RE: Outsourcing ==> iSeries as MAC -- MIDRANGE-L

At 03:47 PM 8/15/2003, you wrote:

>My company sells a specific software package that is the only one of its
>kind sold in the USA ... period.  Our customers' alternative is to invest A
>LOT OF MONEY to write their own.  On about 50% of our sales calls, our
>customers give us a "hard stop" in the sales cycle ... and things stop dead
>in their tracks ... this moment comes when they learn that it runs on an
>IBM iSeries processor ... ONLY.

Hi John,

I would like to see IBM change the pricing of the iSeries to user based
pricing instead of system based. Where os400 eventually runs on generic
hardware and users pay IBM a certain $$ amount per year per user for the use
of os400.

Do you think that your potential customers would be more open to using your
software/iSeries combo if the iSeries was priced that way?

-Steve

Steve,

THE MONEY ISN'T THE ANSWER!!! These companies end up spending many times the total cost of our proven solution and waiting several years rather than to bring an iSeries in-house!

H@xx, even IBM'ers in my industry shun me when they learn that we run on iSeries only!!!

' THINK THAT'S NOT FRUSTRATING????????

If IBM'ers aren't interested, what else should I do??? We've been in this industry for over 20 years and have a flawless reputation (thanks, in part, to OS/400)!!!

The problem is that the public doesn't know ANYTHING about OS/400 or the AS/400 ... or if they do, their attitude is that it is "non-mainstream" and "not a company standard" ...

Like that initial MAC, the AS/400 is a very highly differentiated product in the marketplace. THERE ISN'T ANYTHING LIKE IT IN THE MARKETPLACE. One of the lessons that I learned as a result of my "high-priced" graduate business education is that product differentiation CAN BE A KEY REASON TO SELECT A PRODUCT. This only works if you communicate the differentiation to the customer in a way that educates the consumer of the value of the differentiation ... OTHERWISE, HIGHLY DIFFERENTIATED PRODUCTS LOOK "STRANGE" AND CONSUMERS WON'T CONSIDER THEM!!!

I said that in June 2000, and I still say it today!!!

http://www.sbsusa.com/as40062000.shtml

That's where the AS/400 / iSeries is today!!! The general public doesn't really know what it is, looks on it as an enigma, and DOESN'T HAVE THE S_T_O_N_E_S to go against the "mainstream" (that IBM has contributed to with its "generic" advertising).

Let's hear it for an "Ode to eServer (Featuring the eServer xSeries)!!! How many million dollars is IBM spending on that campaign???? I'm an IBM Stockholder and I would like to know what the average gross margins are for the various server families!

Has anyone seen a significant, mass-market ad campaign for the AS/400 that had a HUNDREDTH of the budget that is being spent on that campaign THAT WAS DIRECTED TO ANYONE OTHER THAN THE EXISTING AS/400 USER BASE (can you say iSeries Nation)?

If my company doesn't need me at some point in the future, I think that I may get the Ph.D. that I once aspired to (in high school). I already know the topic for my dissertation. It will be "The Role of 'Fashion' in Information Technology Purchasing". In 1990, the AS/400 was one of the most fashionable technologies around. Since then, IBM consciously allowed the AS/400 to be rendered unfashionable in the marketplace through the harvesting of marketing funds to fund the PC& *ix businesses. They are relying on keeping the "faithful" on-board through groups like iSeries Nation ... rather than even attempting to appeal to new customers.

That's the ONLY reason why I feel that, as an IT vendor, I must diversify my product portfolio beyond the AS/400. Unfortunately, having the best mousetrap often has little correlation to whether you make the sale !!!

ANY IBM'ERS ON THE LIST DISAGREE??? IF SO, PLEASE CALL ME TOLL FREE AT (800) 727-7260 x131. I will be returning to my office on Thursday, August 21 and would love to hear from you!!!

' think that anyone will call??? Anyone want a piece of that action???

John