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000-868 System I Technical Solutions (R) Design (including i5/OS V5R4)

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000-868 exam Dumps Source : System I Technical Solutions (R) Design (including i5/OS V5R4)

Test Code : 000-868
Test appellation : System I Technical Solutions (R) Design (including i5/OS V5R4)
Vendor appellation : IBM
exam questions : 152 real Questions

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IBM IBM System I Technical

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IBM Is taking dwelling - but it surely can be Saved | killexams.com real Questions and Pass4sure dumps

Image result for ibm

Introduction

In September, I wrote an editorial that chronicled the slack decline of overseas industry Machines (IBM). The article concentrated on the enterprise’s declining revenues and margins and the fallacy it truly is Watson that has been overhyped and over-marketed. given that the article changed into posted, issues maintain gotten worse for the company. Its stock expense has declined from $a hundred forty five to the current $123.

in consequence, its market valuation has declined from more than $a hundred thirty billion to the latest $112 billion. This valuation makes IBM fairly valued compared to different technology agencies. In IBM, traders are paying 19X trailing income and 8X forward earnings. here is greatly lower than what traders are paying for different historic tech companies love Oracle (ORCL), Microsoft (MSFT), Apple (AAPL), and Cisco (CSCO) which maintain a typical ahead PE ratio of 15. similarly, IBM has a ahead PS ratio of 1.41, which is lessen than the typical of these companies of 4.65.

all the way through IBM’s decline, many buyers – including Warren Buffet – maintain invested within the enterprise, hoping that it will obtain a turnaround. they maintain outright been upset because the enterprise’s inventory has persisted to behold lessen lows. short retailers in spite of this maintain been rewarded because the stock has misplaced 17% of its value this 12 months. The short pastime has improved from 14 million in January to the current 21 million.

in my opinion, IBM will proceed to underperform because it lacks a yeast with the end to occupy the stock larger. This evaluation may be a succeed as much as the antiquated article and will spotlight extra problems that the roomy blue is dealing with and the way it will likewise be saved.

Elephant within the Room: RHT

When giant companies are in decline, they maintain a dependancy of constructing negative selections above outright when it comes to acquisitions. Two examples of this are the resolution via Sears Holdings (SHLD) to purchase k-Mart and the determination by way of well-known electric (GE) to purchase Baker Hughes (BHGE). sadly, IBM determined to comply with the footsteps of those corporations.

Two weeks ago, the enterprise introduced that it could expend $34 billion to acquire crimson Hat (RHT). IBM would acquire RHT for $one hundred ninety, which was a 63% premium. In its announcement, IBM’s CEO said that:

The acquisition of red Hat is a video game-changer. It changes every thing concerning the cloud market. BM will become the world's #1 hybrid cloud issuer, providing businesses the only open cloud respond so that you can free up the complete value of the cloud for their businesses

This announcement reminded me of what GE’s Jeff Immelt spoke of when he introduced the acquisition of Baker Hughes.

BHGE is an industry leader located to carry in any financial ambiance and advocate their consumers in using productiveness. This deal capitalizes on the current cycle in oil and gas whereas additionally strengthening their position for the market recovery. As they hotfoot forward, the fresh fullstream providing accelerates their capacity to extend a digital framework to valued clientele while offering world-category technical innovation and repair execution. They look to be ahead to continuing a seamless integration for their valued clientele.

what is different in the two statements is that Immelt was appropriate concerning the scale of Baker Hughes. even so, Virginia Rometty’s commentary turned into demonstrably incorrect. First, within the press conference, IBM used the word cloud 43 times and according to Rometty, the deal will advocate IBM occupy an superior market partake in the cloud industry. however, a glance at crimson Hat’s revenues shows a several photograph. Most of its revenues further from infrastructure-connected choices whereas the subsequent profits comes from utility progress and different emerging know-how choices. In its 10K, it describes the subscription offerings as: revenue generated from purple Hat industry Linux and linked technologies equivalent to red Hat satellite tv for pc and purple Hat Virtualizations.

supply: purple Hat

This factor changed into likewise referred to via Barron’s article that interviewed an analyst from Bernstein who cited that:

more than half of crimson Hat’s earnings turned into generated via its just on-premise server working-equipment company, which isn’t without delay tied to the cloud and has a slowing increase fee.

