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----- Original Message -----
From: "Steve Richter" <srichter@AutoCoder.com>

<SNIP>

> Rochester insists on limiting the opportunity for 3rd party hardware and
> software vendors. Maybe it has to be that way. But the result is no 3rd
> party languages, no cheap hard drives, cheap io cards, or cheap main
memory.
> Very similar to the apple strategy. ( any odds on how long apple will be
in
> business ).

Steve,

The thing is that it's pretty much the same hardware now. Compare the SCSI
drives used in the xSeries to those in the iSeries. The only difference is
that they're formatted differently. So why does the same 8GB drive cost $300
on xSeries, and over $4000 on iSeries? I remember asking this same question
on this list some years back, and I was told that it was because the
hardware prices paid for OS/400 as well. Then IBM came out with software
subscription so that the hardware could compete with dropping component
prices across the industry. They even started sharing hardware across
multiple platforms (including iSeries) in order to minimize manufacturing
costs. Yet the hardware savings have never materialized on iSeries.

This is one of the main reasons that we run separate NT servers instead of
the integrated card - the disk is just too expensive. It's also the reason
that our webserving isn't done on the iSeries. When I need to add 18GB of
disk to an NT server, I pick up the phone and just do it. The same amount of
DASD on iSeries would require a budget meeting.

>
> Sales have to increase to justify the expense.  Otherwise the one who
comes
> after lou may decide to stop enhancing and start milking the existing
> business.
>

Why? This platform makes *profit* hand over fist.


> This platform is technically outstanding. But you have to be concerned
that
> ibm with its high expenses, due to its go it alone strategy, has to price
> the system out of the mainstream market.  ( if you say the $12,000 270 is
> well priced, I would agree, but you have to explain how you can make a
> profit on such a system. )

IMO, it's due to their "milk the cash cow for all it's worth" strategy that
we're overpriced.


> suggestion: release all the hardware specs and os source code for older
> model as400s, the ones that you cant give away on ebay. maybe in a few
years
> time a whole new market for low cost, innovative as400 offshoots could
come
> to be. One that ibm can compete in and make money in just as others could.

Bad! Bad! Bad idea!  Even MS has acknowledged the importance of a single
vendor hardware solution for optimal reliability. Their Advanced Enterprise
server product can only be obtained as part of a certified hardware/software
solution.

The iSeries would not be nearly as reliable if you had 3rd party hardwire
and drivers.


John Taylor
Canada

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