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000-853 - i5 iSeries WebSphere Solution Sales V5R3 - BrainDump Information

Vendor Name : IBM
Exam Code : 000-853
Exam Name : i5 iSeries WebSphere Solution Sales V5R3
Questions and Answers : 54 Q & A
Updated On : October 18, 2018
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000-853 exam Dumps Source : i5 iSeries WebSphere Solution Sales V5R3

Test Code : 000-853
Test Name : i5 iSeries WebSphere Solution Sales V5R3
Vendor Name : IBM
Q&A : 54 Real Questions

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IBM IBM i5 iSeries WebSphere

IBM to Ship vision options disaster restoration and methods administration utility with IBM eServer iSeries | killexams.com Real Questions and Pass4sure dumps

November 21, 2005 12:56 ET | supply: imaginative and prescient solutions

IRVINE, Calif., Nov. 21, 2005 (PRIMEZONE) -- vision options, the business normal in eServer high Availability solutions, nowadays announced that they have signed an agreement with IBM to distribute their world-classification catastrophe restoration and programs management software with all IBM eServer iSeries working system, i5/OS. via this software, comparison types of vision's equipment OS Director, OS information Replication and OS records supervisor should be blanketed with every new and improve cargo of i5/OS V5R3 shipped by means of IBM.

"vision options has made it less difficult for iSeries users to control their techniques and information. high availability includes the availability of purposes and information, and it also comprises maintaining an organization's facts to be sure it's up-to-the minute and useable with the aid of employees and purchasers. IBM and its companions allow iSeries availability as one of the industry's greatest," observed Jim Herring, Director, Product administration and business Operations IBM eServer iSeries.

"recent herbal routine akin to Hurricanes Katrina, Rita and Wilma have as soon as once more tested the enterprise want for catastrophe recovery solutions to offer protection to functions and counsel from downtime, both deliberate and unplanned," said Alan Arnold, President of vision options. "vision is satisfied to work with IBM in featuring agencies with the strongest availability and systems-management equipment at their fingertips that are designed peculiarly to fulfill the excessive availability requirements of the i5 firm."

the full latitude of vision's OS options included in this software are:

-- OS Director -- a particularly built-in set of equipment that automates and proactively manages and helps optimize IBM iSeries programs, databases and application environments.

-- OS statistics Replication -- a disaster recovery answer targeted at the SMB market that makes it possible for files to be backed up while clients are on-line making use of IBM's advanced far off Journaling.

-- OS facts supervisor -- A person-based mostly tool that automates the modeling, trying out, purging and archiving actions for IBM iSeries application environments. These solutions provide SMB companies with the solutions for catastrophe recuperation, facts replication and systems management.

vision solutions' award-winning CustomerCare group works without delay with customers to deliver technical aid and assistance for his or her complete product suite. The enterprise's international team of partners ensures that shoppers have the native assist they need, when they need it.

imaginative and prescient options has earned IBM's ServerProven fame, featuring consumers with a relied on seal of approval that ensures that the solutions have been effectively implemented in real-world iSeries environments. The enterprise's purchasers consist of exact Fortune 500 organizations in numerous verticals including finance, manufacturing, distribution and gaming.

For extra suggestions on enabling this trial present, please contact vision solutions at (949) 253-6500 or info@visionsolutions.com.

About imaginative and prescient options

imaginative and prescient solutions, headquartered in Irvine, Calif., is the trade typical in eServer high Availability proposing software, functions and assist options for managing an organization's mission-crucial purposes and records. With more than 2,000 customers and 12,000 licenses everywhere, the enterprise works intently with a world community of channel partners supporting practically every industry with its world-classification solutions: Visualize(tm), vision Suite(r), ORION(tm), ORION Integrator, OS Director and OS facts manager. vision solutions is an IBM Premier business accomplice and an IBM high Availability enterprise associate. imaginative and prescient solutions is a member of the publicly traded IDION group of organizations (JSE:IDI). For greater assistance on vision solutions, please discuss with the business's web page at www.visionsolutions.com.

imaginative and prescient options, Inc. Jennifer Brannon (949) 253-6543

IBM launches new iSeries POWER5-based mostly servers | killexams.com Real Questions and Pass4sure dumps

reader comments Share this story
  • the day past, IBM took the wraps off of their first POWER5 servers:

