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000-973 exam Dumps Source : Power Systems Sales for the IBM I Operating System
Test Code : 000-973
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One rationale IBM (NYSE:IBM) suffered a revenue decline within the first quarter changed into slumping demand for its mainframe computer systems. income from mainframes tumbled 38% 12 months over yr, dragging income within the systems segment down 9% on a foreign money-adjusted foundation.
while mainframes don't seem to be as vital to IBM nowadays as they have been during the past, the hulking programs, with a huge install base and giant switching costs, are a key component of the enterprise's aggressive benefits. That makes the steep decline in sales seem all of the extra regarding.this is commonplace
there is no rationale to fret in regards to the precipitous decline in mainframe revenue. IBM's mainframe earnings spike each and every time the company launches a brand new mannequin -- the third quarter of 2017 marked the birth of the newest surge in revenue with the z14 device. After 4 or 5 quarters of strong yr-over-yr growth, driven by using customers upgrading from older models, that increase is lapped, and earnings start to say no.
This cycle has performed out dissimilar times over the past decade as IBM refreshed its mainframe techniques each few years. And regardless of the steep earnings declines IBM is now seeing, the existing cycle is the strongest in a long time.
"we are seven quarters into the z14 cycle and the program continues to tune ahead of the prior software. They had effective boom in volumes or shipped MIPS, and new workload MIPS continue to outpace their standard MIPS," spoke of IBM CFO James Kavanaugh during the primary-quarter earnings call. (MIPS stands for million guidance per second, a measure of processing vigour.)
Kavanaugh introduced that the one-frame version of the z14, launched closing year and designed to healthy into normal facts centers, is a growth driver for the mainframe business.
IBM more than doubled mainframe earnings on a year-over-12 months foundation within the second quarter of 2018, so another large decline in income in the 2nd quarter of this yr is inevitable. The enterprise will then start to lap these declines in the second half of this yr.
Given the normal gap between mainframe launches, IBM's subsequent-gen mainframe device likely may not arrive except sometime in 2020. That means three or four extra quarters of susceptible mainframe efficiency earlier than one more 12 months-lengthy surge in sales.2020 is shaping up to be a big yr
not simplest will IBM probably get a earnings increase in 2020 thanks to the next mainframe launch, but the business will also add just a few billion dollars of profits from its acquisition of pink Hat. That deal is scheduled to close before the end of this yr.
pink Hat is becoming at a double-digit rate, and its utility strengthens IBM's hand as it goes after the hybrid cloud computing market. there may be a mainframe connection right here, too -- purple Hat presents a edition of its commercial enterprise Linux working gadget for IBM's mainframes. Kavanaugh cited right through the salary name that Linux is a key increase driver for the mainframe company.
IBM's total profits will possible decline this year, ordinarily because of a big forex headwind, but additionally as a result of slumping mainframe sales. however subsequent year will appear a great deal enhanced.
Peter Porter, formerly a licensed customer govt at IBM‘s (NYSE: IBM) public sector business, joined Oracle (ORCL) as director of federal gadget revenue, G2Xchange and many others said Monday.
He has greater than 30 years of technology revenue event and is chargeable for leading a crew of authorities that presents Oracle systems to federal civilian corporations.
Porter held a 29-12 months career at IBM, the place he previously managed the company’s company building efforts focused on the U.S. Postal service and earnings of the IBM Smarter Cities portfolio.
past in his company career, he labored in revenue positions at Tektronix and Hewlett-Packard.
The branch of health and Human functions has issued a solicitation for a potential five-12 months, …
A familiar Dynamics (NYSE: GD) business unit has received a $125M contract amendment from the …
IBM is stopping construction and revenue of its device that utilizes Watson AI to assist pharmaceutical agencies find new drugs, in keeping with a STAT record. A supply informed STAT that the product, Watson for Drug Discovery, wasn’t yielding huge satisfactory economic returns.
The supply referred to that some IBM personnel were currently informed of the decision, and it caused a system to reevaluate IBM’s work in the pharma industry and consider different alternatives.
IBM did not immediately reply to a request for comment.
however, IBM spokesman Edward Barbini told STAT that the business will proceed serving valued clientele already the usage of the device to research data for R&D.
“we're focusing their components inside Watson fitness to double down on the adjoining container of clinical development the place they see a fair more advantageous market need for their information and AI capabilities,” Barbini instructed STAT.
