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Microsoft-Backed Firm Says IBM Is Anticompetitive

BBCWatcher writes "Microsoft has long claimed that the mainframe is dead, slain by the company's Windows monopoly. Yet, apparently without any mirror nearby, Microsoft is now complaining through the Microsoft-funded Computer & Communications Industry Association that not only are mainframes not dead, but IBM is so anticompetitive that governments should intervene in the hyper-competitive server market. The Wall Street Journal reports that Microsoft is worried that the trend toward cloud computing is introducing competition to the Windows franchise, favoring better-positioned companies including IBM and Cisco. HP now talks about almost nothing but the IBM mainframe, with no Tukwila CPUs to sell until 2010. The global recession is encouraging more mainframe adoption as businesses slash IT costs, dominated by labor costs, and improve business execution. In 2008, IBM mainframe revenues rose 12.5% even whilst mainframe prices fell. (IBM shipped 25% more mainframe capacity than in 2007. Other server sales reports are not so good.) IBM mainframes can run multiple operating systems concurrently, including Linux and, more recently, OpenSolaris."

22 of 174 comments (clear)

  1. Microsoft...the model of competitiveness by zazenation · · Score: 5, Insightful

    Talk about the pot calling the kettle black!

    1. Re:Microsoft...the model of competitiveness by jedidiah · · Score: 4, Insightful

      Microsoft's previous history means that just about any thing they say is likely
      a self-serving LIE. That's what their history has to do with this. It might be
      nice to actually mention by what method IBM is being anti-competitive here.

      You don't just scream "monopoly" and leave it at that.

      Are they abusing a current dominant position that occured organically?
      Are they engaging in some sort of sabotage through agressive head hunting?
      Is there some sort of natural market barrier (compatability) they are abusing?
      Are they engaging in some sort of consumer fraud (vaporware, FUD)?

      --
      A Pirate and a Puritan look the same on a balance sheet.
    2. Re:Microsoft...the model of competitiveness by Runaway1956 · · Score: 4, Interesting

      Let's ask one of the biggest computer buyers in the world if they are being forced to use IBM mainframes, or, if maybe they have satisfactory and competitive alternatives.

      http://news.cnet.com/8301-1001_3-10209580-92.html

      I suspect that one of their datacenters has more computing capacity than most mainframes...

      --
      "Windows is like the faint smell of piss in a subway: it's there, and there's nothing you can do about it." - Charlie Br
  2. I Don't Quite Understand by eldavojohn · · Score: 5, Interesting
    So through the whole article from Total Telecom all I could find for a concrete complaint is:

    T3 contends that IBM pens in mainframe customers faced with a high cost of switching to other systems, while refusing to share blueprints necessary to offer a cheaper alternative.

    I'm not a hardware guy and I'm no fan of IBM but I must be missing something here: what is it about mainframes that makes them so different from servers?

    Tampa-based T3 develops mainframe technology compatible with IBM software that is designed for small and midsize enterprises.

    Maybe they can't release details but I'm guessing that there's some proprietary chipsets and microcontrollers inside these things to run the (what are they at 32 or 64 processors) CPUs stacked on top of each other and banks of memory and storage and database crap. So what you've gotten software written specifically to take advantage of this stuff? And it's going to be hard to move to another mainframe or standardized servers with that stuff? Are you surprised? It'd be like if I wrote something for Windows and then complained I couldn't get the blueprint from Windows of how the API works so I could move to a "cheaper solution" like Linux.

    So if T3 wins this case, what's the ideal outcome? IBM open sources the software that runs on these mainframes? IBM releases detailed chipset information? Both are laughable. And if you're going to argue that, you might as well argue that Microsoft open up Windows or Intel layout the insides of its Atom processors for the world to see.

    I wish I didn't find myself defending IBM (I hate their software and these mainframes sound like a scam) but you have to draw the line somewhere or apply to everyone. My advice to the poor companies still at the hands of IBM: get out. Of course that's my advice to anyone foolish enough to buy into vendor "lock-in" software like Flash. Lesson learned: An extra layer of well defined and thought out abstraction will add a bit of overhead but in the end it might save your ass when you need to switch technologies.

    --
    My work here is dung.
    1. Re:I Don't Quite Understand by daethon · · Score: 5, Informative

      This is by no means fully comprehensive, but is about 90% of the mainframe story.

