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000-259 i5 iSeries Solution Sales V5R3

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IBM i5 iSeries Solution Sales

IBM Chases old OS/400, HP-UX Servers with the i5 | killexams.com Real Questions and Pass4sure dumps

This e-newsletter has spent the past few weeks delving into the heart of the eServer i5 “Squadron” servers, their Power5 processors, and i5/OS V5R3. This week, I need to focus on IBM‘s advertising and earnings plan for the platform. according to the correct brass within the iSeries division, IBM goes to be pushing on a number of fronts to are trying to grow the OS/400 server business and pump up the OS/400 ecosystem on which it depends.

I recently had an opportunity to talk to Al Zollar, well-known supervisor of the iSeries line, and Cecelia Marrese, vice chairman of advertising and marketing for the iSeries, about what they hope to achieve with the new product line. not that here's necessarily indicative of the health of the iSeries line, however from those conferences i will be able to inform you that they each appear to be much more comfortable and optimistic about the place the iSeries is and where it is going. here's reflected as a whole lot in body language as in what they spoke of.

Zollar told me that he desired to keep the iSeries line, now the eServer i5, in the press and within the minds of clients as they trust platforms. And one factor IBM will do to make this happen is to preserve gigantic iSeries bulletins coming out at a gradual pace and with the newest IBM technologies. “we are moving away from large bang announcements and moving on a roadmap where they have whatever thing large to assert to their consumers each quarter,” he defined. “this may retain a stage of interest and vitality within the platform.” it will additionally assist with publicity, because the IT exchange press it's consumed by IT people, from gadget admins to chief information officers, will see a gradual stream of i5 announcements.

but the approach goes far past that. whereas the consideration is good, the premiere form of sales pitch is a aggressive fee for OS/400 servers and their connected software. To that end, as they explained a couple of weeks ago, IBM reduce memory fees with the aid of 20 to 60 p.c and cut storage prices by 20 %, it dropped the expense of activating Power4 and Power5 processors on the iSeries and i5 line, and noted that it would keep the standard add-ons (such as server processors, memory, and disks) at parity with the pSeries (soon to be “eServer p5”) Unix server line, which has historically had lots reduce listing price tags and plenty better discounts than for the iSeries. while IBM will very nearly under no circumstances close the gap on the retail stage (however customers bring in solar Microsystems and Hewlett-Packard with aggressive Unix, Linux, or windows programs), the hole is considerably smaller, and the enjoyable benefits of the iSeries over the options make it feasible to promote towards those alternatives. before, the sticky label cost was so high on the iSeries that enterprise companions couldn’t even get their foot within the data core door to make a pitch. With these fee cuts, which individuals like me have been clamoring for considering that the mid-1990s, the facts middle door has opened a crack, and the i5, with its subtle partitioning and varied working system support, has an honest opportunity of in fact compelling CIOs and VPDPs no longer only to open the door but also to bring in companions to pitch the computing device to resolve their complications.

IBM has all the time understood that the box count number for the iSeries needed to continue to be excessive if the OS/400 ecosystem become to now not only continue to exist, but to thrive. And the expense cuts are key to IBM’s plan to raise the field count number coming out of the iSeries factories in Rochester, Minnesota, and in Dublin, eire.

Of path, with such massive fee cuts for servers, reminiscence, disk, and other core components, this begs the question of how IBM can maintain iSeries hardware revenue, an awful lot much less increase it. I even have argued for years that the OS/400 server market is extra elastic than IBM’s advertising and marketing model cautioned. IBM had its explanations for charging excessive-prices–it necessary the margins as a result of its manufacturing costs had been high, and to help pay for its very aggressive fight towards solar and HP within the Unix market, where it's debatable that IBM may also now not have broken even as it makes use of pricing as a means of gaining market share.

Now that IBM has huge credibility with the vigor-AIX servers, and solar and HP have backed off a bit of on price cuts, IBM has a little more room. (I observed a bit.) IBM also has a little bit more space for the reason that the iSeries and i5 machines bought in Asia/Pacific are actually being inbuilt ireland, the place labor is cheaper and delivery prices to Asia are decrease. (The pSeries manufacturing for Asia/Pacific shoppers additionally has been moved to ireland, and IBM additionally has a bulk deal with United Parcel carrier to ship from ireland to Asia. This, mixed with a whole lot of tiny adjustments in the provide chain of ingredients that go into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to get iSeries fees lower.

IBM cares lots about profits growth, however it has at all times cared extra about earnings boom. So with expenditures on the iSeries essentially cut through forty % with the i5 launch, can IBM develop revenues and maintain earnings?