In 2016, IBM launched a partnership with Pfizer, which was using Watson for Drug Discovery to speed up analysis in immuno-oncology. A Pfizer spokeswoman told STAT that her enterprise is still the use of Watson for analysis and discovery classes for hypotheses generation.
IBM Watson has confronted different challenges as of late.
A 2017 STAT investigation designated how the supercomputer isn’t residing as much as the expectations IBM deploy for it.
additionally, in a 2017 interview with MedCity, a former IBM employee who labored in the company’s lifestyles sciences neighborhood explained that notwithstanding advertising and marketing budgets were enormous, the speak under no circumstances materialized right into a tangible off-the-shelf product. within the article, the employee mentioned he has heard dissatisfaction from his former colleagues. “There’s a lot of frustration there. loads of infighting and a lot of vigour jockeying and loads of politics going on,” he pointed out. “So people are getting bored to death and leaving left and right.”
ultimate summer season, IBM established a round of layoffs impacted its Watson health unit.
And in 2018, Deborah DiSanzo left her role as IBM Watson health popular manager.
photograph: grThirteen, Getty photographs
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You only see what you are looking at, and like the rest of you in IBM i Land, I have paid close attention to the flash-based solid state drives in 3.5-inch and 2.5-inch form factors that Big Blue has offered specifically for the Power Systems lineup. But IBM’s System x and BladeCenter blade servers have even smaller and less costly SSDs that, at least according to the IBM literature, are perfectly fine for I/O intensive database workloads and that are not available on the Power Systems machines.
A recent deal for System x customers brought these smaller SATA drives to my attention. Under that deal, IBM is giving price breaks on the feature 5428 (part number 43W7726) 50 GB SSD and on the feature 5420 (part number 43W7746) 200 GB SSD, both of which are 1.8-inch units that are perfect for small systems like the very popular Power 720 that comprises most of IBM i system sales these days. These 1.8-inch SSDs are also known as eXFlash, just so you don’t get confused. Here’s the marketing pitch for them:
IBM’s sales pitch for 1.8-inch SSDs for System x machines. (Click graphic to enlarge.)
Under the deal announced on November 15 in announcement letter 311-168, IBM is giving customers who buy up to eight SSDs a freebie SSD backplane for the System x servers, as well as a promotional price of $616 for the 50 GB unit and $2,079 for the 200 GB unit.
Both of these drives are based on multi-level cell (MLC) technology, which makes them more suitable to the wear-and-tear of enterprise environments and better than the single-level cell (SLC) predecessors in the eXFlash drives. These latest drives were announced by IBM back in April for use in both System x rack and tower servers, as well as in BladeCenter blade servers. These drives consume as little as 1 watt operating and deliver 3 Gb/sec burst rate on those SATA channels and up to 20,000 I/Os per second (IOPs) reading data and about 3,000 IOPS writing data. A typical 3.5-inch disk spinning at 15K RPM can do about 300 write IOPS and 390 read IOPS, and a 2.5-inch disk spinning at the same speed can do 250 write IOPs and 300 read IOPs. IBM is packaging these 1.8-inch SSDs into eight-packs and offering up to three of these in a 2U rack-mounted server. The 50 GB unit has a list price of $885, and the 200 GB unit sells for $3,199 normally. So IBM is chopping 30.4 percent off the cost on the skinny one and 35 percent off the fatter one–and tossing in the backplane, which normally costs $195.
These skinny SSDs support Windows and Linux operating systems and VMware hypervisors according to IBM’s redbook on them, but I don’t care. There’s no good reason why IBM i and AIX cannot run on these units or why they are not enabled on Power Systems machines. Well, except that IBM probably wants to make more money selling more expensive SAS controllers and SSDs and these units are not hot-swappable. An eight-pack backplane loaded up with the 200 GB units yields 1.6 TB of capacity for $16,632 at the promotional price, which is available until March 31, 2012, and plugs into the on-motherboard SATA controller in the System x boxes. By comparison, the feature 2053 SSD controller costs $3,054 and the feature 1996 177 GB SAS flash modules that plug into them cost $4,400 each. You need two controllers and eight drives to get 1.42 TB of flash capacity and that will run you $41,308. That’s a big difference in price for price-conscious customers in the midrange.
