of marketing for the iSeries, about what they hope to achieve with the new product line. not that here is always indicative of the health of the iSeries line, however from those conferences i will let you know that they each seem to be a lot more comfortable and optimistic about where the iSeries is and where it is going. here is reflected as an awful lot in body language as in what they talked about.
Zollar instructed me that he desired to preserve the iSeries line, now the eServer i5, within the press and within the minds of consumers as they accept as true with systems. And one factor IBM will do to make this turn up is to maintain large iSeries bulletins coming out at a gentle tempo and with the newest IBM technologies. “we are moving away from big bang announcements and relocating on a roadmap where we now have whatever thing massive to assert to our customers each quarter,” he explained. “this may retain a level of pastime and vitality within the platform.” it's going to also aid with publicity, because the IT alternate press it's consumed via IT people, from equipment admins to chief assistance officers, will see a steady stream of i5 bulletins.
but the method goes a long way beyond that. whereas the attention is first rate, the top-rated kind of sales pitch is a competitive cost for OS/four hundred servers and their connected utility. To that conclusion, as we defined just a few weeks in the past, IBM reduce memory expenditures by using 20 to 60 p.c and reduce storage costs by using 20 percent, it dropped the expense of activating Power4 and Power5 processors on the iSeries and i5 line, and referred to that it might hold the general accessories (corresponding to server processors, reminiscence, and disks) at parity with the pSeries (soon to be “eServer p5”) Unix server line, which has historically had lots reduce listing rate tags and lots higher discounts than for the iSeries. whereas IBM will essentially not at all close the hole on the retail level (however customers herald sun Microsystems and Hewlett-Packard with aggressive Unix, Linux, or windows programs), the gap is considerably smaller, and the exciting merits of the iSeries over the options make it feasible to sell in opposition t these options. earlier than, the sticker price was so excessive on the iSeries that company companions couldn’t even get their foot in the statistics center door to make a pitch. With these cost cuts, which people like me had been clamoring for given that the mid-Nineties, the records center door has opened a crack, and the i5, with its subtle partitioning and distinct working device help, has a good possibility of definitely compelling CIOs and VPDPs now not simplest to open the door but additionally to herald partners to pitch the computer to solve their issues.
IBM has always understood that the box count for the iSeries needed to remain excessive if the OS/four hundred ecosystem changed into to no longer handiest live on, but to thrive. And the cost cuts are key to IBM’s plan to raise the container count number popping out of the iSeries factories in Rochester, Minnesota, and in Dublin, eire.
Of direction, with such large rate cuts for servers, memory, disk, and different core components, this begs the query of how IBM can maintain iSeries hardware salary, tons much less enhance it. I actually have argued for years that the OS/400 server market is extra elastic than IBM’s advertising and marketing model advised. IBM had its factors for charging excessive-prices–it crucial the margins as a result of its manufacturing fees had been excessive, and to support pay for its very aggressive fight against solar and HP in the Unix market, the place it is controversial that IBM may also now not have damaged even as it uses pricing as a means of gaining market share.
Now that IBM has huge credibility with the vigour-AIX servers, and solar and HP have backed off a bit on fee cuts, IBM has a bit more room. (I talked about a bit.) IBM also has a little bit extra space considering the fact that the iSeries and i5 machines sold in Asia/Pacific are actually being built in ireland, the place labor is cheaper and shipping prices to Asia are reduce. (The pSeries manufacturing for Asia/Pacific purchasers also has been moved to ireland, and IBM also has a bulk deal with United Parcel service to ship from eire to Asia. This, mixed with hundreds of tiny alterations within the deliver chain of parts that go into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to get iSeries costs reduce.
IBM cares an awful lot about income boom, nevertheless it has always cared more about profit increase. So with fees on the iSeries essentially reduce by way of 40 % with the i5 launch, can IBM grow revenues and keep gains?
