[email protected] (John McKown) writes:
> ​I think I understand why IBM does this, not that I agree with
> them. Look at all the press recently about Wintel (PC sales down) and
> even Linux. It appears that this segment of the "computing population"
> is a low margin segment. IBM simply doesn't want to bother with
> it. They prefer a small number of high margin sales to the bother of a
> large number of low margin sales. I don't know of anything which is
> high margin (profit per unit) and high sales (because most can't
> afford). I wonder what the margin is on z hardware itself (sans
> software). I also wonder what the margins are on the z operating
> systems: z/OS, z/VSE, z/TPF & z/VM.​

re:
http://www.garlic.com/~lynn/2016h.html#55 Why Can't You Buy z Mainframe 
Services from Amazon Cloud Services?

big cloud operators view systems, power, cooling. hardware, people, etc
as costs ... and they have scale of operation that allows them to
aggresively address those costs (for a decade they've been claiming they
build their own systems for 1/3rd the cost of brand name servers)
... huge automation, dramtic reduction in cost of systems (with
extensive investigation into optimal reliability&availability
price/performance), etc. Recent claims that over half server processor
chips to ship to cloud operators also give them huge leverage in the
market.

a couple years ago, mainframe hardware was 4% percent of IBM revenue,
but whole mainframe group (including software & services) was 25% of IBM
revenue and 40% of its profit. past refs
http://www.garlic.com/~lynn/2012m.html#31 Still think the mainframe is going 
away soon: Think again. IBM mainframe computer sales are 4% of IBM's revenue; 
with software, services, and storage it's 25%
http://www.garlic.com/~lynn/2012m.html#67 How do you feel about the fact that 
today India has more IBM employees than any of the other countries in the world 
including the USA.?
http://www.garlic.com/~lynn/2012n.html#13 System/360--50 years--the future?
http://www.garlic.com/~lynn/2012n.html#25 System/360--50 years--the future?
http://www.garlic.com/~lynn/2013.html#17 Still think the mainframe is going 
away soon: Think again. IBM mainframe computer sales are 4% of IBM's revenue; 
with software, services, and storage it's 25%
http://www.garlic.com/~lynn/2013b.html#25 Still think the mainframe is going 
away soon: Think again. IBM mainframe computer sales are 4% of IBM's revenue; 
with software, services, and storage it's 25%
http://www.garlic.com/~lynn/2013b.html#24 New HD
http://www.garlic.com/~lynn/2013e.html#4 Oracle To IBM: Your 'Customers Are 
Being Wildly Overcharged'
http://www.garlic.com/~lynn/2013f.html#35 Reports: IBM may sell x86 server 
business to Lenovo
http://www.garlic.com/~lynn/2013f.html#37 Where Does the Cloud Cover the 
Mainframe?
http://www.garlic.com/~lynn/2013f.html#64 What Makes an Architecture Bizarre?
http://www.garlic.com/~lynn/2013g.html#7 SAS Deserting the MF?
http://www.garlic.com/~lynn/2013n.html#61 Bet Cloud Computing to Win
http://www.garlic.com/~lynn/2014f.html#80 IBM Sales Fall Again, Pressuring 
Rometty's Profit Goal
http://www.garlic.com/~lynn/2014f.html#84 Is end of mainframe near ?
http://www.garlic.com/~lynn/2014j.html#90 Demonstrating Moore's law
http://www.garlic.com/~lynn/2014l.html#95 weird apple trivia
http://www.garlic.com/~lynn/2014m.html#71 Decimation of the valuation of IBM
http://www.garlic.com/~lynn/2014m.html#155 IBM Continues To Crumble
http://www.garlic.com/~lynn/2014m.html#170 IBM Continues To Crumble
http://www.garlic.com/~lynn/2015.html#30 Why on Earth Is IBM Still Making 
Mainframes?
http://www.garlic.com/~lynn/2015.html#85 a bit of hope? What was old is new 
again
http://www.garlic.com/~lynn/2015g.html#19 Linux Foundation Launches Open 
Mainframe Project
http://www.garlic.com/~lynn/2015h.html#20 the legacy of Seymour Cray
http://www.garlic.com/~lynn/2016b.html#52 MVS Posix
http://www.garlic.com/~lynn/2016g.html#69 "I used a real computer at home...and 
so will you" (Popular Science May 1967)

-- 
virtualization experience starting Jan1968, online at home since Mar1970

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