The Dreamy And Flashy Power 720 P05 Machine
IBM Gooses Power Systems Storage and Networking
I/O, Memory Boosted On Entry, Enterprise Power Systems
Power 720: Same Entry Price, But More Room to Grow at Less Cost
The Power7 Systems Sales Pitch
IBM Adds New SSD and Fat SFF Disk to Power Systems
Reader Feedback on IBM Adds New SSD and Fat SFF Disk to Power Systems
SandForce SSDs Help Push TPC-C Performance for Power 780
IBM Makes the Case for Power Systems SSDs
Sundry Spring Power Systems Storage Enhancements
Power Systems Finally Get Solid State Disks
New Power6+ Iron: The Feeds and Speeds
IBM Launches Power6+ Servers–Again
IBM Adds New SAS, SSD Disks to Servers
Sundry October Power Systems Announcements
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By James W. Cortada
The Ferranti Mark 1: World’s First Commercially Available General-Purpose Computer
How the IBM 1403 Printer Hammered Out 1,100 Lines Per Minute
What Does It Take to Keep a Classic Mainframe Alive?Photo: Mark Richards/Computer History Museum IBM spent US $5 billion to build the System/360, introduced in 1964. These 9-track magnetic tape drives were among the S/360’s 150-product line.
A short list of the most transformative products of the past century and a half would include the lightbulb, Ford’s Model T—and the IBM System/360. This mainframe series forever changed the computer industry and revolutionized how businesses and governments worked, enhancing productivity and making countless new tasks possible.
In the years leading up to its 7 April 1964 launch, however, the 360 was one of the scariest dramas in American business. It took a nearly fanatical commitment at all levels of IBM to bring forth this remarkable collection of machines and software. While the technological innovations that went into the S/360 were important, how they were created and deployed bordered on disaster. The company experienced what science policy expert Keith Pavitt called “tribal warfare”: people clashing and collaborating in a rapidly growing company with unstable, and in some instances unknown, technologies, as uncertainty and ambiguity dogged all the protagonists.
Ultimately, IBM was big and diverse enough in talent, staffing, financing, and materiel to succeed. In an almost entrepreneurial fashion, it took advantage of emerging technologies, no matter where they were located within the enterprise. In hindsight, it seemed a sloppy and ill-advised endeavor, chaotic in execution and yet brilliantly successful. They live in an age that celebrates innovation, so examining cases of how innovation is done can only illuminate their understanding of the process.
By the end of the 1950s, computer users faced a seemingly intractable problem. Had it not been solved, it would have prevented computers from becoming widespread, and any thoughts of living in an Information Age would have been fiction.Photo: IBM The S/360 was designed to replace IBM’s 1401 mainframe, which was popular but couldn’t be expanded or upgraded.
Organizations were acquiring computers in great numbers, automating many of the old punch card operations and doing more with data processing. The popularity of the IBM 1401 illustrates the rapid adoption of computing. Over 12,000 of these systems were sold from their introduction in 1959 to 1971, when IBM retired the line.
With the 1401 so dominating the computer business, any problems with it were serious. One of them was that the 1401 was too small.
Users found these machines so useful that they kept piling more work on them, reaching the system’s capacity. They then had three options: move to a bigger IBM system, such as an IBM 7000, install a competitor’s system, or acquire more 1401s. None of these options was attractive. To change to a bigger system required rewriting software, since the old software would not work on a different type of machine. The cost of rewriting could easily exceed the financial benefits of moving to a bigger machine. Such a change also called for retraining staff or hiring new staff familiar with the new system. Adding more units of the same system was equally unattractive because each unit required duplicate staff, equipment, and maintenance of hardware and software. Customers wanted systems that were “upgradable” or “compatible,” such that as their needs grew, they could bring in larger machines but still run the same software and peripheral equipment. In the 1950s and early 1960s, it was a wish, and for vendors an aspiration.
IBM had worse problems than its customers did. The 1401s were proving so popular that engineers in Endicott, N.Y., which had developed the system, resisted attempts by their counterparts in Poughkeepsie to build larger computers, leading to growing rivalry between the two groups. As one engineer recalled, “So intense was it that sometimes it seemed to exceed the rivalry with external competitors.” Systems made by Poughkeepsie would not run programs written for the 1400 series. Customers wanting to move from the smaller 1400s to the larger Poughkeepsie machines put increasing pressure on IBM to provide compatibility. Senior management had to contend with the expenses of sustaining R&D for a half-dozen incompatible product lines and training IBMers to sell and maintain so many systems.