additional, whereas Amazon’s (AMZN) cloud grew by means of 46% in 2017, red Hat’s cloud-connected revenues rose by way of simply 14%. at the equal time, the annual revenues of red Hat are only under $three billion with the net revenue being below $300 million. Worse, IBM is paying 55 instances RHT’s estimated revenue, which is a hefty valuation when you account that that many businesses in the sector are received at four.5 instances ahead earnings.

therefore, outright this does not warrant the hefty $34 billion. additionally, here is no longer the first time that IBM has overpaid for its cloud services. In 2013, when it introduced the acquisition of Softlayer, it declared that:

As organizations add public cloud capabilities to their on-premise IT methods, they need commercial enterprise-grade reliability, safety and management. To address this probability, IBM has developed a portfolio of excessive-price private, public and hybrid cloud choices, in addition to application-as-a-provider industry options. With SoftLayer, IBM will speed up the construct-out of their public cloud infrastructure to supply purchasers the broadest alternative of cloud offerings to drive enterprise innovation.

Even with the SoftLayer acquisition, IBM has lagged different cloud computing agencies. it is quantity 5 within the industry at the back of Amazon, Microsoft, Alibaba (BABA), and Google (GOOG). In public cloud, it has a market partake of 6%, which is miniscule in comparison to Amazon’s 46% market share.

briefly, IBM is following the same trend adopted by way of widespread electric powered when it acquired Baker Hughes or the disastrous $10.three billion acquisition of Autonomy by way of HP in 2011.

A silver lining in outright here's that there's a probability that the deal will not close. in the press observation, IBM said that it'll pay $a hundred ninety for the enterprise. As of this writing, the enterprise is buying and selling at $172, which is 10% decrease than the proposed $one hundred ninety. In merger arbitrage, this is an indication that a fine number of traders don’t accept as accurate with the deal will shut.

next Elephant within the Room: Debt

The pink Hat acquisition is the primary amongst many challenges I didn't maneuver in my outdated article. This deal besides the fact that children gifts IBM with a equipoise sheet difficulty. To finance the all-money transaction, IBM will deserve to elevate further debt.

before the deal is closed, IBM has a debt to equity ratio of two.372, which is larger than that of the peers mentioned above. Microsoft, Oracle, Apple, and Cisco maintain a debt to GDP ratio of 0.8867, 1.527, 1.068, and 0.fifty nine respectively. Their general is 1.01. hence, this can irritate when the company considerations more debt to finance the acquisition.

this may no longer be a problem for a company that's starting to be. alas, as I wrote before, the company’s boom has slowed, revenues are declining, and the huge bets on Watson are not working out. because it has been stated, many Watson purchasers are thinking of scaling down.

As you consider, IBM beneath Rometty has turn into a big fiscal engineering business. To enhance assurance available in the market, the enterprise has borrowed closely to finance buybacks. in the past ten years, the industry has spent more than $40 billion in partake buybacks. The chart beneath indicates the decreasing partake counts for the industry in the past ten years.

compare this with the boom in lengthy-time epoch debt as shown under.

In different words, the deal by way of IBM to purchase red Hat will dramatically increase its debt despite the fact that RHT’s free cash circulate is expanding. this may seemingly lead to reduced dividends. in reality, as a result of the acquisition, the enterprise has announced that it'll halt the buybacks in 2020. hence, it's going to halt buybacks to finance a deal I confidence will no longer abet it in future. couple outright this with the hefty $18 billion pension legal responsibility which is better than that of comparable agencies.

IBM may likewise be Saved

listed here, I even maintain neglected different considerations that I raised in the antiquated article. These considerations comprise the slowing growth, thinning margins, and the multiplied competition from companies love Alibaba, Amazon, and Google.

whereas things show darkish for IBM, I accept as accurate with that it can likewise be saved. different antiquated know-how businesses maintain outright been in an identical condition love IBM and recovered. earlier than Satya Nadella, Microsoft was loss of life. in a similar fashion, earlier than Steve Jobs, Apple turned into death.

an excellent location for IBM to delivery is to cherish that it's in hindrance. After this, it will dawn with the aid of setting up the intuition of the problem. I accept as accurate with that the intuition for IBM’s problems become its lateness within the cloud computing business. This prolong allowed Amazon and different agencies to enter the industry and acquire valued clientele. In cloud, the churn cost is so low that when a corporation acquires a client, it can compose sure that the industry will no longer defect to its rivals.

