IBM unveils mainframe newbie

IBM is readying itself for an onslaught on mid-sized companies with the launch today of its eServer z800 mainframe.

The company tapped into a rich vein in the mainframe market 18 months ago with the launch of the eServer z900. Today's launch is a response to what the company describes as a growing trend in mid to large-sized companies who want the capabilities of mainframe for their ebusiness ventures.

The z900 chip has now been re-packed and launched in the guise of the cheaper z800.

Doug Neilson, IBM eServer zSeries Consultant, said: "The eServer z900 is the mainframe for 21st century. With the z800 we are broadening the appeal."

Phil Payne, an analyst and close IBM observer, said IBM might just have underestimated the potential for sales. He said: "IBM is in for a surprise. It has hit the curve exactly right."

Payne argued that the real pulling power of the z800 will be in the operating system.
The z/OS.e software comes at a ninth of the price of its full version equivalent. Payne calls it "the biggest thing IBM's done since the 70s."

The price comparison is £4,000 per month versus £40,000 a month for the full version. This gives Big Blue a foot in the door of new customers - something that's very difficult at this level of sale.

Payne predicts that sales could be as much as two or three times what IBM is expecting as customers become tempted by the obvious cost benefits. He said that this puts IBM in a very good position when set alongside rivals Sun and Microsoft.

He added: "With Microsoft fiddling around with its licensing charges last year, it's pricing has become very visible."

z800 customers have the option of purchasing the more expensive operating system to run for legacy applications - something the z/OS.e can't do. The z800 has the same clustering abilities as its big brother but mid-large companies will probably opt to use this facility for availability rather than size.

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