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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.
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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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"YOU CAN BE CODING JAVA APPLICATIONS FOR WEBSPHERE USING
VISUALAGE FOR JAVA IN ONE WEEK!" GUARANTEED!
http://www.web400.com
|
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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