subsequent, as with other tech organizations that maintain recovered, IBM should noiseless account altering its management. The veracity is that Verginia Rometty has now not been an effectual CEO. below her management, the business’s inventory has declined through more than 30% as shown under. on the same time, she has been paid more than $one hundred twenty million. If Rometty has no longer changed the enterprise in 6+ years, what makes the board confident that she can flip it round in future?

next, as discussed above, IBM may noiseless account giving up the acquisition of purple Hat. whereas this can entice a hefty divorce invoice, it could be value than the calamity that awaits if the deal goes on. be aware that 83% of outright M&A offers fail and there is no explanation why this may be triumphant. To be clear, IBM will should compose acquisitions to compete with Amazon. actually, with the $34 billion, the company can compose option investments. for instance, it will probably expend about $3 billion to acquire a company love box (container) that counts 61% of Fortune 500 groups as shoppers.

improved, it might probably employ its ventures arm to build money into tiny startups in the same method that Google has executed it with Google Ventures. As shown under, IBM Ventures has no longer made any significant investments in the fresh past.

supply: Crunchbase

ultimately, IBM should accept as accurate with divesting its global enterprise solutions (GBS) phase. here is a phase that provides consulting, software management, and international system capabilities. In 2017, the phase generated $16.38 billion in revenues, which changed into lessen than $sixteen.7 billion in 2016. The segment’s margins are the least among the other segments.

The flagrant margins are 25%. here is just about corresponding to different groups in the sector love Accenture (CAN), Wipro (WIT), and Cognizant technologies (CTSH) which maintain flagrant margins of 30%, 30%, and 39%. for this reason, on a sum-of materials groundwork, this phase solitary will likewise be value more than $30 billion when you compare it with its friends.

it is estimated that GBS has greater than 120K personnel. hence, divesting the section will advocate the enterprise in the reduction of the headcount and enrich margins.

final suggestions

IBM’s inventory has persisted to lisp no after the announcement of the crimson Hat acquisition. As I actually maintain explained, the company continues to pan fundamental headwinds which will workable occupy it reduce. youngsters, I accord with that the directors can serve the industry neatly by means of getting out of the RHT deal and finding enhanced acquisition ambitions, changing the CEO, investing in early stage cloud businesses through IBM Ventures arm, and diversifying the world company capabilities arm.

Disclosure: i am/we're lengthy AAPL, field.

I wrote this text myself, and it expresses my very own opinions. i am not receiving compensation for it (aside from from in the hunt for Alpha). I don't maintain any company relationship with any industry whose inventory is outlined listed here.


Is Nagios The future of Monitoring For IBM i? | killexams.com real Questions and Pass4sure dumps

November 12, 2018 Alex Woodie

For a long time, know-how professionals became to contingent frameworks from IBM Tivoli, CA, Hewlett Packard, and BMC (“The roomy four”) to array screen their hardware and application stacks. however the open supply world has caught up with these closed monitoring environments, and a undertaking dubbed Nagios is poised to be the go-to platform for IT monitoring, including on IBM i.

Nagios, if you are not frequent, is a free and open supply software product that offers monitoring and alerting for servers, network apparatus, functions, and the array of services that groups increasingly depend on. The utility –backed by means of the necessary recursive acronym “Nagios Ain’t Gonna Insist On Sainthood” – turned into in the dawn developed through Ethan Galstad back in 2002 to Run and video array Linux methods, which changed into simply starting to compose headway in commercial enterprise facts centers.

through the years, the C-based application has been prolonged to guide an array of kick varieties, including host components love processor load, disk and RAM usage, and device logs for a majority of accepted working techniques, together with IBM i. The energetic Nagios neighborhood has created a wide array of Nagios brokers that maintain prolonged the framework to an estimated 5,000 devices.

Nagios is an open source device that permits directors to computer screen their IT paraphernalia and functions.

On the network side of issues, Nagios Core (because the open source product is frequent) displays routers, switches, and different equipment, and helps SMTP, POP3, FTP, and SNMP protocols, among others. outright faraway monitoring will likewise be encrypted, and it additionally presents a plug-in that lets clients create their own displays in a number of languages.

records gathered via lively and passive Nagios plug-ins is routed into the Nagios server, the dwelling the records is sorted and indicators are sent out. users can devour alerts in numerous approaches, including via an internet browser, through SMS pagers, and thru e-mail. With a simple notice on the Nagios dashboard on a phone, a systems admins can behold if captious servers, system, and functions are alive or lifeless.

