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000-859 exam Dumps Source : iSeries Solution Sales (Including eServer i5 and i5/OS V5R3) (New)
Test Code : 000-859
Test Name : iSeries Solution Sales (Including eServer i5 and i5/OS V5R3) (New)
Vendor Name : IBM
: 120 Real Questions
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A key part of foreign enterprise Machines' (NYSE:IBM) turnaround effort is cognitive computing, which encompasses artificial intelligence (AI) together with connected technologies. Watson, IBM's cognitive computing equipment than debuted by using winning a online game of Jeopardy! in 2011, has been utilized to fields including healthcare, fiscal features, and even fantasy football.
Cognitive computing is a growth enterprise for IBM, but you would not understand it looking on the company's third-quarter effects. The cognitive options section suffered a 5% profits decline, even after adjusting for a currency-related headwind. That sounds like terrible information for an organization betting its future on AI.
The cognitive options phase should truly be called the "cognitive options plus a bunch of alternative unrelated stuff" phase. It contains Watson and different groups with growth talents, however additionally stuff like legacy transaction-processing application. it's type of a grab bag of IBM corporations that don't quite healthy into its different segments.
That makes it problematic to tell how smartly IBM's boom companies are actually doing, and it makes that 5% sales decline much less significant.
CFO James Kavanaugh went into some aspect all over the revenue name concerning the efficiency of the cognitive options business. The segment is broken into two components: options utility and transaction processing software.
solutions application comprises software aimed at strategic verticals (Kavanaugh singled out the healthcare business). It additionally comprises some analytics and safety offerings, AI like Watson, and blockchain. On proper of all that, "horizontal domains" like collaboration and commerce are additionally covered.
Transaction processing application includes "software that runs mission-critical workloads leveraging their hardware platform," based on Kavanaugh. here is usually on-premises application used with the aid of industries like banking, airways, and retail.
Transaction processing utility accounted for a minority of cognitive options revenue within the third quarter, but profits from that class declined by using 8% yr over yr. Kavanaugh stated that, whereas lots of the revenue for transaction processing application is annuity-primarily based, the timing of huge deals can have an effect on revenue. Kavanaugh expects a return to increase, in accordance with a robust pipeline of offers.
The options software component of the section suffered a 3% earnings decline, driven by means of some areas the place IBM is struggling. Secular shifts within the collaboration, commerce, and ability administration markets are inflicting issues for the company, and or not it's been adding AI and modernizing its offerings to combat these adjustments. The shift to software as a service is additionally inserting drive on sales, with earnings being realized over time as opposed to up entrance.
The constituents of this segment with lengthy-time period increase expertise are the constituents which are growing. Watson fitness, the enterprise's effort to apply AI to the healthcare business, enjoyed extensive-based mostly boom during the third quarter. security grew because of the company's tremendous portfolio of products. And the business made some huge strikes in the blockchain market.
IBM announced TradeLens, a blockchain-based mostly platform for the international shipping trade, in August. The solution, collectively developed with Maersk, had 94 individuals on board on the time of the announcement. IBM meals have faith, a new blockchain-primarily based platform that enables meals to be traced from farm to shop, counts Walmart and French grocery store chain Carrefour as individuals. IBM's blockchain efforts are still in their infancy, but both of these structures have the advantage to turn into significant agencies for the company.
With the cognitive options section being dragged down by means of legacy corporations, the headline performance does not reflect the efficiency of IBM's greater promising organizations.
Monday, April 1, 2019
The Zacks analysis daily gifts the most fulfilling analysis output of their analyst team. today's analysis day by day elements new analysis reviews on 16 predominant shares, including Chevron (CVX), IBM (IBM) and Medtronic (MDT). These research reviews have been hand-picked from the roughly 70 stories posted by means of their analyst crew nowadays.
which you can see all of today’s analysis experiences right here >>>
Chevron’s shares have received +9.7% in the past 12 months, outperforming the Zacks integrated Oil industry's +three.four% boost as its financial effects have drastically more advantageous over the period. definitely, Chevron's free cash circulate and upstream production for 2018 hit a record.
The Zacks analyst thinks the business’s current oil and gasoline building venture pipeline is among the many most appropriate in the business, targeting a CAGR of 3-four% via 2023 due to the deliberate enlargement within the Permian Basin. additionally, growing free money stream should still enable Chevron to convey reliable and rising dividend in the foreseeable future.
besides the fact that children, there are concerns of a drop in its downstream salary that have been slicing into basic beneficial properties from rising E&P earnings. The massive capex could also play a spoilsport. hence, traders are advised to stay up for a stronger entry factor earlier than buying shares in Chevron.
(that you can study the complete analysis document on Chevron here >>>).
