Phil, This seems to be a bit of a stretch. In your original statement about 85% profit margin, you said "With a gross margin on mainframe software around 85%, surely IBM would fall over its own feet if another supplier were to promote z/Architecture in a credible way to new accounts and expand the zArchitecture installed base." Now to backup this claim, you point to IBM's corporate SEC filingm which states that the Gross Profit Margin for ALL IBM software, not mainframe software, was 84.6%. Please provide some proof behind the claim that "mainframe software" has an 85% profit margin! Wayne Driscoll Product Developer JME Software LLC NOTE: All opinions are strictly my own.
-----Original Message----- From: IBM Mainframe Discussion List [mailto:[EMAIL PROTECTED] On Behalf Of Phil Payne Sent: Friday, December 22, 2006 7:21 PM To: [email protected] Subject: IBM sues maker of Intel-based Mainframe clones > I'm just guessing but 85% gross margin seems way too high. At 85%, > the customers would be throwing a royal fit and the FTC would be sharpening their fangs to take another huge bite out of IBM. 15% is probably more likely. I refer the honourable gentleman to Page 39 of IBM's latest quarterly SEC filing at http://www.sec.gov/Archives/edgar/data/51143/000110465906069905/a06-1906 2_710q.htm For the nine months ended 30 September 2006 IBM's gross margin on software was 84.6%. I apologise to IBM for overstating the figure as 85%. -- Phil Payne http://www.isham-research.co.uk +44 7833 654 800 ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
