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IBM Doubles Rewards For Ditching Sun

Taking advantage of the uncertainty surrounding Oracle's acquisition of Sun, IBM has doubled the monetary incentives they are offering to ditch Sun gear. Offering $8,000 in software or services for every Sun Sparc processor ditched for an IBM Power server, the program seems to be paying off. IBM has helped 1,640 customers migrate from other manufacturers' hardware over the last year. "The program applies to Sparc-based Sun hardware, such as the Sparc, UltraSparc, and Sparc 64 servers, and also to Fujitsu systems that run on Sparc chips. A customer that moves off a Sparc-powered system running, say, eight processors would be eligible for up to $64,000 worth of rewards."

21 of 207 comments (clear)

  1. Most of them... by jellomizer · · Score: 4, Insightful

    I am wondering how many of them would have switched to IBM Anyways?
    Or were going to go off Sun, and they saw the value discount.

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    1. Re:Most of them... by p4ul13 · · Score: 5, Insightful

      Huh wha? What about that is anti-competitive or monopolistic behavior? If IBM and Sun were the only source of servers out there, then I could understand the anti-trust comment. This is a bit ruthless, but it's completely legal.

      --
      Paul Lenhart writes words!
    2. Re:Most of them... by AvitarX · · Score: 2, Insightful

      It is pretty clearly anti-competitive.

      This is the price for one class of people, this other price for a second class that uses a competitor.

      As for the legality I would assume it is legal as IBM does not have a monopoly.

      They would have some defense as a benefits consumers argument too.

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    3. Re:Most of them... by Burkin · · Score: 4, Insightful

      It is pretty clearly anti-competitive.

      In what way? How does it stifle competition?

      This is the price for one class of people, this other price for a second class that uses a competitor.

      How is that any different than a car dealer who takes a few thousands dollars off the price of a car when you trade in your old car? Is that also anti-competitive?

      As for the legality I would assume it is legal as IBM does not have a monopoly.

      They would have some defense as a benefits consumers argument too.

      How would it be illegal even if they did have a monopoly?

    4. Re:Most of them... by Firehed · · Score: 2, Insightful

      It's as anti-competitive as trading in your used car when buying a new vehicle.

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    5. Re:Most of them... by afabbro · · Score: 2, Insightful

      And even though Sparc has been an important processor architecture it's likely that it's going the same way as Digital's Alpha - a slow death. The next processor that's going down the drain is probably the Power architecture, even though it's backed by IBM.

      That's a pretty sweeping statement.

      Right now, if you want a commodity chip that does most things very well, you buy something x86 based. If you have a lot of flexibility and want very low power consumption, you might consider Sun's CoolThreads chips. If you want very high performance and have a lot of money, you buy the fastest chip...which happens to be IBM's Power.

      The CoolThreads stuff is neat, but never really took off at the volume Sun was hoping. To use them, you had to be very multithreaded and while that's great for webservers, there are already plenty of cheap webserving platforms. Yes, Sun fanboys, I know - keep your shorts on. It's a nice product. But in a market that is dominated by Linux + Apache, just "it takes less electricity" apparently wasn't enough when you consider that running your Ruby on Rails or whatever on Solaris is more work than running it on Linux.

      That's SPARC. As for POWER...there will always be people who need the biggest, fastest, baddest processor. A lot less people need them than they used to - x86 commodity keeps getting faster. But there will always be the top X% of the market that needs speed. That's why IBM sells POWER. And hey, while we're catering to them, we can also use it in our run-of-the-mill servers (AIX, AS/400, Mainframe, etc.)

      I think POWER has a lot more staying power than SPARC.

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    6. Re:Most of them... by mcrbids · · Score: 4, Insightful

      IBM isn't going to re-sell the Sun hardware. Your car dealership nearly always makes a profit on the trade-in by selling them as used cars through a used car salesman on a lot with a different business name.

      Still, it's not anti competitive. To be more clear: this is a textbook definition of what competitive means.

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    7. Re:Most of them... by Ramze · · Score: 1, Insightful

      It's just an incentive program. Perfectly legal. Also, discriminatory pricing is completely legal in most cases as well (think movie theaters... one price for kids, another for adults, yet another for seniors... and other discounts for college kids and military)

      It's not anti-competitive. It's actually aggressively competitive. Sun could match the discounts for new equipment or even raise them. Some companies do this for old products... return your old one for a certain percent or flat rate off the next purchase.

      Not only is it legal and clearly NOT anti-competitive, but IBM is also not a monopoly. This is a strategic move by IBM to claim market share... which is what companies do. Like survival of the fittest in nature, there is no mercy for the weak in business. IBM is taking advantage of a competitor's weakness and using their own strengths to gain new customers. That's how capitalism works.

  2. Re:Ditching Sun servers by Rakishi · · Score: 2, Insightful

    No, the opposite probably. IBM is likely sending those servers straight to the junk heap (or recycling heap nowadays).

  3. Re:The Death of SPARC? by andyfrommk · · Score: 2, Insightful

    Is this the death of SPARC?....Or does it have some niche market/capability like PowerPC?

    The OpenSPARC certainly serves a niche market, those with fab plants who are able to fabricate enough cpu's so that the per-cpu cost is cheaper than buying them from $cpu_mftr

  4. Re:Cheap by blitzkrieg3 · · Score: 4, Insightful

    These are two computer companies trying to make the most of it in tough economic times. They have an obligation with their shareholders to try to make money. Goodwill in the community frankly doesn't matter.