The Nagios Core server application likewise can travail with a “circular-robin database” (RRD) to simplify the storage and querying of time-sequence records. With RRD, admins can dive deeper into Nagios statistics and view graphs to behold performance tendencies. And with a bit setup ahead of time, Nagios can be configured to immediately reply to pursuits as they turn up, or increase indicators to different people.

businesses that want more than what Nagios Core has to offer can locate it from Nagios organizations, the industrial outfit behind the open supply venture. The St. Paul, Minnesota-based company, which employs Galstad, extends Nagios Core with a number of offerings, together with Nagio XI, which elements a more extensible front-end and a MySQL-based again-end. Nagios XI additionally brings a much better person adventure with more effectual graphs and stronger dashboards.

IBM i customers can employ Nagios to monitor 15 metrics with the Nagios Plug-Ins for IBM i beta.

lamentably, Nagios enterprises doesn’t aid IBM i. however that you would be able to secure a Nagios distribution for IBM i from a cramped outfit referred to as international industry Machines. In 2017, roomy Blue shipped a beta version of an IBM i plug-in designed to feed information from the IBM i sever into the open supply Nagios Core product or Nagios XI.

in keeping with a developerWorks web page, the IBM i Nagios plug-in collects 15 several records aspects from IBM i servers, together with issues love CPU and disk utilization, ASP utilization, variety of energetic jobs, and long-operating SQL jobs, among others. Some of those capabilities are supported by means of SNMP, while others require the open source JTOpen Java toolbox to be build in.

The Nagios server itself doesn’t Run on IBM i – at the least now not yet. With the Nagios on IBM i plug-in, IBM offers users with directions on a way to set up Nagios Core or Nagios XI on a Linux server. Technically, there should noiseless be nothing stopping from a consumer installation Nagios in a Linux LPAR on the power techniques server – or even for IBM to port the software to the IBM i OS by means of PASE – however that has not came about yet.

IBM makes the case for IBM i shops to employ Nagios in a PDF presentation on Nagios created via IBM i enterprise architect Tim Rowe and Wang Yun, who developed the Nagios for IBM i plug-in. whereas Navigator for i gives respectable coverage of IBM i-centric queues and metrics, that product doesn’t give consumers with any visibility of what’s taking dwelling outdoor the IBM i device.

purchasers who purchase Nagios XI can computer screen IBM i metrics graphically.

Nagios, in spite of this, offers directors and operators with a lone centralized view of outright IT assets, Rowe and Yun write. apart from the core IBM i metrics that at the moment are purchasable by way of the Nagios plug-in, IBM i users can secure trend and historic records, as well as the flexibility to configure metrics to their liking, now not to point out the capability to create their personal customized plug-ins.

IBM isn’t the best company doing Nagios travail on IBM i. a few years ago, ShapPin Cheng launched a GitHub assignment referred to as check_as400 that moved facts from IBM i server logs into Nagios. for the intuition that the extensibility and openness of Nagios, it wouldn’t be spectacular to notice unbiased software carriers in the IBM i community undertake the expertise for their personal techniques monitoring offerings.

For now, IBM presents the Nagios plug-in as a beta. Don’t be stunned to peer it become a completely supported providing within the months to further back, chiefly seeing that the love industry that IBM has with open source software nowadays.

related studies

IBM i efficiency secrets and techniques revealed

What’s Cooking With IBM i On GitHub?

ASCI Job Scheduler gets Hooks for Nagios


000-868 System I Technical Solutions (R) Design (including i5/OS V5R4)

Study guide Prepared by Killexams.com IBM Dumps Experts


Killexams.com 000-868 Dumps and real Questions

100% real Questions - Exam Pass Guarantee with elevated Marks - Just Memorize the Answers



000-868 exam Dumps Source : System I Technical Solutions (R) Design (including i5/OS V5R4)

Test Code : 000-868
Test appellation : System I Technical Solutions (R) Design (including i5/OS V5R4)
Vendor appellation : IBM
exam questions : 152 real Questions

Some one who recently passed 000-868 exam?
Yes, very profitable and I become able to score 82% within the 000-868 exam with 5 days preparation. Especially the capacity of downloading as PDF files in your package deal gave me a very top-notch scope for powerful rehearse coupled with online checks - no restricted attempts limit. Answers given to each question by using you is one hundred% correct. Thanks lots.