    IBM today delivered eServer i5, the first methods to be powered by IBM's plenty anticipated POWER5 microprocessors. working i5/OS,? the next generation of OS/400, the new eServer i5 techniques provide small and medium-sized groups with extraordinary power, flexibility and cost merits. Powered via POWER5 microprocessors, the most powerful sixty four-bit chips ever built by using IBM, the IBM eServer i5 can combine and run distinctive operating programs concurrently including i5/OS, windows, Linux and AIX 5L.? The eServer i5 has the potential to run AIX 5L alongside i5/OS to consolidate and control UNIX solutions. IBM's new Virtualization Engine expertise embedded within the new eServer i5 methods lengthen and boost iSeries virtualization capabilities equivalent to logical partioning (LPAR).

    here's a link to a PDF overview of the new i5 systems, and here's some CNET coverage of the launch.

    simply to recap and summarize one of the most coverage, listed below are lots of the crucial points:

  • SMT assist: IBM has made adjustments to the vigor structure to supply support for SMT it is a little bit extra extensive than what you're going to locate in Intel's implementations. I lined SMT (aka "hyperthreading") in ordinary here, and i've lined POWER5's SMT implementation in more element right here.
  • Virtualization support: IBM has added hardware-degree help for working diverse virtual servers on one machine. below this heading, i may additionally community a know-how that lets two separate digital servers living on the same computing device talk an awful lot greater unexpectedly than over Ethernet.
  • Rebranding: In losing the "400" from OS/400 and changing the OS name to i5/OS, IBM desires to movement away from the huge, costly green-monitor association that the old identify invokes; this could confidently make the structure extra captivating within the small-to-medium business market.
  • the entire above should add as much as more suitable performance, and to the types of expense/performance ratios which will enable IBM to move into much less rarified market segments where Intel and sun are at the moment competing.

    if you are attempting to find some very precise insurance and analysis of the two newly introduced techniques, determine right here and here. (These ultimate two links have been spotted over on the RWT boards.)


    IBM chases HP and solar with i5 | killexams.com Real Questions and Pass4sure dumps

    according to the precise brass in the iSeries division, IBM should be pushing on several fronts to develop the OS/400 server company and pump up the OS/four hundred ecosystem on which it relies upon. Timothy Prickett Morgan examines IBM's new strategy...

    both Al Zollar, commonplace manager of IBM's iSeries line, and Cecelia Marrese, vice president of advertising and marketing for the iSeries, have been open about their battle plans for the using the new eServer i5 line of Power5-primarily based servers to get the OS/400 market growing to be again. Mr Zollar lately said that he desired to keep the iSeries line, now the eServer i5, in the press and in the minds of valued clientele as they consider systems.

    And one element IBM will do to make this ensue is to keep significant iSeries announcements coming out at a gentle pace and with the newest IBM technologies. "we are relocating away from large bang announcements and moving on a roadmap the place we now have something gigantic to claim to our purchasers every quarter," Zollar explained. "this can maintain a degree of activity and vitality in the platform."

    it will additionally help with publicity, as the IT exchange press it truly is consumed via IT people, from device admins to chief tips officers, will see a gradual move of i5 bulletins.

    From PR to pricing

    but the strategy goes some distance past that. whereas the consideration is good, the premiere form of sales pitch is a competitive cost for OS/four hundred servers and their connected application. To that conclusion, IBM a couple of weeks in the past reduce reminiscence prices by way of 20 - 60 per cent and reduce storage fees with the aid of 20 per cent, it dropped the cost of activating Power4 and Power5 processors on the iSeries and i5 line, and stated that it might hold the common accessories (similar to server processors, reminiscence, and disks) at parity with the pSeries (quickly to be "eServer p5") Unix server line, which has traditionally had lots reduce listing price tags and tons greater coupon codes than for the iSeries.

    whereas IBM will just about by no means shut the hole at the retail stage (notwithstanding shoppers bring in sun and Hewlett-Packard with aggressive Unix, Linux, or windows methods), the gap is considerably smaller, and the wonderful benefits of the iSeries over the options make it possible to sell against those alternate options. before, the decal rate changed into so excessive on the iSeries that business companions could not even get their foot within the statistics core door to make a pitch.

    With these price cuts, the information center door has opened a crack, and the i5, with its subtle partitioning and varied working equipment guide, has a good opportunity of really compelling CIOs and VPDPs now not handiest to open the door but also to usher in companions to pitch the computing device to solve their issues.

