Paula, actually the 390 mainframe you refer to is what IBM is calling their 3rd generation CMOS machine. They like to call it a global server because the term mainframe is closely associated with "dinosaur" by some people. The machine is faster than the 2nd generation, something like 40 MIPS per CPU vs. about 25 for the predecessor. It shouldn't affect EMC, who builds storage products, except for a possible secondary effect: if IBM puts thousands of these new machines out there, they all have to have storage, also called DASD. EMC should get some of that extra DASD market.
The reason IBM is bullish on CMOS machines is because they're getting close to the power in MIPS of the older ECL machines, at a small fraction of the size, electrical power consumption, and, most important, cost to build. However, it's not all gravy for IBM because the cat's out of the bag in that customers know the CMOS boxes are so much cheaper, so, the selling prices are much less than what ECL was commanding a couple of years ago. Even if many more CMOS boxes/MIPS are shipped, the revenues may be less than what ECL got.
So, bottom line, maybe the storage products guys (STK also?) will get a lot of extra business if there is a "new mainframe boom". Just because the CPU price comes down, doesn't mean the storage does also, and you have to have just as much storage per CPU. This might make for a bubble in sales for people like EMC. Make sense?
Tony |