The reply appears to be yes. Zollar says that IBM’s plan is to promote more bins, which is obtrusive enough, however that he also expects IBM and its companions to be capable of sell richer configurations of the containers. My bet is that the average selling cost of a box is not as low as you could feel, since the mindset shift from spending as little as possible to do the bare minimal of work on an iSeries to spending concerning the equal amount of money or a bit of greater to do much more issues with an i5. this is the guess i would make, and it's naturally the guess IBM is now making. (Heaven aid us all. and i desire IBM had executed it five years ago.) “I consider there is a big pent up demand for memory and disk storage,” says Zollar.
Marrese says that the green Streak promotions in late 2000, which at last resulted in the revamping of the iSeries line in January 2001, had been the 1st step in the transformation of the OS/400 server right into a competitive box. but a beta look at various in March of this year for the mannequin 520 and OS/400 categorical packaging that debuted in early may additionally looks to were what pushed IBM over the aspect to birth slicing fees. Italy, Marrese defined, has a labyrinth of tax laws that make it painful to run a large enterprise, and that is some of the the explanation why the country is teeming with small corporations. many of these small businesses, it turns out, have bought AS/four hundred model one hundred fifty and mannequin 170 servers. and that they simply retain the use of them and don’t upgrade as an awful lot as IBM would really like. within the beta software, IBM took an iSeries model 800, packaged it like the model 520 categorical computer (low rate, lots of application, able to run out of the field), and located out that if it cut the expense of this configuration in half, compared with the charge of building it with common iSeries mannequin 800 pricing, it bought twice as many bins.
an additional area that Zollar says he is focusing the iSeries division on is likely one of the normal drivers of the product line: high availability. “because of the historically excessive reliability of the AS/four hundred and iSeries, our consumers are very beneath-invested in high availability and resiliency.” whereas excessive availability and gadget clustering utility were the biggest drivers of AS/four hundred and iSeries revenue in the past decade, my bet is that only about 10,000 of the 215,000 OS/400 shops on the earth have implemented high availability options. With more affordable and more convenient-to-use high availability software, and tons more affordable i5 boxes, IBM should be in a position to make it up in extent.
Zollar says he has implemented a number of different changes to support increase earnings. For one component, he said that the business is accomplishing out to the legion of small iSeries companions with simplest a number of dozen money owed to try to get them returned into the game. IBM is giving good coupon codes to companions that purchase model 520 specific configurations in blocks of 10 or 20, and the enterprise will no longer promote the new i5 machines direct in competitors with its channel, which accounted for about 85 % of iSeries earnings in 2003, in line with Zollar. whereas iSeries revenue increase in 2003 changed into within the “healthy double digits” for midrange and excessive-conclusion iSeries machines (Zollar spoke of the quantity “started with a two” after I pressed him to nail it down someplace between 10 and 99 p.c, and my wager is around 25 percent salary growth), it's the low volumes of entry machines that has been a drag on each iSeries shipments and iSeries earnings. Shipments had been flat and income were up 7 percent in 2003 across the iSeries line. obviously, getting companions enthusiastic about promoting the i5 model 520 categorical configurations is a key to the brand new strategy.
nonetheless it is not the best probability IBM is asking at. Marrese says that IBM booked around $one hundred million in Linux-linked iSeries server sales in 2003, a factor of six higher than Linux revenue on the field in 2002. She says income to help typical green-screen functions become flat or down, and that Domino, excessive availability, windows integration, and WebSphere are key drivers. but what has Marrese smiling is the coming guide for native AIX inside logical partitions on the i5 machines. because it seems, virtually 40,000 OS/400 customers also have Unix servers in their shops, of which the big majority are operating HP-UX applications. Getting even a percent of those valued clientele to port their HP-UX functions to AIX and circulation them onto the i5 supporting each their OS/400 and AIX workloads will go an extended approach towards boosting overall iSeries earnings.
possibly greater than anything else, the timing of the i5 announcement with a healing in the international economic climate is auspicious. Marrese says that, in 2003, iSeries income in Italy, German, and France picked up, that North the usa began off effective, and that Asia/Pacific countries like China are exploding (albeit from a really small put in base). “consumers were purchasing to do the bare minimum,” she says, “but now they have become the eco-friendly gentle to spend once again.”
IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- imaginative and prescient solutions, the trade normal in eServer excessive Availability options, today announced that they've signed an contract with IBM to distribute their world-type catastrophe recuperation and methods management utility with all IBM eServer iSeries working system, i5/OS. through this application, contrast models of vision's equipment OS Director, OS information Replication and OS facts manager should be covered with each new and improve shipment of i5/OS V5R3 shipped by IBM.
"vision solutions has made it more straightforward for iSeries clients to manipulate their programs and statistics. high availability comprises the supply of applications and statistics, and it also contains retaining a company's data to be sure it be up-to-the minute and useable by personnel and valued clientele. IBM and its partners allow iSeries availability as one of the vital industry's most desirable," noted Jim Herring, Director, Product management and company Operations IBM eServer iSeries.
"contemporary herbal events such as Hurricanes Katrina, Rita and Wilma have once once more validated the company need for catastrophe recovery solutions to give protection to applications and guidance from downtime, each planned and unplanned," mentioned Alan Arnold, President of imaginative and prescient solutions. "vision is happy to work with IBM in featuring businesses with the strongest availability and programs-management tools at their fingertips which are designed exceptionally to satisfy the excessive availability necessities of the i5 organization."
the complete range of vision's OS options covered during this application are:
-- OS Director -- a totally integrated set of tools that automates and proactively manages and helps optimize IBM iSeries techniques, databases and application environments.
-- OS records Replication -- a catastrophe recuperation solution focused on the SMB market that allows info to be backed up while clients are online utilising IBM's superior far off Journaling.
-- OS data supervisor -- A consumer-primarily based tool that automates the modeling, trying out, purging and archiving activities for IBM iSeries software environments. These solutions provide SMB organizations with the solutions for catastrophe healing, records replication and systems management.
imaginative and prescient options' award-profitable CustomerCare team works at once with shoppers to provide technical aid and tips for their finished product suite. The company's global crew of companions ensures that clients have the local aid they want, when they need it.
vision solutions has earned IBM's ServerProven repute, proposing shoppers with a trusted seal of approval that ensures that the solutions were successfully applied in true-world iSeries environments. The company's shoppers include top Fortune 500 companies in diverse verticals together with finance, manufacturing, distribution and gaming.
For greater assistance on enabling this trial offer, please contact imaginative and prescient solutions at (949) 253-6500 or firstname.lastname@example.org.
About vision options
vision options, headquartered in Irvine, Calif., is the business general in eServer high Availability featuring software, functions and guide options for managing a company's mission-vital purposes and facts. With more than 2,000 valued clientele and 12,000 licenses worldwide, the company works intently with a global network of channel companions assisting just about each business with its world-class solutions: Visualize(tm), vision Suite(r), ORION(tm), ORION Integrator, OS Director and OS data supervisor. imaginative and prescient solutions is an IBM Premier business partner and an IBM excessive Availability business partner. imaginative and prescient options is a member of the publicly traded IDION neighborhood of corporations (JSE:IDI). For greater guidance on imaginative and prescient solutions, please talk over with the business's web site at www.visionsolutions.com.imaginative and prescient solutions, Inc. Jennifer Brannon (949) 253-6543
IBM is filling in the middle of its power 5-based mostly eServer i5 lineup on Tuesday, unwrapping a four-manner equipment aimed toward midsize companies looking to consolidate a whole lot of business purposes.
the new eServer i5 550, sandwiched between the fashions 520 and 570, can be available in two variations that are new to the i5 500 series, together with the solution edition and the decrease-end Domino version. The solution version should be offered collectively through IBM and chosen ISVs to various vertical markets.
"The theory at the back of this one [Solution Edition] is to be capable of go to our joint shoppers with the ISVs and present them an up-to-date answer. Many users might also have purchased a package a few years ago and naturally the ISV has made many improvements. this could supply them a chance to take skills of newer application along with the new hardware," noted Craig Johnson, the marketing supervisor for IBM's iSeries line.
The selected ISVs IBM might be collectively promoting the new edition to consist of Clear applied sciences, IBS, integrated Distribution solutions, Intentia, Lawson, long island associates, MAPICS, PeopleSoft, and SSA global.
each the answer and Domino editions, just like the latest commonplace and commercial enterprise variations, run under IBM's proprietary I5OS operating device. They each additionally come with huge Blue's Virtualization Engine functions that permit users to run AIX and Linux working methods in partitions in addition to to attach and/or control Intel-primarily based servers.