    IBM has always understood that the box count number for the iSeries had to continue to be high if the OS/four hundred ecosystem became to not most effective live to tell the tale, but to thrive. And the cost cuts are key to IBM's plan to raise the field count coming out of the iSeries factories in Rochester, Minnesota, and in Dublin, ireland.

    retaining revenues

    Of direction, with such huge rate cuts for servers, memory, disk, and different core add-ons, this raises the question of how IBM can preserve iSeries hardware revenue, plenty less increase it. It could be that the OS/400 server market is more elastic than IBM's advertising model cautioned.

    IBM had its factors for charging high-fees - it needed the margins as a result of its manufacturing costs were high, and to help pay for its very aggressive battle in opposition t solar and HP in the Unix market, the place it's controversial that IBM may not have broken even as it makes use of pricing as a way of gaining market share.

    Now that IBM has big credibility with the vigour-AIX servers, and sun and HP have backed off a little on rate cuts, IBM has a bit more room. IBM additionally has a bit bit extra space since the iSeries and i5 machines sold in Asia-Pacific at the moment are being in-built eire, the place labor is cheaper and transport charges to Asia are decrease.

    The pSeries manufacturing for Asia-Pacific purchasers also has been moved to ireland, and IBM additionally has a bulk deal with United Parcel carrier to ship from eire to Asia. This, combined with lots of of tiny changes within the supply chain of materials that go into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to get iSeries expenses reduce.

    What about gains?

    IBM cares plenty about revenue increase, however it has all the time cared greater about income increase. So with costs on the iSeries nearly cut by way of forty% with the i5 launch, can IBM develop revenues and retain gains?

    The reply appears to be sure. Zollar says that IBM's plan is to promote greater boxes, which is evident enough, however that he additionally expects IBM and its companions to be able to promote richer configurations of the boxes. My wager is that the commonplace promoting expense of a box isn't as low as you could believe, since the mind-set shift from spending as little as possible to do the bare minimal of labor on an iSeries to spending concerning the identical amount of cash or slightly extra to do a lot more issues with an i5. "I consider there is an immense pent up demand for reminiscence and disk storage," says Zollar.

    Marrese says that the green Streak promotions in late 2000, which finally ended in the revamping of the iSeries line in January 2001, were the first step within the transformation of the OS/four hundred server into a aggressive box. but a beta look at various in March of this 12 months for the model 520 and OS/four hundred categorical packaging that debuted in early may additionally seems to had been what pushed IBM over the facet to delivery reducing prices. Italy, Marrese defined, has a labyrinth of tax laws that make it painful to run a big company, and that's one of the explanation why the nation is teeming with small companies.

    many of these small businesses, it seems, have obtained AS/400 mannequin 150 and mannequin 170 servers. and that they just retain using them and do not improve as an awful lot as IBM would love. within the beta software, IBM took an iSeries mannequin 800, packaged it like the model 520 specific computer (low rate, lots of software, ready to run out of the container), and located out that if it reduce the cost of this configuration in half, in comparison with the can charge of building it with general iSeries mannequin 800 pricing, it sold twice as many containers.

    high availability

    one other area that Zollar says he's focusing the iSeries division on is likely one of the average drivers of the product line: high availability. "because of the traditionally excessive reliability of the AS/400 and iSeries, our consumers are very under-invested in high availability and resiliency," he noted.

    while excessive availability and system clustering utility have been the largest drivers of AS/400 and iSeries sales during the past decade, it looks possible that simplest about 10,000 of the 215,000 OS/400 stores on the earth have carried out excessive availability options. With more cost-effective and easier-to-use excessive availability software, and a whole lot more affordable i5 containers, IBM should still be capable of make it up in extent.

    Getting partners excited

    Zollar has carried out just a few different changes to aid enhance income. For one element, he pointed out that the business is reaching out to the legion of small iSeries companions with best just a few dozen bills to try to get them again into the game. IBM is giving good discounts to partners that buy model 520 categorical configurations in blocks of 10 or 20, and the business will not sell the brand new i5 machines direct in competitors with its channel, which accounted for roughly eighty five per cent of iSeries profits in 2003, based on Zollar.

    whereas iSeries revenue growth in 2003 became within the "match double digits" for midrange and high-conclusion iSeries machines - Zollar stated the number "started with a two" once I pressed him to nail it down someplace between 10 per cent and 99 per cent, and my bet is round 25 per cent revenue boom - it is the low volumes of entry machines that has been a drag on both iSeries shipments and iSeries revenue. Shipments have been flat and revenue were up seven per cent in 2003 throughout the iSeries line. evidently, getting partners excited about promoting the i5 mannequin 520 specific configurations is a key to the brand new strategy.

