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CAMBRIDGE, Mass., and REDMOND, Wash., Sept. 15, 1999 — Lotus building Corp. and Microsoft Corp. today introduced their intent to combine Microsoft® windows Media TM applied sciences into Lotus’ Notes free up 5 and Domino release 5 collaboration application items by way of IBM’s HotMedia join technology. This strategic distribution, development and licensing contract will carry the advantages of Microsoft streaming multimedia technology to potentially tens of thousands and thousands of Notes and Domino R5 users international in addition to tighten the combination between Lotus and Microsoft technologies.
“Our purchasers demand the absolute best integration between Lotus and Microsoft products,”spoke of Jeanette Horan, Lotus’ vice president of communications product building.“Lotus Notes and Domino R5 already seamlessly use key Microsoft technologies akin to windows® , IIS and information superhighway Explorer. the combination of windows Media applied sciences will extend the streaming media alternatives attainable to users of Notes and Domino R5, whereas adding to the performance and richness of Lotus’ industry-main collaboration environment.”
“This contract builds upon each the great and integration their shared purchasers have come to expect,”spoke of Anthony Bay, common supervisor, Streaming Media Division at Microsoft.“nowadays’s announcement demonstrates the demand for and adoption of the windows Media technologies platform for business functions.”
because of the settlement, Lotus will deliver a powerful multimedia platform that allows for Lotus company companions and developers, Microsoft developers, value-added resellers and consumers to readily construct and set up wealthy multimedia functions for corporate workgroup conversation, working towards and media streaming on the web. groups will even be in a position to incorporate windows Media content into documents for use by the use of net browsers and Lotus Notes R5 valued clientele for more convenient, extra flexible media entry and administration. This platform will use core facets in Notes and Domino R5 corresponding to industry-leading security and replication for graphical solutions that are more secure, easier to control and share, and complement a firm’s entertaining network gadget.
at the beginning Lotus plans to ship a version of Microsoft home windows Media participant with an upcoming edition of Lotus Notes and Domino release 5. Lotus and Microsoft intend to combine upcoming versions of windows Media applied sciences with a future update edition of Notes and Domino R5 by way of HotMedia connect for Domino technology. additional availability and pricing details should be introduced next 12 months.
IBM’s HotMedia join for Domino is a unique expertise that serves as the middleware for IBM structures and items to seamlessly integrate streaming audio and video items similar to windows Media technologies. HotMedia join for Domino provides interactions and scorching links and assembles the complete kit into one file that can also be simply delivered to an internet page or Domino application and delivered over these days’s networks. It makes it possible for Notes R5 and Domino R5 to aid streaming applied sciences whereas permitting users to view, pay attention, save, share and manage media clips from their Domino R5 databases or documents. The HotMedia connect for Domino application will expose windows Media technologies capabilities through interfaces and design paradigms regularly occurring to Notes and Domino R5 users and developers, making it standard to construct media applications in a Notes and Domino R5 atmosphere.
Lotus Notes and Domino R5 presently offer tight integration with Microsoft technologies corresponding to information superhighway Explorer browser utility, information superhighway advice services (IIS), the FrontPage® net website introduction and management tool, the visual basic® development device and the home windows operating equipment for customers who decide to utilize Microsoft items with Lotus’ powerful messaging and utility building platform.
About Lotus building
Lotus construction Corp., based in 1982, is a subsidiary of IBM Corp. Lotus units the common for in fact inventive utility products and services that mirror the enterprise’s entertaining knowing of the brand new approaches in which people and agencies should work collectively to achieve success. Lotus is redefining the thought of conducting company through purposeful potential management, e-enterprise and different groundbreaking techniques of connecting the world’s ideas, thinkers, patrons, dealers and communities via the internet. Lotus markets its products in more than eighty nations international via direct and huge enterprise partner channels. The company also gives a large number of professional consulting, aid and training features through the Lotus professional services corporation.
About home windows Media technologies
windows Media applied sciences is a leading digital media platform, proposing consumers, content suppliers, answer providers, utility builders and corporations with unmatched audio and video first-class. home windows Media technologies version four, which comprises windows Media player, home windows Media features, home windows Media tools and home windows Media Audio SDK, is attainable for free down load at http://www.microsoft.com/windows/windowsmedia/ (connect-time fees might also apply). Over 40 million copies – multiple each 2nd – of the free home windows Media participant have been downloaded to this point.
