IBM will roll out new hardware, pricing and upgrade options for
users of its iSeries systems this week as part of a $500m (£311m)
effort to revitalise the 25-year-old midrange server line.
The overhaul will address several long-standing user concerns and
make the iSeries machines more appealing to first-time buyers.
IBM will also invest more on marketing to boost interest in the
iSeries technology among software suppliers and resellers.
Perhaps the most important development is a change in the way IBM
charges users that run host-based, green-screen applications on
machines in the iSeries line, which was previously known as the
AS/400.
Under IBM's new Enterprise Edition pricing model, companies will
pay flat fees, depending on the model, that allow them to use the
full capacity of their machines for running 5250 terminal
sessions.
The approach replaces a complex and very unpopular pricing scheme
under which IBM charged iSeries users an "interactive workload" fee
for running 5250 applications. The multi-tiered pricing structure
meant users paid progressively higher fees with almost every
increase of their interactive workloads.
IBM product manager Ian Jarman claimed Enterprise Edition pricing
could improve price/performance on the iSeries line by up to 80% in
some cases, because the new pricing allows users to use the full
capacity of the system for running interactive applications without
paying anything extra.
Gartner analyst Thomas Bittman said the new pricing model would
encourage iSeries users to upgrade their systems and expand their
use of 5250-based applications to more end users. "We have long
considered part of the iSeries installed base to be a cash cow,
because IBM was charging so differently for interactive use vs.
noninteractive use."
IBM will also announce four new iSeries models, including a pair of
systems that are based on its Power4 processor and will join the
i890 at the high end of the server line.
The i870 and i825 come with a capacity-upgrade-on-demand feature
that lets users switch on additional processors when they need
them. For example, a company could turn on an extra processor in an
i825 and pay a fee of $1,100 for each day it is used, Jarman said.
They could also buy the additional processor outright for about
$50,000.
The temporary upgrade capability would let users quickly access
additional CPU capacity without having to shut down a system or
reconfigure it.
Although iSeries systems still enjoy immense popularity among
existing users, analysts said IBM has been unable to make much
headway in attracting new users or application workloads to the
platform.
IBM's iSeries business unit general manager Al Zollar said much of
the drop-off in iSeries sales to new buyers has resulted from the
increased popularity of Windows servers. IBM will launch a much
more vigorous marketing campaign to boost the profile of the
iSeries line within its installed base and with users of other
systems
The company will spend an extra $20m over the next two years to
help resellers market the machine. It will also host more than 200
customer events worldwide to highlight the potential benefits of
iSeries systems.
On the technology front, IBM will continue to build on the
ease-of-management and software-integration features that have been
hallmarks of the iSeries line. Zollar cited as an example IBM's
move to bundle a wide range of its middleware products with the new
high-end iSeries models being announced this week.
"The iSeries has been known to deliver simplicity, ease of use and
tight integration," Zollar said. "But in the past, [the systems]
have been based on proprietary technologies. The future is about
the same message on an open infrastructure."