Some users appeared to be enthusiastic about the new choices.
"We feel this does an excellent job at offering greater of a complete answer, the place we are able to convey true company price to our clients that helps them obtain their business goals," referred to Muditha Karunatileka, government vp of earnings for Sirius computer options.
The mannequin 550 is fueled by means of a 1.65GHz Power5 processor, can help as a lot as 64GB of memory, and as a great deal as 38TB of disk storage. The gadget is distributed with two processors grew to become on with users capable of turn on the other two processors as their workload requires.
additionally on Tuesday, IBM is asserting it could aid Linux on its Intel-based mostly integrated xSeries Server collection.
"That [Integrated xSeries Server] sequence has supported home windows for a while, but we obligatory to place Linux on them as well. We consider it's going to complement Linux working on our vigor processors and partitions, so now we'll have each environments to present company clients," Johnson referred to.
lastly, IBM is unveiling a new component of its Virtualization Engine, known as the IBM Director Multi Platform. An better version of the enterprise's Director product, now attainable on its Intel-primarily based xSeries, the Director Multi Platform has been stronger to manipulate both Intel- and I5OS-based mostly environments.
"This permits you to have only one tool to exit and bring together inventories of your servers, set up monitors for them, and set off indicators to take automated moves," Johnson said.
users who purchase the brand new system with IBM's I5OS bundled receive a free replica of Director Multi Platform, Johnson noted.
The mannequin 550 can be attainable beginning Sept. 10 with the usual edition going for $seventy four,000.
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Q&A: iSeries GM Borman to Focus on i5/OS Sales
Mike Borman, the new general manager of the eServer iSeries business, started out in 1977 at IBM as a programmer after getting his degree in computer science. He eventually held the legendary position of an IBM Systems Engineer before moving into OS/400 and Unix sales, marketing, and then several general manager positions. Who is Borman, why is he running the iSeries business, and where is he going to take the OS/400 platform?
With this appointment, Borman has been the general manager of both the AIX and OS/400 server units and has also been a general manager for IBM’s PartnerWorld reseller channel. He also left IBM for a few years to run a software company (Blue Martini Software) during the dot-com bubble, but came back to Big Blue to run PartnerWorld. When you add all of his engineering, sales, channel, and management experience up, it is clear why Borman is qualified to run the iSeries business. Read this interview and see for yourself.
Timothy Prickett Morgan: I know that as we do this interview, IBM is in its quiet period before it announces its third quarter financial results and I know that you are fairly new to the general manager position, but can you give us a sense of how the new eServer i5 machines are being received by the market?
Mike Borman: I spent the first couple of months in this new job doing a lot of traveling, mainly to get out and meet with customers. I’ve been all around Europe and the United States meeting with customers–I haven’t made it to Asia yet–and I will tell you that the reaction overall has been extremely positive. And I will tell you why.
No matter what kind of server you are talking about, there is always concern among customers about how viable the platform is, and customers mainly think about the underlying hardware technology when they are expressing their concern. The zSeries customers worry about that in certain years, the iSeries or pSeries customers do in others. Everybody is always worried about the viability of their platform. When we came out with the new Power5 “Squadron” technology, and customers understood all of the performance and reliability associated with it as well as some of the neat features like virtualization, I think iSeries customers are relieved and delighted that we have this state-of-the-art technology that is better than anything Hewlett-Packard, Sun Microsystems, or anybody else has in the marketplace.
Customers have to go to a new operating system to use the Squadron servers, and they are all trying to figure out if this is an easy job or a hard job. They are trying to figure out how soon can they and should they get there to take advantage of the new technology. Without going into any numbers, as I talk to customers, my feeling is that the customers in general have a strong acceptance, mentally, for the new technology.
TPM: Over the past several years, with the consolidation of the pSeries and iSeries lines, one of the things I heard time and time again is that the consolidation somehow meant that the OS/400 platform was going to go away. What I have tried to communicate is that no matter what server IBM ships, there will always be something that can run OS/400 and its RPG applications, and that this should be a comforting idea. The volume economics of having a consolidated line ensures that there is a greater–not lesser–probability that the OS/400 platform will be around for a longer period of time.