The reply looks to be sure. Zollar says that IBM’s plan is to promote more containers, which is obtrusive enough, but that he also expects IBM and its companions to be able to sell richer configurations of the boxes. My bet is that the regular promoting price of a field isn't as low as you may consider, since the mind-set shift from spending as little as viable to do the bare minimum of work on an iSeries to spending about the equal amount of cash or a bit extra to do a lot more issues with an i5. this is the bet i'd make, and it's naturally the bet IBM is now making. (Heaven assist us all. and that i desire IBM had executed it five years ago.) “I believe there's a major pent up demand for reminiscence and disk storage,” says Zollar.

Marrese says that the eco-friendly Streak promotions in late 2000, which eventually led to the revamping of the iSeries line in January 2001, have been the 1st step in the transformation of the OS/400 server into a aggressive box. however a beta test in March of this yr for the model 520 and OS/400 specific packaging that debuted in early may additionally seems to were what pushed IBM over the area to beginning cutting expenditures. Italy, Marrese explained, has a labyrinth of tax laws that make it painful to run a huge enterprise, and that's one of the vital explanation why the country is teeming with small groups. many of these small organizations, it seems, have bought AS/four hundred mannequin one hundred fifty and mannequin one hundred seventy servers. and that they just hold using them and don’t upgrade as plenty as IBM would like. within the beta application, IBM took an iSeries mannequin 800, packaged it just like the model 520 express computer (low rate, loads of application, able to run out of the container), and located out that if it reduce the rate of this configuration in half, compared with the charge of building it with common iSeries mannequin 800 pricing, it offered twice as many boxes.

a different enviornment that Zollar says he is focusing the iSeries division on is without doubt one of the commonplace drivers of the product line: excessive availability. “on account of the traditionally excessive reliability of the AS/four hundred and iSeries, their valued clientele are very beneath-invested in excessive availability and resiliency.” whereas excessive availability and device clustering utility had been the largest drivers of AS/four hundred and iSeries revenue during the past decade, my guess is that most effective about 10,000 of the 215,000 OS/four hundred shops on the planet have implemented high availability options. With more affordable and easier-to-use excessive availability utility, and an awful lot cheaper i5 bins, IBM may still be able to make it up in extent.

Zollar says he has carried out just a few other changes to assist raise income. For one aspect, he noted that the business is accomplishing out to the legion of small iSeries partners with only just a few dozen money owed to try to get them returned into the online game. IBM is giving good coupon codes to companions that buy mannequin 520 categorical configurations in blocks of 10 or 20, and the business will not promote the new i5 machines direct in competition with its channel, which accounted for roughly 85 p.c of iSeries revenue in 2003, in keeping with Zollar. whereas iSeries revenue boom in 2003 was within the “match double digits” for midrange and excessive-conclusion iSeries machines (Zollar pointed out the number “all started with a two” after I pressed him to nail it down someplace between 10 and ninety nine percent, and my guess is around 25 p.c revenue increase), it's the low volumes of entry machines that has been a drag on both iSeries shipments and iSeries salary. Shipments have been flat and revenue had been up 7 % in 2003 across the iSeries line. evidently, getting partners excited about selling the i5 model 520 specific configurations is a key to the brand new approach.

however is not the simplest chance IBM is calling at. Marrese says that IBM booked around $one hundred million in Linux-related iSeries server income in 2003, an element of six larger than Linux income on the container in 2002. She says earnings to support natural eco-friendly-reveal purposes changed into flat or down, and that Domino, excessive availability, home windows integration, and WebSphere are key drivers. but what has Marrese smiling is the arriving support for native AIX inside logical partitions on the i5 machines. because it turns out, just about forty,000 OS/400 purchasers also have Unix servers in their stores, of which the massive majority are working HP-UX functions. Getting even a percent of those valued clientele to port their HP-UX purposes to AIX and stream them onto the i5 helping each their OS/400 and AIX workloads will go a protracted way towards boosting average iSeries sales.

most likely greater than anything, the timing of the i5 announcement with a restoration within the international financial system is auspicious. Marrese says that, in 2003, iSeries sales in Italy, German, and France picked up, that North the united states started off amazing, and that Asia/Pacific nations like China are exploding (albeit from a very small installed base). “clients had been purchasing to do the naked minimum,” she says, “however now they are getting the eco-friendly gentle to spend again.”


IBM rolls out midrange eServer i5 | killexams.com Real Questions and Pass4sure dumps

IBM is filling in the middle of its vigour 5-primarily based eServer i5 lineup on Tuesday, unwrapping a four-means device geared toward midsize groups looking to consolidate numerous company purposes.

the new eServer i5 550, sandwiched between the fashions 520 and 570, may be accessible in two variants which are new to the i5 500 sequence, together with the solution version and the reduce-end Domino version. The solution edition will be sold collectively via IBM and chosen ISVs to numerous vertical markets.

"The concept in the back of this one [Solution Edition] is to be able to go to their joint purchasers with the ISVs and offer them an updated solution. Many users may also have purchased a package a couple of years in the past and naturally the ISV has made many advancements. this may provide them an opportunity to take advantage of more recent application along with the new hardware," noted Craig Johnson, the advertising manager for IBM's iSeries line.