      1) Reliability: 5 9's (99.999%)
      2) Backward compatibility, there are people still running applications written 40 years ago
      3) Security: Physical (hard to move a refrigerator), Network (no external network when applications working internally), RACF, Highest level of security rating of ANY server, ever.
      4) Architecture: Redundant everything: Spare processors, spare power, spare, everything. Predictive failure/automatic fail over for individual components. Memory Bus greater than anything out there. Pipes to Storage extreme. Cryptographic processors to do SSL, etc.
      5) Scale up: 64 processors (4.4GHz), 1.5 TB of Memory, etc.
      6) Scale out: GDPS (Geographically Disperse Parallel Sysplex) up to 32 boxes?
      7) Hipervisor: Its a network in a box. Applications talking to each other use IP, not TCP/IP, so you aren't sending 35% data, 65% header when applications talk. Network is at the speed of memory. zVM has been developed for over 20 years.
      8) Power Efficiency: Compared to a server cluster + cooling + redundant power, etc.
      9) Network Simplicity: No need for a rats nest for your rack, cable simplicity in some cases from over 1000 cables down to 12. From 14 switches (which are very expensive) to 4.
      10) Management simplicity: Less staff needed to keep it up and running. Instead they are focused on adding business value
      11) Running Legacy (aka Business Critical) applications, your web presence, your portal, and a myriad of other disparate applications in one place.
      12) Create new servers in minutes without needing hardware "on standby."
      13) Compartmentalization in a single box
      14) Shared everything while still fully separate
      15) Workload manager: able to on the fly change how much resources are allocated to images AND (this is the cool thing, cause other VMs do that) give it goal times for operations. As in: Complete this task in 1/100th of a second, and it will allocate, on the fly, for that to happen, and it will guarantee it.

      Mainframes are NOT the answer to all questions. Intel is NOT the answer to all questions. Itanium, Solaris, Power, etc...none are the answer to all questions.

      Buy the right tool for the right purpose.

    2. Re:I Don't Quite Understand by TheRaven64 · · Score: 5, Interesting

      Once upon a time, a company started selling an emulator for IBM's OS/360-derived line. IBM used various legal tactics to make them stop. This line (it keeps being renamed. I think it's z/OS these days, but I could be wrong) has been backwards compatible since 1960. Any of IBM's customers who bought binary-only software for this platform at any point in the last 50 years is locked in to buying IBM mainframes.

      Any customer who insisted on receiving the source code and porting rights to the code is able to move to a new platform. It therefore sounds like Microsoft is arguing against proprietary, binary-only, software. If this goes to court, I imagine the Nazgul will point out that IBM recommends that their customers invest in an open-source software stack, which frees them from lock-in. If people choose to be locked in when their supplier is recommending solutions which do not involve lock in then that's their problem. If they win arguing this strategy then it could backfire on MS quite badly.

      --
      I am TheRaven on Soylent News
    3. Re:I Don't Quite Understand by asc99c · · Score: 4, Informative

      I'm not entirely certain of this but it sounds like the separation between mainframes and servers is essentially that IBM produce servers that are backwards-compatible with their very ancient mainframes. I'm not sure that in the hardware there's any specific borderline between server and mainframe. From my own experience, a LOT of companies are still using ancient COBOL-era software to run their core business. It's been around for a long time and so the bugs are ironed out and it runs OK. Software doesn't rust, and there isn't a compelling reason to replace something that works OK. However, the hardware does rust and so at some point companies need to buy hardware that will run these ancient applications.

      Sounds to me like IBM is reaping the rewards of continuing to support the stuff they did 30+ years ago. The high cost with switching to another platform is rewriting their old and business critical applications. And of course reluctance to do this means accepting a very high cost of new hardware, relative to other options.

      I write applications, mainly on AIX as my day job, and the hardware is very expensive, but it's not uncommon for places to still have the same servers in place 10 or 20 years down the line. It's quite common 3-4 years after an installation has gone live to have the customers IT personnel on the phone asking about replacing the hardware, and generally the advice is that there's no need to. The cost can be triple the cost of mainstream hardware, but so is the lifespan, so I think on TCO terms, it's not that bad.

      NB: the stuff we write is portable C so we're not tied in to AIX in any way - my current project is running on SLES 10 on cheap Dell servers. But the real expensive servers made by IBM / Sun / HP do seem to have a reliability factor that isn't matched by cheap hardware.

