Re: Fast400 Value to iSeries community is less than zero

["M. Lazarus" <mlazarus@xxxxxxxx>]

Chris,

At 11/11/01 07:53 PM -0800, you wrote:
>Regarding your own concerns that IBM somehow has some responsibility to
>provide 5250 stream processing to customers free or at commodity prices, I
>think that is ridiculous.

  When was it free?  Never!  Do you get OS/400 for free?


>Mark, from what I can tell your opinion is that IBM has no right to charge
>for 5250 services since they are what is "supposed" to be on the iSeries. I
>don't think that reflects any sort of real vendor/customer relationship.
>IBM has a product of value to you and your employers. IBM would like to
>make a profit on delivering that product. If IBM can't make a profit at it,
>I doubt they will continue to supply it. They have other products they can
>sell to other customers to make money.

  Of course IBM is in this business to make money.  I'm suggesting that
they look to other areas to make money.  There are plenty of opportunities
to make money.  Taking something that's been bundled together w/ the
midrange OS's for 25 years or so and now charging for it does not make me
feel (as a customer) that I'm getting addition value from my vendor.  It
almost feels like a bait & switch.

>Now, if you feel that the product is overpriced, you could show how it is
>priced higher than its value (ie., ROI is low or non-existant). Or, show
>how IBM is making an exhorbitant profit (I would consider greater than 20%
>worth complaining about although Microsoft has been known to bring in
>greater than 40%).

  Please, this is NOT about ROI, it's about PERCEIVED cost and business
practices.  How would you feel if IBM started charging extra for
DB2/400?  Or now started charging to activate security?  Is IBM bringing
value to you w/ these products?  Sure they are!  Would it be a smart move
to unbundle them?  No way!!

  -mark