IBM also gave huge discounts to governmental agencies.  The result of this 
policy was to cause governments and educational institutions to choose IBM's 
computers over other competitors' that were more expensive.  And, since these 
types of customers tend to purchase rather than lease really expensive items, 
they were locked in to the IBM brand for a much longer time than commercial 
customers which typically leased the same equipment.  Universities also tended 
to skew their computer science curricula with courses based on IBM software, 
operating systems, and hardware, because that was the equipment available for 
the students to run their test jobs on.  Students graduating with degrees in 
computer science and with a lot of collegiate experience with IBM equipment 
tended to want to continue working with IBM equipment when they entered the job 
market.  These new hires who moved up into management and had authority to 
select computer equipment also tended to want to obtain IBM equ!
 ipment, as they were more familiar with that than competitors' equipment.  
What started out as an apparently benevolent policy produced a strong brand 
addiction, resulting in a major market share for many years.

Bill Fairchild

Software Developer 
Rocket Software
275 Grove Street * Newton, MA 02466-2272 * USA
Tel: +1.617.614.4503 * Mobile: +1.508.341.1715
Email: [email protected] 
Web: www.rocketsoftware.com


-----Original Message-----
From: IBM Mainframe Discussion List [mailto:[email protected]] On Behalf Of 
Bob Shannon
Sent: Wednesday, June 24, 2009 4:57 PM
To: [email protected]
Subject: Re: Another one bites the dust

IBM used to give huge discounts to universities. About 15-20 or so years ago 
they did away with the discounts and universities started migrating off the 
mainframe.

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