    4. Re:I Don't Quite Understand by daethon · · Score: 4, Interesting

      IBM put it to the test once, consolidated 3900 Unix/Intel servers down to 30...According to this article. If I'm not mistaken though the actual number ended up being 12 and a little over 4000 servers.

      http://searchdatacenter.techtarget.com/news/article/0,289142,sid80_gci1266438,00.html

  3. Trust Microsoft's judgement in the matter by Rosco+P.+Coltrane · · Score: 4, Funny

    they know all about being anticompetitive.

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  4. Clever advertisement by Anonymous Coward · · Score: 4, Insightful

    A huge IBM add posted on slashdot that looks like MS bashing. Really clever.

  5. Try reading the articles you linked to... by quantum+bit · · Score: 4, Insightful

    ...and not just the titles. The HP one is talking about HP pushing for people to migrate off mainframes. Onto HP servers. Running Windows Server 2003.

  6. Re:a case of sour grapes? by eldavojohn · · Score: 5, Interesting

    Microsoft is now complaining ......... IBM is so anticompetitive that governments should intervene. Talk about the pot calling the kettle black!

    Well, I think it's more a case of "we got hosed in Europe so let's see if we can turn this same sword on our competitors." From the article:

    The CCIA now has added encouragement from a tiny firm backed by IBM rival Microsoft Corp., which has lodged an antitrust complaint in Europe, while pressing a related lawsuit in federal court in New York and sounding out U.S. regulators.

    Microsoft's been picked over with a fine toothed comb by the EU recently and I think their strategy now is to make sure everyone else is too. If you look at it that way, Microsoft has nothing to lose. They've been scrutinized to the fullest extent and you should expect them to turn this same scrutiny over to other companies in other fields. I wouldn't be surprised to see a sort of anti-competitive gaming lawsuit aimed at Nintendo come about one of these days in the EU.

    --
    My work here is dung.
  7. Hyper-competetive? by paimin · · Score: 5, Insightful

    Wait, if the server market is hyper-competetive, then there's no serious anti-trust issue right? I mean, would you call the desktop OS market "hyper-competetive"?

    --
    Facebook is the new AOL
  8. They could be right even when they're doing wrong by jonaskoelker · · Score: 4, Insightful

    Talk about the pot calling the kettle black!

    Yeah, but you know... they could be right.

    Say I'm littering in your front yard. Then you start playing obnoxiously loud music in the middle of the night.

    Should I be barred from suing you for being a nuisance, just because I'm a nuisance myself?

    If you argue yes, I think the reasoning becomes even thinner than I think it has to be for that case when we're talking about this:

    One party does something bad towards not any one particular party but society as a whole. Then, another party points to the first party and says "they're doing it, so we can do it to" and go on to do something bad against society.

    True, Microsoft isn't on the moral high ground, but that doesn't excuse IBM. And it doesn't make it incorrect for Microsoft to point it out. Just... the weird kind of funny.

    disclaimer: I don't know the facts of the case. I don't know whether IBM is being anticompetitive. I'm not well-enough informed to hold an informed opinion, so I won't state one. I'm just saying that if IBM is being anticompetitive...

  9. IBM is more than that by FudRucker · · Score: 4, Insightful

    IBM makes the hardware & software to work together as a complete marketable unit, if microsoft wants to compete in the mainframe market then they better build their own mainframe & software to run on it as a complete unit ready for market, and quit bitching about being anti-competitive bunch of damn hypocrites...

    --
    Politics is Treachery, Religion is Brainwashing
  10. Details on the complaint? by AlecC · · Score: 5, Insightful

    We need more details about what anti-competitive things IBM is doing. OK, it sells machines that seem to give customers more value for money, in their perception, while still making massive profits. Lucky IBM, but isn't that what business is all about? What have they been doing to stop others competing with them - if they can? Have they been saying that you cannot connect Windows machines to their mainframes? Have they been refusing to run Microsoft software (if you can get the appropriate license) on their virtual machines? Or what else?

