I have no inside knowledge, but I have a pretty good guess. Remember that IBM cut the cost of z/ VM in half going from version 3 to version 4, and then in half again goin g from version 4 to version 5. Third-party vendors kept their software prices high (a cash co w) so IBM came up with IFL so you could run z/VM and Linux without paying higher third-party pr ices.
This was, clearly, to sell IBM Series z hardware. IBM doesn't get that re venue from FLEX customers. So it has to make the money entirely from the software. I don't think it can at the prices it is now charging. (Just a guess!) Would the FLEX customers be willing to pay 4x o r more as much for z/VM as the Series z customers pay? You say there are customers willing to pay. But are they really willing t o pay what it actually costs IBM, plus the current mark-up? (Remember, if IBM can get more profit some where else, they are going to spend their money there instead.) I think those of you who say this is short-sighted may well be right. I t hink all of American business is short-sighted. The current methods of making a business case and planning simply don't allow for more then a very few years in the future -- at most two o r three. I don't know whether the leaders of our corporations don't think there is much of a future or just think the future is too unpredictable. Either way, the direction seems to be to only worry about the stock price for the next six months. This scares me! Phrases like: - Take the money and run! - Apres moi le deluge! come to mind. I hope I'm just being overly imaginative. Alan Ackerman Alan (dot) Ackerman (at) Bank of America (dot) com On Thu, 13 Apr 2006 12:10:16 -0400, Edward M. Martin <[EMAIL PROTECTED] > wrote: >Hello Alan, > > This is somewhat of a vent. > > Why does IBM Decision Makers drive smaller Clients away from IBM >(specifically z/VM and VSE)? > > The big software about a year ago was CRM. Customer Relations >Management (and other names). > > Peter Ducker (Business GURU up in Colorado) indicates that there >is only one PROFIT Center in any organization. That is a CUSTOMER >willing to pay for your product. > > It does seem (to me) that IBM has customers willing to pay for a >product that IBM has, and IBM is saying 'NO'. > >Ed Martin >Aultman Health Foundation >330-588-4723 >[EMAIL PROTECTED] >ext. 40441 >
