RE: Help Save the iSeries -- MIDRANGE-L

Then, how about this?

Assumptions:
IBM makes money selling iSeries
IBM has competition
IBM has to make money on services because it's losing money on every PC it
sells

Strategy:
IBM, business partners and AS400/iSeries customers promote the iSeries as
THE best commercial server ever not just to us diehards but to everyone.

Result:
IBM sells millions of profitable iSeries servers, displaces the
competition, sells more profitable iSeries servers, realises that it can
still provide high-end, strategic services, sell more profitable iSeries
servers.

-----Original Message-----
From:   Andy Nolen-Parkhouse
Sent:   Wednesday, October 24, 2001 8:25 AM
To:     midrange-l@midrange.com
Subject:        RE: Help Save the iSeries

Friends,

My understanding is that IBM is experiencing its greatest revenue growth
in services, not hardware or software.  It is also my understanding that
IBM is among the largest suppliers of Microsoft-related services in the
world.  While I may not be absolutely correct, I believe that there is
some truth there and that an IBM Sales Representative who is more
interested in revenue than customer service would recommend a Microsoft
solution if there was a good chance that IBM would get the services
contract.

I also believe that IBM management would thank them for their efforts.

Andy Nolen-Parkhouse

> On Behalf Of Reeve Fritchman
> Sent: Tuesday, October 23, 2001 7:36 PM
>
> No, no, no!  TCO covers everything, including power, insurance,
> depreciation, software, communications, and people.  Instead of a
staff of
> 20 (for NT) you need a staff of 6 (iBox); these bodies are purchased
on
> the
> open market and have nothing to do with IBM; this is where the big
savings
> is.  The hardware TCO may be the same or higher for the iBox; it's
> certainly
> front-end-loaded (high purchase price) and this fact has an
unfavorable
> financial impact.  A lot depends on the PC configuration and how you
> compare
> apples to oranges.  A PC network configured to provide iSeries
reliability
> will have plenty of extra hardware, software, and administrative
costs.
>
> If you're talking about multiple remote locations, NT costs can
skyrocket
> because of the possible requirement for servers and licenses at each
> remote
> location, instead of a simple switch/LAN setup.  Your mileage may
vary,
> but
> if you're a trucking company with 10-50 small (3-10 users) offices
spread
> out everywhere, the hardware (and application) setup gets very
complex.  A
> simple DSL line may not be adequate, either...green screen has its
merits:
> it gets the job done.
>
> Behalf Of Leif Svalgaard
> Sent: Tuesday, October 23, 2001 5:18 PM
>
> exactly, the lower the TCO is, the less money for IBM, so ...
>
> From: Tony Pack <tony.pack@dixiegroup.com>
> Sent: Tuesday, October 23, 2001 11:15 AM
>
> > No,  IBM wants to sell the X-series.  The real money to be made is
in
> > software and services.  Can't make much money on the 400 since it
does
> not
> > need the level of service that a PC server does.
> > Tony Pack

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