At the same time, we have seen the installed base of OS/400 shops decline since the peak in 1998, and it has gone down considerably. People argue about the numbers, but the shape of the curve is something that I think everybody agrees on. Although we have seen a little bit of growth in the past year, it was modest. What is it that you can do to try to convince these customers that are still worried about the longevity of the platform and prove to them that it can, in fact, grow? A growing installed base is was attracts independent software vendors to support the box. Or is IBM’s strategy to have a box that can support OS/400, AIX, and Linux is enough to keep ISVs interested?
MB: I don’t have all the facts perfectly memorized, but from what I’ve been shown, the attrition rate of this iSeries brand is not that high–it is less than two percent in a given year. So it is not as if the people are abandoning the platform at a great rate. At the same time, we do get thousands of new customers each year. So I think we need to grow faster than we are growing, clearly. I have never been in a brand or a company where I was growing as fast as the company thought I needed to grow.
We need to do better, and you hit on two areas that are important. For the existing customers, they are happy to get the new technology and we have improved price/performance by 40 to 60 percent. That’s a huge price/performance improvement. They are also happy that we can run multiple workloads. All of those Intel-based servers out there in their companies that are doing mission-critical file, Web, or firewall serving can now be brought into the iSeries, and some customers are starting to do that.
To put it simply, we have a two-prong strategy. Get the current ISVs on i5/OS V5R3, and get new workloads on top of that ISV base. We have over 200 Linux applications, for instance, that can now run on the iSeries.
TPM: In general, how big is that active base of iSeries ISVs?
MB: We have an i300 and an i3000 program to work with ISVs. The first works with the top 300 ISVs, who we are in contact with on a continual basis. The i3000 group is a new initiative to build the program that is underway, right now, as you and I are talking.
TPM: I’ve known a lot of the general managers of the AS/400 and iSeries divisions over the years, and they all have different styles and approaches. Given your background, what are you going to do the same and what are you doing to do differently as a general manager of the iSeries line?
MB: I can remember back when Bill Zeitler was the general manager of the AS/400 back in the mid-1990s. I picked him up at O’Hare Airport when I was the area manager in the Midwest, and he and I drove down to Caterpillar together to make an AS/400 call with the CIO, who I knew pretty well from my job in Chicago, and then we drove back and he got on the plane and left. I knew Bill, and the GMs before him–John Thompson, Steve Schwartz. I know that I am not any better than any of them, but I do know that each one of them brought a lot to the brand based on their background.
If you look at my background, most recently I was in the channel, and as you know, business partners are important to the success of the iSeries brand. Buell Duncan and Tom Jarosh also had that background. Jarosh managed IBM’s Unix business, just like I did for a while. I was probably in sales more than any of the prior general managers. I also spent four years in Asia, and controlled IBM’s SMB initiatives and channels there. I ran the SMB business when I came back to the States, too. I think that my sales experience, and linking particularly into the IBM SMB team, will be important. This brand was built on the teamwork of the entire IBM Company, not just the brand sales guys. One of my key responsibilities to the brand is to make sure we have a great partnership inside of IBM.
TPM: IBM made a conscious choice in 1988 to have the OS/400 platform pushed through the partner channel rather than on a direct basis. While IBM controls a lot of very large OS/400 accounts and has done some direct sales for smaller iSeries configurations on the Web, IBM has increasingly relied the business partner channel to push sales. Is there a reason or a way to boost i5 sales and increase the penetration in the market by moving to a direct sales model? Is it just a foregone conclusion that the channel is the way to do all i5 sales?
MB: I wouldn’t say that the channel is the way to do all i5 sales. When I was back in Chicago, I would sit down with one of our AS/400 specialists, and she once showed me her 89 sales opportunities that she was working in her territory, which was basically a couple of suburbs of Chicago. There was no way that she could cover these 89 customers.
