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  The Four Hundred

Editor: Timothy Prickett Morgan       Managing Editor: Shannon Pastore
Contributing Editors: Joe Hertvik
Shannon O'Donnell
Victor Rozek
Alex Woodie

    LANSA Integrator

    In the January 7, 2002,  Issue:

    PartnerWorld Preview: iSeries Solutions, Low-End eServers

    by Timothy Prickett Morgan

    The word on the street is that IBM will be making a bunch of server announcements at its upcoming PartnerWorld 2002 conference for partners and resellers, being held in San Francisco February 17 through 20. The star of the PartnerWorld conference most likely will not be the iSeries software bundle solutions that the company is expected to roll out along with a revamped Software Subscription service. But Guild Companies will have people on the floor to get the skinny on whatever iSeries announcements IBM and its partners make, which we think will be important even if they are overshadowed by other IBM announcements.

    The hot topic at PartnerWorld--aside from the difficulty of getting resellers to boost hardware, software, and services sales in a stagnant economy so IBM can make its numbers for 2002--will probably be the two low-end mainframe servers, apparently code-named "Raptor" and "Puma," that will debut running z/OS V1R3, IBM's new z/OS operating system, as well as Linux. The low-end Raptor server, which I hear has anywhere from one to four processors, is the first product to come out of the server development alliance that IBM signed last year with former server competitor Hitachi. The Raptor server is built by Hitachi and uses tweaked G7-II series mainframe engines; the original G7 engines made their debut in the "Freeway" zSeries 900 servers a little more than a year ago. IBM will actually debut the Raptor servers at the end of January at the LinuxWorld trade show in New York. Bill Zeitler, general manager of the Server Group, will give the keynote speech at LinuxWorld and will likely introduce Raptor running the 64-bit Linux kernel, to show that IBM is thinking about offering a lower-cost Linux server suitable for small and midsize businesses. The Puma server could be, if my sources are correct, an 8-way zSeries server using the G7-II engines. (I am working from extremely thin data, so Puma could turn out to be something else.)

    IBM is also expected to debut two new low-end pSeries servers at the PartnerWorld show that were due in October 2001 but got pushed out to February 2002. Both machines are expected to use 32-bit, 800 MHz Motorola PowerPC MP7540 processors equipped with 2 MB of integrated L2/L3 cache memory. The pSeries 620, code-named "Thresher," is a dual-processor machine that comes in a tower configuration that can be expanded to 3 GB of main memory. The pSeries 640 "Xena" rack-mounted server uses the same two-way motherboard and comes in a 1U form factor. These machines are expected to perform on the TPC-C online benchmark test at around 7,500 transactions per minute (TPM) with a single processor and at around 11,000 TPM with two processors. They will run 32-bit versions of AIX 4.3.3, AIX 5L 5.1, and Linux 2.4.

    Because OS/400 is a 64-bit operating system and because the Motorola MP7540 chips do not have the PowerPC AS instruction extensions that the IBM PowerPC Star family of chips have to support OS/400, there will not be iSeries versions of the pSeries Thresher or Xena servers. IBM is not expected to make any significant iSeries server announcements until the summer, when the "Regatta" 32-way Power4 servers and OS/400 V5R2 are expected to be announced. Of course, it's a long time until summer, and that could change. I would not be surprised to see IBM make some announcements at the low-end of the iSeries range to try to spur demand for these boxes and make the machines more competitive against Windows and Linux servers based on the Intel platform.

     

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    Kronos Buys SimplexGrinnell, Its Largest Competitor

    by Timothy Prickett Morgan

    Kronos, the largest vendor of time, attendance, and labor management programs, has extended its reach in that subset of the software applications market by acquiring its largest competitor. The Chelmsford, Massachusetts, company last week bought, for an undisclosed sum, the labor management software business of Tyco International, a $29 billion manufacturer of printed circuits, security, fire suppression, and power systems. That labor management software unit of Tyco, known as the Integrated Software business of the Workforce Solutions division of SimplexGrinnell, generated about $30 million in labor management software sales a year. The SimplexGrinnell unit of Tyco was, according to Kronos, about one-tenth of Kronos' size and was its largest competitor. Financial terms of the deal were not disclosed, which is a neat trick for two publicly traded companies. Kronos apparently paid cash for the SimplexGrinnell labor management software business and said that it would retain the key engineering, sales, service, and support personnel from SimplexGrinnell's 240 people dedicated to the labor management software line.

