> -----Original Message-----
> From: IBM Mainframe Discussion List [mailto:[email protected]] On
> Behalf Of McKown, John
> Sent: Thursday, February 04, 2010 4:54 PM
> To: [email protected]
> Subject: Re: IBM countersues Neon over zPrime accelerator
<Snipped> 
> I agree. The real problem is software cost. Speciality engines and
knee-
> capped CPs are just a way to try to address that. But, then software
> vendors need to make money too. And if they did not charge by MSU (or
> "value units" or "cores" or some other power unit), then more and more
> companies would consolidate into mega centers run by "outsourcing"
> companies, or "co-operatives".

Not a problem if the charge is by LPAR that uses the software rather
than by how powerful that LPAR is.  Same as for the itty-bitty machines,
charge by (logical, in our case) "machine".  Moderate OTC per "machine"
with a 10-15% yearly maintenance fee per "machine".  Result: More LPAR's
running your software due to more licenses and a reasonable continuing
revenue stream.  Nominal version upgrade charges for new-function
versions (the difference between the old version OTC and the new version
OTC).

Your profit is in your volume of licenses, not in the power of your
client's "machines".

Just not as much commission for the sales droids, that's all.

Probably never get done by IBM, because as TJ Watson Jr. (or was that
Sam Palmisano?) stated publically to investors and analysts, IBM will
never stay in a "commodity" business.  High-margin business or no
business at all was his (and IBM's) credo.

Peter


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