    Key drivers

    nevertheless it is not the handiest possibility IBM is looking at. Marrese says that IBM booked round $100m in Linux-connected iSeries server sales in 2003, an element of six greater than Linux earnings on the box in 2002. She says revenue to support typical eco-friendly-reveal applications became flat or down, and that Domino, excessive availability, windows integration, and WebSphere are key drivers.

    What in fact has Marrese smiling, even though, is the arriving assist for native AIX within logical partitions on the i5 machines. because it turns out, nearly forty,000 OS/400 customers even have Unix servers of their shops, of which the titanic majority are working HP-UX purposes. Getting even a percentage of those shoppers to port their HP-UX purposes to AIX and stream them onto the i5 aiding each their OS/four hundred and AIX workloads will go a protracted manner toward boosting general iSeries revenue.

    possibly more than anything, the timing of the i5 announcement with a recuperation within the global financial system is auspicious. Marrese says that, in 2003, iSeries income in Italy, German, and France picked up, that North america began off amazing, and that Asia-Pacific international locations like China are exploding - albeit from a extremely small installed base. "customers were purchasing to do the bare minimum," Marrese says, "but now they are becoming the eco-friendly gentle to spend again."

    source: Computerwire/Datamonitor

    linked studies

    IBM dishes out energy tools for LinuxIBM's Power5 pops up first in new iSeriesIBM to assault clients with virtualization technologyIBM presents purchase now pay later server deals




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    Adapter integrates xSeries and eserver i5 servers. | killexams.com real questions and Pass4sure dumps

    Press Release Summary:

    Integrated xSeries® Adapter, Model 200 enables direct high-speed attachment of eServer® xSeries x346 servers to iSeries and eServer i5 servers. Server and storage management for xSeries servers may be consolidated on eServer i5, with up to 31 TB of disk storage capacity per Windows(TM) server. Integrated xSeries Server and xSeries servers attached to iSeries and eServer i5 servers support Windows applications including file, print, mail, and web serving.

    Original Press Release: IBM Integrated xSeries Adapter Model 200 for iSeries and eServer i5 Servers

    OverviewThe IBM Integrated xSeries® Adapter Model 200 for iSeries(TM) andeserver i5 servers enables the direct high-speed attachment of IBM eServer® xSeries x346 servers to IBM iSeries and eServer i5 servers.

    The Integrated xSeries Adapter (IXA) Model 200, installed in selected models of xSeries x346 servers, extends eServer i5 server integration with Intel(TM) servers to xSeries rack-optimized (2U) Intel architecture servers.

    With the Model 200, a broader range of xSeries servers may integrate with eServer i5 servers over the High-Speed Link (HSL/RIO) bus.

    Superior integration - The IXA Model 200 uniquely integratesstandard eServer i5 servers and xSeries rack-optimized servers.

    Server and storage management for Intel servers (xSeries) may beconsolidated on eServer i5, with up to 31 TB of disk storage capacity per Windows(TM) server.

    Managing multiple Intel servers from a single eServer i5 server can help to reduce your costs.

    Flex your application options - The Integrated xSeries Server and xSeries servers attached to iSeries and eServer i5 servers are standard Intel servers supporting a wide variety of Windows applications, including:o File servingo Print servingo Mail servingo Firewallo Web serving

    You can deploy and manage applications easily with both i5/OSand Windows Server components.

    Key prerequisitesiSeries system requirementso IBM iSeries and eServer i5 servers and features requireOS/400® V5R2 or i5/OS V5R3, and some may require updates.