    Kronos had $293 million in sales in its most recent year, has a market capitalization of nearly $1 billion, and is one of the few software companies with a stock that trading near the highs it hit at the end of 2000. This was before the Y2K freeze and ERP slowdown undermined the software market, and most companies have seen their stock plummet as a consequence. One of the reasons why Kronos is still near its highs (after dipping somewhat) is that Kronos has, with the SimplexGrinnell acquisition, approximately half of the time- and labor-management application software market--worth more than $700 million--locked up.

    According to sources at Kronos, the company didn't buy the SimplexGrinnell business because it needed to flesh out the Kronos product line--something that usually motivates companies to do an acquisition. Kronos acquired SimplexGrinnell because it believes the integrated suite of Web-enabled labor management, payroll, and human resources software that Kronos will unveil for OS/400, Windows, and Unix platforms later in the year is what its existing 30,000 customers, as well as SimplexGrinnell's 8,000 customers, will really want to deploy to manage their employees. Kronos doesn't think it can get SimplexGrinnell customers to make a move overnight, of course, and has a five-year plan to migrate customers to what it believes it will be able to clearly demonstrate are better products.

    Kronos got into the iSeries market about eight years ago, when it bought a labor management suite from a Texas company called CRI. This application is sold under the iSeries Central brand today and represents about 20 percent of Kronos' revenues. Kronos also sells a client/server-style application called Timekeeper Central to small and midsize businesses that runs on Windows and NetWare operating systems and a Windows-based front end. Timekeeper Central comprises about 20 percent of Kronos' annual revenues. Workforce Central is the newer Web-based, n-tier labor management suite from Kronos; it is supported on both Windows and Unix application and database servers, the latter using popular databases, such as those from Microsoft and Oracle. About 70 percent of the Workforce Central customers today buy it for Windows servers, with the remaining 30 percent opting for Unix servers.

    SimplexGrinnell's WinSTAR suite, which runs on Windows, comprises all but about 150 installs of the 8,000-strong customer base of the acquired company. WinSTAR was aimed at small and midsize businesses (like Kronos' Timekeeper Central), while the more recent eForce suite (used by those remaining 150 SimplexGrinnell customers) was aimed at competing against the Workforce Central suite from Kronos. The eForce suite is a two-tier client/server application that runs on Windows and Unix servers. However, neither the new eForce suite nor the older WinSTAR suite was Web-ready, which is a big deal these days.

    By acquiring the SimplexGrinnell software business, Kronos gets a big installed base of small and midsize customers in which it can sell its products. The long-range plan is to sell the Web-ready Workforce Central programs to WinSTAR, eForce, and Timekeeper Central customers. The iSeries Central suite already has a Web front end, and Kronos has no intention of replacing it with Workforce Central. Down the road, the company hopes to sell its integrated payroll, HR, and labor suite to the entire Kronos and SimplexGrinnell installed bases. But, for right now, the company has a simple and ideal long-range plan: Let customers keep WinSTAR and eForce, make them happy, and show them that Workforce Central--and presumably the integrated HR suite that is based upon it, which is expected before the end of this summer--is a better program and one worth upgrading to.

     

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    Wegman Has a New Vision

    by Alex Woodie

    David Wegman, one of the most well-known executives in the iSeries high availability software market, has left his position at Lakeview Technology to work for Vision Solutions, another prominent company in this field. As Vision's executive vice president of marketing and business development, Wegman is expected to wield substantial influence in the planning and implementation of new technology, sales channel expansion, and the formation of strategic alliances.

    In an interview with The Four Hundred, Wegman explained his decision to move on from Lakeview and his plans for building Vision into a provider for cross-platform high availability solutions. A number of factors contributed to his decision to leave Lakeview, a decision that he made six weeks before taking the job at Vision, he said.

    Wegman described the opportunity at Vision as being attractive because the strategy there fit his view of the market and the direction he wanted his career to take. He termed his career's upside potential as very high, and cited the fact that the company is close to his home.

    "It was a personal career decision for me," Wegman said. "I believe I needed an expanded role and an expanded opportunity. I think I did great things at Lakeview, and the company did great things, too. From a career perspective, it was time to go on and do the next thing in my life."

    "I left Lakeview of my own accord to pursue broader opportunities and more responsibility. I enjoyed Lakeview. I have a lot of respect for the company and its partners, and I will miss many of the good people I had the pleasure to work with over the four years I was there."

