So what do have they to show for it? Has it produced any revenue or that next killer application? I wish I could compare that $1 billion to what they invested in selling the iSeries during the same period; I'm certain the return on investment would be better.
But today another "Java" technology has been sold to the IBM high command: On Demand. This is the delivery of IT resources as needed, something like having the electric company turn up the power output during the peak summer usage periods. The first delivery of this technology was in the iSeries. Multiple processor cards can be installed in machines so that when customers need to upgrade, they simply call IBM and pay for the extra CPU. IBM sends them a code, and the extra power is released. IBM is also doing this for Web "services," except it looks a lot like a new name for outsourcing your IT. Here's a quote from the IBM e-business On Demand Web page:
"By giving up the burden of IT ownership, your company can vastly increase its access to computing power, expertise, and innovation. Subscribe to what you need today. Turn it up when you need more."
Pretty cool idea, isn't it? To me, this says, get rid of all your IT staff and use the big computer in the sky, and oh by the way, we at IBM offer this to you.
Like other consultants, I make my living off of companies owning their own IT assets; so do most software vendors. The only people who will be making a living if On Demand takes over the world are Microsoft (on the desktop) and the owner of the Big Iron in the Sky. That could mean the lowest bidder, which probably wouldn't be IBM. But don't worry; IBM's marketing may screw this up, too, so there's always hope.
But realistically, who is this technology for? Sure, several large-scale customers such as the Fortune 10 will have a need for this kind of thing, but who else will? In order to price it profitably, IBM would need to price it in the mainframe computing model--which is 5 to 10 times the price that a typical iSeries shop is used to. If it is less, then those top 10 companies may not be spending as much money with IBM as they are today, and I don't think reducing annual sales figures is what IBM had in mind.
The interesting thing to me is that somebody actually believes this will help IBM's bottom line. Let's look back at Capacity On Demand. If you expect to need a 25 - 400% increase in CPU capacity within a year or two, Capacity On Demand for iSeries seems like a good idea, but at what cost? I know that when I buy new equipment, I don't want two-year-old technology. Suppose I buy a four-way iSeries and only need a two-way today but expect to need the power of a four-way in two years; will I really want to activate two-year-old technology? If I could get a price that represents two-year-old technology, then perhaps I would. But I doubt the prices will reflect that kind of depreciated value. After all, IBM essentially installed double the CPU chips that you originally paid for. So their cost related to those chips is doubled. Sure, that's not a huge sum relative to the cost of the entire system, but if you were IBM and your earnings weren't as high as you'd like them to be, would you want to continue manufacturing something that has increasing costs but stable or falling retail prices?
Now, IBM is talking about adding DASD to the Capacity On Demand. Essentially, they'd be shipping a full system to everyone--max DASD, max memory, max CPUs. Need to upgrade? Just call IBM and--voila!--you've got it. Great idea if this were 1988, but today, if you need capacity, you call DELL or HP, order another server, plug it into the network, and you're done. Granted, networks are unreliable and complex and take an army to manage, but you still get a new system installed into your infrastructure, and that's what people are becoming used to: overnight ordering and user-installable components.
We have people in this market (the midrange market space of System/36/38 AS/400 and iSeries) who haven't shut their machines off for years. Those machines just keep on running, and performance is not an issue. Can you imagine new customers who install a small iSeries and decide five years later to upgrade? What do they do with all this Capacity On Demand available? What if IBM no longer supports the chip set? Will IBM give them new boxes with new hardware for a price similar to the Capacity On Demand prices? Interesting question, I think.
For new, start-up, or growing companies with lots of available cash (for example, an old dot-com that hasn't gone under yet), On Demand may provide the kind of infrastructure needed to get going faster, and that's a good thing. But in my view, On Demand and Java are very cool and interesting technologies that "techies" within IBM may have simply sold to upper management as a cool new technology. But were they simply solutions looking for problems to solve, problems that may not actually exist?
Bob Cozzi is a programmer/consultant, writer/author, and software developer. His popular RPG xTools add-on subprocedure library for RPG IV is fast becoming a standard with RPG developers. His book The Modern RPG Language has been the most widely used RPG programming book for more than a decade. He, along with others, speaks at and produces the highly popular RPG World conference for RPG programmers.
MC Press books written by Robert Cozzi available now on the MC Press Bookstore.
 |
||
 |
|
RPG TnT Get this jam-packed resource of quick, easy-to-implement RPG tips! List Price $65.00 Now On Sale
|
|
||
 |
|
The Modern RPG IV Language Cozzi on everything RPG! What more could you want? List Price $99.95
Now On Sale
|
More 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.
TRY 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.
Forms 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.
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:
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.
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:
LATEST COMMENTS
MC Press Online