The chosen ISVs IBM will be jointly promoting the brand new edition to encompass Clear applied sciences, IBS, built-in Distribution solutions, Intentia, Lawson, long island buddies, MAPICS, PeopleSoft, and SSA world.

both the answer and Domino variations, like the latest standard and commercial enterprise variants, run below IBM's proprietary I5OS working gadget. They each additionally come with big Blue's Virtualization Engine capabilities that permit clients to run AIX and Linux operating programs in partitions as well as to connect and/or manage Intel-based mostly servers.

Some clients seemed to be enthusiastic concerning the new choices.

"We consider this does a superb job at offering more of a total solution, where they are able to deliver real enterprise value to their clients that helps them obtain their enterprise dreams," noted Muditha Karunatileka, executive vice president of revenue for Sirius computer options.

The mannequin 550 is fueled via a 1.65GHz Power5 processor, can aid as lots as 64GB of memory, and as a great deal as 38TB of disk storage. The system is distributed with two processors became on with users able to switch on the different two processors as their workload requires.

also on Tuesday, IBM is announcing it will help Linux on its Intel-based integrated xSeries Server series.

"That [Integrated xSeries Server] collection has supported home windows for a while, however they vital to position Linux on them as smartly. They think it's going to complement Linux running on their power processors and partitions, so now they are going to have both environments to present corporate clients," Johnson mentioned.

lastly, IBM is unveiling a brand new part of its Virtualization Engine, called the IBM Director Multi Platform. An more advantageous version of the company's Director product, now purchasable on its Intel-primarily based xSeries, the Director Multi Platform has been superior to control each Intel- and I5OS-based environments.

"This means that you can have just one tool to go out and bring together inventories of your servers, set up displays for them, and activate alerts to take automated movements," Johnson referred to.

users who purchase the brand new device with IBM's I5OS bundled get hold of a free replica of Director Multi Platform, Johnson spoke of.

The mannequin 550 might be available beginning Sept. 10 with the general version going for $74,000.


IBM to round out iSeries Power5 server family unit | killexams.com Real Questions and Pass4sure dumps

IBM on Tuesday will fill within the ranks of its iSeries line of Power5 servers with a machine it says can juggle dissimilar jobs.

massive Blue will debut its eServer i5 550, an iSeries machine it created to serve midsize groups and to bridge the gap between its Power5 eServer i5 520, which has two processors, and its i5 570 model, which offers sixteen processors. those two machines, which also consist of the Power5--IBM's latest excessive-conclusion server processor that packs two processor cores into one chip--got here out in may.

The eServer i5 550 changed into designed to help midsize groups, usually agencies that make use of a couple of hundred to as many as 1,000 laborers, through running their critical computer programs for jobs corresponding to order entry, stock tracking or e mail.

IBM says that its most basic i5 550 server configuration, which prices about $seventy four,000, comes with two of its 4 processors "turned on" and includes a license for IBM's i5 operating device. It also includes software that enables the server to run distinctive IBM working methods, such as its AIX, and also to control further servers that use Intel hardware and run Linux or home windows working systems. the primary i5 550 servers will ship next month.

by including four processors but handiest turning the primary two on originally, IBM is letting clients pay for only what they want up-front and giving them the alternative of boosting efficiency sooner or later. The manner of "turning on" the third and fourth processors basically helps organizations plan forward, referred to Craig Johnson, IBM's iSeries server advertising manager, even though IBM also requires a price of about $3,seven hundred to turn each additional processor on, and groups are required to license extra copies of their favored operating methods per processor as smartly.

despite its potential to tackle working a company's e mail or order-entry gadget, the i5 550's $74,000 initial rate tag could seem steep to a few. IBM counters by using announcing that the machine can also be purchased in a considerable number of bundles, a few of which can charge under $seventy four,000. in the meantime, the 550 can also run varied operating systems concurrently, permitting it to do the job of many different servers as well.

IBM aids in that task by way of including, at no further cost, applications such as its IBM Director Multiplatform, which is designed to support out enterprise IT group of workers by enabling the i5 550 to manage Intel servers running Linux or home windows. freeing up IT personnel contributors capability they could work on other initiatives, Johnson noted.

"customarily the hardware is the smallest part of the can charge of a gadget," he mentioned. accordingly IBM goals to assist valued clientele by way of "attacking the huge items of their (IT) fee, which is application plus people. it be about getting those individuals to do stuff besides babysitting a server farm."

meanwhile, massive Blue will offer equipment deals, such because the i5 550 Domino edition, designed for consolidating a Domino e mail equipment onto an i5 550. The Domino version will can charge $fifty six,000 and are available with two processors grew to become on. IBM will also promote a number of answer edition i5 550s, starting at $206,000, which encompass the i5 550 itself, together with IBM features and application applications for jobs like business useful resource planning.

thus, given the i5 550 server's ability to operate distinctive projects on the same time and additionally manipulate other servers, it could exchange the need for huge numbers of less-costly servers, Johnson observed.

despite the fact IBM's Power5 servers are considered stout performers through analysts, IBM's closest rivals, together with solar Microsystems and Hewlett-Packard, aren't ready to cede the high-end server market to big Blue.

sun is hoping to win greater takers with machines in accordance with its UltraSparc IV processor and its Solaris operating device. in the meantime, Hewlett-Packard continues to present more than a few servers in response to its own PA-RISC and Alpha chips in addition to on Intel's Itanium server chip.