    Wegman indicated that developing a business that spans OS/400, Windows, Unix, and Linux is one of the challenges he looks forward to at Vision. Earlier in his career, while he was chief operating officer and senior vice president at Magic Software, Wegman helped the company expand beyond iSeries development tools into the Unix and Windows markets.

    "I have a lot of experience in Unix, Sun, Oracle--all that jazz," he said. "I wanted to get back into that world again. I wanted to leverage my background. I don't want to abandon the iSeries at all. I'm a firm believer in that platform. But there's life beyond the iSeries."

    Looking forward in the high availability market, Wegman said he believes the greatest opportunities lie in developing cross-platform products. "I believe that's the way the market's going," he said. "That is the requirement in the customer base."

    Lakeview officials declined to speak on the record regarding Wegman's departure. But sources at that the company emphasized that Lakeview is working to develop cross-platform high availability solutions and will announce them soon. DataMirror, as readers of The Four Hundred are well aware, is also working on a cross-platform high availability suite. Others will likely follow, entering the iSeries market from the outside Unix and Windows worlds.

    Wegman, who was commenting during his second day on the job at Vision, made note of several areas he wanted to tackle first. "We need to beef up marketing, product strategy, and the channel. We want to have it in order by the end of the first quarter. We need to get something cooking."

    It is evident that Wegman and Lakeview have a mutual respect for each other, even in departure. However, in the super-competitive iSeries high availability market--which produces about $150 million in software revenue and pushes anywhere from $500 million to $800 million in iSeries hardware revenue for IBM and the value-added resellers--losing an executive of Wegman's stature to a competitor presents a difficult situation.

    Wegman, who has training as a lawyer, reportedly signed a non-compete clause while at Lakeview. Whether Lakeview tries to enforce that non-compete clause has yet to be seen. The courts showed their willingness to enforce non-compete clauses recently when a former EMC Corporation executive who left to become CEO of storage startup SANgate was ordered to leave his new company.

    However, California law does not recognize non-compete clauses, even if an employee has signed one. Nonetheless, out-of-state employers can still bring a lawsuit against a former employee in the company's own state. That's not to say an out-of-state civil lawsuit cannot be blocked.

    Last year a former marketing executive at a DSL firm in California--who took a job with a competitor--successfully blocked a lawsuit that his former company planned to file in New Jersey. However, some California lawyers warn that state judges are showing increasing deference to the "real threat of harm" standard as it relates to the employees' "inevitable disclosure" of their former company's secrets at the new company.

    In the meantime, Wegman is keeping busy at Vision. "I really enjoy the people here, everybody is just terrific," he said. "So far, so good."

     

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    IBM Changes Pricing Game for iSeries WebSphere Commerce Suite

    by Joe Hertvik

    IBM recently announced a change in its pricing structure for WebSphere Commerce Suite Pro Edition for iSeries Version 5.1. The pricing structure, which used to be based on feature number and processor group, will now be based on feature number and secondary part number. IBM will allow its customers to order WCS using either pricing method, but the new part number pricing is available only to members of IBM's Passport Advantage program for volume purchases. With this revision, IBM's feature number pricing raises WCS Pro for iSeries' sticker price to $126,560 for a two- processor, one-store configuration, and the pricing goes higher as you order more processors and store licenses. The new structure also contains revised pricing for three-year software maintenance, which can add substantially to your WCS purchase cost. Here are the details.

    IBM is changing WCS for iSeries pricing to match the way it is charging WCS customers on Windows NT/2000, AIX, Solaris, and Linux. The old pricing for iSeries WCS was based on processor group, rather than on the individual processor and store licensing it was using on the other platforms. IBM is moving to a standard pricing scheme for all platforms, which will result in higher prices for WCS customers on a number of iSeries machines.

    To help you suss through the new pricing model, I have compared the old and new prices for WCS below. This comparison points out that the new pricing allows customers to quickly break past the $100,000 price tag. Under the old pricing, based on processor group, you had to be on a P40 machine before you added that extra zero to your WCS purchase order. Now you basically have to be breathing or have a two-processor machine to break the $100,000 mark. Given IBM's belief that 72 percent of iSeries customers want WebSphere Commerce Suite on the iSeries (see the Sandy Carter interview in the December 17 issue), this amounts to a healthy sticker shock for an emerging market.