    Refer to http://www-912.ibm.com/e_dir/eServerPrereq.nsf

    For PTFs required for the Integrated xSeries Adapter, select Hardware from the left view panel, then select M/T 1519, model 200, or enter the feature #0092 for External xSeries Attach.o Integration for Windows Server (5722-WSV)o iSeries 270, 8xx models (OS/400 V5R2 or i5/OS V5R3)o eServer i5 5xx models (i5/OS V5R3)

    xSeries server requiremento xSeries x346 (selected models)

    For model details, refer to http://www.ibm.com/servers/eserver/iseries/windowsintegration/xseriesmodels/

    Windows server requirement (one of the following)o Microsoft(TM) Windows 2000 Servero Microsoft Windows 2000 Advanced Servero Microsoft Windows Server 2003 Standardo Microsoft Windows Server 2003 Enterpriseo Microsoft Windows Server 2003 Web Edition

    Planned availability dateAugust 31, 2004

    At a glanceFlexibility to attach more xSeries servers with Integrated xSeries Adapterso Proven application solutions - xSeries server supports standard Windows applications.- Investment leverage simplifies the management of your completeinfrastructure.o Flexible SAN for Windows operating environment on xSeries servers.- Disk space- RAID protection- Backup/recovery facilities- Storage managemento Reduced user administration costs - create Windows usersonce, integrate user profiles and passwords.o Simplified recovery protection - OS/400 and i5/OS save operations backup OS/400 or i5/OS and Windows Server storage spaces.o Improved server management - OS/400 or i5/OS operators can manage Windows server operations and backup.o Flexible server availability - if one Windows server fails,applications can be brought back online easily.

    For ordering, contact:Your IBM representative, an IBM Business Partner, or the Americas Call Centers at 800-IBM-CALL Reference: YE001

    Related Thomas Industry Update Thomas For Industry

    Agilysys Announces Customized Hospitality Solution for IBM iSeries Platform | killexams.com real questions and Pass4sure dumps

    By PR Newswire

    Article Rating:

    April 25, 2005 12:00 PM EDT

    Reads:

    116

    CLEVELAND, April 25 /PRNewswire-FirstCall/ -- Agilysys, Inc., a leading provider of enterprise computer solutions and hospitality software solutions, today announced the release of a new IBM eServer iSeries Solution Edition for the hospitality sector. The IBM eServer i5 550 server will be optimally configured with the Lodging Management System (LMS) from Agilysys so that it meets the specific needs of hospitality customers including hotels, resorts and casinos.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20030915/AGLSLOGO )

    LMS is an integrated property management system that offers sophisticated and comprehensive features and functionality. A powerful solution for hotel and casino data management, LMS automates every aspect of hotel operations -- from reservations and credit card processing to accounting and housekeeping. Its versatile foundation easily expands to incorporate additional LMS modules for activities scheduling, attraction ticketing, itinerary planning, online reservations, remote check-in/check-out, spa scheduling and more.

    The new IBM eServer iSeries Solution Edition created for the hospitality industry is designed to help customers take advantage of the combined experience and expertise of IBM and its selected vendors. Available on the IBM eServer i5 550 platform, the Solution Edition helps manage dynamic change in business demand through Capacity on Demand and key IBM Virtualization Engine(TM) technologies like Micro-Partitioning(TM). Capacity can be turned on as business demand spikes occur and then turned off as normal demand returns; or it can be turned on permanently, enabling growth simply and quickly. Additionally, Micro-Partitioning helps a single processor act like multiple processors that can share resources, making the server and application consolidation easier and more manageable.

    "Partners like Agilysys are pivotal in providing our iSeries customers with flexible on-demand solutions, enabling them to focus on and achieve their business objectives," said Peter Bingaman, vice president, IBM eServer iSeries. "This eServer iSeries Solution Edition offers the hospitality industry flexibility and growth options to fully maximize the performance of the iSeries platform."

    "Agilysys and IBM have partnered for many years to provide state-of-the- art technology to hotels, casinos and resorts," said Bill Lashley, senior vice president and general manager, Agilysys, Hospitality Solutions. "We are proud to roll out this new customized solution on the iSeries server, which has long been a favorite platform in the hospitality industry. The eServer iSeries Solution Edition not only offers an attractive price point for new LMS customers but also improves performance, provides additional capacity and reduces hardware and software maintenance costs for existing customers."

    About Agilysys, Inc.

    Agilysys is one of the foremost distributors and premier resellers of enterprise computer technology solutions. It has a proven track record of delivering complex server and storage hardware, software and services to resellers, large and medium-sized corporate customers, as well as public- sector clients across a diverse set of industries. In addition, the company provides customer-centric software applications and services focused on the retail and hospitality markets. Headquartered in Mayfield Heights, Ohio, Agilysys has sales offices throughout the United States and Canada. For more information, visit http://www.agilysys.com/ .

