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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 exigency to talk about IBM‘s advertising and income map for the platform. in response to the exact brass within the iSeries division, IBM is going to subsist 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 chance 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 fresh 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 look to subsist a lot more snug and optimistic about where the iSeries is and where it is going. here is reflected as an abominable lot in cadaver 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 carry out to do this revolve up is to maintain big iSeries bulletins coming out at a gentle tempo and with the newest IBM technologies. “we are stirring away from ample bang announcements and relocating on a roadmap where they now Have whatever thing massive to aver to their customers each quarter,” he explained. “this may retain a smooth of pastime and vitality within the platform.” it's going to furthermore aid with publicity, because the IT alternate press it's consumed via IT people, from materiel admins to chief assistance officers, will descry a uniform stream of i5 bulletins.
but the routine goes a long way beyond that. whereas the attention is first rate, the top-rated benign of sales pitch is a competitive cost for OS/four hundred servers and their connected utility. To that conclusion, as they defined just a few weeks in the past, IBM reduce recollection 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 subsist “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 each and every close the hole on the retail smooth (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 do it feasible to sell in opposition t these options. earlier than, the sticker charge was so unreasonable on the iSeries that company companions couldn’t even score their foot in the statistics headquarters door to do a pitch. With these cost cuts, which people enjoy me had been clamoring for given that the mid-Nineties, the records headquarters door has opened a crack, and the i5, with its subtle partitioning and several working device help, has a safe 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 matter for the iSeries needed to remain unreasonable 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 map to raise the container matter number popping out of the iSeries factories in Rochester, Minnesota, and in Dublin, eire.
Of direction, with such big 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 advocate pay for its very aggressive fight against solar and HP in the Unix market, the region it is controversial that IBM may furthermore 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 furthermore has a petite bit extra space considering the fact that the iSeries and i5 machines sold in Asia/Pacific are actually being built in ireland, the region labor is cheaper and shipping prices to Asia are reduce. (The pSeries manufacturing for Asia/Pacific purchasers furthermore has been moved to ireland, and IBM furthermore 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 depart into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to score iSeries costs reduce.
IBM cares an abominable 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 withhold gains?
The reply appears to subsist yes. Zollar says that IBM’s map is to promote more bins, which is obtrusive enough, however that he furthermore expects IBM and its companions to subsist capable of sell richer configurations of the containers. My ante is that the unbiased selling cost of a box is not as low as you could feel, since the mindset shift from spending as petite as possible to carry out the bare minimal of drudgery on an iSeries to spending concerning the equal amount of money or a bit of greater to carry out 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 crave IBM had executed it five years ago.) “I deem there is a ample pent up exact for recollection and disk storage,” says Zollar.
Marrese says that the green streak promotions in late 2000, which at final 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 inspect 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 do it painful to dash a big enterprise, and that is some of the the explanation why the country is teeming with wee corporations. many of these wee businesses, it turns out, Have bought AS/four hundred model one hundred fifty and mannequin 170 servers. and that they simply retain the employ of them and don’t upgrade as an abominable lot as IBM would really like. within the beta software, IBM took an iSeries model 800, packaged it enjoy the model 520 categorical computer (low rate, lots of application, able to dash out of the field), and located out that if it Cut the expense of this configuration in half, compared with the charge of pile it with common iSeries mannequin 800 pricing, it bought twice as many bins.
an additional district that Zollar says he is focusing the iSeries division on is likely one of the regular drivers of the product line: tall availability. “because of the historically unreasonable reliability of the AS/four hundred and iSeries, their consumers are very beneath-invested in tall availability and resiliency.” whereas unreasonable availability and gadget clustering utility were the biggest drivers of AS/four hundred and iSeries revenue in the past decade, my ante is that only about 10,000 of the 215,000 OS/400 shops on the earth Have implemented tall availability options. With more affordable and more convenient-to-use tall availability software, and tons more affordable i5 boxes, IBM should subsist in a position to do it up in extent.
Zollar says he has implemented a number of different changes to advocate augment earnings. For one component, he said that the business is accomplishing out to the legion of wee iSeries companions with simplest a number of dozen money owed to try to score them returned into the game. IBM is giving safe coupon codes to companions that purchase model 520 specific configurations in blocks of 10 or 20, and the enterprise will no longer promote the fresh 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 augment 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 fresh 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 domain in 2002. She says income to abet typical green-screen functions become flat or down, and that Domino, unreasonable availability, windows integration, and WebSphere are key drivers. but what has Marrese smiling is the coming usher for aboriginal AIX inside analytic partitions on the i5 machines. because it seems, virtually 40,000 OS/400 customers furthermore Have Unix servers in their shops, of which the ample 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 depart 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 enjoy China are exploding (albeit from a really wee set in base). “consumers were purchasing to carry out the bare minimum,” she says, “but now they Have become the eco-friendly gentle to expend once again.”
IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- imaginative and prescient solutions, the trade regular in eServer unreasonable Availability options, today announced that they've signed an compress with IBM to divide their world-type catastrophe recuperation and methods management utility with each and every IBM eServer iSeries working system, i5/OS. through this application, contrast models of vision's materiel OS Director, OS information Replication and OS facts manager should subsist covered with each fresh and better shipment of i5/OS V5R3 shipped by IBM.
"vision solutions has made it more straightforward for iSeries clients to maneuver their programs and statistics. tall availability comprises the supply of applications and statistics, and it furthermore contains retaining a company's data to subsist positive it subsist 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," notable 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 exigency 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 ecstatic to drudgery with IBM in featuring businesses with the strongest availability and programs-management tools at their fingertips which are designed exceptionally to satisfy the unreasonable availability necessities of the i5 organization."
the complete ambit 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 subsist backed up while clients are online utilising IBM's superior far off Journaling.
-- OS data supervisor -- A consumer-primarily based instrument 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 exigency 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 ordeal offer, gladden contact imaginative and prescient solutions at (949) 253-6500 or email@example.com.
About vision options
vision options, headquartered in Irvine, Calif., is the business general in eServer tall Availability featuring software, functions and usher 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 confederate and an IBM unreasonable 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, gladden 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 materiel aimed toward midsize companies looking to consolidate a all lot of business purposes.
the fresh eServer i5 550, sandwiched between the fashions 520 and 570, can subsist available in two variations that are fresh to the i5 500 series, together with the solution edition and the decrease-end Domino version. The solution version should subsist offered collectively through IBM and chosen ISVs to various perpendicular markets.
"The theory at the back of this one [Solution Edition] is to subsist capable of depart to their joint shoppers with the ISVs and present them an up-to-date answer. Many users might furthermore Have purchased a package a few years ago and naturally the ISV has made many improvements. this could supply them a chance to engage skills of newer application along with the fresh hardware," notable Craig Johnson, the marketing supervisor for IBM's iSeries line.
The selected ISVs IBM might subsist collectively promoting the fresh edition to consist of clear applied sciences, IBS, integrated Distribution solutions, Intentia, Lawson, long island associates, MAPICS, PeopleSoft, and SSA global.
each the retort and Domino editions, just enjoy the latest commonplace and commercial enterprise variations, dash under IBM's proprietary I5OS operating device. They each additionally Come with huge Blue's Virtualization Engine functions that permit users to dash AIX and Linux working methods in partitions in addition to to attach and/or control Intel-primarily based servers.
Some users appeared to subsist enthusiastic about the fresh choices.
"We feel this does an excellent job at offering greater of a complete answer, the region they are able to convey true company charge to their 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 abet as a lot as 64GB of memory, and as a worthy deal as 38TB of disk storage. The gadget is distributed with two processors grew to become on with users capable of revolve 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 they obligatory to region Linux on them as well. They deem it's going to complement Linux working on their vim processors and partitions, so now we'll Have each environments to present company clients," Johnson referred to.
lastly, IBM is unveiling a fresh 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 maneuver both Intel- and I5OS-based mostly environments.
"This permits you to Have only one instrument to exit and bring together inventories of your servers, set up monitors for them, and set off indicators to engage automated moves," Johnson said.
users who purchase the brand fresh system with IBM's I5OS bundled receive a free replica of Director Multi Platform, Johnson noted.
The mannequin 550 can subsist attainable beginning Sept. 10 with the accustomed edition going for $seventy four,000.
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mp;A: iSeries GM Borman to Focus on i5/OS Sales
Mike Borman, the fresh 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 stirring 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 engage the OS/400 platform?
With this appointment, Borman has been the general manager of both the AIX and OS/400 server units and has furthermore been a general manager for IBM’s PartnerWorld reseller channel. He furthermore left IBM for a few years to dash a software company (Blue Martini Software) during the dot-com bubble, but came back to ample Blue to dash PartnerWorld. When you add each and every of his engineering, sales, channel, and management sustain up, it is clear why Borman is qualified to dash the iSeries business. Read this interview and descry for yourself.