    Here's the breakdown in the pricing for the old processor group way of doing things (pricing includes one store):

    P05 Processor group--$22,000
    P10 Processor group--$33,000
    P20 Processor group--$50,000
    P30 Processor group--$98,000
    P40 Processor group--$150,000
    P50 Processor group--$200,000

    Here's the breakdown in the new pricing scheme:

    One processor, one store--$68,320
    Two processors, one store--$126,560
    Three processors, one store--$184,800
    Four processors, one store--$243,040

    Add $10,080 for each additional store and $58,240 for each additional processor.

    If you look at this chart for more than two seconds, it becomes clear that people in the P05, P10, and P20 processor groups will now pay more for WCS Pro Edition for iSeries V5.1 under feature-number ordering. And the minute you try to buy WCS Pro for a system with dual processors (which isn't an unusual configuration), you quickly race past the old P30 price as well. So while this announcement was pitched as a revised ordering and pricing algorithm, it represents a substantial price increase for iSeries shops interested in WCS Pro V5.1, which IBM is pegging as a growth area.

    In addition, IBM is saying that the WebSphere Commerce Studio V5.1 and WebSphere Collaborative Profiles V5.1 packages are being removed from iSeries processor group-based ordering and are now available through the new feature number and part number ordering system. The new feature number prices for these products are the following:

    * WebSphere Commerce Studio Developer Edition--$2,811 per user (the old price was $2,500 per user)

    * WebSphere Commerce Studio Professional Developer Edition--$11,491 per user (the old price was $10,000 per user)

    * WebSphere Collaborative Profiles, Commerce Suite Edition, with 250,000 profiles--$87,628 (increased from its old price of $78,990)

    All prices include one year of maintenance, which softens the blow of the price increases somewhat. If you want to add an additional three years of software maintenance, prices start at $23,297 for each processor and $4,032 for each store for WCS Pro for iSeries; $1,125 for WebSphere Commerce Studio Developer Edition; $4,596 for WebSphere Commerce Studio Professional Developer Edition; and $35,052 for WebSphere Collaborative Profiles, Commerce Suite Edition. You can also buy one-year software maintenance renewals, if you wish, which are priced at a higher per-year charge than the three-year deals. So in addition to putting together a hefty capital spending request for iSeries WCS software, customers will also have to budget for significant operating dollars in order to get maintenance. In some cases, extended WCS product maintenance will cost a third or more of the original purchase price. Many customers may be tempted to forgo the extended maintenance, but that may affect their ability to keep WCS for iSeries running correctly.

    You may be able to get better discounts by ordering WCS Pro for iSeries through IBM's Passport Advantage program, which IBM offers to large companies in order to provide volume discounts. In the announcement of the WCS price change, IBM actually stated that the new WCS part number pricing is available only to Passport Advantage members. However, if Big Blue holds with the part number pricing it's offering for the other platforms, you could expect that iSeries WCS part number pricing will be $52,000 per processor and $9,000 per store, for a total of $61,000 for a one-processor, one-store configuration and $113,000 for a two-processor, one-store configuration. And, if this model holds true, those prices would account for about a 10 percent discount over the feature number prices listed above. (But it's still more expensive than the old P05, P10, and P20 processor group pricing, and you'll still go over $100,000 quickly when you buy WCS for iSeries for a two-processor, one-store configuration.) For part number pricing for WCS for iSeries V5.1, contact your IBM sales representative or Business Partner.

    IBM telegraphed this move in October, when it raised WCS prices for all non-iSeries platforms by 15.5 percent per processor and 12.5 percent per individual store (see "IBM Increases WebSphere Commerce Prices, Except for iSeries," in the October 8 issue). The strange thing about this mid-December announcement, as I write this on January 2, is that the Web site for WebSphere Commerce Suite Pro Edition for iSeries V5.1 still hasn't been updated with the new pricing and ordering scheme. The site still trumpets the old processor group pricing and WCS discounts that expired at the end of July, but I expect IBM will soon post the new prices.

    For detailed pricing information on this announcement, contact IBM or see the WebSphere Commerce Suite Pro Edition Web site.

    Corrections

    An article in the December 10 issue erroneously reported that the number of iSeries ASPs registered with IBM's xSP Prime program at the beginning of 2001 was 41 ("Infinium to Close ASP Operation"). The number of registered ASPs at the beginning of 2001 was 94, not 41.

    Stolen iSeries Is a Lost Cause

    by Alex Woodie

    A thief arrived at a Houston business early one Sunday morning in December, concrete block in hand. Down went the plate-glass front door at the business in question, a small retail fulfillment house with eight employees. The alarm went off. The police would be there in less than 10 minutes.

