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Volume 13, Number 32 -- August 9, 2004

IBM Changes More iSeries, i5 Prices


by Timothy Prickett Morgan


A new product line is a very disruptive thing, but the eServer i5 line launch is perhaps even a bit more tricky because of the need to align pricing with the eServer p5 servers that are based on the same Power5 platform and IBM's desire to do better in selling OS/400 servers during the third quarter than it did during the second quarter, when sales were down 28 percent. To that end, IBM tweaked iSeries and i5 prices yet again, at the end of July.

As we mentioned in the lead story for this issue, IBM first of all cut the price of its Integrated xSeries Adapter card for linking xSeries servers to iSeries machines, for shared data storage, by 21 percent, to $2,200. IBM also formalized the price cuts on two features of the i5 Model 520 servers (the feature 7456 Standard Edition and the feature 7457 Enterprise Edition). Pricing for i5/OS V5R3 remains the same for the six other regular i5 machines (as distinct from the five i5 Model 520 Express configurations). These price changes are consistent with the pricing that IBM announced on July 13. IBM also raised prices on some rack components by 20 percent.

Perhaps more significant, IBM has slashed the cost of upgrades for some key features within the prior two iSeries generations of Model 8XX servers. These price cuts suggest that some customers are hesitant to move to i5/OS V5R3, which is required on the i5 Model 520 and 570 servers, and that IBM and its vast reseller channel are trying to get rid of the V5R2 systems and upgrades in the channels. Generally speaking, the price cuts cover upgrade charges for specific interactive processing features used in the first generation Model 8XX servers (820, 830, 840) as they are upgraded to second-generation Model 8XX servers (Model 810, 825, 870, 890) with OS/400 V5R2 Enterprise Edition. As the pricing table I built shows, these upgrade price cuts are quite substantial, ranging from 11 to 61 percent and averaging 36 percent. These price changes take effect immediately.

IBM also announced at the end of July that the upgrade from processor and interactive features used in the first-generation Model 8XX to OS/400 Enterprise Edition running on second-generation Model 8XX would be withdrawn from marketing on September 30. On November 19, IBM will stop selling the 128 MB and 256 MB main memory cards used in iSeries machines, as well as the feature 4778 PCI RAID 5 disk controller. A whole slew of feature conversions for these older Model 8XX boxes are also going to be removed from marketing on November 19. You can see what those features are on IBM's Web site.

Sponsored By
TRAILBLAZER SYSTEMS

Daymon Worldwide Follows TrailBlazer's
Path to UCCnet Success

Daymon Worldwide specializes in the sales and marketing of private-label consumer products for retailers throughout the U.S. and in a dozen countries worldwide. They also work with manufacturers to find and build relationships with retailers that are mutually beneficial. In the years since its founding in 1970, Daymon Worldwide has grown extensively. Its grocery partners account for a significant share of the nation's grocery sales, with similarly impressive numbers in the wholesale and drug markets.

Daymon knows that the emergence of GDS, specifically UCCnet, is the future of retail supply data management. "We embraced the concept of UCCnet at the start, from a standards perspective," said Aaron Gottlieb of Daymon Worldwide. "We wanted to ensure that the needs of the private label community were addressed. We understand what the issues are facing both retailers and manufacturers, and our goals are to help our retailers and manufacturers get implemented as quickly and painlessly as possible." He adds that while UCCnet technology currently works on a manufacturer-to-retailer basis, there is a future for brokers and distributors in the information chain as well. Daymon will take UCCnet product information and supplement it with relationship-specific information, passing the augmented information on to the retailer, says Gottlieb.

To accomplish this mission, Daymon turned to the ZMOD Exchange Demand for UCCnet Services, by TrailBlazer Systems, Inc. TrailBlazer was the first and only choice for Daymon Worldwide for several reasons, not the least of which was a successful past relationship between the companies.

Gottlieb says there were three keys to the ZMOD Exchange solution that made it attractive to Daymon - compliance, security, and the ability to move and map information within Daymon's own system. "They have the strategic vision to realize the importance of not only synchronizing data, but cleansing it first," says Gottlieb. "They're working to provide data quality assurance services into their solution."

TrailBlazer's strategic vision also shows its value as Daymon moves to become part of the UCCnet world as a provider to both retailers and manufacturers. "TrailBlazer has become a strategic partner with us in developing this broker/distributor functionality that no one else is really providing," says Gottlieb. "It's really a unique offering. We'll be able to subscribe to information, augment it, and publish it as a supplier ourselves."

As a member of the UCCnet Solutions Partner Program, TrailBlazer Systems offers businesses UCCnet compliance with a secure and reliable iSeries solution that is UCCnet certified for sending and receiving XML transactions.

With over 2,000 customers, TrailBlazer Systems' ZMOD Exchange software was the first EDI-INT software package introduced on the iSeries for both AS1 and AS2 support. ZMOD Exchange applications offer XML translation and mapping capabilities enabling iSeries users to send and receive properly formatted XML transactions.

TrailBlazer Systems offers the only commercially used demand side solution that runs on the iSeries platform. The features of the demand solution include a UCCnet-compliant catalog, mandatory attribute configuration, auto-response for accepting new items, correction and changes, and item querying/management by supplier and product category.

In addition, TrailBlazer Systems offers a suite of software solutions that helps companies to manage e-business transactions.


For more information on TrailBlazer Systems software solutions, please
call 770-850-6966 or visit us online at www.trailblazersystems.com.


Editor: Timothy Prickett Morgan
Managing Editor: Shannon Pastore
Contributing Editors: Dan Burger, Joe Hertvik, Kevin Vandever,
Shannon O'Donnell, Victor Rozek, Hesh Wiener, Alex Woodie
Publisher and Advertising Director: Jenny Thomas
Advertising Sales Representative: Kim Reed
Contact the Editors: To contact anyone on the IT Jungle Team
Go to our contacts page and send us a message.


THIS ISSUE
SPONSORED BY:

Bytware
Aldon
TrailBlazer Systems
iTera
Profound Logic Software


BACK ISSUES

TABLE OF
CONTENTS
IBM Launches New IxA Cards to Link to Nocona Servers

Novell Takes On Red Hat with SuSE Enterprise Server 9

IBM Changes More iSeries, i5 Prices

Mad Dog 21/21: 0110 Nights and a Night

But Wait, There's More


The Linux Beacon
Unisys Finally Does Linux as Well as Windows

Sun Considers Buying Novell--and a Lot of Other Companies

Intel Launches 64-Bit Xeons For Servers

The Windows Observer
Microsoft Delays Windows Server 2003 SP1 and 64-bit Versions

Does Dividend Spell the End of Innovation for Microsoft?

HP, IBM Roll Out Nocona Servers

The Unix Guardian
SCO Tweaks SCOoffice, Offers Peek At Future OpenServer

Schwartz Says Solaris Is Possible for Itanium, Power

Leasing Greases IT Acquisitions, Pumps the Economy


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