000-868 Questions and answers required to pass the certification examination on the start try.
This practise kit has helped me skip the examination and become 000-868 licensed. I could not be extra excited and thankful to killexams.com for such an immaculate and dependable practise tool. im able to affirm that the questions within the package are real, this is not a fake. I chose it for being a dependable (endorsed with the aid of a friend) way to streamline the exam preparation. love many others, I couldnt further up with the money for studying complete time for weeks or even months, and killexams.com has allowed me to squeeze down my practise time and noiseless secure a terrific quit result. super respond for assiduous IT professionals.


in which can i am getting 000-868 real exam questions and solutions?
I passed 000-868 paper inside weeks,way to your wonderful QA notice at materials.Rating ninety six percentage. I amvery assured now that im able to carryout better in my closing 3 exams and certainly employ your workout material and advocate it to my buddies. Thank you very a entire lot for your extremely top-notch on line attempting out engine product.


strive out these actual 000-868 questions.
This braindump from helped me secure my 000-868 certification. Their materials are really helpful, and the testing engine is just great, it fully simulates the 000-868 exam. The exam itself was tricky, so Im satisfied I used Killexams. Their bundles cover everything you need, and you wont secure any unpleasant surprises during your exam.


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The nice element approximately your question bank is the explanations provided with the solutions. It helps to understand the vicissitude conceptually. I had subscribed for the 000-868 query bank and had long beyond thru it three-four times. In the examination, I attempted outright of the questions below 40 mins and scored 90 marks. Thank you for making it simple for us. Hearty way tokillexams.Com team, with the abet of your version questions.


Passing the 000-868 exam with enough knowledge.
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NetManage Upgrades OnWeb Product Family | killexams.com real questions and Pass4sure dumps

September 18, 2006 08:00 ET | Source: NetManage, Inc.

CUPERTINO, Calif., Sept. 18, 2006 (PRIMEZONE) -- NetManage, Inc. (Nasdaq:NETM), a software company that provides solutions for integrating, Web enabling and accessing enterprise information systems, today released upgrades to the company's flagship product line OnWeb. NetManage OnWeb is a solution that enables companies to quickly turn inefficient green screen applications into graphical Web-based applications, as well as transform industry processes locked in legacy systems into components capable of integrating with almost any other application. This is accomplished without changing the industry logic of the application -- lowering the risk and the cost of deploying fresh industry solutions. The fresh upgrades comprise a configuration tool for instant Web interface creation, integration with Eclipse-based progress environments, enhanced security features, as well as advocate for the newest IBM System i operating system.

The NetManage OnWeb product suite now features OnWeb App Express, a configuration wizard that enables companies to Web-enable mainframe or iSeries applications in a matter of minutes, without writing a lone line of code. Furthermore, OnWeb App Express users can instantly configure the notice and feel of a Web interface through point and click functionality, eliminating the need for training in knotty progress tools or a specialized learning of host applications.

Developers who employ Eclipse-based IDE can now leverage this same environment when working on a host integration project. By encapsulating host transactions into Java objects or Web services using OnWeb kick Builder, developers can automatically associate them into Eclipse projects. This removes the need for learning a fresh progress tool when working with host systems, and therefore increases the productivity of existing developers.

For companies running mission captious applications on IBM System i, the fresh release supports a separation of duties security model, which provides a captious frontier and transparency between the control of progress and run-time deployment. The partition regulates essential corporate applications and information for compliance with specific regulatory mandates such as Sarbanes-Oxley. In addition, OnWeb now provides advocate for IBM i5/OS V5R4, the most current System i runtime server operating system.

"There are many significant technical challenges to unlocking the value of mission-critical industry processes on host systems and expanding the usage to the Web or integrating with partners and suppliers," said Zvi Alon, chairman, president and CEO of NetManage, Inc. "OnWeb has been proven in countless customer deployments. These fresh features are based on customers' needs in reducing the cost, complexity and risk of developing fresh industry applications."

