-----Original Message-----
From: IBM Mainframe Discussion List [mailto:[email protected]] On
Behalf Of Gabe Goldberg
Sent: Wednesday, October 28, 2009 1:42 PM
To: [email protected]
Subject: web: Global CIO: As IBM Preps For Justice's Probe, Who Started
This Nonsense? -- ...

Here's a slant on this...

The bureaucrats at the Justice Dept., the European Commission, and a 
trade group called CCIA are looking to take from IBM what their supposed

"victim" could not earn in the free market.

http://www.informationweek.com/news/global-cio/interviews/showArticle.jh
tml?articleID=220600671

<SNIP>

Au Contraire!

IBM's changing of the rules stopped Fundamental Software's FLEX-ES
offering (any one able to buy one and get a new copy of z/OS to run on
it?). They had machines out there, they were running, IBM was licensing
their operating systems for use on them and then pulled the rug.

T3 Technologies (T3T) was selling (IIRC) FLEX-ES machines (made by
Fundamental Software) to the bottom end of the mainframe user world.
Suddenly, their market was taken from them. And I thought they were
planning on selling PSI systems, which is why they joined the lawsuit
that PSI brought. So when IBM bought PSI, to the court (from where I
sit, and not being a lawyer) T3T's arguments became moot (because T3T
was not a PCM?).

Now to the arguments made about IBM not gaining the reward from the R&D
they had done. How many patents does IBM have licensed from Fujitsu that
were the results of Amdahl's R&D? How about HDS? Siemans etc.? Granted,
those patents may have expired by now.

Continuing down this road, if IBM publishes the specifications of its
hardware (Principles of Operations comes to mind), and someone were to
develop a system that implements those standards, what harm has come to
IBM?

IBM, knowing what they do within their SCPs (System Control Programs,
A/K/A, Operating Systems) may not (and does not) publish all the
instructions that their equipment implements. So that the system that is
built on the basis of the Principles of Operations for z/Architecture
will be UNABLE to run an IBM SCP. Now licensing of IBM IP is needed.

Even at that rate, IBM is sufficiently ahead of the game that doing what
Amdahl used to do (x% faster for y% less $$ for similar IBM model) is
nigh unto impossible at this juncture. So, since IBM is leaving the
bottom of the market behind, the opening is really there for the small
shops that IBM apparently isn't interested in marketing to.

This then, is where the market was, from my perspective, for the PCMs at
this point. And IBM has shut the door on them.

What would the costs be to IBM for their software? Well, since IBM has
offloaded marketing and support to their Tier 1 (Tier 2 partners are now
gone in the z/Series world), not much. IBM would be getting the income
from the licensing as they have specified it and the maintenance charges
as they have specified it. If the market share for IBM's z/OS were to
increase, would IBM's profit drop because the support demand would go up
more than the revenue? Or would this wind up being the seeds to
companies growing and needing to move from smaller systems to larger
systems specifically made by IBM?

Lastly, an argument was raised that didn't get answered (to my
knowledge). Is IBM charging their patent license fee(s) with the
purchase of their hardware, or their software, or both? If it is both,
isn't that a double dip situation that makes their patents null and
void?

One might look at the research/documentation done by Phil Payne
(http://www.isham-research.co.uk/ibm_vs_psi.html)

As you can see, this is not so cut and dried.

Regards,
Steve Thompson

-- Opinions expressed by this poster may not reflect those of poster's
employer --

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