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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Freedom Fighter who wrote (1031)12/4/1998 9:16:00 PM
From: porcupine --''''>  Read Replies (2) of 1722
 
IBM's G5-series fastest-shipping mainframes ever

SOMERS, N.Y., Nov. 23 (Reuters) - IBM has shipped
1,000 of its latest generation of mainframe computers since it
first introduced the machines in August, the fastest uptake of
mainframes in company history, it said in a statement.
"Customer acceptance of the S/390 G5 Server has been
strong," David Carlucci, general manager of International
Business Machines Corp.'s mainframe computer division, said of
the milestone, referring to the company's new G5 series of its
S/390 mainframes.
The first 1,000 S/390 G5 Server customers include major
airlines, manufacturers, retailers, finance, banking and
insurance companies, energy companies, telecommunications and
travel service providers, which typically are upgrading older
mainframe systems.
Wall Street is counting on the new generation of mainframes
to boost hardware sales during the fourth quarter. The expected
success of the new mainframes is one key factor in the rise of
IBM stock to new record highs in recent months.
The 1,000th G5 computer -- a Turbo model that is IBM's most
powerful mainframe machine -- was installed on Friday at one of
DaimlerChrysler AG's data centers in Detroit
to control production.
It was the third G5 mainframe that DaimlerChrysler, the
world's third largest automaker, has installed. Other G5
customers have included KMart Corp. , Metropolitan Life,
SBC Communications Inc. , MCI WorldCom Inc. .
IBM's S/390 mainframe servers are used by the world's
largest corporations to control key operating tasks from
recording airline reservations and handling automated teller
banking transactions to running phone company networks and
managing some of the Internet's largest electronic commerce
sites.
The G5 mainframes lead the industry in terms of
performance, with the capacity to handle up to 1,069 million
instructions per second (MIPS). Rivals include Hitchachi and
Fujitsu Ltd.'s <6702.T> Amdahl unit.
DaimlerChrysler took possession of a 1,069-MIPS capacity
machine, IBM said.
Customers have purchased G5 machines with the capacity to
handle from 150 MIPS to 1,069 MIPS, with the average machine
shipped so far capable of handling an average of 500 million
computer instructions per second, according to industry sources
who have been briefed on IBM's sales.
Prices for the machines run about $5,000 for each MIP of
capacity, the sources estimated, meaning the average machine
has sold for somewhere in the vicinity of $2.5 million.
IBM estimates as much as 70 percent of the world's computer
data resides on computers built by the company, with the
majority of it located on IBM mainframes.
((-- Eric Auchard, New York newsdesk, 212-859-1840))
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