    The thief entered the business, walked through a cubicle farm stocked with shiny new IBM PCs, and headed straight for the computer room in the back. He knew that's where the goods would be found: a sleek-looking black server that he thought would make this all worth while. He probably didn't know what he had there. It was an iSeries Model 270.

    The thief used cable cutters to snip all the wires and cables coming out the back of the iSeries, except one, said John King, the company's system administrator. "Unfortunately, he didn't try to snip the power cord," he said. "I would have liked to have seen that."

    After unplugging the power cord, the thief hefted the 50-pound box into his arms and walked out the front door, with time to spare. The perpetrator left no obvious clues as to his identity, and the police will probably never catch him.

    Without its iSeries, the company could not do any work on Monday. A loaner box was set up by Tuesday, the backup tapes were loaded, and by the end of week the company had a permanent replacement. The company's insurance is paying to replace the stolen iSeries--at a cost of about $20,000--so King's company will be spared that cost.

    All in all, it could have been worse. But to those who've heard about it, it seems a curious, if not ill-informed, crime.

    Black Market for the Black Box?

    The initial speculation was that the thief was probably one of the deliverymen that frequently entered the business. He probably saw a big tower in the back room during a delivery and figured it would fetch a few hundred dollars on the black market, King said.

    Even so, King speculates that the thief didn't know what he was doing stealing an iSeries. "I can't imagine why any crook would do this," he said. "What are you going to do with it? It's such a specialty machine. In the same amount of time he spent stealing the iSeries, he could have schlepped all those IBM PCs."

    King is right. In fact, the thief will find extreme difficulty in trying to resell King's iSeries for several reasons, said Eric Neill, an account executive at PaceButler Corporation, which sells used AS/400 and iSeries hardware.

    The thief might be able to access the custom-written order-entry system King had loaded on the iSeries, Neill said, but he would not be able to make any changes or upgrades without running into licensing, LAC key, and proof of entitlement issues.

    Each AS/400 and iSeries server possesses several unique identifying numbers, including the LAC key, which is a string of randomly generated numbers that operators must enter in order to add new software or make changes to configuration settings. If the LAC key is incorrectly entered, the user has 70 days to get the correct LAC key, or the iSeries shuts down. The user can call IBM customer service to get the correct LAC key but would need a valid customer number to get it. Similarly, other provisions in OS/400, such as the security officer's password, prevent unauthorized changes from being made.

    Another factor discouraging the creation of a black market is the fairly tight-knit nature of the AS/400 and iSeries used hardware sales community, said Neill, who offered to forward the serial number of King's stolen iSeries on to other resellers in the network. If the thief ever contacted one the 300 used AS/400 hardware resellers in that network, that serial number would immediately flag the iSeries as a stolen box.

    For these reasons, there is not much of a black market for AS/400 and iSeries hardware, Neill said. Though the weak licensing for the Windows operating system and the lower prices of Intel- based computers helped a black market for PCs to flourish, he said.

    Good Market for AS/400 Parts

    About the only thing a stolen AS/400 or iSeries is good for is parts, especially with the new iSeries Model 270s, Neill said. A thief might be able to fetch $2,000 to $5,000 by selling the memory, disks, and controller cards found in a typically equipped iSeries Model 270, he said.

    iSeries components such as these can be bought and sold without any licensing issue, Neill said, and it's up to each used equipment dealer to do its own research into the background of the parts that are purchased.

    Occasionally, someone tries to sell stolen iSeries parts. Neill recalls being approached a couple of years ago by someone claiming to work for a bank in California. The man said he had some equipment he wanted to sell, and when he asked PaceButler to make the check out in his name, it aroused suspicion. Upon calling the bank, it was discovered that the man actually worked for a consulting company that had recently upgraded the bank's AS/400, and the man was trying to sell the old parts, which actually belonged to the bank. He lost his job as a result.

     

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    LANSA Upgrades Software Development Suite

    by Alex Woodie

    LANSA has recently announced the release of LANSA Version 9.1, the latest suite of development tools from the Oak Brook, Illinois, software company. LANSA's fourth-generation language (4GL) development environment allows programmers to take advantage of the new technologies that LANSA's computer scientists build into the development tools, without necessarily learning all the ins and outs of the new technologies.