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i5 iSeries Solution Sales V5R3

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: iSeries GM Borman to Focus on i5/OS Sales | killexams.com real questions and Pass4sure dumps

mp;A: iSeries GM Borman to Focus on i5/OS Sales

Mike Borman, the new general manager of the eServer iSeries business, started out in 1977 at IBM as a programmer after getting his degree in computer science. He eventually held the legendary position of an IBM Systems Engineer before moving into OS/400 and Unix sales, marketing, and then several general manager positions. Who is Borman, why is he running the iSeries business, and where is he going to take the OS/400 platform?

With this appointment, Borman has been the general manager of both the AIX and OS/400 server units and has also been a general manager for IBM’s PartnerWorld reseller channel. He also left IBM for a few years to run a software company (Blue Martini Software) during the dot-com bubble, but came back to Big Blue to run PartnerWorld. When you add all of his engineering, sales, channel, and management experience up, it is clear why Borman is qualified to run the iSeries business. Read this interview and see for yourself.

Timothy Prickett Morgan: I know that as they do this interview, IBM is in its quiet period before it announces its third quarter financial results and I know that you are fairly new to the general manager position, but can you give us a sense of how the new eServer i5 machines are being received by the market?

Mike Borman: I spent the first couple of months in this new job doing a lot of traveling, mainly to get out and meet with customers. I’ve been all around Europe and the United States meeting with customers–I haven’t made it to Asia yet–and I will tell you that the reaction overall has been extremely positive. And I will tell you why.

No matter what kind of server you are talking about, there is always concern among customers about how viable the platform is, and customers mainly think about the underlying hardware technology when they are expressing their concern. The zSeries customers worry about that in certain years, the iSeries or pSeries customers do in others. Everybody is always worried about the viability of their platform. When they came out with the new Power5 “Squadron” technology, and customers understood all of the performance and reliability associated with it as well as some of the neat features like virtualization, I think iSeries customers are relieved and delighted that they have this state-of-the-art technology that is better than anything Hewlett-Packard, Sun Microsystems, or anybody else has in the marketplace.

Customers have to go to a new operating system to use the Squadron servers, and they are all trying to figure out if this is an easy job or a hard job. They are trying to figure out how soon can they and should they get there to take advantage of the new technology. Without going into any numbers, as I talk to customers, my feeling is that the customers in general have a strong acceptance, mentally, for the new technology.

TPM: Over the past several years, with the consolidation of the pSeries and iSeries lines, one of the things I heard time and time again is that the consolidation somehow meant that the OS/400 platform was going to go away. What I have tried to communicate is that no matter what server IBM ships, there will always be something that can run OS/400 and its RPG applications, and that this should be a comforting idea. The volume economics of having a consolidated line ensures that there is a greater–not lesser–probability that the OS/400 platform will be around for a longer period of time.

At the same time, they have seen the installed base of OS/400 shops decline since the peak in 1998, and it has gone down considerably. People argue about the numbers, but the shape of the curve is something that I think everybody agrees on. Although they have seen a little bit of growth in the past year, it was modest. What is it that you can do to try to convince these customers that are still worried about the longevity of the platform and prove to them that it can, in fact, grow? A growing installed base is was attracts independent software vendors to support the box. Or is IBM’s strategy to have a box that can support OS/400, AIX, and Linux is enough to keep ISVs interested?

MB: I don’t have all the facts perfectly memorized, but from what I’ve been shown, the attrition rate of this iSeries brand is not that high–it is less than two percent in a given year. So it is not as if the people are abandoning the platform at a great rate. At the same time, they do get thousands of new customers each year. So I think they need to grow faster than they are growing, clearly. I have never been in a brand or a company where I was growing as fast as the company thought I needed to grow.

We need to do better, and you hit on two areas that are important. For the existing customers, they are happy to get the new technology and they have improved price/performance by 40 to 60 percent. That’s a huge price/performance improvement. They are also happy that they can run multiple workloads. All of those Intel-based servers out there in their companies that are doing mission-critical file, Web, or firewall serving can now be brought into the iSeries, and some customers are starting to do that.

To put it simply, they have a two-prong strategy. Get the current ISVs on i5/OS V5R3, and get new workloads on top of that ISV base. They have over 200 Linux applications, for instance, that can now run on the iSeries.

TPM: In general, how big is that active base of iSeries ISVs?