Timothy Prickett Morgan: I know that as they carry out this interview, IBM is in its soundless age before it announces its third quarter pecuniary results and I know that you are fairly fresh to the general manager position, but can you give us a sense of how the fresh eServer i5 machines are being received by the market?
Mike Borman: I spent the first brace of months in this fresh job doing a lot of traveling, mainly to score out and meet with customers. I’ve been each and every around Europe and the United States meeting with customers–I haven’t made it to Asia yet–and I will advise you that the reaction overall has been extremely positive. And I will advise you why.
No matter what benign of server you are talking about, there is always concern among customers about how viable the platform is, and customers mainly mediate about the underlying hardware technology when they are expressing their concern. The zSeries customers worry about that in unavoidable years, the iSeries or pSeries customers carry out in others. Everybody is always worried about the viability of their platform. When they came out with the fresh Power5 “Squadron” technology, and customers understood each and every of the performance and reliability associated with it as well as some of the elegant features enjoy virtualization, I mediate iSeries customers are relieved and delighted that they 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 depart to a fresh operating system to employ the Squadron servers, and they are each and every trying to motif out if this is an simple job or a difficult job. They are trying to motif out how soon can they and should they score there to engage edge of the fresh technology. Without going into any numbers, as I talk to customers, my emotion is that the customers in general Have a stout acceptance, mentally, for the fresh 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 anyhow meant that the OS/400 platform was going to depart away. What I Have tried to communicate is that no matter what server IBM ships, there will always subsist something that can dash OS/400 and its RPG applications, and that this should subsist 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 subsist around for a longer age of time.
At the selfsame time, they Have seen the installed basis of OS/400 shops decline since the peak in 1998, and it has gone down considerably. People bicker about the numbers, but the shape of the curve is something that I mediate everybody agrees on. Although they Have seen a petite bit of growth in the past year, it was modest. What is it that you can carry out to try to convince these customers that are noiseless worried about the longevity of the platform and prove to them that it can, in fact, grow? A growing installed basis is was attracts independent software vendors to advocate the box. Or is IBM’s strategy to Have a box that can advocate OS/400, AIX, and Linux is enough to withhold ISVs interested?
MB: I don’t Have each and every 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 worthy rate. At the selfsame time, they carry out score thousands of fresh customers each year. So I mediate they exigency to grow faster than they are growing, clearly. I Have never been in a brand or a company where I was growing as speedily as the company thought I needed to grow.
We exigency to carry out better, and you hit on two areas that are important. For the existing customers, they are ecstatic to score the fresh technology and they Have improved price/performance by 40 to 60 percent. That’s a huge price/performance improvement. They are furthermore ecstatic that they can dash multiple workloads. each and every of those Intel-based servers out there in their companies that are doing mission-critical file, Web, or firewall serving can now subsist brought into the iSeries, and some customers are starting to carry out that.
To set it simply, they Have a two-prong strategy. score the current ISVs on i5/OS V5R3, and score fresh workloads on top of that ISV base. They Have over 200 Linux applications, for instance, that can now dash on the iSeries.
TPM: In general, how ample is that energetic basis of iSeries ISVs?
MB: They Have an i300 and an i3000 program to drudgery with ISVs. The first works with the top 300 ISVs, who they are in contact with on a perpetual basis. The i3000 group is a fresh 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 each and every Have different styles and approaches. Given your background, what are you going to carry out the selfsame and what are you doing to carry out 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 district manager in the Midwest, and he and I drove down to Caterpillar together to do an AS/400 summon with the CIO, who I knew pretty well from my job in Chicago, and then they 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 carry out know that each one of them brought a lot to the brand based on their background.
If you inspect at my background, most recently I was in the channel, and as you know, business partners are distinguished to the success of the iSeries brand. Buell Duncan and Tom Jarosh furthermore had that background. Jarosh managed IBM’s Unix business, just enjoy I did for a while. I was probably in sales more than any of the prior general managers. I furthermore 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 mediate that my sales experience, and linking particularly into the IBM SMB team, will subsist 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 do positive they Have a worthy partnership inside of IBM.
TPM: IBM made a conscious selection in 1988 to Have the OS/400 platform pushed through the confederate channel rather than on a direct basis. While IBM controls a lot of very big OS/400 accounts and has done some direct sales for smaller iSeries configurations on the Web, IBM has increasingly relied the business confederate channel to shove sales. Is there a understanding or a way to boost i5 sales and augment the penetration in the market by stirring to a direct sales model? Is it just a foregone conclusion that the channel is the way to carry out each and every i5 sales?