    Programmers can have their pick of several new technologies LANSA built into Version 9.1, including XHTML, Web services protocols, and a new Visual LANSA development framework. Additionally, LANSA changed the names of several of the development tools, dropped some, and added others. LANSA also debuted new installation programs and a new technical support Web site, and made literally hundreds of tweaks to keep its software current with development standards and up to customer expectations.

    Perhaps Visual LANSA, the company's development environment that most closely resembles traditional Microsoft Windows development tools--but which shares the basic LANSA repository and markup language that underlie all of LANSA's products--saw the most changes with this release.

    First-time LANSA programmers are expected to become productive more quickly when they use Visual LANSA Framework, a new component that provides the basic application structure for a Visual LANSA application. New and seasoned LANSA programmers alike might find the new Visual Modeler, a new component that provides a graphical view of files, fields, and their relationships to each other, a handy way to get immediate feedback on how changes affect the database.

    Visual LANSA now includes the latest Microsoft C/C++ compilers, which are faster than the old Watcom complier and make debugging easier, the company says. Additionally, the company says it reduced the size of compiled components, which means Visual LANSA applications use less memory and therefore run faster.

    Version 9.1 also brings changes to LANSA for the Web. In addition to supporting XHTML, which is a hybrid of XML and HTML and makes it easier to display the same GUI regardless of the client platform, LANSA is shipping a new IIS plug-in with this release. The IIS plug-in gives users of LANSA for the Web the option of deploying their Web server using Microsoft software, instead of WebSphere or other Java-based Web servers, depending on their preference.

    The newest addition to the LANSA family, LANSA Integrator, is the company's answer to its customers' application and B2B integration needs. First announced at the fall 2001 COMMON conference in Minneapolis, LANSA Integrator relies on Java and XML technology to integrate LANSA applications with applications on other platforms.

    Other enhancements were made to LANSA Open and LANSA Client, including the bundling of Crystal Reports 8.5 with LANSA Client. LANSA has also added a new support section to its Web site (www.lansa.com/support) to help users with technical questions about LANSA development tools.

    The following name changes will take effect for LANSA Version 9.1 and beyond:

    * LANSA for the iSeries becomes LANSA for iSeries
    * LANSA/AD becomes LANSA for iSeries
    * LANSA for Windows becomes Visual LANSA
    * Visual LANSA becomes Visual LANSA Components
    * SuperServer becomes LANSA SuperServer

    LANSA Version 9.1 becomes generally available this month. For more information, go to www.lansa.com.

     

     

     

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    IBM Offers WebSphere Bumblebee Rebates

    by Joe Hertvik

    IBM is now offering rebates on purchases of the eServer iSeries Powered by WebSphere, which we have nicknamed the WebSphere Bumblebee for short.

    The WebSphere Bumblebee includes a Model 270 iSeries server, OS/400 V5R1, WebSphere Application Server 4.0 Advanced Edition, and WebSphere Development Studio for iSeries. These rebates are available for the entry- and growth-level versions of the bundle.

    For the entry-level offering, which runs on a 1070 CPW uniprocessor, IBM is offering a rebate of $3,500 U.S. or $5,500 Canadian. For the growth-level machine, which is a dual-processor machine with a CPW of 2350, IBM is offering a rebate of $8,500 U.S. or $13,500 Canadian. These rebates are about 7.1 and 7.6 percent of the minimum configuration list price for the entry-level and growth- level bundles (see chart detailing list prices and current discounts for these machines).

    This offer is valid only in the United States, Canada, and the Caribbean. IBM is targeting the rebate at commercial and educational customers and state and local governments in the United States. Federal government customers may also qualify but need to call IBM at 800-333-6705 to determine eligibility. However, be careful what options you order with your bundle, because IBM is not allowing the rebate if you order the WebSphere Bumblebee as a logical-partitioned system (feature code 0140) or with Linux partitions (feature code 0142). This is probably because IBM wants its customers to use these servers for Web-enablement, and Big Blue may feel that partitioning the Bumblebee for different purposes will dilute the bundle's sales message. IBM is also specifying that you cannot combine this offer with the iSeries and J.D. Edwards rebate, the iSeries 400 Replacement promotion, the iSeries 400 Solutions promotion, or the iSeries and xSeries rebate. In addition, IBM is targeting this offer at users, as it is specifying that you cannot use the target machine for remarketing, leasing, or transferring to a third party.

    The rebate is good on machines purchased on or after December 18, 2001, and IBM must receive the rebate form and verifying receipts no later than four months from the purchase date. There is no word yet on when the rebate expires.

