Jules. Re: "Do you think the disappointing earnings warnings from BMC, CA and now Compuware, could eventually bode well for Intel?" It's hard to say "yes" or "no". I think the connection is indirect. As the story below indicates, IBM may be changing pricing on mainframe software, which created delays in closing some deals.
Was that, in turn, created by Intel's incursion in enterprise systems? That's beyond my ken. Maybe someone else can contribute here.
FYI, CA currently gets over half of their revenue from server software, so they have gotten the message loud and clear and have been making the transition to Intel-centric systems (I like the sound of that).:)
By Marcelo Prince
(This story was originally published late Wednesday.)
NEW YORK (Dow Jones)--There's a simple, if incomplete, reason that some are offering to explain the pain that business software vendors, such as Computer
Associates International Inc. (CA) and BMC Software Inc. (BMCS), are feelingthese days.
It's an upstate New York rival called International Business Machines Corp. (IBM).
According to several industry watchers, IBM is mulling changing its pricing model for both its mainframe hardware and software when it rolls out its new line of boxes, the G7, later this year.
It's well-known speculation that technology research firm Gartner Group Inc. (IT) has been discussing; and consequently it's telling corporations to hold off on mainframe software purchases. Its reasoning: if IBM adopts new (possibly cheaper) usage-based pricing for its mainframe software, then third-party vendors will have to respond. So Gartner has been telling organizations to wait and see if IBM comes out with the new pricing and aggressively negotiates for price breaks from the third-party vendors, such as CA and BMC."
For the rest of the story go to:
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