So she had a set of partners engaged on most of those deals, and that is the way I like to think of it. I think of the partners as leverage in the marketplace, and they are also the ones that have the solutions customers want. IBM doesn’t create application software, so I desperately need partners that do and, incidentally, partners that can sell or partner with others who can sell the i5 hardware.
There will never be a point where our partners will do all of the i5 sales. We need a brand sales specialist team, engaged around the world, which we currently have with close to 1,000 people. But we feel that you can always get more leverage using partners. If I sold Boeing 767 aircraft, I probably would not have a partner channel. But when I have an installed base of over 400,000 OS/400 machines in the world, each with upgrade potential, there is just no way I can cover all of those opportunities without using partners.
TPM: While this has been IBM’s strategy with the AS/400 and iSeries, at the low end of the X86 server market, companies who want a server that is in roughly the same server processing capacity as the entry i5 Model 520s go and buy it directly and install your own software. I am trying to figure out, for the low-end i5 machines in particular, is there a way to go direct which boosts the volumes high enough to make it possible to create a lower-cost i5 platform. I am worried, as you are, about the number of i5 boxes that come out of Rochester. Volume is the critical determinant in the IT industry. I don’t know that the business partner channel can absorb and push more iSeries and i5 iron than they have already been doing. It strikes me that they are running as fast as they can to keep trained on the newest technologies and chase the accounts that they can, but the partners are a limiting factor.
MB: I would say that one of the important things for partners is that they have more choice in what to sell than they had five or six years ago. I think they could sell a lot more iSeries, and I have told them that. Six years ago, Intel servers were not that competitive and neither was Windows NT. And today, smart people still don’t want a lot of Windows. But Windows hardware and software have improved, and so has the pSeries. So partners have more choice on what to sell. It is really important for me and for the brand to be able to differentiate on why i5/OS is the best choice for customers.
If I thought I could get i5/OS similar in terms of usability and understanding and image in the marketplace as its competitors, then I could go to more of a volume play. But right now, my view is that i5/OS is more of a push product, where you have to sell the features and function, compared to Windows, which is a pull product.
TPM: Which brings me nicely to my next question. Most OS/400 shops–somewhere in the neighborhood of 85 percent of them by some estimates–have multiple Windows servers running side by side with their AS/400 and iSeries machines. Given that IBM is already working with Microsoft to create a hardware abstraction layer to run Windows on the next generation of xBox game machine, which is based on PowerPC chips, one of the things that IBM could do, is get Windows running natively on logical partitions on the i5s. This would allow customers who have external Windows boxes–customers who by and large do not want to make the jump to Linux–to move their Windows boxes under the skins of the iSeries but have the flexibility of dynamic logical partitions.
This is a thought experiment. Does it make sense to put native Windows on the i5, and as a general manager of the iSeries Division, can you make it happen.
MB: Nothing that I have seen shows that we are working on running any Windows software on Power servers.
I have to be honest with you. I have been thinking about it in the opposite way. I have been trying to figure out where I can sell a lot of i5/OS. Clearly our Power technology is the best in the industry, and the combination of Power and i5/OS is perfect for these customers. I have to figure out how to pump up i5/OS volumes, not just sell more i5 hardware.
TPM: I agree. But, just to play devil’s advocate, the funding money to push i5/OS might come through a big boost in i5 hardware sales that is enabled by Windows partitions.
MB: I will take a look at the idea. Of all of the things that I have been working on, that has not come across the radar screen.
TPM: Let’s revisit that other good point you just brought up. What practical steps can you take to boost the number of i5/OS licenses you sell?
MB: If you look at some of the skills that we have provided to our sales people and our partners in the past few years, we have been more geared toward technology as opposed to talking about the features and functions associated with the great i5/OS operating system. One of the things we are currently working on is getting our field sales force and our partners trained on what differentiates i5/OS from alternatives in the marketplace.