    In spite of all the restrictions listed in IBM's letter, IBM is also specifying that the rebate can be combined with other discounts, allowances, and rebates, provided you don't violate the terms and conditions of any of the offers. IBM is aggressively marketing the WebSphere Bumblebee in its initial release, and it's already offering some respectable discounts outside of the rebate to sell the bundle in the short run. The flip side of these multiple deals is that--if you want to purchase a WebSphere Bumblebee before February 8--I recommend that you aggressively push IBM to combine these rebates with the 15.3 or 14.7 percent discounts IBM is already offering on entry- and growth-level WebSphere Bumblebees until that date (see "WebSphere Bumblebee Pricing Is a Moving, Rising Target," in the December 3 issue, for details on these WebSphere Bumblebee discounts). If IBM allows it, slapping the rebate on top of IBM's existing WebSphere Bumblebee discounts can push a customer's discount on the entire package to 22.5 and 22.2 percent, respectively, for the entry- and growth-level machines. It certainly wouldn't hurt to ask your IBM representative or Business Partner about combining the offers, because IBM doesn't specifically forbid it in its announcement letter. My guess is that IBM won't really like the idea of combining the rebate with the WebSphere pricing discounts, but if enough customers ask (loudly) for it, something might happen. Regardless of whether or not it allows the combination of deals, IBM should be offering the Bumblebees at this type of discount, because that's how it will sell product and gain market share. If IBM is serious about this machine, this is what it needs to do.

    The end result is that, between the discounts and rebates IBM is offering on the WebSphere Bumblebees, customers who want to purchase a Bumblebee can get a fairly good deal before February 8, especially if they are able to combine deals. The rebates and discounts will continue after February 8, but your best WebSphere Bumblebee deals are available right now, if you're in the position to take advantage of them.

     

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    As I See It: The Service Myth

    This column may be monitored for quality assurance.

    by Victor Rozek

    I have no kitchen stove. Where the stove used to be, an ugly gaping hole now scars my kitchen. I had been looking at it for eight days straight when I finally lost my temper.

    Of course, I do own a stove--a rather expensive one I purchased over a year ago. And it didn't walk off on its own; nor was it stolen by a nefarious gang of appliance thieves. It was removed by what is referred to as the "service department" of a local appliance store. The problem was that the self-cleaning-oven feature didn't work properly; smoke and heat escaped the unit, burning the almond control knobs to a crispy brown. It took six calls and two months to get a service man dispatched. When he finally arrived (two hours late, of course), he discovered the frame on the unit was bent and could not be repaired. The stove would have to be replaced.

    My wife, who has the patience and self control of a Buddhist, undertook the task of negotiating a replacement. After nine months of pleading and promises, they came and picked up the defective stove. But by this time a unit of the same color was no longer available, so the dealer decided to remove our almond panels, install them on a comparable stove frame, and return it promptly. I then threatened to dismember the dealer if our stove did not reappear by the next day.

    What ever happened to service? The great myth is that competition has obliged every company to be obsessed with customer service. Hardly. More accurately, competition produces an obsession with cost cutting, and in the frenzy to cut costs service is the first casualty. Cutting costs means cutting people and replacing them with "systems" that have no capacity to care about anyone. Most of the time I mutely accept the fact that service has nothing to do with me or what I want and need, but lately the lack of concern and responsiveness has been acutely annoying.

    During the holiday season I stood in long lines at my bank which has a large floor display advertising the great service the bank provides. One day, when the line was particularly long and the depositors were getting restless, I asked the branch manger why he chose to subject his customers to promises of service in the only location where they weren't receiving any. And why, for that matter, was he out here talking to me rather than behind the counter helping these people?

    "We're doing the best we can," he said.

    "Isn't that disheartening?" I replied. Apparently it wasn't.

    The same zealous customer focus is repeated millions of times each day in thousands of locations. Ever go to a copy center with a rush job? It's a good thing they're open 24 hours a day, because it usually takes about that long to accomplish the simplest tasks. Incompatible software, inability to open files, long print queues, friendly but baffled employees: Bring a bag lunch, because it will take a while.