MB: I wouldn’t convey that the channel is the way to carry out each and every i5 sales. When I was back in Chicago, I would sit down with one of their AS/400 specialists, and she once showed me her 89 sales opportunities that she was working in her territory, which was basically a brace 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 enjoy to mediate of it. I mediate of the partners as leverage in the marketplace, and they are furthermore the ones that Have the solutions customers want. IBM doesn’t create application software, so I desperately exigency partners that carry out and, incidentally, partners that can sell or confederate with others who can sell the i5 hardware.
There will never subsist a point where their partners will carry out each and every of the i5 sales. They exigency a brand sales specialist team, engaged around the world, which they currently Have with close to 1,000 people. But they feel that you can always score more leverage using partners. If I sold Boeing 767 aircraft, I probably would not Have a confederate channel. But when I Have an installed basis of over 400,000 OS/400 machines in the world, each with upgrade potential, there is just no way I can cover each and every of those opportunities without using partners.
TPM: While this has been IBM’s strategy with the AS/400 and iSeries, at the low conclude of the X86 server market, companies who want a server that is in roughly the selfsame server processing capacity as the entry i5 Model 520s depart and buy it directly and install your own software. I am trying to motif out, for the low-end i5 machines in particular, is there a way to depart direct which boosts the volumes tall enough to do 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 censorious determinant in the IT industry. I don’t know that the business confederate channel can absorb and shove more iSeries and i5 iron than they Have already been doing. It strikes me that they are running as speedily as they can to withhold trained on the newest technologies and chase the accounts that they can, but the partners are a limiting factor.
MB: I would convey that one of the distinguished things for partners is that they Have more selection in what to sell than they had five or six years ago. I mediate 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 noiseless don’t want a lot of Windows. But Windows hardware and software Have improved, and so has the pSeries. So partners Have more selection on what to sell. It is really distinguished for me and for the brand to subsist able to differentiate on why i5/OS is the best selection for customers.
If I thought I could score i5/OS similar in terms of usability and understanding and image in the marketplace as its competitors, then I could depart to more of a volume play. But right now, my view is that i5/OS is more of a shove product, where you Have to sell the features and function, compared to Windows, which is a tow 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 dash Windows on the next generation of xBox game machine, which is based on PowerPC chips, one of the things that IBM could do, is score Windows running natively on analytic partitions on the i5s. This would allow customers who Have external Windows boxes–customers who by and big carry out not want to do the jump to Linux–to trudge their Windows boxes under the skins of the iSeries but Have the flexibility of dynamic analytic partitions.
This is a thought experiment. Does it do sense to set aboriginal Windows on the i5, and as a general manager of the iSeries Division, can you do it happen.
MB: Nothing that I Have seen shows that they are working on running any Windows software on Power servers.
I Have to subsist honest with you. I Have been thinking about it in the opposite way. I Have been trying to motif out where I can sell a lot of i5/OS. Clearly their Power technology is the best in the industry, and the combination of Power and i5/OS is flawless for these customers. I Have to motif 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 shove i5/OS might Come through a ample boost in i5 hardware sales that is enabled by Windows partitions.
MB: I will engage a inspect at the idea. Of each and every of the things that I Have been working on, that has not Come across the radar screen.
TPM: Let’s revisit that other safe point you just brought up. What practical steps can you engage to boost the number of i5/OS licenses you sell?
MB: If you inspect at some of the skills that they Have provided to their sales people and their partners in the past few years, they Have been more geared toward technology as opposed to talking about the features and functions associated with the worthy i5/OS operating system. One of the things they are currently working on is getting their domain sales compel and their 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 stout in the 1990s and Windows got traction, driving down prices on each and every 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 allotment of that decline has to carry out 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 safe now–even if it isn’t great–and it has a lot of applications and inexpensive hardware. Moreover, they are programming at a much higher smooth 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. They each and every know this anecdotally, but no one really puts difficult numbers on this TCO argument. Anecdotes carry out not sell servers; data does.
MB: I mediate you are right on target. As a matter of fact, I just brought in my worldwide sales team in the past two days. My all team was there, and they talked through what was going on in the market and what they need. And they had several discussions on total cost of ownership, and they want to score more current TCO data out in the field’s hands because this is an distinguished constituent to the i5/OS platform.
