• Subject: Re: IBM Spin Doctors on AS/400 Marketing
  • From: mcrump@xxxxxxxxxxxxxx
  • Date: Fri, 24 Oct 1997 17:37:16 -0500

>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?

Some did.  Some of us didn't.  I for one was happy to see some monies spent
in this area.  Problem with that is I think it was very inneffective....

>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.

Kind of an unfair generalization, isn't it?  The AS/400 makes IBM a bundle
of money if memory serves correctly.  I have three new emodels being
installed in November myself.

>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?"

I think there are many different opinions as to what advertising should be
done.  I believe most people that are complaining are looking for
marketing/advertising that just increases the public recognition of the
AS/400 name and its capabilities.  You called IBM and asked for a solution.
How many people don't call IBM?  How many people don't consider the AS/400
for a data warehouse, Notes server, internet server, etc. and buy something
that just got a good review in PC Magazine?  When you look at the volume of
AS/400 articles and ads vs. those of Unix or NT I think there is a huge
gap.  Could this in of itself affect AS/400 sales?  I think it can (or I
could be wrong - but read books like Megatrends,  "Influence" by Cialdini
or "Extraordinary Delusions and the Madness of Crowds" by Charles
Mackay...and you wonder).

>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

Agreed.  Don't know if I like it....

>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.

Well, for the last couple of years IBM has been doing rather well, not
spectactular but it has been improving and making money and the stock price
has been going up.  This new model you speak of - hasn't IBM been taking
this approach for quite a while?   I don't see it as new but as old.

| This is the Midrange System Mailing List!
| To submit a new message, send your mail to "MIDRANGE-L@midrange.com".
| To unsubscribe from this list send email to MAJORDOMO@midrange.com
|    and specify 'unsubscribe MIDRANGE-L' in the body of your message.
| Questions should be directed to the list owner/operator: david@midrange.com

As an Amazon Associate we earn from qualifying purchases.

This thread ...

Follow On AppleNews
Return to Archive home page | Return to MIDRANGE.COM home page

This mailing list archive is Copyright 1997-2021 by midrange.com and David Gibbs as a compilation work. Use of the archive is restricted to research of a business or technical nature. Any other uses are prohibited. Full details are available on our policy page. If you have questions about this, please contact [javascript protected email address].

Operating expenses for this site are earned using the Amazon Associate program and Google Adsense.