WindowsMedia.com, part of the MSN TM network of internet features, is the quickest-growing to be predominant audio and video book on the web. WindowsMedia.com provides access to localized audio and video content material users international, together with over 600 radio stations and principal tune and video activities from greater than 1,000 content material providers. extra counsel about windows Media applied sciences is purchasable at http://windowsmedia.com/ .
About Microsoft Corp.
centered in 1975, Microsoft (Nasdaq“MSFT”) is the global leader in application for private computer systems. The business presents a wide array of items and features for enterprise and personal use, each designed with the mission of making it simpler and greater wonderful for people to take expertise of the complete power of private computing day by day.
Microsoft, home windows Media, windows, FrontPage, visible fundamental and MSN are either registered emblems or trademarks of Microsoft Corp. in the united states and/or different international locations.
Lotus and Lotus Notes are registered trademarks and Domino and Notes are trademarks of Lotus development Corp.
foreign business Machines (IBM) is a registered trademark and HotMedia connect and HotMedia connect for Domino are emblems of IBM Corp.
different product and business names herein can be logos of their respective homeowners.
observe to editors: if you have an interest in viewing more information on Microsoft, please consult with the Microsoft internet page at http://www.microsoft.com/presspass/ on Microsoft’s company guidance pages.
For IBM, the future of each was and Domino is naturally all about how most efficient to integrate the product households in terms of both feature and developer communities. clearly with recent product versions, this technique has all started. How might also this integration have an effect on utility design choices that need to be made these days? They believe this query in here part.towards Open necessities
A key problem in the web utility server and capabilities market is the alternative between the use of open requisites vs. proprietary programming interfaces. Or, to be blunt, J2EE versus .internet. As is neatly documented, an open requirements groundwork is an incredible part of IBM's strategy within the industry. was, being an implementation of J2EE and now internet capabilities specifications, will proceed down the open requirements road. Domino, having an extended product historical past, will continue to comprise open usual interfaces.
a different signal of the have an impact on that the internet application mannequin is having on Domino are the iNotes and, extra recently, the Lotus workplace products. traditionally, Lotus Notes turned into a shopper/server architecture based on the characteristic wealthy Notes client and the Domino server. With Domino R5 and iNotes, browsers grew to be a widespread customer. Lotus iNotes for net entry, despite its browser dependencies, became a crucial step alongside the direction to provide Notes client characteristic by means of the net browser. The Lotus office product is the latest step along this direction.
Browser-based mostly client feature is crucial for functions that combine a number of, often disparate forms of function on a single browser screen—the so-called internet portal. as an example, the usage of the WebSphere Portal Server product, you can combine transaction processing under WebSphere with e mail, calendar, and other Domino functions. consequently, you can now assemble an internet utility that looks and feels like an extension of the iNotes utility, leading to a single, browser-primarily based desktop from which users can entry the entire functions that they use on an everyday basis.
It is probably going that IBM will proceed to provide client function by means of the browser and boost the was and Domino functions that can also be introduced in a portal context.Convergence of function
the combination between become and Domino also will ensue with services that span each products. safety is the prime illustration. IBM has implemented single signal-on (SSO) aid between Domino and WebSphere. SSO lets clients authenticate once when having access to each Domino records (databases, documents, fields) and changed into substances, similar to HTML, servlets, JSPs, and EJBs. here's achieved by way of sharing an encryption mechanism used for passing user credentials and sharing a typical consumer registry the usage of LDAP.
an additional enviornment of average characteristic is facts storage. they are able to see that Domino's facts storage know-how (the NSF database) has already benefitted from synergy with different IBM database products, principally DB2. Domino R5 provided faster healing and stronger reliability for its records save the use of transaction logging. they are able to expect this sort of synergy to proceed, possibly leading to convergence of Domino's doc statistics save with the relational mannequin.
