On Sat, 11 Jul 2009 22:17:24 -0700, Ed Gould wrote:
>Original URL: http://www.theregister.co.uk/2009/07/08/neon_zprime_mainframe/
>Neon revs cost-cutting mainframewarezPrime risks Big Blue ire
>By Timothy Prickett MorganPosted in Servers, 8th July 2009 22:25 GMT
>
>With around 10,000 footprints worldwide, maybe somewhere around $4bn
>in mainframe sales a year, and heaven only knows how many billions per
>year in monthly rentals for mainframe operating systems, databases,
>and middleware, IBM is very protective of its mainframe franchise
>monopoly.
>
My understanding is that some of the earliest antitrust legslation
was targeted at railroads, natural monopolies, forbidding practices
such as charging higher freight rates on routes where the railroad
had a monopoly, and lower rates where the railroad had competition.
The railroads were required to set uniform rates based on mileage.

>And products like zPrime - while technically doable and presumably
>legally defensible - strike fear into the hearts of IBM's mainframers.
>We've seen this before. IBM put governors on the performance of green-
>screen RPG and COBOL workloads on its AS/400 proprietary minicomputers
>in the late 1990s, and a few different clever software developers
>figured out ways around the governors. This resulted in much
>consternation at IBM, legal battles with the governor buster, and
>eventually a settlement in the courts where the terms of the settlement
>were not divulged. It's widely believed that IBM gained all rights to
>the tool in exchange for cash. (You can see the whole saga here 
> http://www.itjungle.com/tfh/tfh112105-story01.html ).
>
>Because mainframe
>shops pay the highest prices in the world for hardware and software -
>think 2000 prices for hardware and something like 1990 prices for
>software, and I am only half-joking - Big Blue has been tweaking things
>here and there over the years to try to make the mainframe more
>competitive. Different classes of machines have been given different
>pricing, such as lower software fees for entry mainframes a few years
>back. Then customers were given metered pricing options for monthly
>software rentals, based on a metric that IBM calls Metered Software
>Units, or MSUs, which allowed them to pay for software on a
>capacity-over-time basis instead of on a per-machine or per-engine
>basis.In 2000, just after Big Blue caught the Linux bug, IBM decided
>to designate some of the mainframe engines in a processor complex as
>specialty engines, including the Integrated Facility for Linux (IFL),
>which turns a standard mainframe engine into one that can only run
>Linux and workloads that have been ported to the mainframe variants
>of Linux.  (And, as of last November (
> http://www.theregister.co.uk/2008/11/24/ibm_authorizes_mainframe_opensolaris/ 
> ),
>OpenSolaris and its "Sirius" mainframe port can go on the > IFLs).
>The IFL has been very popular at IBM mainframe shops, and has been
>instrumental in the stabilization of mainframe revenues and MIPS shipments. ...

Sounds familiar.

-- gil

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