Consensus grew that IBM needed to get down to one system to simplify production, reduce the cost of R&D, and be more competitive against a growing array of rivals. If customers had to upgrade in the early 1960s, they could just as easily move to a competitor’s machine, since they would have to rewrite their software anyway.
The power of compatibility was demonstrated in the fall of 1960, when IBM introduced the more powerful 1410 to replace the 1401. Software and peripheral equipment for the 1401 worked with the newer machine. Customers and IBM sales loved that fact. Poughkeepsie’s engineers were close to completing work on a set of four computers known as the 8000s that were compatible with the 7000s.Photo: IBM To get the S/360 off the ground, T. Vincent Learson compelled engineering factions within IBM to cooperate.
T. Vincent Learson—known as Vin or T.V.—was in charge of future product development as the vice president of manufacturing and development. A gifted problem solver, he knew he had to move quickly to break down the rivalry between Endicott and Poughkeepsie. IBM’s CEO at the time, Thomas J. Watson Jr., later described what happened: “He did it by applying a management technique called ‘abrasive interaction.’ This means forcing people to swap sides: taking the top engineer from the small-computer division and making him boss of the best development team in the large-computer division. A lot of people thought this made about as much sense as electing Khrushchev president.”
Learson replaced the Poughkeepsie manager in charge of the 8000 project with Bob O. Evans, who had served as the engineering manager for the 1401 and 1410. Evans favored compatibility across all future products. After 90 days in his new role, Evans recommended that work on the 8000s be stopped and that both sites begin working “to develop a total cohesive product line.” He also proposed a bold new base technology for all future systems, called Solid Logic Technology (SLT), to make IBM’s machines more competitive.
Frederick P. Brooks Jr., who led the design team for the 8000, fought back. Evans and Brooks were formidable opponents. The two engineers both had years of experience running engineering and product development activities at IBM, and they were articulate and highly respected by their staffs and senior management. Brooks was not as high ranking as Evans, so Learson brought in Jerrier A. Haddad, who had spent the previous two years in charge of the Advanced Engineering Development Division, to study the proposed approaches of Evans and Brooks. Haddad recommended going with Evans’s ideas, and Learson killed the 8000 project in May 1961.
Bob Evans immediately asked Brooks to develop the plan for a compatible family of computers. Brooks was flabbergasted, but he accepted, and with that the two engineering communities stopped feuding and began collaborating. There were still opponents in the company, but no matter—the trajectory toward a common system had been set.Photos: IBM Bob O. Evans [left] recommended killing IBM’s larger 8000 mainframe in favor of a new line of compatible computers. Frederick P. Brooks Jr. [middle], who led the 8000’s design, objected, but Jerrier A. Haddad [right] sided with Evans. Evans then asked Brooks to work on the new line, which became the S/360.
Learson also assigned John W. Haanstra, president of the General Products Division, which produced the 1400s, to chair an internal task force called SPREAD (for Systems Programming, Research, Engineering, and Development), with Evans as vice chair. Brooks later joined the task force. In December 1961, the group presented its technical recommendations.
Their report called for five compatible computers, labeled processors (defined as the computer, its memory, and channels to connect to peripheral equipment). The software and peripherals for one processor were to work with all other processors. The plan called for using standard hardware and software interfaces between computers and peripherals, such as between disk drives and tape drives connecting to computers, so that the peripherals did not have to be swapped out when a new processor was installed. The recommendations became the basis for the System/360.
Because so much would be new, the processors would not be compatible with IBM’s existing products. That was an enormously important point. Customers moving to the new IBM machines would have to rewrite existing software just once to get on the path of the new system.
Then, IBM got a lucky break. As one engineer wrote, “Almost miraculously [Evans’s] vision of the new product line was saved by a last-minute technical accomplishment. In mid-1963, engineers in the Poughkeepsie and Endicott laboratories had begun exploring the possibility of adding special microcode to the control stores of computers to improve their performance when simulating earlier IBM computers.” This function would allow 1401 software to run in the two smaller models of the proposed new system, only faster. Sales got on board, and its executives began pressuring R&D and manufacturing management for early introduction of the new processors.