MB: They have an i300 and an i3000 program to work with ISVs. The first works with the top 300 ISVs, who they are in contact with on a continual basis. The i3000 group is a new initiative to build the program that is underway, right now, as you and I are talking.

TPM: I’ve known a lot of the general managers of the AS/400 and iSeries divisions over the years, and they all have different styles and approaches. Given your background, what are you going to do the same and what are you doing to do differently as a general manager of the iSeries line?

MB: I can remember back when Bill Zeitler was the general manager of the AS/400 back in the mid-1990s. I picked him up at O’Hare Airport when I was the area manager in the Midwest, and he and I drove down to Caterpillar together to make an AS/400 call with the CIO, who I knew pretty well from my job in Chicago, and then they drove back and he got on the plane and left. I knew Bill, and the GMs before him–John Thompson, Steve Schwartz. I know that I am not any better than any of them, but I do know that each one of them brought a lot to the brand based on their background.

If you look at my background, most recently I was in the channel, and as you know, business partners are important to the success of the iSeries brand. Buell Duncan and Tom Jarosh also had that background. Jarosh managed IBM’s Unix business, just like I did for a while. I was probably in sales more than any of the prior general managers. I also spent four years in Asia, and controlled IBM’s SMB initiatives and channels there. I ran the SMB business when I came back to the States, too. I think that my sales experience, and linking particularly into the IBM SMB team, will be important. This brand was built on the teamwork of the entire IBM Company, not just the brand sales guys. One of my key responsibilities to the brand is to make sure they have a great partnership inside of IBM.

TPM: IBM made a conscious choice in 1988 to have the OS/400 platform pushed through the partner channel rather than on a direct basis. While IBM controls a lot of very large OS/400 accounts and has done some direct sales for smaller iSeries configurations on the Web, IBM has increasingly relied the business partner channel to push sales. Is there a reason or a way to boost i5 sales and increase the penetration in the market by moving to a direct sales model? Is it just a foregone conclusion that the channel is the way to do all i5 sales?

MB: I wouldn’t say that the channel is the way to do all i5 sales. When I was back in Chicago, I would sit down with one of their AS/400 specialists, and she once showed me her 89 sales opportunities that she was working in her territory, which was basically a couple of suburbs of Chicago. There was no way that she could cover these 89 customers.

So she had a set of partners engaged on most of those deals, and that is the way I like to think of it. I think of the partners as leverage in the marketplace, and they are also the ones that have the solutions customers want. IBM doesn’t create application software, so I desperately need partners that do and, incidentally, partners that can sell or partner with others who can sell the i5 hardware.

There will never be a point where their partners will do all of the i5 sales. They need a brand sales specialist team, engaged around the world, which they currently have with close to 1,000 people. But they feel that you can always get more leverage using partners. If I sold Boeing 767 aircraft, I probably would not have a partner channel. But when I have an installed base of over 400,000 OS/400 machines in the world, each with upgrade potential, there is just no way I can cover all of those opportunities without using partners.

TPM: While this has been IBM’s strategy with the AS/400 and iSeries, at the low end of the X86 server market, companies who want a server that is in roughly the same server processing capacity as the entry i5 Model 520s go and buy it directly and install your own software. I am trying to figure out, for the low-end i5 machines in particular, is there a way to go direct which boosts the volumes high enough to make it possible to create a lower-cost i5 platform. I am worried, as you are, about the number of i5 boxes that come out of Rochester. Volume is the critical determinant in the IT industry. I don’t know that the business partner channel can absorb and push more iSeries and i5 iron than they have already been doing. It strikes me that they are running as fast as they can to keep trained on the newest technologies and chase the accounts that they can, but the partners are a limiting factor.

MB: I would say that one of the important things for partners is that they have more choice in what to sell than they had five or six years ago. I think they could sell a lot more iSeries, and I have told them that. Six years ago, Intel servers were not that competitive and neither was Windows NT. And today, smart people still don’t want a lot of Windows. But Windows hardware and software have improved, and so has the pSeries. So partners have more choice on what to sell. It is really important for me and for the brand to be able to differentiate on why i5/OS is the best choice for customers.

If I thought I could get i5/OS similar in terms of usability and understanding and image in the marketplace as its competitors, then I could go to more of a volume play. But right now, my view is that i5/OS is more of a push product, where you have to sell the features and function, compared to Windows, which is a pull product.

TPM: Which brings me nicely to my next question. Most OS/400 shops–somewhere in the neighborhood of 85 percent of them by some estimates–have multiple Windows servers running side by side with their AS/400 and iSeries machines. Given that IBM is already working with Microsoft to create a hardware abstraction layer to run Windows on the next generation of xBox game machine, which is based on PowerPC chips, one of the things that IBM could do, is get Windows running natively on logical partitions on the i5s. This would allow customers who have external Windows boxes–customers who by and large do not want to make the jump to Linux–to move their Windows boxes under the skins of the iSeries but have the flexibility of dynamic logical partitions.

