Re: The demise of Midrange Computing - Is AS/400 is dead ?

[barsa@xxxxxxxxxxxxxxxxxxx]

Hi,

IBM is in the highest corporate tax rate. Lets say for the sake of argument
that's 36%.   With that in mind, today IBM pays a profit ox X, and pays a
tax of Y.  If they advertised the AS/400, they would sell more of them.
The AS/400 is a high profit margin product, so certainly any advertising
they did would more than offset the expense in profits.

So for every dollar they make in additional income (additional income from
selling more AS/400s less advertising dollars), they would pay an
additional $0.36 in taxes.  That means they would keep an additional $0.64
in net profit.

For every additional $1,000,000 in profit they would make, they would pay
an additional $360,000 in taxes.  That means that they would keep an
additional $640,000 in net profit.  God forbid that they would ever have to
pay that additional $360,000 despite whatever other consequences (like
additional net profit).

Keep in mind, "relevant" platforms (despite however irrelevant they might
be) like Oracle, sponsored the first night of the World Series, but IBM
keeps silent on the iSeries.  Oracle gets students coming out of college to
learn their technology, compared to a relative poor job that IBM is able to
do with the iSeries.

The entire industry is having massive layoffs, but not the iSeries.

Is this a spoof comment, you bet it is.  IBM is consistently spoofed by
their own senior management, by prohibiting the iSeries from doing
competitive advertising.  The iSeries-AS/400 is the best computer
technology in the world.  Let's keep the secret safe, and save IBM from
paying all those taxes.

Al - in Boston on vacation

Al Barsa, Jr.
Barsa Consulting Group, LLC

400>390

914-251-1234
914-251-9406 fax

http://www.barsaconsulting.com
http://www.taatool.com





                                                                                
                                         
                    MacWheel99@aol.com                                          
                                         
                    Sent by:                   To:     MIDRANGE-L@midrange.com  
                                         
                    owner-midrange-l@mi        cc:                              
                                         
                    drange.com                 Subject:     Re: The demise of 
Midrange Computing - Is AS/400 is dead ?   
                                                                                
                                         
                                                                                
                                         
                    08/01/01 01:52 PM                                           
                                         
                    Please respond to                                           
                                         
                    MIDRANGE-L                                                  
                                         
                                                                                
                                         
                                                                                
                                         




Al Barsa writes:

> IBM is at the highest tax rate.
>
>  Advertising the 400 would increase their profits, and consequently the
>  amount of tax they had to pay.

This might be a spoof comment.

However there is the topic of marginal rate on advertising.
I have to work harder to get that extra buck because more bucks means more
taxes, so at some point the extra work isnt worth the extra money.

Also how much market share will grab the attention of the Justice
Department.
We might argue that the Anti-Trust Division should be reviewing Microsoft &

was right to go after IBM 1/2 a century ago, but from the perspective of
the
company at risk of such review, one might not trust the Justice Department
to
weild Justice, so one might go after market share just below the threshhold

of Justice Dept interest.

MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)


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