Watson recognized what was at stake, as he recalled in his memoirs:
From the beginning they faced two risks, either of which was enough to keep us awake at night. First there was the task of coordinating the hardware and software design work for the new line. They had engineering teams all over America and Europe working simultaneously on six new processors and dozens of new peripherals…but in the end all of this hardware would have to plug together. The software was a bigger hurdle still. In order for System/360 to have a common personality, hundreds of programmers had to write millions of lines of computer code. Nobody had ever tackled that complex a programming job, and the engineers were under great pressure to get it done.
A second set of problems involved manufacturing the electronic components for the new systems. The electronics industry was starting to work on integrated circuits, and the new computers were going to be filled with these new components. To be independent, IBM had to make its own. It proved to be an expensive proposition.
Eventually, the corporate management committee, including Watson and the board of directors, sucked in a deep breath and approved the SPREAD recommendations. IBM was off to the races in the wildest ride of its history.
IBM could not hide what was going on. New employees flocked to Endicott, Poughkeepsie, and other labs and plants. Customers heard rumors, the computer press was speculating, and executives at GE, Honeywell, Sperry Univac, and elsewhere were trying to anticipate what IBM would do.
At IBM, nobody seemed satisfied with progress on the new system. Engineering, manufacturing, sales, and corporate staff were in many cases working 100-hour weeks. Engineers moved cots into their offices. When Watson stopped in to see how programming was going, an engineer yelled at him to get out so he could work. The chairman of IBM beat a hasty retreat.Photos: IBM On 7 April 1964, a train from New York City’s Grand Central Terminal shuttled reporters to Poughkeepsie, where IBM chairman Thomas J. Watson Jr. officially unveiled the System/360.
It all became public at noon eastern time in the United States on 7 April 1964. Over 100,000 customers, reporters, and technologists met in 165 U.S. cities, while others gathered around the world over the next few days to hear the news. As Watson declared at a press conference in Poughkeepsie, it was “the most important product announcement in the company’s history.”Photo: Mark Richards/Computer History Museum Among the System/360’s 44 peripherals was the 2311 disk storage drive. Each removable disk pack stored 7.25 megabytes.
On that day, IBM introduced a mind-boggling 150 new products: 6 computers; 44 peripherals, including tape drives, disk drives, printers, and control units; and a promise to provide the software necessary to make everything work together. The press packet was an inch thick, and manuals describing all the machines, components, software, and their installation and operation filled more than 50 linear feet.
The central feature of the System/360 was, of course, its compatibility. A growing data center could install a small 360 computer and later upgrade to a larger one without rewriting software or replacing peripheral equipment. Once familiar with the system, one did not have to learn a great deal more to handle an upgrade. The name 360 was chosen to suggest the idea of 360 degrees, covering everything.
In the first month following the S/360 announcement, customers worldwide ordered over 100,000 systems. To put that number in perspective, in that same year in the United Kingdom, all of Western Europe, the United States, and Japan, there were slightly more than 20,000 computers of any kind installed. The first deliveries of the smaller machines were promised for the third quarter of 1965, and deliveries of the larger ones in the first quarter of 1966. The delay between announcement and shipping date gave customers time to decide which models to acquire, get them approved and budgeted, plan on where to house them, train staff, complete software remediation, and so forth. With the April announcement, IBM bought itself two years to make good on its promises and knock competitors back on their heels.
From 7 April to when the company started delivering machines to customers, IBM entered the most dangerous, intense, and challenging era of its history. The company spent US $5 billion (about $40 billion today) to develop the System/360, which at the time was more than IBM made in a year, and it would eventually hire more than 70,000 new workers. Every IBMer believed that failure meant the death of IBM.
As Watson later recalled, “Not all of the equipment on display [on 7 April] was real; some units were just mockups made of wood. They explained that to their guests, so there was no deception. But it was a dangerous cutting of corners—not the way I think business ought to be done—and an uncomfortable reminder to me of how far they had to go before they could call the program a success.”
Watson assigned his brother, Arthur, to manage engineering and manufacturing going forward. Learson would run sales for the new system, “twisting the tails of their salesmen.” Tom Watson Jr. thought Learson had the more difficult task. The risk of customers converting to someone else’s machines rather than to the S/360 greatly concerned Watson.Photo: IBM IBM promised to begin delivering the first S/360 machines in the third quarter of 1965. Production problems emerged almost immediately.
