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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (6929)	10/24/2000 10:19:40 AM
From: Arrow Hd.	Read Replies (3) \| Respond to of 8218

An interesting development for a number of reasons. Amdahl, more than any other company, caused draconian price attrition in the mainframe market place in an effort to buy share. It didn't work but it did cause revenue, profit and margin erosion for both IBM and Hitachi. Hitachi had a better product line than Amdahl and would not have competed on price to the same degree. Now maybe price attrition will not be as big an issue which also has positive pricing impacts on other platforms from an alternative choice standpoint. The 64 bit architecture may bring Hitachi back into the OEM fold too which will be an IBM benefit. The second issue is now it appears that Amdahl (Fujitsu) is going to be a PCM using the Sun architecture. I don't know of anyone doing that to this point. UNIX manufacturers tend to have their own hardware architectures with no one cloning them and now Amdahl is going to clone Sun which, if successful, will cause price attrition in the Sun space. I know some Sun folks visit the thread so I would be interested in what you think about this potential development.