January 2003

IBM made a shift in its leadership for its iSeries business

IBM’s HP 3000 alternative iSeries, better known as the AS400, got a new general manager during the first week of January when Al Zollar came in from heading the Lotus software group to lead the division. Buell Duncan, the general manager who presided over the rebranding and redesign of the AS400 into the iSeries, is moving on to IBM’s software vendor relations. IBM officials said that Zollar’s software background will come in handy during an expected revamp of the iSeries product offering. Officials were coy about announcing the changes before January 20 — a chat on what’s being called massive developments will take place at the iSeries Nation Web site that day. Customers can also get a briefing on the possibilities of the iSeries platform at a February 7 seminar offered by iSys in Orlando. Terry Keene of the IBM integration partner has roots that go back to the Burroughs platforms of the 1970s, and he will be the keynote speaker at the IBM offices in Orlando. Sign up with an RSVP at hpfuture@e-isys.com. Keene promises to talk about how even though HP is walking away from the 3000, and probably its DEC VMS business, things look different for the prospects of the iSeries.

IBM’s springtime iSeries shifts may be necessary to reverse a declining trend in sales, according to analysts at Gartner Group. Gartner released a forecast in August that predicted a rise in HP 3000 sales during 2002, at least compared to the year prior — not exactly a stunning bit of crystal ball work, considering that newer, faster 3000s only became widely available late in 2001. But Gartner doesn’t see a strong future for either the 3000 or the iSeries, given that both servers are high-profit products for their makers. The analyst house used the word “plummet” to describe the fortunes of both systems, though it’s a matter of degree. Gartner thought HP would earn only $18 million in 3000 revenues during this year; the iSeries sales forecast will still be $1.7 billion four years from now. But then, IBM’s integrated system is one the manufacturer is still revamping with new hardware and software releases. Analysts see the iSeries business taking a hit of up to 10 percent during the current year, however.

The iSeries is not being beaten down by the prospects of anybody’s Unix, whether it’s HP-UX or IBM’s AIX. Linux is taking away high-profit sales of servers like Unix-based systems to pad its momentum, a fact that is making IBM’s inclusion of Linux in the iSeries look like an attractive hedge toward the future. An Associated Press report said analysts see Linux’s growth coming “not from Microsoft, but from Unix-based servers offered by Sun Microsystems, Hewlett-Packard and others. Once most companies abandon Unix in a few years, Linux’s biggest opportunity for growth will be cutting into Microsoft’s share.”


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