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Al,

    Great reply.   One issue, I think they are a UK company, so they are
probably not to happy about 4th of July to begin with :).  Wishing them
a happy 4th probably just doesn't do it for them.

    I am sure you will mention them in Sound-off.

    Pete

Al Barsa wrote:

>Hi,
>
>Last week, I gave an interview to Newswire, the Internet newsletter put out
>by Penton Publishing.  This promoted Colin Wells to write me the following
>correspondence.  My public reply also follows:
>
>
> Mr. Barsa, in response to your statement from the newswire ("IBM
>will ultimately beat up Fast400"), you sure are putting a lot of
>faith in IBM.  IBM has already failed several times to defeat
>FAST400.
>
> The response to FAST400 has been tremendous!  We have hundreds of
>customers, some with hundreds of boxes, and some with large
>multi-processors.
>
>
> We understand that your opinion is biased.  After all, you make
>money from selling those expensive interactive cards. Please
>mention us in your next Sound-Off speech at COMMON.
>
>
>Colin Wells
>The Storage Solutions Group
>
>
>
>
>Below is my response, in the public domain:
>
>
>
>Mr. Wells,
>
>I agree that the response to FAST400 has likely been tremendous.
>(Regardless if it has or not, if I were selling it, I would be claiming
>that!)  However what you are doing threatens the entire AS/400 community.
>The interactive pricing scheme is integral to IBM's pricing strategy for
>the product line.  Whether you (or IBM) likes it or not, the ease of green
>screen programming is one of the reasons why customers pick this platform
>every day.   IBM makes this platform as the very best in the world, even if
>that choose not to market it effectively.  (You notice that no one calls it
>the iSeries, it's still the AS/400.)
>
>My opinions regarding AS/400 technology are simply my opinions, based on
>years working in this architecture.  Customers hire me (and my firm) every
>day, and groups hire me to speak frequently because they respect those
>opinions.  Privately, I speak to IBM regarding many of my thoughts about
>the product line almost every day  They are free not to take my calls, and
>not to follow my opinions, yet they take the calls and usually  take my
>opinions.  My opinions are not clouded by profit incentives, as hardware
>profit is a very small component of my business.  If my opinions get you
>mad, I am sorry.  I frequently piss-off IBM, and they are free to terminate
>my business partner relationships anytime they please.
>
>I recognize that many customers (including you) are mad at IBM for levying
>a premium for interactive processing power, but you need to understand what
>your actions will ultimately cause.  IBM is in the business of making
>money, and if IBM management doesn't make enough money, the IBM Board
>(representing the stockholders) will fire them and get new management that
>can make money.  This is a simple business proposition.
>
>You are absolutely correct that I am putting a lot of faith in IBM, and IBM
>will ultimately prevail.  (Their long-term track record for this is very
>good.)  In the short term, they will continue to defy your product with
>fixes that render your FAST400 impotent.  In the longer term, they will
>re-engineer OS/400 so as to not be thwartable by products like yours.
>Ultimately you will lose by one of two venues:
>
>o     IBM will change the product architecturally to put you out of
>business.
>      or
>o     If IBM fails (at thwarting your product), they will do away with the
>premium for interactive.  I understand that this is what you want, however
>this will have two consequences:
>      1).   The one you will not like:  this will put you out of business.
>      2).   The one that all AS/400 customers will not like, IBM will have
>      to raise the price of systems high enough to keep the iSeries portion
>      of the company viable, which will have a significant (upward) effect
>      on the price of systems.
>
>Your long term outlook is bleak.  In my opinion, any customer that
>purchases your product might be buying a fast high, but ultimately they
>will have to pay the piper.  IBM states that FAST400 will invalidate
>customer contracts for OS/400 support and service, but in reality I suspect
>that:
>1).   If you have done any way near as good a job that you claim, IBM will
>have a hard time detecting this.
>2).   IBM states that they could sue customers,. and I agree that they have
>that right, if they can figure out who's using it.  In reality I suspect
>that they will not do this.
>
>With reference to your last comment, I had not considered mentioning
>FAST400 at Soundoff next COMMON, but now I will consider it.  You probably
>wouldn't like what I have to say.
>
>I trust that you had a Happy Fourth of July.
>
>Regards
>
>Al
>
>Al Barsa, Jr.
>Barsa Consulting Group, LLC
>
>400>390
>
>914-251-1234
>914-251-9406 fax
>
>http://www.barsaconsulting.com
>http://www.taatool.com
>
>
>
>
>
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