IBM and Lotus will proceed to meld their product families into one. Lotus k-station (Domino's portal server) has already been merged into WebSphere's portal server as a single portal solution with the benefits of each products. IBM's fresh circulation to allow WebSphere workloads on its iSeries dedicated Servers for Domino (DSD) line of servers is a great indication that IBM knows how important this integration is.
an extra exquisite merchandise is the Domino Collaboration Objects for Java. IBM and Lotus say their intent isn't to lengthen Domino but to supply a greater intuitive interface to Domino objects with fewer Java strategies and classes. The present array of objects comprises right here:
CalendarEntry (to look calendars and create new entries)
Mail (to compose and ship e-mail)
Login and workflow initiation features
As for Domino's natural programming atmosphere, do not expect IBM will abandon LotusScript. Lotus Notes and Domino have a giant customer base of clients and builders the usage of LotusScript-based mostly applications. persisted guide for this language is unquestionable. As new classes and houses are developed for LotusScript, equivalents for Java will observe. certainly, the intent is that J2EE (Java) programmers can also be proficient to work with Domino without having to study a new language.Evolution of WebSphere
So, if the way forward for Domino is WebSphere, what's the way forward for WebSphere? because turned into is IBM's implementation of the J2EE regular, the evolution of J2EE will generally investigate what WebSphere turns into.
IBM is dedicated to building probably the most complete and premier-performing utility server in line with the J2EE common. and since many areas are not covered by means of the common, IBM can be inventive and add value by way of presenting add-on aspects that make WebSphere greater commercial enterprise able. IBM is additionally adding application items and proprietary extensions to the bottom WebSphere product to satisfy wants expressed in the industry.
IBM updates become each six months or so with a massive liberate. each edition of WebSphere gets a bit less demanding to install and manipulate, but the actual endeavor is in the extensions and purposes. accept as true with the following:
With WebSphere MQ, IBM implements the Java Messaging capabilities (JMS) standards. a large number of connectors to CICS and different legacy methods and middleware are additionally planned or shipping.
IBM has rewritten internet.Commerce into Java to run under WebSphere because the WebSphere Commerce Suite—a high-powered storefront equipment.
IBM has grafted speech awareness know-how (as well as its vaunted country wide language support) onto WebSphere.
IBM has implemented portals, wireless support, and B2B capabilities as Java applications that run within the WebSphere ambiance.
IBM is relocating its legacy connectivity products to the WebSphere atmosphere with offerings reminiscent of WebFacing on the iSeries and Host publisher.
IBM has leveraged Lotus' skills with its ERP Connectors and brought a couple of WebSphere adapters that are in keeping with Lotus LEI connector applied sciences.
WebSphere is the logical place for IBM to create new applications because they can also be leveraged over the entire eServer line. predict a steady move of WebSphere-primarily based products from IBM over the following couple of years. Watch areas like content management, device management (Tivoli is already starting to play in these areas with its coverage supervisor), collaboration, and application accelerators.
Tooling for constructing WebSphere purposes is also advancing swiftly with the new WebSphere Studio products. in accordance with the open-supply Eclipse project, IBM has changed VisualAge for Java and the ancient Studio product and brought new aid for XML and web functions. For one of the IBM hardware platforms, such as the iSeries, IBM is adding platform-particular extensions to assist in utility construction and integration.
a big question is the Lotus Domino dressmaker client. or not it's complicated to see how IBM will merge this with the WebSphere tooling. You may additionally see, despite the fact, more advantageous Domino deployment alternate options for objects developed in the WebSphere Studio equipment.
IBM has already repositioned a couple of product strains and positioned them beneath the WebSphere umbrella. Is Domino next? Will they see a WebSphere Mail and Collaboration Server? Assuming that there could be a brand new integrated WebSphere/Domino Server in the future, it will be worthwhile to retain an eye fixed on WebSphere and J2EE evolution.
IBM's new Lotus Notes/Domino 6.0 contains myriad points for more advantageous administration and usefulness. Yet if you are planning an upgrade from unencumber 5.x -- or a migration from Microsoft change, for example -- is it enhanced to move ahead now, or to wait for a while? Analysts see merits to both approach.
"R6 is a really match upgrade. It offers the usability and scalability they have been looking ahead to given that 5.x., and it takes care of the important things they had been concerned about," maintains Joyce Graff, vice chairman and analysis director at Gartner neighborhood.
in the heated combat between Notes and alternate, Microsoft has been attempting to entice away Lotus users via mechanisms similar to Microsoft software Analyzer, a brand new software product for planning migrations to alternate.Notes/Domino R6, however, heightens definite merits that Lotus already held over trade anyway, in the opinion of some analysts. in fact, some trade customers will go away Microsoft Outlook on the desktop, while transitioning to Lotus as the server engine, in line with Jasmine Noel, who is major at JNoel friends.