    About the IBM eServer iSeries

    The IBM iSeries system is a tightly integrated system including hardware, middleware, storage and security. iSeries systems can run i5/OS, Windows (via an IXA or IXS), Linux and AIX operating environments simultaneously so clients can reinvest those savings to grow their businesses. Business partners and solutions providers of all sizes drive iSeries server success by building, selling and deploying more than 6,400 of the world's most popular business applications for their clients on the iSeries platform.

    Agilysys, Inc.

    CONTACT: Julie Young of Agilysys, +1-440-720-8602, or[email protected] ; or Fran Worrall of InterCom Group for Agilysys,+1-770-822-0794, or [email protected]

    Web site: http://www.agilysys.com/

    Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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    IBM chases HP and Sun with i5 | killexams.com real questions and Pass4sure dumps

    According to the top brass in the iSeries division, IBM will be pushing on several fronts to grow the OS/400 server business and pump up the OS/400 ecosystem on which it depends. Timothy Prickett Morgan examines IBM's new strategy...

    Both Al Zollar, general manager of IBM's iSeries line, and Cecelia Marrese, vice president of marketing for the iSeries, have been open about their battle plans for the using the new eServer i5 line of Power5-based servers to get the OS/400 market growing again. Mr Zollar recently said that he wanted to keep the iSeries line, now the eServer i5, in the press and in the minds of customers as they consider platforms.

    And one thing IBM will do to make this happen is to keep significant iSeries announcements coming out at a steady pace and with the latest IBM technologies. "We are moving away from big bang announcements and moving on a roadmap where we have something significant to say to our customers every quarter," Zollar explained. "This will keep a level of interest and vitality in the platform."

    It will also help with publicity, as the IT trade press that is consumed by IT workers, from system admins to chief information officers, will see a steady stream of i5 announcements.

    From PR to pricing

    But the strategy goes far beyond that. While the attention is good, the best kind of sales pitch is a competitive price for OS/400 servers and their related software. To that end, IBM a few weeks ago cut memory prices by 20 - 60 per cent and cut storage prices by 20 per cent, it dropped the price of activating Power4 and Power5 processors on the iSeries and i5 line, and said that it would keep the common components (such as server processors, memory, and disks) at parity with the pSeries (soon to be "eServer p5") Unix server line, which has historically had much lower list price tags and much higher discounts than for the iSeries.

    While IBM will almost certainly not close the gap at the retail level (even if customers bring in Sun and Hewlett-Packard with competitive Unix, Linux, or Windows systems), the gap is considerably smaller, and the unique advantages of the iSeries over the alternatives make it possible to sell against those alternatives. Before, the sticker price was so high on the iSeries that business partners couldn't even get their foot in the data center door to make a pitch.

    With these price cuts, the data center door has opened a crack, and the i5, with its sophisticated partitioning and multiple operating system support, has a decent chance of actually compelling CIOs and VPDPs not only to open the door but also to bring in partners to pitch the machine to solve their problems.

    IBM has always understood that the box count for the iSeries had to remain high if the OS/400 ecosystem was to not only survive, but to thrive. And the price cuts are key to IBM's plan to boost the box count coming out of the iSeries factories in Rochester, Minnesota, and in Dublin, Ireland.

    Maintaining revenues

    Of course, with such big price cuts for servers, memory, disk, and other core components, this raises the question of how IBM can maintain iSeries hardware revenue, much less increase it. It may be that the OS/400 server market is more elastic than IBM's marketing model suggested.

    IBM had its reasons for charging high-prices - it needed the margins because its manufacturing costs were high, and to help pay for its very aggressive battle against Sun and HP in the Unix market, where it is arguable that IBM may not have broken even as it uses pricing as a way of gaining market share.

    Now that IBM has huge credibility with the Power-AIX servers, and Sun and HP have backed off a bit on price cuts, IBM has a little more room. IBM also has a little bit more room since the iSeries and i5 machines sold in Asia-Pacific are now being built in Ireland, where labor is cheaper and shipping costs to Asia are lower.

    The pSeries manufacturing for Asia-Pacific customers also has been moved to Ireland, and IBM also has a bulk deal with United Parcel Service to ship from Ireland to Asia. This, combined with hundreds of tiny changes in the supply chain of parts that go into the iSeries, and in how the product is manufactured and delivered, has enabled IBM to get iSeries prices lower.

    What about profits?