This is a thought experiment. Does it make sense to put native Windows on the i5, and as a general manager of the iSeries Division, can you make it happen.

MB: Nothing that I have seen shows that they are working on running any Windows software on Power servers.

I have to be honest with you. I have been thinking about it in the opposite way. I have been trying to figure out where I can sell a lot of i5/OS. Clearly their Power technology is the best in the industry, and the combination of Power and i5/OS is perfect for these customers. I have to figure out how to pump up i5/OS volumes, not just sell more i5 hardware.

TPM: I agree. But, just to play devil’s advocate, the funding money to push i5/OS might come through a big boost in i5 hardware sales that is enabled by Windows partitions.

MB: I will take a look at the idea. Of all of the things that I have been working on, that has not come across the radar screen.

TPM: Let’s revisit that other good point you just brought up. What practical steps can you take to boost the number of i5/OS licenses you sell?

MB: If you look at some of the skills that they have provided to their sales people and their partners in the past few years, they have been more geared toward technology as opposed to talking about the features and functions associated with the great i5/OS operating system. One of the things they are currently working on is getting their field sales force and their partners trained on what differentiates i5/OS from alternatives in the marketplace.

TPM: Is there enough of a differentiation? Back in the late 1980s, when the AS/400 came out, Unix was just getting rolling in commercial environments and Windows did not exist. OS/400 had a lot of stuff back then that made it exceptional, and IBM sold $4 billion to $5 billion a year in servers, storage, and operating systems associated with the platform. As Unix came on strong in the 1990s and Windows got traction, driving down prices on all midrange servers, OS/400 server sales started to decline a bit, and bubbled some in 1998 with the Y2K issue. OS/400 server sales have been on a decline since that time. I realize that part of that decline has to do with shifting sales to the channel and price/performance increases as well as weakening sales volumes. But I worry that the feature and total cost of ownership (TCO) differentiation that OS/400 enjoyed 15 years ago is not as strong. Windows is pretty good now–even if it isn’t great–and it has a lot of applications and inexpensive hardware. Moreover, they are programming at a much higher level with Java-style coding, which insulates programmers from system complexity much as RPG and integrated DB2/400 did with OS/400.

It seems to me that IBM needs to quantify this TCO, and demonstrate that running an identical set of applications on i5/OS and other platforms will result in the i5/OS shop having fewer administrators, fewer security headaches, better uptime, and what have you. They all know this anecdotally, but no one really puts hard numbers on this TCO argument. Anecdotes do not sell servers; data does.

MB: I think you are right on target. As a matter of fact, I just brought in my worldwide sales team in the past two days. My whole team was there, and they talked through what was going on in the market and what they need. And they had several discussions on total cost of ownership, and they want to get more current TCO data out in the field’s hands because this is an important element to the i5/OS platform.

When you talk about integration, when you talk about ease of use, and when you talk about the whole value proposition of the box, it is there. It’s real. People know that i5/OS is easier to install, use, and manage than Linux or Windows. But they know they need the TCO argument because they are more expensive. So they are going to get some studies done to prove this right away.

TPM: As general manager of the OS/400 platform, the OS/400 community has a high level of expectations for you. What are the limits to your power, particularly in an eServer-centric server world? The differences between IBM’s platforms are more subtle now, and they share a lot of technologies. Just how much can you shake up the i5 business? I don’t think you have a lot of maneuvering room, but I think that the OS/400 customer base thinks you do.

MB: As far as limits go, I think they always do what is best for the customer. I don’t think they have any limits when it comes to satisfying customers. Given that their CEO, Sam Palmisano, and the guy I work for, Bill Zeitler, both have had a lot of personal involvement with, a passion for, and a long-term understanding of this platform, they have given me all of the support that I need to make sure that the i5 thrives out in the marketplace. There are no two better people in the world to support me than Sam and Bill, and they have both given me strong support from the day I was announced in Rochester as general manager. I have all the support I need inside IBM.

I think that if there is one thing that I will certainly do, it will be to tap their customers to support what they want to get done as well. I view their customers more as partners than I see us in a normal vendor-customer relationship with them. They are the most passionate, loving, satisfied group of customers that you can have in almost any industry you can imagine. My goal is to listen to their customers and to do what is right by them.


IBM out to lure ISVs to write for iSeries | killexams.com real questions and Pass4sure dumps

While buyers are increasingly turning to x86-based servers, IBM is moving to shore up sales of its iSeries boxes.

The company announced last week that it will try to multiply by 10 times the number of independent software vendors developing applications for the mid-market line, which runs

on the Power5 processors and the i5/OS, AIX and Linux operating systems.

It has promised to spend up to US$50,000 in consulting and co-marketing services for every ISV under what it calls the iSeries Initiative for Innovation program.

IBM estimates there are 60 companies in this country writing applications for the line.