Shares of IBM have outperformed the broader market on a yr-to-date foundation, expanding +24.2% vs. the S&P 500’s +13.1% benefit. IBM provides advanced advice know-how solutions, together with computing device programs, application, storage systems and microelectronics.
The Zacks analyst thinks IBM’s enhancing position in hosted cloud, safety and analytics bodes smartly for investors. The RedHat acquisition, geared toward improving its hybrid cloud platform, is probably going to pave the manner for IBM's boom prospects. besides the fact that children, softness in systems revenues and technology & cloud structures stay a concern.
Stiff competitors doesn't bode smartly for the Storage hardware section. Strategic imperatives will take some more time to record significant increase and offset weak point in the traditional business. IBM’s ongoing heavily time-ingesting company model transition to cloud is a headwind. moreover, ballooning debt levels had been troubling IBM over time.
(which you could read the complete research record on IBM here >>>).
Medtronic’s shares have outperformed the Zacks medical items trade in the past 12 months, gaining +17.5% vs. +15.5%. The Zacks analyst thinks Medtronic is efficaciously registering sustainable boom throughout essential businesses and regions, moreover displaying successful fulfillment of synergy goals.
The business is specializing in geographical diversification of its corporations. This aside, the company has been seeing definite favorable traits in its Diabetes company. The updated 2019 suggestions with raised EPS view increases investors’ confidence on the inventory.
meanwhile, the recently-closed acquisition of Mazor Robotics, which is expected to give a boost to Medtronic's place in spine surgical procedure, is an incredible effective. Yet, the declining CRHF section raises concerns. Escalating charges and costs continue to weigh on Medtronic’s base line.
(which you could read the full analysis file on Medtronic here >>>).
different noteworthy reviews we're featuring these days include GlaxoSmithKline (GSK), lululemon (LULU) and Carnival (CCL).
Zacks' right 10 stocks for 2019
moreover the shares mentioned above, wouldn't you want to find out about their 10 top of the line buy-and-holds for the 12 months?
From more than 4,000 groups lined by means of the Zacks Rank, these 10 had been picked by means of a manner that continually beats the market. Even during 2018 whereas the market dropped -5.2%, their top 10s were up smartly into double-digits. And all the way through bullish 2012 – 2017, they soared a long way above the market's +126.3%, accomplishing +181.9%.
This year, the portfolio aspects a participant that flourishes on volatility, an AI comer, and a dynamic tech company that helps docs convey enhanced patient outcomes at lessen charges.
See stocks nowadays >>
Mark VickerySenior Editor
be aware: Sheraz Mian heads the Zacks fairness analysis department and is a neatly-viewed skilled of combination salary. he is frequently quoted within the print and digital media and publishes the weekly revenue trends and profits Preview stories. if you need an email notification each time Sheraz publishes a brand new article, please click on here>>>
Story continuesbrand new ought to study
Chevron (CVX) Aided with the aid of Permian Output, Downstream Woes harm
Adoption of Cloud, safety & Analytics options Aids IBM
Mazor buy Aids Medtronic's (MDT) backbone Arm, CRHF potentialities brightFeatured reports
Glaxo's (GSK) Pipeline starting to be Amid widely wide-spread Woes for Advair
The Zacks analyst likes Glaxo's efforts to increase its pipeline, notably oncology. youngsters, a general of its properly-selling drug, Advair was accepted in February that may erode its revenue in 2019.
lululemon's (LULU) Tracks neatly With E-commerce boom Plans
Per the Zacks analyst, lululemon is bettering e-commerce channel by means of investing in new product classes and web page. E-commerce penetration become 26% in fiscal 2018, ahead of fiscal 2020 target of 25%.
BlackBerry (BB) Rides on mighty software enterprise, and Cylance Buyout
Per the Zacks analyst, solid software business led through a comprehensive provider portfolio may still raise BlackBerry's operating cash stream. The buyout of Cylance will aid stoke its aggressive place.
American Eagle's (AEO) Sturdy Comps style to fuel exact Line
Per the Zacks analyst, American Eagle has a superior comparable revenue trend, providing growth for sixteen straight quarters. Strategic efforts and potential to increase market share for manufacturers may still pressure revenue.
Dividends & Buybacks Buoy Trinity (TRN) Amid Debt Woes
The Zacks analyst appreciates the enterprise's efforts to reward shareholders via dividends & buybacks.