    IBM cares a lot about revenue growth, but it has always cared more about profit growth. So with prices on the iSeries essentially cut by 40% with the i5 launch, can IBM grow revenues and maintain profits?

    The answer seems to be yes. Zollar says that IBM's plan is to sell more boxes, which is obvious enough, but that he also expects IBM and its partners to be able to sell richer configurations of the boxes. My guess is that the average selling price of a box is not as low as you might think, because the mindset shift from spending as little as possible to do the bare minimum of work on an iSeries to spending about the same amount of money or slightly more to do a lot more things with an i5. "I think there is a huge pent up demand for memory and disk storage," says Zollar.

    Marrese says that the Green Streak promotions in late 2000, which eventually led to the revamping of the iSeries line in January 2001, were the first step in the transformation of the OS/400 server into a competitive box. But a beta test in March of this year for the Model 520 and OS/400 Express packaging that debuted in early May seems to have been what pushed IBM over the edge to start cutting prices. Italy, Marrese explained, has a labyrinth of tax laws that make it painful to run a large business, and that is one of the reasons why the country is teeming with small businesses.

    Many of those small businesses, it turns out, have acquired AS/400 Model 150 and Model 170 servers. And they just keep using them and don't upgrade as much as IBM would like. In the beta program, IBM took an iSeries Model 800, packaged it like the Model 520 Express machine (low price, lots of software, ready to run out of the box), and found out that if it cut the price of this configuration in half, compared with the cost of building it with regular iSeries Model 800 pricing, it sold twice as many boxes.

    High availability

    Another area that Zollar says he is focusing the iSeries division on is one of the standard drivers of the product line: high availability. "Because of the historically high reliability of the AS/400 and iSeries, our customers are very under-invested in high availability and resiliency," he said.

    While high availability and system clustering software have been the biggest drivers of AS/400 and iSeries sales in the past decade, it seems likely that only about 10,000 of the 215,000 OS/400 shops in the world have implemented high availability solutions. With cheaper and easier-to-use high availability software, and much cheaper i5 boxes, IBM should be able to make it up in volume.

    Getting partners excited

    Zollar has implemented a few other changes to help boost sales. For one thing, he said that the company is reaching out to the legion of small iSeries partners with only a few dozen accounts to try to get them back into the game. IBM is giving decent discounts to partners that buy Model 520 Express configurations in blocks of 10 or 20, and the company will not sell the new i5 machines direct in competition with its channel, which accounted for about 85 per cent of iSeries revenue in 2003, according to Zollar.

    While iSeries sales growth in 2003 was in the "healthy double digits" for midrange and high-end iSeries machines - Zollar said the number "began with a two" when I pressed him to nail it down somewhere between 10 per cent and 99 per cent, and my guess is around 25 per cent revenue growth - it is the low volumes of entry machines that has been a drag on both iSeries shipments and iSeries revenue. Shipments were flat and sales were up seven per cent in 2003 across the iSeries line. Clearly, getting partners excited about selling the i5 Model 520 Express configurations is a key to the new strategy.

    Key drivers

    But it is not the only opportunity IBM is looking at. Marrese says that IBM booked around $100m in Linux-related iSeries server sales in 2003, a factor of six larger than Linux sales on the box in 2002. She says sales to support traditional green-screen applications was flat or down, and that Domino, high availability, Windows integration, and WebSphere are key drivers.

    What really has Marrese smiling, though, is the coming support for native AIX within logical partitions on the i5 machines. As it turns out, nearly 40,000 OS/400 customers also have Unix servers in their shops, of which the vast majority are running HP-UX applications. Getting even a percentage of these customers to port their HP-UX applications to AIX and move them onto the i5 supporting both their OS/400 and AIX workloads will go a long way toward boosting overall iSeries sales.

    Perhaps more than anything else, the timing of the i5 announcement with a recovery in the worldwide economy is auspicious. Marrese says that, in 2003, iSeries sales in Italy, German, and France picked up, that North America started off strong, and that Asia-Pacific countries like China are exploding - albeit from a very small installed base. "Customers have been buying to do the bare minimum," Marrese says, "but now they are getting the green light to spend again."

    Source: Computerwire/Datamonitor

    Related stories

    IBM dishes out Power tools for LinuxIBM's Power5 pops up first in new iSeriesIBM to assault users with virtualization technologyIBM offers buy now pay later server deals



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