It’s an expansion of a limited program started to boost sales of the server which started two years ago, said Barry Pow, iSeries product manager at IBM Canada. There was success, so the company decided to formalize and expand it.

“”We realized if we’re going to see growth in the iSeries platform they needed not just to rely on their existing customer and platform set, they needed to get into new areas,”” he said.

Canada is one of the best markets for iSeries in the world, according to IDC Canada. Last year it accounted for 5.4 per cent of all server sales in this country, one of the highest levels in countries where it is sold. By comparison iSeries accounted for only 3.1 per cent of server sales in the U.S. in 2004.

However, even here sales are slipping: In 2003 the line accounted for 7.6 per cent of all server sales.

That’s why IBM’s move to lure ISVs and toolmakers to iSeries was praised by IDC Canada hardware analyst Alan Freedman.

“”Without taking that tack they’re dead in the water,”” he said.

Also enthused was David Harty, director of sale and marketing at Silverblaze Solutions of Markham, Ont., a CRM developer which until recently focused on iSeries customers.

“”It’s nice to see them re-investing in the business partner community,”” he said.

He was particularly pleased partners will be eligible to receive up to a 70 per cent discount for co-advertising with IBM in industry media to help ISVs reach customers.

“”That’s something I haven’t seen enough of,”” he said. “”I think IBM has to shake things up from a co-marketing standpoint. A lot of the programs are somewhat pedestrian.””

To convince ISVs are serious about the platform, IBM has created a charter to outline what it calls its “”enduring and future commitments”” to iSeries.

These include

– an applications innovation program, offering free application development assistance either online or from an IBM Innovation Centre;

– an tools innovation program, to help ISVs understand and use tools from some 60 vendors for developing iSeries apps

– co-marketing opportunities;

– and expanded access to PartnerWorld Industry Networks, which offers ISVs advice on technical, marketing and sales issues.

Pow suggested the company has ambitious goals from the initiative.

“”Just as they saw double digit percentage [increase] of their sales in 2004 being tied to new applications and new customers coming to iSeries, they have that same objective in 2005,”” he said.


IBM’s iSeries for HA, CBU editions gain traction | killexams.com real questions and Pass4sure dumps

IBM Corp launched two specialized versions of the iSeries platform in September 2003 that were aimed at lowering the cost of both high availability and disaster recovery at OS/400 shops. The first box, called iSeries for High Availability, is a specialized OS/400 server designed to run as a target machine in a high availability cluster. The second box, iSeries for Capacity BackUp, is designed as a disaster recovery machine.

Both machines are meeting sales targets in the first year, according to IBM sources.

As the name suggests, the iSeries for HA machines are full-blown servers designed to be used as auxiliary hot-swap machines for customers that run one of the high availability software packages from DataMirror, iTera, Lakeview Technology, Maximum Availability, Trader’s, or Vision Solutions.

For years, IBM and its high availability partners have been giving out special rebates on hardware for companies that buy HA software and a new OS/400 server to support it, and the iSeries for HA box more or less made these deals a permanent thing by turning a promotion into a subset of the product line. The permanence of the iSeries for HA boxes is an important thing for customers. The rebates that IBM has traditionally given mean that customers have to first lay out cash and then wait to get it back to acquire a discounted box aimed at supporting an HA cluster.

The iSeries for HA products are designed to protect production OS/400 servers against outages related to planned downtime (during upgrades and data archiving, for instance, when systems have to be taken offline) and for unplanned outages (usually caused by software crashes or human error). IBM announced five different iSeries for HA machines: one Model 825, two Model 870s, and two Model 890s. In March, after receiving requests from customers who didn’t need such large servers, IBM expanded the iSeries for HA line to include a Model 810 server.

While IBM launched the new Squadron Power5-based eServer i5 machines in May, it did not roll out eServer i5 for HA editions until the end of July. Specifically, IBM has two versions of the Model 520 and four versions of the Model 570 that have been given the HA designation, along with the related price breaks, which cut roughly one third off the list price of the iSeries or i5 box. Customers negotiate the price down from there, of course.

The important thing about the iSeries and i5 for HA servers is that they are real OS/400 servers, and they are absolutely intended to be used as a rollover machine in the event of a system outage. They run OS/400 Enterprise Edition and have the ability to support 5250 workloads for the number of processors activated in the boxes. For the i5 versions of the machines, the servers support AIX and Linux in logical partitions, the full Virtualization Engine virtualization features (including micropartitoning), and have all of the capabilities of a regular OS/400 server.

They even have upgrade paths into regular i5 servers: first you pay to convert the i5 for HA machine to an i5 machine running i5/OS V5R3 Enterprise Edition (presumably the cost of such an upgrade is the difference in price of the machines) and then you can upgrade further up the i5 line using normal upgrade paths.

