IBM debuting = new mainframe to take on server market

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IBM debuting new mainframe to take on server market

By DAVID = HO
Cox News Service
Tuesday, = February 26,=20 2008=20

NEW YORK =97 IBM Corp. is unveiling its = next-generation mainframe computer Tuesday, touting the z10 as a more = powerful=20 and energy-efficient alternative for data centers that use many small = servers=20 and face rising power and cooling costs.

The more than 6-foot-tall mainframe was designed to handle growing = demands on=20 computer facilities driven by Internet traffic and transactions, IBM = said. The=20 z10 can handle about 2 billion transactions each day.

Selling for $1 million and up, the system is intended for big = companies,=20 government agencies and financial institutions.

The mainframe is the product of a five-year, $1.5 billion project = involving a=20 global Big Blue team of more than 5,000 people, including software = developers in=20 Austin, Texas.

"It's the beginning of a new version of the mainframe that's going to = become=20 more relevant to today's business problems, particularly for larger=20 corporations," said Carl Greiner, an analyst with the Ovum Inc. = consulting firm=20 who was briefed on the announcement.

About 20 percent of data centers use mainframes, while more than 60 = percent=20 use servers based on chips from Intel Corp. or Advanced Micro Devices = Inc.,=20 Greiner said.

While it is unlikely IBM can hinder that dominance, "the mainframe is = getting=20 a rebirth on some of the economic benefits it can provide and some of = the=20 environmental benefits," he said.

A single z10 has the computing capacity of nearly 1,500 desktop = computers but=20 uses 85 percent less energy, said David Gelardi, IBM's vice president of = mainframe systems and performance. He said the z10 also occupies far = less=20 space.

"To really talk about the momentum of the mainframe you have to look = at the=20 taxed data center, the really stressed data centers in terms of power = and=20 cooling. These are the major issues," Gelardi said. "We have the = capability to=20 consolidate with less energy and less floor space."

Even though the z10 can match the capabilities of 1,500 small = servers, it is=20 a very expensive, high-end mainframe and not likely a major threat to = the=20 low-end and mid-range servers from companies like Dell Inc., said Roger = Kay,=20 president of the Endpoint Technologies Associates research firm.

"How many people need 1,500 of those? Not many, but there are some," = Kay=20 said. "In most instances the markets are different."

IBM planned to announce the mainframe's debut Tuesday at events in = New York;=20 Tokyo; Munich, Germany; and Mumbai, India.

The company also is announcing a new consulting service to help = customers=20 improve their data centers and growth in a program that partners with = colleges=20 and universities to teach mainframe technology.

Mainframes are often used to deal with vast numbers of transactions = such as=20 those involved with banking, stock exchanges and airline = reservations.

The centralized machines date from the dawn of the computer age and = have=20 persisted even with the arrival of personal computers and lower-cost=20 servers.

Mainframes have recently been fighting back, with Armonk, N.Y.-based = IBM=20 expanding the kinds of programs they can run as way to encourage = customers to=20 switch from multiple servers.

IBM shipped more than 2,000 mainframes in 2006 and that business = likely=20 remained steady in 2007, said Jean Bozman, a vice president with the IDC = research firm.

The z10, which can run a variety of operating systems, uses up to 64=20 four-core processors custom built for the mainframe. It is 50 percent = faster=20 than its predecessor, the z9, which debuted in 2005.

IBM has forecast a strong 2008, largely buoyed by business outside = the United=20 States.

IBM said its mainframe revenue in 2007 grew 18 percent in the = emerging=20 markets of Brazil, China, India and Russia.

However, in the last three months of last year, IBM's mainframe = business saw=20 a 15 percent sales decline. Executives have blamed the drop on customers = waiting=20 for the new model.

David Ho is a New York correspondent for Cox Newspapers.

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IBM debuting new mainframe to take on server market

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