"Lotus runs (smartly) on consolidated or clustered servers. on account of the weak financial system, IT departments had been instructed to consolidate. dispensed methods have loads of excess skill that is not being used, and they're greater costly to manipulate than a single server, or a few clustered servers. IBM believes that if it could actually spread this technology round a long way and quickly ample, it will probably damage the lock Microsoft trade has on back conclusion servers," contends Noel.
Domino also continues to hold management over trade when it comes to workflow administration, in response to Gartner's Graff. "which you can construct extra functions with Lotus," she adds.
'You also can make it seem like Outlook'furthermore, the user interface in 6.0 is competitive with Outlook, in Graff's view. "You could make (6.0) seem like the rest you want. which you could (even) make it appear to be Outlook. I think individuals will discover the consumer interface very appealing."
"The person interface enhancements could be essential to administrators as a result of they will make Domino and Notes less demanding to manage," agrees Craig Roth, vp of web and collaborative thoughts on the Meta group.
Roth additionally facets out that, with the unlock of R6 in early October, Lotus has efficaciously met IBM's currently set 18-month unlock schedule for new variations of Notes/Domino.
the place is 'roaming person' support?Lotus, notwithstanding, did leave out certain aspects initially deliberate for R6. within the release Notes to Notes R6, inclusion of those capabilities is promised for the first renovation unlock.
"when you consider that the beginning of the Notes/Domino 6 building cycle, we've evidently mentioned that first-rate is paramount. To exhibit their stage of dedication, every and each characteristic of the product is tested against a strict set of nice metrics," in accordance with the free up notes.
"because of this thorough checking out, they now have determined that the one copy Template server characteristic, the Roaming consumer characteristic, and the means to study encrypted mail for iNotes internet access can be deferred to the first upkeep unlock of the Notes/Domino 6 code circulation."
Analysts do not believe these omissions to be that massive, basic. "R6 needed to meet stringent standards so as to be launched. some of the standards became that IBM should still be in a position to run its enterprise on it. So i might suppose that the aspects Lotus disregarded were areas that nevertheless vital some work," says Graff.
Of the aspects deferred to the renovation release, roaming consumer aid appears to have essentially the most have an effect on. "Roaming access could be best, but the name might had been extra extreme for it before, anyway," in response to the Gartner analyst. The current economic local weather isn't as conducive to trip and "roaming," she explains.
in the meantime, some techniques administrators have suspected a bug or two in both the remaining release of R6 or the prerelease candidate.."It appears that Notes 6 has a bug when spacing (the) outlines web page. It gets rid of any areas in between the outlines. The usual (R5) page is much clearer and simpler to make use of than the Notes 6 one that destroyed all of the vertical spacing! Notes designer nonetheless suggests the web page accurately, despite the fact," writes one consumer, within the Notes/Domino 6 discussion board on Lotus Developer area.
"R6 worm?" is the title of an additional message, posted to the comp.groupware.lotus-notes.admin newsgroup. "I actually have guidelines deploy in R6 to movement new messages to folders. on occasion, a folder is bolded and suggests a count of 'X' number of unread messages and other instances it would not show that there are unread messages in the folder. i am the use of the release candidate on a win2K machine," according to the posting.
If glitches exist, analysts are not worriedBug experiences are common, even though, principally in "dot zero" releases of "huge, complicated programs" comparable to Notes/Domino, in accordance with Roth. "a lot of agencies typically wait until the upkeep releases come out anyway," he provides. In some situations, suspected application bugs are in reality complications led to by using person blunders, specialists say.
one more choice to the R6 maintenance upgrade is to wait even longer - for the unlock of Notes/Domino 7.0, focused for another 18 months from now, or for RNext, deliberate by means of Lotus for mid-2003.
"When RNext comes out, Domino will work on two totally distinctive structures. RNext will provide a totally contemporary structure, in accordance with (products) like WebSphere and Tivoli," Roth predicts.
Lotus users on faster trackSo far, although, Notes/Domino shoppers were tremendously short to improve, in response to Graff. "Gartner's research shows that greater than 80 % of Lotus users are already at unencumber 5.0 (or above). In evaluation, best about 10 % of Microsoft alternate clients have moved to alternate 2000," says the Gartner analyst.
