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OS/400 Edition
Volume 12, Number 47 -- November 24, 2003

But Wait, There's More

  • If you are trying to keep up with PTFs on OS/400 and related systems programs, check out the OS/400 PTF Guides, put together by our partner DLB Associates.

  • IBM has quietly doubled the bonuses it gives to business partners that drive upgrades to new iSeries boxes and also help push IBM Global Financing as part of the acquisition. Under normal circumstances, according to internal IBM documents, the Global Financing incentive is 1 percent of the fair market of the cost of an upgrade. So if an upgrade cost $250,000, the partner would get a $2,500 incentive from IBM. IBM has announced that it will be offering 2 percent incentives for iSeries upgrades financed by the end of the year (the offer is retroactive to October 1). These incentives normally have a $20,000 cap, and that cap has been doubled to $40,000. The incentives have been doubled on first-generation iSeries Model 820 machines upgraded to second-generation Model 810, 825, and 870 machines. First-generation iSeries Model 830 machines upgraded to the new Model 825, 870, and 890 machines will also generate double incentives for partners. It is unclear if IBM has such incentives for AS/400 Model 7XX to iSeries upgrades, but it should. Knowing that IBM is giving dealers and resellers an extra point, now you can ask for it to be transferred to you, if you are shopping for iSeries gear before the end of the year.

  • If you are an OS/400 professional who has to cope with ZIP codes and other mailing issues, or someone at your company has to deal with the complex problems associated with regular mail, WorkRight Software might be able to help you solve them. The company has launched The ZIP Letter for customers of its PER/ZIP4, PER/SORT, and ZIP/CITY applications for the iSeries and AS/400 platform, as well as anyone else who wants to read this free newsletter. The ZIP Letter, which will be published monthly, clearly demonstrates enlightened self-interest. By helping people for free, WorksRight has a good shot at showing potential customers that they could solve many of their problems by acquiring its software.

  • The SCO Group was busy last week issuing stock to pay its lawyers for the $3 billion lawsuit against IBM. SCO contends that IBM took Unix intellectual property owned by SCO and put it into the open-source Linux 2.4 operating system. SCO needs to raise a war chest, and it's issuing nearly $8 million in stock and is making a $1 million cash payment to Boies, Schiller and Flexner, the hot-shot law firm that is representing SCO in the IBM suit and is also defending SCO in a lawsuit brought against it a few months ago by commercial Linux distributor Red Hat. And SCO is now saying that Novell's $210 million acquisition of SuSE violates a non-compete agreement that went into effect when Novell sold its Unix business to SCO, in 1995. SCO last year was eaten by Caldera Systems, which was spun out from Novell a few years earlier to start a Linux business. Yes, this is all a bit twisted. Finally, SCO is now saying that the war chest for David Boies and his partners is being built up so it can take on a big Linux user that has refused to pay licensing fees to SCO. Who is it? We're guessing it's one of the big search engines.

  • IBM plans to add hundreds of new technical and sales people to its channel software support staff in 2004, Computer Reseller News reported last week. The new jobs will increase the channel, which now employs a few thousand people, by 30 percent beginning in January. Most of the new jobs will be technical, in response to the market's changing needs. The blend of IBM's field force positions will be more technical next year, according to an IBM executive quoted in the article. Adding new technical people has been in the cards since October, when IBM's chief executive, Sam Palmisano, said the company would need to create up to 10,000 news jobs in 2004 to meet the need for high-value services, middleware technologies, Linux, and open-standards-based hardware. So far, however, IBM has cut more than 1,000 jobs in 2003, including 720 in the huge Global Services organization, which apparently didn't have the right mix of "high value" service offerings.

  • Discrete manufacturing and the government will be the most fertile grounds for IT outsourcing through 2008, according to a new IDC report on the uptake of IT outsourcing among 16 different industries. Over the next five years, the highest IT outsourcing growth will occur in the financial market, financial services, discrete manufacturers, and the government, which will lead the pack with a five-year annualized growth rate of 7.4 percent, IDC says. Near the bottom of that continuum will be communications/media companies and education, which, IDC says, will both see a growth rate of about 3.2 percent per year over that same period. The industries most likely to ship out all, or only part, of their IT systems are those with low margins (such as manufacturing) or poor access to IT talent (government), or those that need the latest in IT technology (such as financial services), the analyst firm says. Another trend now taking hold, which should please IBM, is the growth for on-demand services, as opposed to traditional IT outsourcing contracts, IDC says.

  • How would you measure the return-on-investment of a new intranet? Most likely, you would guess or make no measurements at all, according to a new study conducted by Prescient Digital Media , a Toronto, Ontario, company that consults on intranet and extranet projects. The survey found that 51 percent of organizations either make no attempt to measure the ROI of their intranet projects or take a guess, while only 6 percent said they make specific measurements to determine ROI. At the same time, more than three-quarters of the respondents said that ROI was very important to their organizations, and about two-thirds of them reported productivity enhancements as a result of the intranet projects. The survey drew from more than 240 respondents, representing a wide variety of organizations, including KPMG, Volvo, the Royal Bank, and Hewlett-Packard.

  • Create!form International last week announced it plans to expand into the French software market through a new partnership with Amitech, a Paris-based consultancy. Under the agreement, Amitech will become a "gold partner" and will resell Create!form's line of forms management software for OS/400 and other platforms throughout France and Europe, and will provide services as well. Amitech had been reselling software that competed with Create!form's line, but the company decided to switch alliances because it considered Create!form's software much stronger, according to Amitech's general manager, Guillaume Cuiry. Create!form was acquired earlier this year by Bottomline Technologies, a publicly traded developer of financial resource management software headquartered in Portsmouth, New Hampshire.

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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.


Aldon Computer Group
Cosyn Software
Integrated Print Solutions


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