    How about insurance companies? My company sends out a premium coupon with a survey box located right under "amount enclosed." It's probably intended to distract me from premium shock by asking, "Overall, how satisfied are you with the service you receive from your agent?" Who are they kidding? I've never even met my agent. He has never been to my home and knows absolutely nothing about me or my current insurance needs. He wouldn't know me if he ran over me. At one time, insurance agents actually visited you regularly, met with your family, and familiarized themselves with your plans and needs. No more. If I want to see my agent, I have to drive to his office. When I try to get him on the phone, I usually get phone mail because he's too busy not helping other people. Just what "service" are they under the illusion their agents provide?

    And phone companies. To call customer service is to enter a vast phone mail graveyard where you can squander your youth searching for an elusive human being to talk to. If, by some miracle, you press the right sequence of buttons and are able to descend through multiple twisted levels of phone hell to finally reach the promise of human help, you then sit on hold indefinitely, listening to monotonous music interrupted by a chipper voice announcing that "your call is important to us." Sure it is.

    Isn't it insulting that after making you wait interminably, just about every company these days announces its intention to monitor your telephone interactions with its customer service representatives, ostensibly for the purpose of "quality assurance"? In terms of timing, that's like offering Mrs. Lincoln free tickets to another play. The more probable cause is to monitor just how long they can make customers wait before they become homicidal. If anything, the threat of monitoring discourages employees from taking too many calls. In fact, automated telephone answering systems are so annoying that many scholars conjecture Dante had a premonition about them when describing the levels of hell in the Inferno. "All hope abandon, ye who enter here!" pretty well describes the experience.

    As if all this weren't enough, now we have computerized e-mail response systems. Call me naive, but when I take the time to write an e-mail correspondence to a company, I have this outdated belief that some human being somewhere will actually read it and be bothered enough to reply. Silly me.

    Send an e-mail to one of a growing number of large companies, including IBM, and chances are it will never be seen by human eyes. Instead, it will be intercepted by smart software, which scans messages for keywords; determines whether the missive is a complaint or a request for product information or has some other purpose; selects the appropriate canned response; and zips it back to the unwary customer. Ignorance is bliss. "Gee, honey, look how quickly the nice people responded to our e-mail! They must really care about us." Like a slumlord cares about remodeling.

    If the good new is that the Internet has given customers unprecedented access to providers of goods and services, the bad news is that we took advantage of it. In no time at all, distant corporations accustomed to a degree of insulation from the pesky demands of fickle customers were besieged by a deluge of e-mail. If the sudden attention was appreciated, the sheer volume was not.

    The first large-scale test of an automated e-mail answering system was unforeseen. It was precipitated by Ellen DeGeneres' disclosure on national television that she was gay. Well, you can imagine the shock of Americans discovering there were gay people on television! Suddenly, all sorts of viewers felt compelled to electronically inform the show's sponsor (a large department store) that it was no longer moral enough to be their throw-rug and shower-curtain provider. A line was being drawn in the silicon. Virtuous viewers were refusing to buy any more sweat-shop clothing from a company so morally depraved as to sponsor a show staring a lesbian. Something had to be done.

    Ordinarily, the department store would have been overwhelmed by the volume of indignant e-mails, but it just happened to be testing a pilot version of an automated e-mail response system. The system not only recognized that the incoming messages were not product orders or requests for information, it identified them as being angry and alerted company officials. The PR department promptly drafted a canned declaration of sincere concern, which the system sent to the complainants.

    Perhaps the greatest service myth of all, however, is deregulation. It has turned the magic of flying into a drudgery and has transformed telephone companies into automated black-holes from which no customer service escapes. For that matter, just ask Californians what level of service energy deregulation provided them.

    Experience suggests that the automation of customer service is designed primarily to benefit the provider at the expense and frustration of the customer. Sometimes it can take hours, even days or weeks, to get a reply to the simplest question. Those times when the system fails and you unexpectedly reach a human being, you can bet they will be trainees with marginal English skills and no authority to make financial decisions. It's about as useful as talking to a wrong number. My preference, whenever possible, is to deal with local businesses where I can at least talk directly with the service provider.

    But then, of course, there was the matter of my missing stove.

    Speaking of which, my stove finally did arrive the following day, complete with burned knobs and the oven door hanging slightly askew, a mere nine-and-a-half months after we first reported the problem. Perhaps the final irony is that, at one point during the negotiations, my wife explained to the owner of the appliance store that we had picked his establishment (from which we had also purchased a washer and dryer and a microwave) because it was local and not some impersonal national chain. In response he actually said, "There is no such thing as customer loyalty anymore." As the teenage daughter of a friend was once heard to remark, "Well, way major duh." Which I believe means self-fulfilling prophecy.

     

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