Administrative enhancements could act as an extra prod to R6 improvements. one of the most well known improvements consist of coverage-primarily based administration; faraway server set-up; computerized fault recuperation; developed-in span manage; and simpler replication, says Tim Kounadis, senior market manager for IBM Lotus utility at big Blue.
» See All Articles via Columnist Jacqueline Emigh
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CAMBRIDGE, Mass., and REDMOND, Wash., Sept. 15, 1999 — Lotus Development Corp. and Microsoft Corp. today announced their intent to integrate Microsoft® Windows Media TM Technologies into Lotus’ Notes Release 5 and Domino Release 5 collaboration software products via IBM’s HotMedia Connect technology. This strategic distribution, development and licensing agreement will deliver the benefits of Microsoft streaming multimedia technology to potentially tens of millions of Notes and Domino R5 users worldwide as well as tighten the integration between Lotus and Microsoft technologies.
“Our customers demand the best possible integration between Lotus and Microsoft products,”said Jeanette Horan, Lotus’ vice president of communications product development.“Lotus Notes and Domino R5 already seamlessly use key Microsoft technologies such as Windows® , IIS and Internet Explorer. The integration of Windows Media Technologies will expand the streaming media options available to users of Notes and Domino R5, while adding to the functionality and richness of Lotus’ industry-leading collaboration environment.”
“This agreement builds upon both the quality and integration their shared customers have come to expect,”said Anthony Bay, general manager, Streaming Media Division at Microsoft.“Today’s announcement demonstrates the demand for and adoption of the Windows Media Technologies platform for business applications.”
As a result of the agreement, Lotus will provide a powerful multimedia platform that enables Lotus Business Partners and developers, Microsoft developers, value-added resellers and customers to easily build and deploy rich multimedia applications for corporate workgroup communication, training and media streaming on the Web. Companies will also be able to incorporate Windows Media content into documents for use via Web browsers and Lotus Notes R5 clients for easier, more flexible media access and management. This platform will use core features in Notes and Domino R5 such as industry-leading security and replication for graphical solutions that are more secure, easier to manage and share, and complement an organization’s unique network system.
Initially Lotus plans to ship a version of Microsoft Windows Media Player with an upcoming version of Lotus Notes and Domino Release 5. Lotus and Microsoft intend to integrate upcoming versions of Windows Media Technologies with a future update version of Notes and Domino R5 via HotMedia Connect for Domino technology. Additional availability and pricing details will be announced next year.
IBM’s HotMedia Connect for Domino is a unique technology that serves as the middleware for IBM platforms and products to seamlessly integrate streaming audio and video products such as Windows Media Technologies. HotMedia Connect for Domino adds interactions and hot links and assembles the entire package into one file that can be easily added to a Web page or Domino application and delivered over today’s networks. It enables Notes R5 and Domino R5 to support streaming technologies while allowing users to view, listen, store, share and manage media clips from their Domino R5 databases or documents. The HotMedia Connect for Domino software will expose Windows Media Technologies capabilities through interfaces and design paradigms familiar to Notes and Domino R5 users and developers, making it simple to build media applications in a Notes and Domino R5 environment.
Lotus Notes and Domino R5 currently offer tight integration with Microsoft technologies such as Internet Explorer browser software, Internet Information Services (IIS), the FrontPage® Web site creation and management tool, the Visual Basic® development system and the Windows operating system for customers who choose to utilize Microsoft products with Lotus’ robust messaging and application development platform.
About Lotus Development
Lotus Development Corp., founded in 1982, is a subsidiary of IBM Corp. Lotus sets the standard for truly innovative software products and services that reflect the company’s unique understanding of the new ways in which individuals and businesses must work together to achieve success. Lotus is redefining the concept of conducting business through practical knowledge management, e-business and other groundbreaking ways of connecting the world’s ideas, thinkers, buyers, sellers and communities via the Internet. Lotus markets its products in more than 80 countries worldwide through direct and extensive Business Partner channels. The company also provides numerous professional consulting, support and education services through the Lotus Professional Services organization.
About Windows Media Technologies
Windows Media Technologies is a leading digital media platform, providing consumers, content providers, solution providers, software developers and corporations with unmatched audio and video quality. Windows Media Technologies version 4, which includes Windows Media Player, Windows Media Services, Windows Media Tools and Windows Media Audio SDK, is available for free download at http://www.microsoft.com/windows/windowsmedia/ (connect-time charges may apply). Over 40 million copies – more than one every second – of the free Windows Media Player have been downloaded to date.
WindowsMedia.com, part of the MSN TM network of Internet services, is the fastest-growing major audio and video guide on the Internet. WindowsMedia.com provides access to localized audio and video content users worldwide, including over 600 radio stations and major music and video events from more than 1,000 content providers. More information about Windows Media Technologies is available at http://windowsmedia.com/ .
About Microsoft Corp.
Founded in 1975, Microsoft (Nasdaq“MSFT”) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.
Microsoft, Windows Media, Windows, FrontPage, Visual Basic and MSN are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.
Lotus and Lotus Notes are registered trademarks and Domino and Notes are trademarks of Lotus Development Corp.
International Business Machines (IBM) is a registered trademark and HotMedia Connect and HotMedia Connect for Domino are trademarks of IBM Corp.
Other product and company names herein may be trademarks of their respective owners.
Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at http://www.microsoft.com/presspass/ on Microsoft’s corporate information pages.
Perhaps in part because of the Y2K problem, most attendees at Lotusphere were unfazed by news this week of the continued delay of Lotus Development Corp.'s Release 5.0 (R5) of its Notes groupware and the Domino server portion of the software.
Most attendees applauded, instead of hissing and booing, at the announcement that R5 will ship next month, rather than be launched at the show as many anticipated, a response which Lotus President and Chief Executive officer Jeff Papows, who delivered the news, admitted he had not expected.
Lotus will spend US$100 million on the R5 launch, its biggest campaign ever, but attendees' attention was already riveted to R5 at the annual Lotus user and developer conference held here.
"They really have dozens of new features," said Stephen Strecansky, Notes infrastructure manager with Towers Perrin, a management consulting company in Philadelphia that has 8,000 Notes users.
One management feature which especially got Strecansky's attention is R5's ability to give managers visual representation of their servers in a number of ways, including by hierarchy, release and operating system.
"I'm responsible for 120 servers worldwide," Strecansky said. "I'm like, 'is Singapore (Notes) 4.6a or 4.6?'"Strecansky said he spends a lot of time writing Lotuscript to go out and look in directories and servers to find out what release his servers are running, information which Lotus has now made easy to discover in R5.
"What I do will change," he said.
R5's network-monitoring features were also singled out as a "major enhancement" by Norman Phillips, a project manager with Procter & Gamble in Cincinnati, Ohio.
"That was one of the key features they didn't have before," Phillips said. "It was becoming a nightmare to try to keep up with it and manage it."
Strecansky of Towers Perrin also welcomed Lotus' decision to put Notes e-mail into SMTP format instead of proprietary Notes format. Previously, Notes mail was created in Notes format and had to be converted to SMTP to be sent via the Internet, he said. That task is invisible to the user but does make demands on the network, he said.
"They're no longer doing the conversion (and even) your Notes-to-Notes e-mail will be SMTP format," Strecansky said. "That'll save a whole bottleneck for us."
The enhancements of the Domino Designer portion of R5, including the use of standard HTML (Hypertext Markup Language) and Web development concepts, were cited by an IT analyst at a pharmaceuticals company in New Jersey who asked not to be identified. Creating frame sets and outlines is very difficult to do in older versions of the software, and the ability to store an entire Web site in Domino without having to design it in Domino will be very helpful, the analyst said.
Another user, who tested R5 in beta, praised the new look of the Notes upgrade, which moves away from the concept of databases. R5 is designed around the concept of a browser with bookmarks and frames so that users theoretically do not have to leave Notes to access their other applications.
"The (older Notes) was rather antiquated," said Lillian Kelley, a Notes and Web design consultant with Technocrats in Bow, New Hampshire. "Notes and the browser -- having it all together I think is great."
But the enthusiasm for R5 in evidence at Lotusphere may not translate into immediate sales, because of the looming change of the calendar to the year 2000. Lotus announced this week that Notes' installed base increased 14 million in 1998, with 5 million users added in the fourth quarter alone, but those rosy figures may be difficult to duplicate in 1999, executives from Lotus and its parent IBM Corp. admitted yesterday.