As the number of orders for the S/360 kept increasing, manufacturing was asked in 1965 to double production. One production manager said it could not be done and was replaced. Quality declined. Some of the electronic circuits within an SLT, for example, were not complete, so electrons could not go where they were supposed to. By the end of the year, the quality control department had impounded 25 percent of all SLT modules, bringing production to a halt.Photo: IBM With the S/360, IBM introduced its solid logic technology (SLT), a precursor to integrated circuits. Doubling the production of the S/360 in 1965 led to defects in a quarter of the SLT modules.
After the problems were solved, manufacturing proceeded in 1966, resulting in 90 million SLT modules bring produced, compared to just 36 million the previous year. IBM opened a new plant in East Fishkill, just south of Poughkeepsie, which made more semiconductor devices than all other manufacturers worldwide combined. Production also expanded to new facilities in Burlington, Vt., and in Corbeil-Essonnes, France.
To resolve manufacturing problems with the ferrite-core memories, IBM set up a plant in Boulder, Colo., in 1965. But it took the craftsmanship of workers in Japan to get the production of memories up to the required amounts and quality.Photo: Mark Richards/Computer History Museum The S/360’s ferrite-core memory also proved extremely tricky to manufacture. This plane contains 1,536 memory cores.
As manufacturing became a worldwide effort, new problems arose in coordinating activities and fabricating machines. Arthur Watson had some experience managing IBM’s small factories outside the United States but none with resolving engineering problems, let alone massive global problems in development and manufacturing. He was out of his league, and his brother challenged him to resolve the problems. Meanwhile, Learson and his sales teams wanted additional improvements to the product line. Relations between Learson and Arthur completely deteriorated. In October 1964, IBM announced significant delays in shipping products.
Tom removed Arthur from his job and turned over his responsibilities to Learson, who in turn brought in four engineering managers to punch through the problems. Nicknamed the “four horsemen,” they had full authority worldwide for getting the S/360 manufactured and delivered to customers. Their collection of problems, one of the managers noted later, was “an absolute nightmare,” “a gray blur of 24-hour days, seven days a week—never being home.” And yet, in five months, they had worked out enough of the problems to start meeting delivery dates. In January 1966, Learson became president of IBM.Photos: IBM Facing unacceptable production delays, Learson brought in [left to right] Henry E. Cooley, Clarence E. Frizzell, John W. Gibson, and John Haanstra, who sorted out manufacturing problems worldwide and got the S/360 back on track.
Arthur was shunted into the role of vice chairman. His career was broken, and he retired in 1970. In his memoirs, Tom Watson Jr. admitted to being in a nearly continuous panic from 1964 to 1966 and deeply regretted his treatment of Arthur. “I felt nothing but shame and frustrations at the way I’d treated him…. As it was, they remade the computer industry with the System/360, and objectively it was the greatest triumph of my business career. But whenever I look back on it, I think about my brother I injured.”
Software problems also slowed production of the 360. The software development staff was described as being in “disarray” as early as 1963. The operating system, called OS/360, struggled to run more than one job at a time, which was essential to making the S/360 fast and productive. Other problems surfaced with telecommunications and with application programs. Programming support became another contentious issue.
Fred Brooks volunteered to help, and IBM added 1,000 people to the operating system project, costing the company more for software in one year than had been planned for the entire development of the S/360 system. But throwing more programmers at the project did not help. Based on the S/360 experience, Brooks would later expand on that theme in The Mythical Man-Month (Addison-Wesley, 1975), still one of the most widely read books on computing. The software would take years to complete, but in the end it worked well enough to keep the shipping delay to one month.Photo: IBM A System/360 arrives at Tokai Bank in Japan. Demand for computing grew enormously in the years following the S/360’s launch.
Despite the costs and anxiety, in 1965—the year IBM had committed to shipping the first units to customers—it managed “by some miracle” (Watson’s words) to deliver hundreds of medium-size S/360s. Their quality did not always match the original design specifications. Shortages of parts, other parts that did not work, and software filled with bugs spread to many countries. Almost every initial customer encountered problems.
Branch offices were hiring systems engineers to help. SEs were college graduates, usually with technical degrees, who knew how to debug software and assisted the sales force in selling and supporting computers. The SEs heroically tackled S/360’s software problems, while field engineers, who installed equipment, fixed hardware problems. Salesmen calmed their customers, while branch managers worked to keep their staffs motivated and focused.
And despite the many problems, “customers were still ordering 360s faster than they could build them,” Watson recalled, forcing delivery dates out as much as three years. By the end of 1966, customers had taken delivery of nine models of the S/360, for a total of 7,700.