When you talk about integration, when you talk about ease of use, and when you talk about the all 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 they know they exigency the TCO controversy because they are more expensive. So they are going to score some studies done to prove this right away.
TPM: As general manager of the OS/400 platform, the OS/400 community has a tall smooth 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 shiver up the i5 business? I don’t mediate you Have a lot of maneuvering room, but I mediate that the OS/400 customer basis thinks you do.
MB: As far as limits go, I mediate they always carry out what is best for the customer. I don’t mediate they Have any limits when it comes to satisfying customers. Given that their CEO, Sam Palmisano, and the guy I drudgery for, Bill Zeitler, both Have had a lot of personal involvement with, a ardor for, and a long-term understanding of this platform, they Have given me each and every of the advocate that I exigency to do positive that the i5 thrives out in the marketplace. There are no two better people in the world to advocate me than Sam and Bill, and they Have both given me stout advocate from the day I was announced in Rochester as general manager. I Have each and every the advocate I exigency inside IBM.
I mediate that if there is one thing that I will certainly do, it will subsist to tap their customers to advocate what they want to score done as well. I view their customers more as partners than I descry us in a regular 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 their customers and to carry out what is right by them.
IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- Vision Solutions, the industry measure in eServer tall Availability solutions, today announced that they Have signed an agreement with IBM to divide their world-class catastrophe recovery and systems management software with each and every 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 subsist included with every fresh 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. tall availability includes the availability of applications and data, and it furthermore 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 exigency for catastrophe recovery solutions to protect applications and information from downtime, both planned and unplanned," said Alan Arnold, President of Vision Solutions. "Vision is ecstatic to drudgery with IBM in providing businesses with the strongest availability and systems-management tools at their fingertips that are designed specifically to meet the tall availability requirements of the i5 organization."
The full ambit 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 catastrophe Recovery solution targeted at the SMB market that enables files to subsist backed up while users are online utilizing IBM's advanced Remote Journaling.
-- OS Data Manager -- A user-based instrument that automates the modeling, testing, purging and archiving activities for IBM iSeries application environments. These solutions provide SMB organizations with the solutions for catastrophe recovery, data replication and systems management.
Vision Solutions' award-winning CustomerCare team works directly with customers to provide technical advocate and assistance for their complete product suite. The company's worldwide team of partners ensures that customers Have the local advocate they need, when they exigency 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 ordeal offer, gladden contact Vision Solutions at (949) 253-6500 or firstname.lastname@example.org.
About Vision Solutions
Vision Solutions, headquartered in Irvine, Calif., is the industry measure in eServer tall Availability providing software, services and advocate 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 confederate and an IBM tall Availability business Partner. Vision Solutions is a member of the publicly traded IDION group of companies (JSE:IDI). For more information on Vision Solutions, gladden 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 stirring to shore up sales of its iSeries boxes.
The company announced final 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 expend 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 descry growth in the iSeries platform they needed not just to confidence on their existing customer and platform set, they needed to score into fresh areas,”” he said.
Canada is one of the best markets for iSeries in the world, according to IDC Canada. final year it accounted for 5.4 per cent of each and every 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 each and every server sales.
That’s why IBM’s trudge to decoy ISVs and toolmakers to iSeries was praised by IDC Canada hardware analyst Alan Freedman.
“”Without taking that tack they’re lifeless 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 descry them re-investing in the business confederate community,”” he said.
He was particularly pleased partners will subsist eligible to receive up to a 70 per cent discount for co-advertising with IBM in industry media to abet ISVs reach customers.
“”That’s something I haven’t seen enough of,”” he said. “”I mediate IBM has to shiver things up from a co-marketing standpoint. A lot of the programs are degree pedestrian.””
To convince ISVs are grave about the platform, IBM has created a charter to contour what it calls its “”enduring and future commitments”” to iSeries.
– an applications innovation program, offering free application evolution assistance either online or from an IBM Innovation Centre;
– an tools innovation program, to abet ISVs understand and employ tools from some 60 vendors for developing iSeries apps
– co-marketing opportunities;
– and expanded access to PartnerWorld Industry Networks, which offers ISVs counsel on technical, marketing and sales issues.
Pow suggested the company has ambitious goals from the initiative.
“”Just as they saw double digit percentage [increase] of their sales in 2004 being tied to fresh applications and fresh customers coming to iSeries, they Have that selfsame objective in 2005,”” he said.
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