Hundreds of organizations reckon on NetManage OnWeb to maximize investments in existing host systems and deliver unrivaled access to applications and information. The NetManage OnWeb family of products provides a complete sweep of deployment options, including multiple thin client and zero-footprint client access and the capacity to transmogrify host-based industry processes into reusable components, such as Web services, .NET assemblies, JavaBeans, EJBs and portlets, which can be integrated with other enterprise applications or used as components in a fresh application. For organizations that are planning for the continuation of future growth, NetManage OnWeb enables developers to transform disparate internal systems and applications into interoperable, strategic and external-facing industry applications based on SOA.

Availability

OnWeb 7.2.4 and OnWeb for iSeries 7.2.4 are available from NetManage, as well as through circuitous channels. For more information, visit www.netmanage.com.

About NetManage

NetManage, Inc. (Nasdaq:NETM) is a software company that provides solutions for integrating, Web enabling and accessing enterprise information systems. More than 10,000 customers worldwide, including the majority of the Fortune 500, maintain chosen NetManage for mission captious application integration. For more information, visit www.netmanage.com.

NetManage, the NetManage logo, the lizard-in-the-box logo, Chameleon and Chameleon design, RUMBA, ONESTEP, ViewNow, SupportNow, Librados, and OnWeb are either trademarks or registered trademarks of NetManage, Inc. in the United States and/or other countries. outright other trademarks are the property of their respective owners.

The NetManage logo is available at http://www.primezone.com/newsroom/prs/?pkgid=2691

This press release contains, in addition to historical information, forward-looking statements that involve risks and uncertainties, including statements regarding improvement in the Company's competitive position, improvement in financial results and industry pipeline, the Company's positioning in its market, and the progress and benefits of the Company's execution on its industry plan. The Company's actual results could differ materially from the results discussed in the forward-looking statements. The factors that could intuition or contribute to such differences include, among others, that competitive pressures continue to increase, that the markets for the Company's products could grow more slowly than the Company or market analysts believe, that the Company is unable to integrate or occupy edge of its acquisitions successfully, or that the Company will not be able to occupy edge of growth in the Company's target markets. Additional information on these and other risk factors that could impress the Company's financial results is included in the Company's Annual Report on profile 10-K, Forms 10-Q, Forms 8-K and other documents filed with the Securities and Exchange Commission.

Schwartz Communications NetManage Media Inquiries: Gina Wilkinson and Alisa Davis (415) 512-0770

The comeback kit | killexams.com real questions and Pass4sure dumps

The comeback kit image

What does a company carryout when thousands of its customers write to its headquarters year after year, complaining about the lack of marketing for their favourite product, suggesting a stream of technical improvements, and even going as far as to route in complete television scripts for product advertisements? The remedy response is probably not to front conventional marketing wisdom and create confusion and even more disillusionment by forcing yet another appellation on the product – its third in six years.

IBM’s mid-range line – which entered the decade as the AS/400, became the iSeries and was, in February, rebranded as the System i5 to reflect its employ of the IBM Power 5 processor – has one of the most illustrious pedigrees and loyal followings of any industry computer. But behind the chilly reception for the fresh name, from both user organisations and the vast ecosystem of IBM mid-range value added resellers and application vendors, there was a palpable sense of triumph: The accompanying announcements of refreshed hardware, the plight of a hotfoot to a service-orientated architecture and fresh pricing plans maintain outright signalled that IBM is now fully committed to taking the proprietary sweep of servers into its fourth decade.

Those signals were not always there in recent years. Over the turn of the decade, IBM showed clearly that it favoured Linux and Windows-based systems and Unix on Power processors over the AS/400 and then the iSeries.

That culminated in 2002 when IBM senior management considered the prospect of relegating the sweep to legacy status. And perhaps with top-notch reason.

While sales were growing across IBM’s other server ranges, revenue for the iSeries fell by 13% in 2002, the poorest performance of outright the company’s server products. The diehards build that down to a lack of marketing and low expend on R&D.

Only when fresh CEO Sam Palmisano took over the helm from Lou Gerstner in March 2002 did the iSeries receive a fresh lease of life, with a revamped mid-range server emerging ten months later. swift forward three years and the determination to reinvest in the iSeries is paying dividends. Revenue is at its highest point in nearly 10 years and in 2005, the iSeries experienced three consecutive quarters of growth, including a record third quarter which saw revenues up 25% over the same three months in 2004.

 

“We are 100% committed to radical marketing.”

