RE: Green Streak

I understand the business principles.

There's no upgrade path -- fine.  The server was only 2 million dollars
anyway.
Future versions of the OS will support fewer and fewer SPD attachments
(Danger, Will Robinson!).
The three year old server will not support "new" hardware features (which
were really new three or four years ago) such as fibre channel or gigabit
Ethernet.

So, you've invested gobs of money in a "scalable" server as a hedge against
growth.  It's soon to be a boat anchor.  Will you invest gobs more in the
latest model, or should you shop around?

If the business model does not take the customers' investment protection
into account IBM will lose repeat customers.  If they lose enough repeat
customers maybe the stockholders will bring in managers who can better
balance growth with obsolescence.  It's not enough to lower prices if you're
actively discouraging sales.  It's not cheap if I don't buy it.

Waah.

-Jim

-----Original Message-----
From: Al Barsa [mailto:barsa@barsaconsulting.com]
Sent: Friday, August 02, 2002 11:37 AM
To: midrange-l@midrange.com
Subject: RE: Green Streak



The older requirement that every System/38 was upgradable to a newer system
had to go away to lower the price of the system being sold.

We asked for lower prices, and they said yes.  IBM is a business, and it
has to make money.  If it doesn't make enough money, the stockholders will
get new management that will make money.

Al

Al Barsa, Jr.
Barsa Consulting Group, LLC

400>390

914-251-1234
914-251-9406 fax

http://www.barsaconsulting.com
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