IBM’s competitors responded. Burroughs, GE, Honeywell, NCR, and Sperry Rand, operating largely in the United States, CII in France, and ICT (later ICI) in Great Britain introduced systems compatible with one another’s machines, but not compatible with IBM’s. A second, smaller group chose to manufacture machines that were compatible with IBM’s, including RCA and others in Europe and Japan, relying on RCA’s licenses.Photo: IBM NASA purchased a number of S/360s, including this one at Goddard Space Flight Center. Several others at mission control in Houston were used to monitor Apollo 11.
Five years later, the worldwide inventory of installed IBM computers had grown to $24 billion, while that of competitors had reached $9 billion. In other words, IBM’s S/360 increased overall demand for computing so massively that it raised all boats. The industry’s annual growth in the second half of the 1960s was in double digits year over year, as many thousands of organizations expanded their use of computers. Demand for computing grew because of the technological innovations brought forth by IBM, but also because users were accumulating enough experience to understand a computer’s value in driving down costs and performing new functions.
IBM also grew, more than doubling from 127,000 employees worldwide in 1962 to 265,000 by the end of 1971. Revenue rose from $3.2 billion in 1964 to $8.2 billion in 1971.Photo: IBM The S/360 reinforced IBM’s domination of the global computer business. One executive, asked whether the company would ever take on another such project, replied, “Hell no, never again.”
Because the S/360 was the heart of much computing by the end of the 1960s, its users constituted a world of their own. Thousands of programmers only knew how to use software that ran on S/360s. Additional thousands of data-processing personnel had worked only with IBM equipment, including keypunch machines, printers, tape drives, disk drives, and software, which in many instances took years to master. By the early 1970s the computing space was largely an IBM world on both sides of the Atlantic, in the emerging markets in Latin America, and in Japan.
Years later, when asked whether IBM would ever engage in such a massive project again, one executive barked out, “Hell no, never again.” Watson tilted toward a similar reaction. Commenting in 1966, he said, “At their size, they can’t go 100 percent with anything new again,” meaning anything that big. After the 360, Watson made it a policy “never to announce a new technology which will require us to devote more than 25 percent of their production to that technology.”
The generation that brought out the S/360 remained unique in the company, a special clan bonded ferociously to IBM. Careers had been made and broken, personal lives and marriages upended. IBMers did not know at the time how extensively their products would change the world, but they do.
This article is based on excerpts from IBM: The Rise and Fall and Reinvention of a Global Icon (MIT Press, 2019).
James W. Cortada is a senior research fellow at the University of Minnesota’s Charles Babbage Institute. He worked at IBM for 38 years in sales, consulting, managerial, and research positions.
IBM is aiming to re-invent itself in a new hardware era where it no longer sells x86 based servers. IBM sold off its x86 server business to Lenovo in a $2.3 billion deal that officially closed on October 1.
Doug Balog is the General Manager of Power Systems within IBM's System and Technology Group and it's his job to advance the Power server market position in the new non-x86 era at IBM.
As contrast to the x86 business, which was largely about Linux, IBM's Power business includes two other operating systems. IBM Power runs and supports both the AIX Unix as well as the IBM i operating system that was originally known as AS/400.
In a video interview, Balog explains how the different operating systems supported by Power all relate.https://o1.qnsr.com/log/p.gif?;n=203;c=204660774;s=9478;x=7936;f=201812281339040;u=j;z=TIMESTAMP;a=20403972;e=i
"We have a long and wonderful history with both IBM i and AIX, that run many retail companies, banks, telcos and governments around the world," Balog said. "They are running core business applications and in most cases those applications aren't going away."
Balog emphasized that he is continuing to invest in IBM i and AIX to serve client needs. When it comes to new applications though, the focus is in another direction. He explained that new mobile, web and analytics applications tend to be built with an open stack of software development tools, which is where Linux fits.
That doesn't mean that the different operating system cannot all work together on the same Power platform. IBM offers its users the choice of native Linux KVM or PowerVM for virtualization.
"PowerVM is the platform that will allow multiple operating systems to run," Balog said. "So if you're running AIX and you want to attach to that some Linux partitions, that's a great answer for it."
Watch the full video with Doug Balog below:
Sean Michael Kerner is a senior editor at Datamation and InternetNews.com. Follow him on Twitter @TechJournalist
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