A variant on this theme, geared more for disaster recovery than high availability, is the iSeries Capacity BackUp, or iSeries CBU. Rather than being a machine that is intended to be used in a rollover situation for high availability, the iSeries CBU is intended to be used as a remote machine in the event that a disaster (either natural or man-made) wipes out your data center or otherwise knocks out your OS/400 servers.

The iSeries CBUs, announced a year ago with the iSeries for HA boxes, have a minimal amount of processing capacity turned on – just enough to run the replication software necessary to keep applications and data in lockstep with the production machine. In July, IBM announced a single i5 Model 570 CBU machine. It is unclear whether the company plans to launch smaller ones based on the two-way Model 520s and four-way Model 550s, or larger ones based on the Model 595s.

The iSeries and i5 for CBU machines have much lower price tags than regular iSeries and i5 servers, and their prices are significantly lower than even the iSeries and i5 for HA boxes. That’s because they have a lot less capacity activated than the iSeries for HA boxes. In the event of a disaster, you activate that remote iSeries or i5 machine and start running your workloads on it.

During a disaster – the river floods and takes away your data center – you can activate all of the processing capacity in the CBU box to support your workloads. However, adding main memory and storage is not free during this disaster (even though they can be added on demand), and after a disaster is over, you have to pay use fees for the activated processors in the box. By IBM’s definition, a disaster is something bad that lasts for more than four hours and can only be recovered from at the remote location; a bad memory card or a software crash does not qualify. With the Model 570 CBU, you have 42 processor days to test your disaster recovery procedures free of charge, and IBM recommends that you do.

These HA and CBU servers have been on the market for a little more than a year, so how are they doing? Steve Finnes, enterprise server and technologies segment manager for the iSeries Division, and the person who steers the high availability initiatives in the iSeries market, says that he had a certain target in mind when the boxes were launched and that the machines have hit that target. While Finnes was not at liberty to give exact box counts for the machines, he did offer some insight into who is using them and why.

According to Finnes, there are about 4,000 OS/400 shops worldwide engaged in real high availability (meaning they are looking for 24/7 availability for their production systems and have paid for secondary systems and HA software from one of the seven vendors). While IBM has never been specific about how many OS/400 server shipments HA software drives every year, it is obviously a major component of the marketing effort, in terms of the revenue it drives, even if the box count is relatively low and the share of the customer base (by my math, it’s about 2% of the OS/400 base) is fairly small.

Not everyone who gets HA today will buy an iSeries or i5 for HA box. Sometimes, rather than upgrade their main production server, customers keep their existing box and use it as a target machine in an HA cluster, and then buy a whole new box. So, for instance, a customer might keep its Model 870 as the hot spare and buy a new Model 570. However, doing so means upgrading the operating system on the older box (which is a hassle) or not upgrading in order to keep it in lockstep with the production machine (which is also a hassle).

Finnes says that customers are coming to the conclusion that it is often easier to just buy two boxes that are the same, one regular version and one HA version that matches it. In fact, he says that of all the HA-related iSeries and i5 sales IBM has done this year, the iSeries and i5 for HA boxes are accounting for anywhere between 15% and 20% of iSeries hardware sales. Considering that the product is fairly new and is offered at a discount, compared with regular iSeries and i5 servers, this is not bad.

While not committing to any future targets (at least not publicly), Finnes says that the rate of shipment for the HA variants is accelerating on an exponential curve in recent months, matching the ramp of the i5 servers themselves. Given this, he is hopeful that IBM can sell a lot more i5 for HA boxes. Finnes says that IBM sold as many i5 for HA boxes in October as it sold in the prior three months.

The iSeries and i5 CBU servers, while having a lower price tag, seem to be a harder sell at the moment. Finnes says that the iSeries or i5 for HA servers outsell the CBU servers by a ratio of 10 to one. If you are really serious about high availability, then you are serious about role swapping between servers, and that means the CBU is not a good fit. Most companies are more worried about the planned and unplanned outages and how to maintain 24/7 operations; they want this first, it seems, and then they will worry about the disasters and the resulting downtime they can’t control.

Because running HA software across a data center and a very remote location (which could survive a local disaster because it is nowhere near it) is problematic for the transactional workloads that OS/400s typify, it is not a simple matter to try to accomplish both high availability and disaster recovery with two machines. More things will go wrong within a data center, which is usually filled with cranky servers, and sometimes cranky people, and do so more often than the disasters that will completely take out a data center. The sales ratio of HA and CBU boxes reflects this, and it makes perfect sense.

Having said that, if a CBU box cost only a fraction of the cost of a whole iSeries or i5 server, and was available on a subscription basis, and dedicated to specific customers in a hosted model, I think IBM might make quite a bit more money than it is doing now from the CBU offering. No one wants to own a CBU box. They want to rent it, and they don’t want to pay a lot for it, since the odds are very small that they will ever actually use it.



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References :


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zoho.com : https://docs.zoho.com/file/5yo4gb8122089dc764726b0236a4a6936f51b






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