  5. Re:Cheap by Sir_Lewk · · Score: 4, Insightful

    The CDDL is an OSI approved, Free Software, Copyleft license. It may be incompatible with the GPL but I'd hardly cite it as a reason to not like Sun.

    --
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  6. Re:WHOOPS!!!! Yes, they do have one. by aixguru1 · · Score: 3, Insightful

    Why is it people assume you have to run Linux on Power hardware for Oracle? AIX fully supports Oracle RDBMS solutions, including combining them high availability products such as HACMP. You buy Power hardware for the reliability and performance in mid-large scale computing. Someone that can afford to put Oracle on that kind of hardware usually runs AIX vs Linux.

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  7. Business as usual by raftpeople · · Score: 3, Insightful

    This is not a cheap trick, just normal competition. The term "friendly" should not be considered when thinking of any of these companies or transactions, it's all about money.

  8. Re:Ditching Sun servers by Achromatic1978 · · Score: 2, Insightful

    They're not just giving you thousands of dollars for SPARC systems. They're giving you $8,000 worth of consulting services for every IBM server you purchase to replace a SPARC box. Not quite as exciting.

  9. Re:Wow IBM, by raftpeople · · Score: 2, Insightful

    Way to put your money where your mouth is. "Software or services" dollars are pretty much weasel dollars, aren't they?

    The goal isn't to "put their money where their mouth is", the goal is to provide an incentive to switch to IBM hardware at a time when more companies would consider it due to the unknown future regarding Sun hardware. The reason it's "weasal" dollars is because hardware is down and they don't want to show a bigger drop in hardware, so the money is given away from the services part of the business where profits are high and thus the financial statement still looks good at the end of the quarter.

  10. Taking advantage? Seems more like desperation... by DragonWriter · · Score: 4, Insightful

    Taking advantage of the uncertainty surrounding Oracle's acquisition of Sun, IBM has doubled the monetary incentives they are offering to ditch Sun gear.

    If I have to double the bribe I'm paying to get somebody to abandon a competitor's product from what I was previously offering, that doesn't sound like there is uncertainty in the market that I am taking advantage of, it seems like I've suddenly become desperate that if I don't convince people to leave right now I'm never going to be able to.

    And it makes sense: Oracle with Sun, once it finishes integrating its product lines, is going to have a lot more capacity to compete with IBM in offering complete solutions than pre-Sun Oracle or pre-Oracle Sun on their own could.

  11. Solaris has been a good buddy... by dogsbreath · · Score: 3, Insightful

    .. but most freaking industrial apps are essentially single threaded and the best speed I can get on SPARC is 2.6 G or so ( for mucho $$$)... and Sun is not going anywhere with the h/w research. IBM meanwhile has P6 cpus at 4.7 GHz and much higher in the works. Sun won't survive on Jave, DTrace, and sentimentality.

    The T series rock for web and other // processing needs, and they are low power (relatively) but most times I'm better off looking at RH and a Dell.

    So... Sun h/w is dying, the Solaris o/s ain't so special anymore (kudos to linux and BSD flavours), and Sun has just been bought by a company headed by a bigger freak than Scott McNealy. And: Oracle doesn't speak o/s or h/w development.

    A lot of our vendors are tied specifically to Solaris and SPARC. We're telling them to find another mainstream platform: Linux/x86 or AIX/P. Oracle has a window of opportunity while a lot of apps are still tied to Solaris but those apps are more and more available on alternate platforms or specialized industrial apps without much market effect.

    Sad, but Sun and the SPARC/Solaris products are in various stages of death.

    Almost makes Nortel look good.

  12. Re:I beg to differ by 0xABADC0DA · · Score: 3, Insightful

    It's not necessarily a contradiction. You can have a microkernel architecture without the memory protection for instance. It would be essentially the same as a stable ABI for drivers. Solaris has a stable ABI for drivers.

    Troll or not, the linux kernel does have more problems than most unix (it also has more features though). Take for instance the recent problems with kernel ftrace, which destroyed e1000(?) bios and bricked cards around 2.6.27 or so; I don't remember anything similar to this with solaris dtrace and it's doing far more. The reason is that solaris has actual paid engineers, code reviews, and controls in place.

    I see a lot of uninformed people assume the linux kernel is always awesome for no other reason than because it's linux. After doing a bit of kernel programming for 5+ years now I see that there are some parts to linux that are actually really bad. Take [di]notify for instance. It's hard to come up with a worse API for being notified of file changes. Both Microsoft and Apple for about a decade now have had much better file notification than current linux has now.

  13. Re:The Death of SPARC? by fm6 · · Score: 3, Insightful

    Sun's in-house CPU design is pathetic, which is why UltraSPARC started to lose out to x86 in the late '90s

    That might have been part of the reason, but I think the industry-wide shift away from chips that weren't Wintel-compatible might have had a bigger role. How many non-x86 CPUs are widely used? POWER? Not outside of IBM. MIPS? Not even what's left of SGI uses them; outside the embedded market, they are history. Itanium? Not even Intel could get people to buy them!

    Whatever the merits of your critique of Sun's management decisions (you'll understand if I keep my opinions on this to myself) I think you're overestimating the impact of the decisions you list. For example, even if MySQL turns out to be a $1 billion mistake, a single gigabuck writeoff is not enough to kill Sun. It's a lot of money, of course, but it's a onetime cost. The things that kill a company are more systemic than that, or any of the other things you mention. These are things like margins, marketing strategy, product focus.

  14. Yes, very immoral by raftpeople · · Score: 2, Insightful

    I also don't use coupons at the grocery store, or buy 1 get 1 free from Domino's, and especially I don't ever use my frequent flyer miles that I accrued using my visa because it's immoral.