02
Sat, Nov
2 New Articles

iSeries Division Deals with Harsh Headlines

Analysis of News Events
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

Have you ever had one of those months—or one of those years, for that matter—where you found yourself blindsided by a wave of bad news? If you have, you know how hard it can be to maintain an upbeat attitude or, at the least, stay philosophical about it all. Such is the challenge that many people in IBM's iSeries Division are facing right now. That is because January is shaping up to be "one of those months" for them.

Consider what has happened lately to the gang in Rochester. Early last week, Vice President of iSeries Marketing Peter Bingaman announced that he is leaving IBM immediately to take a position at LexisNexis Group, a well-known provider of information and research services. According to sources inside IBM, Bingaman's resignation took effect last Wednesday. During his tenure with the iSeries Division, Bingaman launched several successful marketing campaigns that significantly increased awareness of the iSeries among IT decision-makers. His unexpected departure creates a leadership vacuum that could affect those campaigns. IBM has its work cut out for it to fill Bingaman's position and do so quickly enough to ensure continuity.

Right on the heels of Bingaman's resignation, IBM reported fourth quarter financial results that were, at best, a bag of mixed news. While the company's earnings per share increased by a better-than-expected 13%, its revenues fell by a disappointing 1%. Unfortunately, the iSeries was among the products that contributed to the sales decline. For the quarter, iSeries revenues were 18% lower than they were during the same period last year. That turned what was supposed to be a strong year for iSeries growth into a modest one, with 2005 revenues exceeding those for 2004 by only 1%.

As I see it, two factors played the biggest roles in the iSeries sales slump. First, sales for the quarter had to be compared against strong sales of high-end systems during the fourth quarter of 2004. As you might remember from my previous articles, that quarter was the first one when customers could buy high-end eServer i5 models. At the time, pent-up demand for such systems drove up fourth quarter 2004 sales, making it a tough quarter for comparison purposes. Second, many iSeries customers held off on purchases during the last quarter because they believed that IBM will announce new iSeries servers with faster Power5+ processors in 2006. I am not at liberty right now to say whether those customers were right or wrong on their bets. However, let's just say that everyone will learn the truth very soon.

As the iSeries team is feeling the sting from last quarter's sales figures, it must also be wondering whether another piece of bad news could hurt sales in future quarters. Last week, IBM cancelled Server and Technology Group University (STGU), an annual event that was to take place in Las Vegas this week. Early each year, IBM uses STGU to educate its field force and Business Partners and motivate them to sell servers and storage devices. While this year's STGU attendees will find other ways to educate themselves, they will lose the chance to collaborate with each other on current sales prospects. Such face-to-face collaboration helps to boost iSeries sales, and the loss of it could have a small yet significant impact on server revenues going forward.

On the brighter side, there is one bit of good news that could work to the advantage of the iSeries. Two weeks ago, IBM and Mainsoft Corporation announced an alliance to help vendors of Windows software port their applications to IBM's servers. For several years, Mainsoft has been creating products that let companies run Windows applications in other server environments. One of its products, Visual MainWin for J2EE, lets companies recompile applications written in Microsoft's C# and Visual Basic.NET languages to run on Java 2 Enterprise Edition application servers from IBM, BEA, JBoss, and Apache. The neat thing for the iSeries is that the recompiled applications can run in both OS/400 and Linux logical partitions on WebSphere Application Server (WAS) Version 6, WAS 6 Express Edition, and WAS 5.1. IBM will use Visual MainWin for J2EE to help Windows software vendors port their applications to its servers and will then assist them in marketing the solutions. The campaign could bring a number of Windows applications to the iSeries platform.

Though the IBM-Mainsoft alliance could help the iSeries, another alliance could hurt it. Two weeks ago, Oracle Corporation and Sun Microsystems announced that they will jointly promote a Java-based datacenter architecture made up of products from both companies. As part of the agreement, Sun will bundle Oracle's database on its UltraSPARC IV and UltraSPARC IV+ servers and pay for the database license fees. Since those license fees can easily top a million dollars on larger servers, the savings are far from being chump change.

Sun's bundling offer will make its Solaris-based servers more competitive on a price basis with IBM's UNIX servers whenever an Oracle database is involved. While that will pose the greatest challenge to sales of IBM's pSeries servers, it could also affect sales of larger iSeries servers that are intended to run Oracle's database on AIX partitions. Last year, several sizable iSeries sales involved AIX partitions running Oracle databases.

A Time to Stay Calm

As you can see from the latest headlines, the folks at the iSeries Division could be excused right now for suffering from an acute case of "news blues." Then again, considering the bad press that the Rochester team has endured over the years, they are probably riding out the current spate of stories with their usual brand of stoicism.

One thing that could fuel some optimism on their part is the growing number of software vendors that are modernizing their existing iSeries applications or porting new applications to the server. Another cause for hope is the impending announcement of significant iSeries enhancements, including a new release of OS/400. While I have agreed not to reveal the date of the announcement, I can say that it is sooner than many of you think. When it happens, you can bet that yours truly and the rest of the MC Press team will be there to analyze all of the details, so stay tuned.

Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology. You can reach him at This email address is being protected from spambots. You need JavaScript enabled to view it..