"I think in larger corporations they are seeing them opt for a (purchasing) freeze," said John M. Thompson, senior vice president and group executive of IBM software group.
Lotus' Papows provided a different perspective.
"Nobody really knows exactly what Y2K is going to do to time-and-attention spans and purchasing," Papows said. In fact, Y2K may prompt a spurt of R5 adoption during the first two quarters of this year before users impose a freeze, he said.
R5 will need to be available soon if there is going to be any spurt, many Lotusphere attendees said. While many attendees were wowed by R5, most said they will indeed shortly go into a deployment-freeze mode because of the year 2000. Given that most companies want to conduct their own testing before deploying new software, Lotus is cutting it close by pushing the availability of R5 to February, attendees said.
Towers Perrin's freeze starts in June, which means "we probably won't move to R5 'til 2000," Strecansky said.
Phillips of Procter & Gamble agreed with that timeframe.
"We're probably not going to make any changes in the latter part of the year, in preparation for the year 2000," he said.
However, the specter of Y2K will not prevent all attendees from implementing new systems this year, including Lineu Carlos Andrade, technical manager at Banco Itau S.A. in Sao Paulo, which has 6,000 Notes users.
"I work in a bank. I finished this (Y2K) subject last year," Andrade said.Join the newsletter!
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April 24, 2019 Timothy Prickett Morgan
The Power Systems business continues to grow, and that is good news for all IBM i shops, particularly for those of us who actively want for there to be boisterous competition in server processors and systems architecture. It comes as no surprise that they think Big Blue still has much to offer when it comes to engineering systems that provide real differentiation in the market. The ongoing growth of Power Systems – maintaining the happiness of the substantial IBM i and AIX customer bases and expanding the Linux base – is what is required for IBM to continue to make the heavy investments in processor and system design that it has done since launching the Power architecture back in February 1990.
IBM has done a bit of rejiggering in its financial reporting segments as it prepares to absorb open source software giant Red Hat, which it offered to acquire for $34 billion last fall, into its organization sometime in the second half of this year. This rejiggering was also done as IBM is preparing to sell the Domino collaboration software and various on premises marketing applications to HCL, sells off its remaining marketing applications to Centerbridge, and has just completed selling off its Seterus mortgage servicing business to Cooper Group. In the first quarter, these businesses represented around $417 million in revenues, so this time next year, when those businesses are gone, the Q1 2019 numbers will be that much lower when looked at from a continuing operations perspective.
The good news is that Red Hat is a $3 billion (annual) software company growing at 25 percent or so, and its numbers will snap in and more than make up the difference. As part of the reporting segment rejiggering, IBM merged its cloud software and so-called cognitive software into one group – cognitive means database, analytics, and transaction processing platforms – and also merged its security services with its security software. The latter makes good sense. I think it is a stretch to call databases, transaction monitors, various middleware, and such “cognitive” but IBM has to try to shape some sort of rejuvenation story that Wall Street will buy – as do all IT vendors that have been around for as long as Big Blue has been.
In the first quarter ended in March, IBM’s total revenues were $18.18 billion, down 4.7 percent, and the company posted net income of $1.59 billion, down 5.2 percent. IBM is generating plenty of cash, although nothing like a hyperscaler does, and finished the quarter with $18.14 billion in cash and securities, roughly equivalent to that first quarter of revenue. IBM is building up its war chest to pay for that Red Hat deal, and is selling those software units above to raise money to pay off Red Hat shareholders, who have given the acquisition the green light. (Regulators in the United States, Europe, and China have yet to weigh in, but they will.)
IBM’s Systems group, which peddles System z and Power Systems servers as well as storage arrays and software and operating systems for these devices, had sales of $1.33 billion to reseller partners and end users, down 11.5 percent, with another $163 million sold to other IBM groups and divisions, up 6.5 percent year on year. Total systems sales came to $1.49 billion, down 9.8 percent. They estimate that within these figures, IBM sold about $907 million in systems hardware (adding up server and storage hardware) externally, down 16 percent, and operating system revenue came in at $428 million, down 2 percent. They reckon that gross profits for all of Systems group were around $628 million, but due to ongoing investments, pricing pressure in the server market in general, higher component costs, an unfavorable mix of System z mainframe sales, and investment in future System z15 and Power10 processors, IBM booked a pretax loss of $202 million in the overall Systems business. That’s basically the same level of pre-tax loss IBM had in the year-ago period. The first quarter is always a bad one for IBM’s profitability in systems, so this is nothing new, and over the course of a full year, Big Blue makes money.