RH (RH) Banking on Strategic Measures, gentle income hurt
although RH's new operating platform and focus on lifting profit margins are elevating profitability, weakness in the luxurious housing market raises issues, per the Zacks analyst
Pipeline development to enhance Immune Design (IMDZ)
Per the Zacks analyst, Immune Design's efforts on pipeline development are considerable.New enhancements
credit card company strength, Loans support Capital One (COF)
Per the Zacks analyst, power in credit card and on-line banking organizations, higher loans and deposits, and powerful balance sheet place will continue supporting Capital One's profitability.
home excessive Margin belongings, Investments help Devon (DVN)
Per the Zacks analyst, Devon's consistent investments to increase its excessive margin home oil property will proceed to boost efficiency.
high Premiums & Declining charges assist RenaissanceRe (RNR)
Per the Zacks analyst, RenaissanceRe's rising gross premiums pushed through the Casualty and distinctiveness and the Property segments and declining charges backed through operational efficiency should pressure boom.New Downgrades
Rising net Cruise costs more likely to damage Carnival (CCL)
Per the Zacks analyst, better web cruise charges and political uncertainty in Germany and France are more likely to hurt Carnival. during fiscal 2019, it expects internet cruise prices per ALBD to be up 0.5%.
Uncertainty in Europe, high costs to damage LKQ Corp. (LKQ)
Per the Zacks analyst, financial uncertainty in Europe is dampening LKQ Corp.'s salary generation. also, escalating appoint, utilities, freight & gasoline expenses are more likely to hamper the business's margin.
larger working expenses hurt Jefferies monetary's (JEF) growth
Per the Zacks analyst, elevated working price ranges (exceptionally as a result of upward push in compensation and know-how costs) will probably proceed to abate Jefferies monetary's bottom line boom to an extent.
desire the newest recommendations from Zacks investment analysis? today, that you would be able to down load 7 most efficient shares for the next 30 Days. click to get this free document Medtronic PLC (MDT) : Free inventory analysis document lululemon athletica inc. (LULU) : Free stock evaluation record overseas company Machines enterprise (IBM) : Free inventory analysis record GlaxoSmithKline plc (GSK) : Free stock evaluation file Chevron agency (CVX) : Free stock evaluation file Carnival service provider (CCL) : Free inventory analysis report To study this text on Zacks.com click here. Zacks investment analysis
(MENAFN - Limelight Public relations) Veritas NetBackup Now attainable in IBM market provides Unified statistics insurance policy for Hybrid and Multi-cloud Workloads Dubai, UAE – April 4, 2019 – Veritas technologies, a global chief in enterprise statistics protection and software-defined storage, announced that its flagship product, Veritas NetBackup, is now accessible in the IBM marketplace, presenting entry to business-leading statistics backup and insurance plan for IBM Cloud and Veritas consumers. Veritas’ business-leading backup and recovery solutions help agencies of all sizes manipulate and protect statistics at any place it lives— in the hybrid cloud or on-premises. Designed for the interesting challenges of the commercial enterprise, NetBackup makes it easy for agencies emigrate and offer protection to their information during its cloud journey. via this collaboration, IBM extends the attain of NetBackup via referral sales or through managed Backup-as-a-carrier (BaaS) options on the IBM industry. “Veritas is dedicated to accelerating cloud adoption for organizations of all sizes. To obtain that aim, they have made it less complicated to migrate information to, from and in the hybrid cloud,” talked about Barbara Spicek, vp, international Channels & Alliances, Veritas. “Our presence in the IBM marketplace now offers market leading, mission critical facts storage and protection solutions for IBM and Veritas present and new valued clientele in all customer segments globally.” As facts continues to develop and become greater fragmented throughout clouds and digital environments, a unified records protection strategy is often the handiest way the IT organization can deliver required provider levels whereas limiting cost and risk, regardless of where records lives. optimum-in-classification backup expertise from Veritas, delivered with world-classification managed services from IBM, gives groups with the protection they need and makes it possible for organizations to reduce expenses, lower complexity and meet compliance requirements. “all the way through their 10-12 months collaboration, Veritas and IBM have developed information administration and unified information insurance plan options to assist speed up facts transformation and migration, lengthen statistics insurance policy to the cloud, and ensure availability for mission-essential purposes for their valued clientele,” Spicek endured. commercial enterprise options from Veritas and IBM are designed to carry a consistent set of powerful tools across actual, digital and cloud environments. To be taught extra or get first-hand adventure with relocating and preserving information within the cloud, take a Veritas NetBackup test pressure. About Veritas Veritas technologies is a worldwide chief in business information administration – their utility and solutions help organizations protect their mission-vital data. Tens of lots of businesses, together with ninety seven% of Fortune a hundred businesses, depend on us daily to lower back up and recover their statistics, keep it cozy and purchasable, to look after against failure and achieve regulatory compliance. In present day digital economy, Veritas grants expertise that helps organizations cut back hazards and capitalize on their most essential digital asset – their facts. be taught greater at www.veritas.com or follow us on Twitter at @veritastechllc. forward-searching Statements: Any forward-looking indication of plans for products is preliminary and all future unencumber dates are tentative and are discipline to trade on the sole discretion of Veritas. Any future unlock of the product or planned changes to product potential, performance, or characteristic are discipline to ongoing assessment via Veritas, might also or may also now not be carried out, may still no longer be regarded firm commitments through Veritas, should still no longer be relied upon in making procuring decisions, and can no longer be incorporated into any contract. Veritas and the Veritas logo are trademarks or registered emblems of Veritas technologies LLC or its affiliates in the U.S. and other nations. other names can be trademarks of their respective owners. PR Contacts MENA Contact Defintion agency Jenifer Pinto +971 four 390 1996 email@example.com EMEA Contact Veritas technologies James Blamey firstname.lastname@example.org
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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.
IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- Vision Solutions, the industry standard in eServer High Availability solutions, today announced that they have signed an agreement with IBM to distribute their world-class disaster recovery and systems management software with all IBM eServer iSeries operating system, i5/OS. Through this program, evaluation versions of Vision's tools OS Director, OS Data Replication and OS Data Manager will be included with every new and upgrade shipment of i5/OS V5R3 shipped by IBM.
"Vision Solutions has made it easier for iSeries users to manage their systems and data. High availability includes the availability of applications and data, and it also includes protecting a company's data to ensure it's up-to-the minute and useable by employees and customers. IBM and its partners enable iSeries availability as one of the industry's best," said Jim Herring, Director, Product Management and Business Operations IBM eServer iSeries.
"Recent natural events such as Hurricanes Katrina, Rita and Wilma have once again demonstrated the business need for disaster recovery solutions to protect applications and information from downtime, both planned and unplanned," said Alan Arnold, President of Vision Solutions. "Vision is happy to work with IBM in providing businesses with the strongest availability and systems-management tools at their fingertips that are designed specifically to meet the high availability requirements of the i5 organization."
The full range of Vision's OS solutions included in this program are:
-- OS Director -- a highly integrated set of tools that automates and proactively manages and helps optimize IBM iSeries systems, databases and application environments.
-- OS Data Replication -- a Disaster Recovery solution targeted at the SMB market that enables files to be backed up while users are online utilizing IBM's advanced Remote Journaling.
-- OS Data Manager -- A user-based tool that automates the modeling, testing, purging and archiving activities for IBM iSeries application environments. These solutions provide SMB organizations with the solutions for disaster recovery, data replication and systems management.
Vision Solutions' award-winning CustomerCare team works directly with customers to provide technical support and assistance for their complete product suite. The company's worldwide team of partners ensures that customers have the local support they need, when they need it.
Vision Solutions has earned IBM's ServerProven status, providing customers with a trusted seal of approval that ensures that the solutions have been successfully implemented in real-world iSeries environments. The company's customers include top Fortune 500 businesses in multiple verticals including finance, manufacturing, distribution and gaming.
For more information on enabling this trial offer, please contact Vision Solutions at (949) 253-6500 or email@example.com.
About Vision Solutions
Vision Solutions, headquartered in Irvine, Calif., is the industry standard in eServer High Availability providing software, services and support solutions for managing a company's mission-critical applications and data. With more than 2,000 customers and 12,000 licenses around the world, the company works closely with a worldwide network of channel partners supporting virtually every industry with its world-class solutions: Visualize(tm), Vision Suite(r), ORION(tm), ORION Integrator, OS Director and OS Data Manager. Vision Solutions is an IBM Premier Business Partner and an IBM High Availability Business Partner. Vision Solutions is a member of the publicly traded IDION group of companies (JSE:IDI). For more information on Vision Solutions, please visit the company's website at www.visionsolutions.com.Vision Solutions, Inc. Jennifer Brannon (949) 253-6543
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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Snia [7 Certification Exam(s) ]
SOA [15 Certification Exam(s) ]
Social-Work-Board [4 Certification Exam(s) ]
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Teacher-Certification [4 Certification Exam(s) ]
The-Open-Group [8 Certification Exam(s) ]
TIA [3 Certification Exam(s) ]
Tibco [18 Certification Exam(s) ]
Trainers [3 Certification Exam(s) ]
Trend [1 Certification Exam(s) ]
TruSecure [1 Certification Exam(s) ]
USMLE [1 Certification Exam(s) ]
VCE [6 Certification Exam(s) ]
Veeam [2 Certification Exam(s) ]
Veritas [33 Certification Exam(s) ]
Vmware [58 Certification Exam(s) ]
Wonderlic [2 Certification Exam(s) ]
Worldatwork [2 Certification Exam(s) ]
XML-Master [3 Certification Exam(s) ]
Zend [6 Certification Exam(s) ]
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