Malcolm Haines, IBM

What IBM has succeeded in making limpid is that the System i5 platform has long ago quashed the antiquated AS/400 association with its 100% proprietary systems software and ‘green screen’ interfaces, and replaced that with a highly springy platform that offers organisations the capacity to consolidate their workloads from a number of different operating systems onto one lone system. At the same time, it has retained its longstanding reputation for high-reliability, ease of use, and application robustness.

And as a badge of assurance in that fresh formula to induce current customers to ante longterm on i5 and to win over a entire fresh generation of customers, IBM is undertaking its first marketing push for the iSeries in almost a decade.

Image conscious

The quest for clarity in i5’s positioning is evoking – as always – elevated fervor among IBM mid-range executives. “If you are not limpid about what you stand for, you’ll die,” says Malcolm Haines, eServer iSeries marketing director at IBM. “We are 100% committed to radical marketing.”

But telling IBM staff, such as those in its services and outsourcing divisions, what the strengths of the platform are and what it can offer customers might be easier than convincing organisations to invest in the fresh line of mid-range servers.

Currently, over 245,000 organisations are using System i5, iSeries or AS/400, with over 400,000 systems installed worldwide at companies such as Banco di Brasil, Woolworths, Ricoh Europe, Adidas-Salomon and Arcadia Group. But while revenues might be in the ascendancy, it is too early to call whether this revival is a one-off incident triggered by frustrated demand among captive elements of the existing customer foundation or indicative of a continuing upwards trend driven by renewed faith and fresh customer wins. This ambiguity is not made any clearer by IBM’s reluctance to identify how much of its i5 revenue is flowing from fresh licence sales.

 Haines is looking to ‘viral’ marketing to spread the word about i5. Emphasising some of the ‘no-fuss’ operation of its progenitors, Haines sees the i5 as being in the same category as Google and the Apple iPod where growth – at least initially – has flowed largely from word-of-mouth marketing. “Google has over 120,000 servers running the most ‘poetic’ algorithms in the world. Yet outright you behold is a white screen and 30-odd words,” he says.

But while this strategy of ‘viral’ advertising works well for new-generation lifestyle products, the iSeries suffers from a more deep-rooted problem: an antiquated image.

“There noiseless exists a notion that the iSeries is an antiquated technology,” says Matthew Ashton, director of the UK’s iSeries User Group COMMON. “Many noiseless behold it as a dismal horse that simply plods along.”

To quake this image, IBM needs to alert the market to the fact that companies love Microsoft are using the Power technology that underpins i5 in new, high-performance hardware products such as the Xbox 360 games console, he adds. “And that’s not because they want to employ antiquated technology. It’s because they want new, leading edge technology giving them the market partake that they need,” Ashton says.

“There noiseless exists a notion that the iSeries is an antiquated technology. Many noiseless behold it as a dismal horse that simply plods along.”

Matthew Ashton, director of the UK’s iSeries User Group COMMON

Certainly, the sense that Intel is winning the mid-range server race, boosted by rapid adoption of Intel servers in IBM’s traditional server heartland of mid-sized businesses, has not helped the company in its quest to dispel many of the myths about iSeries and i5.

But Ashton maintains that customers are often naively drawn to the platform that is easiest and cheapest to use, not the one that is most robust. The Canadian division of sportswear manufacturer Adidas-Salomon, for example, institute the performance of its two Dell servers to be lacking. In the interest of optimal availability, the company migrated its applications to the web and integrated legacy applications, operating systems and hardware platforms, by consolidating the Dell servers onto an iSeries machine.

That controversy might not be stalwart enough for some. The iSeries faces an uphill battle as many organisations are consolidating and reducing the number of servers they use, says Ian Brown, research vice president at IT analyst group Gartner. “Windows and Linux reliability and manageability is proving ‘good enough’ for many customers, especially as Intel price/performance on tiny low-end servers is improving so dramatically from year to year,” he says.

 As more businesses employ the Intel platform, more independent software vendors (ISV) are drawn to Microsoft’s .Net progress environment. And as their applications become available for Intel, more are encouraged to turn their back on the IBM’s proprietary mid-range operating system – even though it can Run Windows applications in a partition.