Jim Kavanaugh, IBM’s chief financial officer, said on a call with Wall Street analysts last week that the strong U.S. dollar has once again provided a headwind that diminishes the effect of overseas sales as deals in euro, ponds, yen, renminbi, and other currencies convert into fewer U.S. dollars than they would have a year ago. For IBM overall, if you measured its growth at constant currency, it is only down 0.9 percent, compared to the 4.7 percent decline as reported. For the mainframe, the as GAAP revenue as reported was down 39 percent in the quarter, and almost the same at down 38 percent at constant currency, while for Power Systems the as-reported sales were up 6 percent but were up 9 percent at constant currency. IBM’s storage sales within Systems group fell 11 percent at constant currency but 13 percent as reported. Operating systems revenues, which includes perpetual licenses for IBM i, AIX, and Linux but a much larger chunk that is for monthly licenses for the System z software stack, rose by 2 percent as reported but increased by 5 percent at constant currency.
As they remind you from time to time, the thing to consider for IBM as a whole is just how big its true systems business is, when you add in all of the software, technical support, consulting, outsourcing, and financing that the company does for its System z and Power Systems lines. They take a stab at estimating this every quarter, and this time around, in Q1 2019, they reckon that this real systems business had sales of $5.95 billion, up 4.7 percent, and that its gross profits were around $3.42 billion, up 12.6 percent. (None of this includes IBM’s public cloud revenues, which they could argue belong in here, or its database or application software, which you could add on.)
This way of looking at things makes IBM look as strong in systems as it really is, as opposed to so-1990s-meets-the-2010s way that IBM talks about itself. To be fair, IBM can only talk about itself in a way that it is measuring itself, and clarity has not usually been the precise goal of financial reporting. Just enough clarity to keep investors and regulators happy is the real goal because too much information can cause more problems for a publicly traded company than not enough. In any event, this real systems business foundation represents about a third of the company’s revenues and about 40 percent of its gross profits, depending on the quarter.
That brings us to Power Systems, the iron upon which IBM i runs. This is the sixth consecutive quarter that the Power Systems business line grew, and the push of Linux on Power is paying off, particularly in the HPC space. SAP HANA in-memory processing, and various kinds of data analytics, particularly the kind that uses machine learning with GPU acceleration to provide the training for neural networks. The Power9 upgrade cycle for customers running big workloads on Oracle 11g and 12c as well as IBM Db2 databases is also helping, particularly at the high end of the Power line. “Both the high end and entry level offerings posted strong growth this quarter as clients continue to adopt this new technology,” Kavanaugh said in reference to sales of Power-based iron.
But Power-based storage sales, like the high end DS8800 disk arrays, took it on the chin a bit in Q1 2019, and that was due to the downdraft in the mainframe market, which is due mostly to the fact that the System z14 is in the seventh quarter of its life. It would seem that IBM needs a new generation of mainframes (presumably the System z15), but that probably won’t happen until 2021 or so, when the Power10 chips are also expected to be put into at least two exascale-class supercomputers and also be spread across the more generic Power Systems line.
Based on their revenue model for Power server sales and storage sales based on Power iron (like the DS series), here is how they think the quarter mapped out compared to those since the Great Recession started in 2009:
The first quarters for 2017, 2018, and 2019 have been trending upwards, however slightly, and would have looked even stronger had storage hardware sales not taken a 13 percent dive. Just so you don’t have to squint your eyes there, they think that IBM had $302 million in Power Systems sales – again, including servers based on Power processors as well as a portion of the storage array hardware sales that come from things like the DS series – up 3.8 percent. This does not take into account sales of operating systems for Power iron or sales of Power machinery to IBM’s outsourcing customers. That could have added substantially to the revenue stream from Power, but they have no way of guessing how much that could be. They recently went out on a limb to try to reckon these numbers for all of 2018, and that is about as far as they feel comfortable doing.RELATED STORIES
Power Systems: Driving More Revenue Than Initially Thought
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