TPM: Is there enough of a differentiation? Back in the late 1980s, when the AS/400 came out, Unix was just getting rolling in commercial environments and Windows did not exist. OS/400 had a lot of stuff back then that made it exceptional, and IBM sold $4 billion to $5 billion a year in servers, storage, and operating systems associated with the platform. As Unix came on strong in the 1990s and Windows got traction, driving down prices on all midrange servers, OS/400 server sales started to decline a bit, and bubbled some in 1998 with the Y2K issue. OS/400 server sales have been on a decline since that time. I realize that part of that decline has to do with shifting sales to the channel and price/performance increases as well as weakening sales volumes. But I worry that the feature and total cost of ownership (TCO) differentiation that OS/400 enjoyed 15 years ago is not as strong. Windows is pretty good now–even if it isn’t great–and it has a lot of applications and inexpensive hardware. Moreover, we are programming at a much higher level with Java-style coding, which insulates programmers from system complexity much as RPG and integrated DB2/400 did with OS/400.
It seems to me that IBM needs to quantify this TCO, and demonstrate that running an identical set of applications on i5/OS and other platforms will result in the i5/OS shop having fewer administrators, fewer security headaches, better uptime, and what have you. We all know this anecdotally, but no one really puts hard numbers on this TCO argument. Anecdotes do not sell servers; data does.
MB: I think you are right on target. As a matter of fact, I just brought in my worldwide sales team in the past two days. My whole team was there, and we talked through what was going on in the market and what they need. And we had several discussions on total cost of ownership, and we want to get more current TCO data out in the field’s hands because this is an important element to the i5/OS platform.
When you talk about integration, when you talk about ease of use, and when you talk about the whole value proposition of the box, it is there. It’s real. People know that i5/OS is easier to install, use, and manage than Linux or Windows. But we know we need the TCO argument because we are more expensive. So we are going to get some studies done to prove this right away.
TPM: As general manager of the OS/400 platform, the OS/400 community has a high level of expectations for you. What are the limits to your power, particularly in an eServer-centric server world? The differences between IBM’s platforms are more subtle now, and they share a lot of technologies. Just how much can you shake up the i5 business? I don’t think you have a lot of maneuvering room, but I think that the OS/400 customer base thinks you do.
MB: As far as limits go, I think we always do what is best for the customer. I don’t think we have any limits when it comes to satisfying customers. Given that our CEO, Sam Palmisano, and the guy I work for, Bill Zeitler, both have had a lot of personal involvement with, a passion for, and a long-term understanding of this platform, they have given me all of the support that I need to make sure that the i5 thrives out in the marketplace. There are no two better people in the world to support me than Sam and Bill, and they have both given me strong support from the day I was announced in Rochester as general manager. I have all the support I need inside IBM.
I think that if there is one thing that I will certainly do, it will be to tap our customers to support what we want to get done as well. I view our customers more as partners than I see us in a normal vendor-customer relationship with them. They are the most passionate, loving, satisfied group of customers that you can have in almost any industry you can imagine. My goal is to listen to our customers and to do what is right by them.
IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- Vision Solutions, the industry standard in eServer High Availability solutions, today announced that they have signed an agreement with IBM to distribute their world-class disaster recovery and systems management software with all IBM eServer iSeries operating system, i5/OS. Through this program, evaluation versions of Vision's tools OS Director, OS Data Replication and OS Data Manager will be included with every new and upgrade shipment of i5/OS V5R3 shipped by IBM.
"Vision Solutions has made it easier for iSeries users to manage their systems and data. High availability includes the availability of applications and data, and it also includes protecting a company's data to ensure it's up-to-the minute and useable by employees and customers. IBM and its partners enable iSeries availability as one of the industry's best," said Jim Herring, Director, Product Management and Business Operations IBM eServer iSeries.
"Recent natural events such as Hurricanes Katrina, Rita and Wilma have once again demonstrated the business need for disaster recovery solutions to protect applications and information from downtime, both planned and unplanned," said Alan Arnold, President of Vision Solutions. "Vision is happy to work with IBM in providing businesses with the strongest availability and systems-management tools at their fingertips that are designed specifically to meet the high availability requirements of the i5 organization."
The full range of Vision's OS solutions included in this program are:
-- OS Director -- a highly integrated set of tools that automates and proactively manages and helps optimize IBM iSeries systems, databases and application environments.
-- OS Data Replication -- a Disaster Recovery solution targeted at the SMB market that enables files to be backed up while users are online utilizing IBM's advanced Remote Journaling.
