Basically there are a bunch of things that make up TCO.  In a mainframe
solution the hardware makes up more of the costs, people, network
infrastructure, etc make up less.  In a PC server solution it is reversed.
TCO is a very hard thing to define.  I think the mainframe has the deck
stacked against it from the standpoint of a lot of people only looking at
the price of the hardware and thinking they can get by with a PC server.  I
think you really have to do your homework to convince people the mainframe
is the better solution.

> -----Original Message-----
> From: Alan Altmark [mailto:[EMAIL PROTECTED]]
> Sent: Tuesday, February 18, 2003 10:48 AM
> To: [EMAIL PROTECTED]
> Subject: Re: URGENT! really low performance. A related question...
>
>
> > I think that we, and IBM, have taken to resting on our
> laurels, and we
> all
> > refuse to notice that these cheap, unreliable toys are
> catching up to
> the
> > curve. Most of our "excuses" work today still, but in
> another year or
> two, I'm
> > not so sure. And I'm finding it hard right now to stand in
> front of a
> group and
> > tell them that they're better off serving web pages on a
> million dollar
> server,
> > when those same pages can be served by a $299 machine. It
> takes a whole
> lot of
> > virtual Linux images to reach the TOC of a $299 machine.
>
> If you are allowing $299 to be the discussion point, the, yes, your
> laurels have been smashed flat, indeed!  ;-)
>
> $299 is NOT the total cost of ownership (TCO) of the machine.
>  Utilities,
> people, network infrastructure, real estate, etc. all are part of TOC,
> too.  (Watch those people costs, btw....)
>
> Focusing on the technology will lead you down the proverbial
> garden path.
> Focus on the *business*.  When you look at total I/T spending
> as part of
> your business, assuming you know where them money goes (big
> assumption!),
> then it becomes more obvious when mainframes should at least be
> considered.  The technology is just a way to affect the TCO.
>
> But as long a the conversation is limited to *acquisition
> price* instead
> of *cost of ownership*, then no meaningful discussion of the role of
> mainframes can be had.
>
> Alan Altmark
> Sr. Software Engineer
> IBM z/VM Development
>

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