|
Financial News Print This Page Updated 12:01 AM ET April 27, 2006 IBM to Offer Smaller Version Of Its Mainframe Computer By Charles Forelle Call it Little Blue.<http://www.smartmoney.com/att/eqsnaps/index.cfm?story=snapshot&symbol=ibm>International Business Machines Corp. will soon begin selling a junior version of its flagship mainframe computer, pitching the machine at small and medium-size businesses concerned about the security and reliability of lower-cost servers.
The economy model, called the z9 Business Class, will start at $100,000, well below the quarter-million-dollar figure that is a typical mainframe starting point.
The move, expected to be announced today in Beijing, represents an effort to extend the life of the venerable machine, whose lineage goes back more than four decades. The mainframe, though less central to Big Blue than it was in eras past, remains a substantial source of profit, since the pricey machines have few competitors. Sales of mainframes also drag in other business, such as software and services needed to set them up.
<http://www.smartmoney.com/att/eqsnaps/index.cfm?story=snapshot&symbol=Stallings, Jim>Jim Stallings, IBM's general manager for the mainframe unit, said the announcement is a "statement that long term," the mainframe "is a growth platform."
The mainframe, once derided as ancient and obsolete, is alive and kicking, if not flying out the door. Sales have been up and down: They rose 15% from 2003 to 2004, then fell 8% from 2004 to 2005, IBM said, though it doesn't disclose precise figures.
The big machines were long aimed at financial institutions and government agencies that value them for their tight security and heavy-duty processing horsepower. But in recent years they have taken on nimbler tasks. IBM has designed special modules that allow users to run the free Linux operating system on the mainframe, as well as applications based on Java software technology that is popular for Web-based programs. At the same time, IBM's competitors have tried to lure longtime mainframe users to cheaper machines.
But sales of the special Java and Linux modules have been growing, Mr. Stallings said, indicating that some companies are devoting mainframe space to tasks that once ran on low-cost servers.
Write to Charles Forelle at charles.forelle@xxxxxxx Copyright © 2006 Dow Jones & Com
As an Amazon Associate we earn from qualifying purchases.
This mailing list archive is Copyright 1997-2024 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.
midrange.com