-- OS Data Manager -- A user-based tool that automates the modeling, testing, purging and archiving activities for IBM iSeries application environments. These solutions provide SMB organizations with the solutions for disaster recovery, data replication and systems management.
Vision Solutions' award-winning CustomerCare team works directly with customers to provide technical support and assistance for their complete product suite. The company's worldwide team of partners ensures that customers have the local support they need, when they need it.
Vision Solutions has earned IBM's ServerProven status, providing customers with a trusted seal of approval that ensures that the solutions have been successfully implemented in real-world iSeries environments. The company's customers include top Fortune 500 businesses in multiple verticals including finance, manufacturing, distribution and gaming.
For more information on enabling this trial offer, please contact Vision Solutions at (949) 253-6500 or email@example.com.
About Vision Solutions
Vision Solutions, headquartered in Irvine, Calif., is the industry standard in eServer High Availability providing software, services and support solutions for managing a company's mission-critical applications and data. With more than 2,000 customers and 12,000 licenses around the world, the company works closely with a worldwide network of channel partners supporting virtually every industry with its world-class solutions: Visualize(tm), Vision Suite(r), ORION(tm), ORION Integrator, OS Director and OS Data Manager. Vision Solutions is an IBM Premier Business Partner and an IBM High Availability Business Partner. Vision Solutions is a member of the publicly traded IDION group of companies (JSE:IDI). For more information on Vision Solutions, please visit the company's website at www.visionsolutions.com.Vision Solutions, Inc. Jennifer Brannon (949) 253-6543
While buyers are increasingly turning to x86-based servers, IBM is moving to shore up sales of its iSeries boxes.
The company announced last week that it will try to multiply by 10 times the number of independent software vendors developing applications for the mid-market line, which runs
on the Power5 processors and the i5/OS, AIX and Linux operating systems.
It has promised to spend up to US$50,000 in consulting and co-marketing services for every ISV under what it calls the iSeries Initiative for Innovation program.
IBM estimates there are 60 companies in this country writing applications for the line.
It’s an expansion of a limited program started to boost sales of the server which started two years ago, said Barry Pow, iSeries product manager at IBM Canada. There was success, so the company decided to formalize and expand it.
“”We realized if we’re going to see growth in the iSeries platform we needed not just to rely on our existing customer and platform set, we needed to get into new areas,”” he said.
Canada is one of the best markets for iSeries in the world, according to IDC Canada. Last year it accounted for 5.4 per cent of all server sales in this country, one of the highest levels in countries where it is sold. By comparison iSeries accounted for only 3.1 per cent of server sales in the U.S. in 2004.
However, even here sales are slipping: In 2003 the line accounted for 7.6 per cent of all server sales.
That’s why IBM’s move to lure ISVs and toolmakers to iSeries was praised by IDC Canada hardware analyst Alan Freedman.
“”Without taking that tack they’re dead in the water,”” he said.
Also enthused was David Harty, director of sale and marketing at Silverblaze Solutions of Markham, Ont., a CRM developer which until recently focused on iSeries customers.
“”It’s nice to see them re-investing in the business partner community,”” he said.
He was particularly pleased partners will be eligible to receive up to a 70 per cent discount for co-advertising with IBM in industry media to help ISVs reach customers.
“”That’s something I haven’t seen enough of,”” he said. “”I think IBM has to shake things up from a co-marketing standpoint. A lot of the programs are somewhat pedestrian.””
To convince ISVs are serious about the platform, IBM has created a charter to outline what it calls its “”enduring and future commitments”” to iSeries.
– an applications innovation program, offering free application development assistance either online or from an IBM Innovation Centre;
– an tools innovation program, to help ISVs understand and use tools from some 60 vendors for developing iSeries apps
– co-marketing opportunities;
– and expanded access to PartnerWorld Industry Networks, which offers ISVs advice on technical, marketing and sales issues.
Pow suggested the company has ambitious goals from the initiative.
“”Just as we saw double digit percentage [increase] of our sales in 2004 being tied to new applications and new customers coming to iSeries, we have that same objective in 2005,”” he said.
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