TLC for the ISV

One intuition for this migration to Intel-based platforms is that many of the iSeries applications are out of date. IBM’s assistance and incentives to modernise iSeries applications can’t further too soon, says Brown, referring to the need to rewrite many RPG and COBOL applications running on the iSeries. And although RPG – the i5’s ‘native’ language – runs very efficient language on the iSeries, it is not well-suited in the benevolent of web-technology based environment that businesses are increasingly looking to implement.

However, many companies are noiseless running mission-critical applications that employ RPG or COBOL, but as developers shift to other environments, such as .Net, RPG skills are becoming in ever decreasing supply. As Ashton points out, “the number of RPG applications currently out there is huge.”

IBM recognises that dilemma and is trying to stabilise and widen the network of their ISVs through a programme started in 2005 called the ‘iSeries Initiative for Innovation’. According to Greg Hurlebaus, eServer solutions enablement manager at IBM, the programme is a way of reaching out to its ISV partners and expanding the numbers from mere ‘hundreds’ of ISVs into ‘thousands’.

The initiative focuses on the applications market of the iSeries, and IBM is offering an array of advocate and marketing services to over 2,600 independent software providers.

Notwithstanding the challenges posed by the dominance of the Wintel platform, increasing the number of applications and tools using the ISV network would give IBM resellers more depth in selling the System i5 to customers. And by increasing the server’s reach, IBM may induce fresh buyers that the System i5 is a modern, springy machine.

Some of the expansion of the ISV network may further from fresh quarters. According to Bob Djurdjevic, president of Annex Research, IBM has barely touched the surface of the tiny to medium industry market in vast eastern European countries such as Russia. And with the fresh pricing plans announced in February of this year, the System i5 is well positioned to attract fresh customers outright around the globe.

In spite of on-off marketing, the System i5 family of servers has provided IBM with a stable revenue stream, and although IBM, love most global IT vendors, is putting more accent on the industry services it offers rather than its hardware, the System i5 is likely to strengthen its reputation as a ‘turnkey’ product with the introduction of greater flexibility.

Whether that message gets across to anyone other than the iSeries constant depends on how well IBM can turn an antiquated reputation into a seared brand.

The current System i5 was first introduced by IBM in June 1988 as the Application System/400, a purpose-built, all-in-one server designed for general industry and departmental employ in tiny and intermediate sized companies.

The AS/400, previously known by its progress code-name Silverlake, was a combination of the System/38 and the System/36 and was unique in its design, introducing the concept of the single-level store with the operating system, database, hardware and software outright integrated together into one machine. This concept has been an necessary portion of the server’s success as it allows programme developers to change both the hardware and operating system without any recoding or recompiling any of the underlying software code used to Run the applications. Therefore, a program written and compiled on an antiquated System/38 program can be restored onto an iSeries machine, for example, and Run without any modifications.

In 1998, the iSeries left behind its so-called 5250 ‘green screen heritage’ and IBM extended the machines advocate for the Internet, although the cost of connecting RPG and COBOL-based applications to the web proved high.

The AS/400 lost its appellation in 2000, as IBM renamed it to the iSeries as portion of its eServer branding exercise. Its current i5 moniker came about in 2004 when the string was extended to employ IBM’s POWER5 processor chip.

On 31 January 2006, IBM formally announced that the iSeries sweep would be known as the System i5 platform, and that it would Run i5/OS (the follow-on from OS/400), Unix and Linux natively on Power 5 processors, with the option of adding in Intel Windows and Linux environments via xSeries plug in boxes and boards.

Name game

IBM’S determination to rename its iSeries server sweep as System i5 may maintain been made to emphasise its employ of the company’s Power 5 processing technology, but the negative reaction from users to IBM’s mid-range was swift.

Matthew Ashton, director of the UK’s iSeries User Group COMMON and an ardent fan of the IBM mid-range since the AS/400 was launched in 1988, is one customer who disagrees with IBM’s determination to give the line its third appellation in six years. “I don’t believe they maintain done it correctly,” he says. “IBM is going to maintain to hotfoot a long way in convincing the marketplace and the users who are passionate about this machine why they maintain gone down this route and changed the name.”

But executives at IBM are more sanguine. “If their traditional customers noiseless want to maintain referring to it as the AS/400, I don’t maintain a problem with that,” says Nigel Adams, iSeries product and sales program manager for the enterprise systems group at IBM. “In a way, it’s probably more material to fresh customers because it’s signalling how much more you can carryout with the platform now.”


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