Re: Thank for your correspondence - The letter I got from the folks at FAST400

> 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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