LEE KROON
Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology.
BLOG COMMENTS POWERED BY DISQUS

LATEST COMMENTS

Support MC Press Online

$

Book Reviews

Resource Center

  • SB Profound WC 5536 Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. You can find Part 1 here. In Part 2 of our free Node.js Webinar Series, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Brian will briefly discuss the different tools available, and demonstrate his preferred setup for Node development on IBM i or any platform. Attend this webinar to learn:

  • SB Profound WP 5539More than ever, there is a demand for IT to deliver innovation. Your IBM i has been an essential part of your business operations for years. However, your organization may struggle to maintain the current system and implement new projects. The thousands of customers we've worked with and surveyed state that expectations regarding the digital footprint and vision of the company are not aligned with the current IT environment.

  • SB HelpSystems ROBOT Generic IBM announced the E1080 servers using the latest Power10 processor in September 2021. The most powerful processor from IBM to date, Power10 is designed to handle the demands of doing business in today’s high-tech atmosphere, including running cloud applications, supporting big data, and managing AI workloads. But what does Power10 mean for your data center? In this recorded webinar, IBMers Dan Sundt and Dylan Boday join IBM Power Champion Tom Huntington for a discussion on why Power10 technology is the right strategic investment if you run IBM i, AIX, or Linux. In this action-packed hour, Tom will share trends from the IBM i and AIX user communities while Dan and Dylan dive into the tech specs for key hardware, including:

  • Magic MarkTRY the one package that solves all your document design and printing challenges on all your platforms. Produce bar code labels, electronic forms, ad hoc reports, and RFID tags – without programming! MarkMagic is the only document design and print solution that combines report writing, WYSIWYG label and forms design, and conditional printing in one integrated product. Make sure your data survives when catastrophe hits. Request your trial now!  Request Now.

  • SB HelpSystems ROBOT GenericForms of ransomware has been around for over 30 years, and with more and more organizations suffering attacks each year, it continues to endure. What has made ransomware such a durable threat and what is the best way to combat it? In order to prevent ransomware, organizations must first understand how it works.

  • SB HelpSystems ROBOT GenericIT security is a top priority for businesses around the world, but most IBM i pros don’t know where to begin—and most cybersecurity experts don’t know IBM i. In this session, Robin Tatam explores the business impact of lax IBM i security, the top vulnerabilities putting IBM i at risk, and the steps you can take to protect your organization. If you’re looking to avoid unexpected downtime or corrupted data, you don’t want to miss this session.

  • SB HelpSystems ROBOT GenericCan you trust all of your users all of the time? A typical end user receives 16 malicious emails each month, but only 17 percent of these phishing campaigns are reported to IT. Once an attack is underway, most organizations won’t discover the breach until six months later. A staggering amount of damage can occur in that time. Despite these risks, 93 percent of organizations are leaving their IBM i systems vulnerable to cybercrime. In this on-demand webinar, IBM i security experts Robin Tatam and Sandi Moore will reveal:

  • FORTRA Disaster protection is vital to every business. Yet, it often consists of patched together procedures that are prone to error. From automatic backups to data encryption to media management, Robot automates the routine (yet often complex) tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:

  • FORTRAManaging messages on your IBM i can be more than a full-time job if you have to do it manually. Messages need a response and resources must be monitored—often over multiple systems and across platforms. How can you be sure you won’t miss important system events? Automate your message center with the Robot Message Management Solution. Key features include:

  • FORTRAThe thought of printing, distributing, and storing iSeries reports manually may reduce you to tears. Paper and labor costs associated with report generation can spiral out of control. Mountains of paper threaten to swamp your files. Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing. Manage your reports with the Robot Report Management Solution. Key features include:

  • FORTRAFor over 30 years, Robot has been a leader in systems management for IBM i. With batch job creation and scheduling at its core, the Robot Job Scheduling Solution reduces the opportunity for human error and helps you maintain service levels, automating even the biggest, most complex runbooks. Manage your job schedule with the Robot Job Scheduling Solution. Key features include:

  • LANSA Business users want new applications now. Market and regulatory pressures require faster application updates and delivery into production. Your IBM i developers may be approaching retirement, and you see no sure way to fill their positions with experienced developers. In addition, you may be caught between maintaining your existing applications and the uncertainty of moving to something new.

  • LANSAWhen it comes to creating your business applications, there are hundreds of coding platforms and programming languages to choose from. These options range from very complex traditional programming languages to Low-Code platforms where sometimes no traditional coding experience is needed. Download our whitepaper, The Power of Writing Code in a Low-Code Solution, and:

  • LANSASupply Chain is becoming increasingly complex and unpredictable. From raw materials for manufacturing to food supply chains, the journey from source to production to delivery to consumers is marred with inefficiencies, manual processes, shortages, recalls, counterfeits, and scandals. In this webinar, we discuss how:

  • The MC Resource Centers bring you the widest selection of white papers, trial software, and on-demand webcasts for you to choose from. >> Review the list of White Papers, Trial Software or On-Demand Webcast at the MC Press Resource Center. >> Add the items to yru Cart and complet he checkout process and submit

  • Profound Logic Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.

  • SB Profound WC 5536Join us for this hour-long webcast that will explore:

  • Fortra IT managers hoping to find new IBM i talent are discovering that the pool of experienced RPG programmers and operators or administrators with intimate knowledge of the operating system and the applications that run on it is small. This begs the question: How will you manage the platform that supports such a big part of your business? This guide offers strategies and software suggestions to help you plan IT staffing and resources and smooth the transition after your AS/400 talent retires. Read on to learn: