• Subject: Re: IBM Spin Doctors on AS/400 Marketing
  • From: "Chris Rehm" <Mr.AS400@xxxxxxx>
  • Date: Fri, 24 Oct 1997 06:30:46 -0700

>Gee - I wonder if they ever thought of heavily marketing BOTH options
>Would General Motors stop promoting Cars just because they could make
>more money on Trucks & SUV's ?  No - they sell and advertise both.
>Maybe IBM haven't quite grasped this yet ?   :-)

Isn't this the same group that bitched and moaned because IBM was sinking
a bunch of money into advertising the new release instead of funding some
kind of entry level training for AS/400s? Doesn't that money count as
advertising AS/400s? 

Jeez, guys! IBM is a business, they will do anything for money. 

We have demanded NT products and support, and IBM is delivering. After
all, that is a revenue producing area. Much handier than (for instance) an
installed base of older machines that want all of today's functionality
stuffed into a new release of their operating system so they don't have to
buy anything new.

But what kind of ad is it you guys are looking for anyway? Did any one of
you go out and buy ANY midrange system because you saw the ad? IBM needs
to promote IBM. I became an IBM customer because one day I called IBM and
said I had a business problem and I wanted to find out what the solution
was that they offered. I didn't call up and say, "Hey, have you got a
midrange box for a good price?" or "How about that new System/34, is it a
good fit for my business?" 

These days, what IBM wants to do is to get you to call them for a
solution, and then they need to put you in front of a business partner
with a software solution. If there isn't one for the AS/400, then that
isn't what IBM will sell. If the solution is an NT based PC server cluster
that is what IBM will sell. If it is a S/390 then that is what IBM will

Rochester needs to get business partners to support IBM's midrange
systems. That means the AS/400 and the RS/6000. If you think it is
plausible that IBM produce all the software solutions to everyone else's
business problems you are mistaken. Since IBM must shave the margins on
hardware they attempt to get business partners to assist in marketing the
machines. In other words, IBM gives out a discount to you as a business
partner that you can either use as profit margin if you are creating
enough of a demand by strong marketing or you can pass along to your
customer so you can make money on your software product or support

That's the new business model. The old business model of IBM marketing was
failing. Some of you may recall that IBM was known as a marketing company
for years. I think they had to change focus when they took a five billion
dollar loss.

Chris Rehm
You have to ask yourself, "How often can I afford to be unexpectedly out of 
Get an AS/400.
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