    --
    Consciousness is an illusion caused by an excess of self consciousness.
  11. Re:They could be right even when they're doing wro by cabjf · · Score: 5, Insightful

    The sad part is that IBM only became a monopoly in the mainframe market because no one else wanted to make and sell them anymore. So now people are thinking about mainframes again for things like cloud computer and suddenly the argument is that IBM is not allowing competition in the market. Maybe if other companies didn't abandon the mainframe market, there would be more than just IBM left standing in it. The issue though is not whether they are a monopoly in that market (which they are, probably just as much as Microsoft is on the desktop market), but are they using it to prevent competition from others or in other markets?

  12. Re:They could be right even when they're doing wro by bb5ch39t · · Score: 4, Insightful

    IBM is "anti competitive" because it is beating the crap out of MS in the new environment. I don't remember IBM screaming when MS was riding high on cheap Windows servers displacing mainframes. And MS was lying through their teeth. At the time, the Windows servers were nowhere near as reliable as the mainframe. Just cheaper.

  13. Re:Buh buh but.... by bb5ch39t · · Score: 4, Interesting

    A good point. The z (mainframe) is wonderful for something that requires its reliability. Some actual examples that I personally have had (I work on the mainframe). We had a CPU fail in our z. The __hardware__ transparently moved the running work onto a new CPU that was in "standby" mode. No outage of any sort. We didn't even know of the failure until IBM support called us that they had received a "call home" alert. We have two OSA (they are like NICs for the z). One OSA failed. The other OSA did an "arp takeover" and all TCPIP sessions continued with __NO__ outage. Again, we got messages about this, but the hardware/software recovered with no action on our part. The CE (repair man) came in, took out the bad OSA and put in a new OSA. We then issued commands and the new OSA simply started working. No down time. No interruptions to any work in progress.

    If you don't mind downtime, then by all means, use Intel or AMD with Windows or Linux. If will be cheaper. And maybe even more cost effective. But, based on what happens with MS Exchange goes down around here, don't do it for anything that will make people scream if the service is done for very long. But perhaps we aren't using MS Exchange properly - I wouldn't know.

    --
    John

  14. How can you claim anticompetitive? by Sandbags · · Score: 5, Informative

    Has microsoft ever had a mainframe? No.
    Do they have a mainframe OS? no.
    Could they develop one? HPC could theoretically be considdered one if they added storage virtualization to it, and a few other mainframe class systems.
    Would we use a microsoft OS to replace out IBM mainframes? No. I'll elaborate:

    - We have MILLIONS of lines of code ON the mainframe that would ALL have to be completely re-done from scratch to move off the OS390 platform.
    - We have 10 times that much code that would have to be modified to talk to a non-OS390 mainframe.
    - We have hundreds of servers that run support applications for the mainframe or mainframe apps that don't run on Windows.
    - Any competing platform uses far more space and many fold more power, and does not have the HA features of true mainframes.
    - A LARGE part of the security of our mainframe environment is that since you can't exactly get access to OS390 easily, hacing it is damned near impossible... Moving to a windows kernel based mainframe would NOT be adviseable even if we could afford it.
    - IBM is here, and has been for decades, and there's more legacy code running on OS390 that's 10 years old than code running on it that's less than 10 years old. they're NOT going to drop support for it. I can't say that about any competitor.
    - IBM has a FULL suite of tools to manage, monitor, and protect the mainframe. Most technologies entering the x64 space now have been in use on mainframes for 5-10 years... some longer.
    - Licensing prices on the mainframe are a FRACTION of the price of lecensing x86 and P6 systems. (we're saving about 10 million this year in licensing alone moving a few hundred machines to Suse Linux virtualised on z10 IFL processors.)
    - Component hardware costs of the mainframe are a bit higher (about $8K for a gig of RAM), but the system as a whole is actually not only cheaper than an equivalent VMWare or hypervisor supercluster, but it;s energy use is also a fraction of the equivalent.
    - the Z systems have 5-10 year lifespans, we have a few running 12 years without a critical outage, not 3-5 years like all other platforms...

    We pay a never-ending maintenance plan on our mainframes. We add new ones every year or two to replace old ones, but we don't really "buy" new mainframes, we simply pay to have a base number of MIPS available and IBM keeps the hardware running. (and pay to increase those MIPS as necessary. The licensing and hardware costs are FAR lower than out other platforms.

    --
    There is no contest in life for which the unprepared have the advantage.
  15. Re:They could be right even when they're doing wro by jonsmirl · · Score: 4, Informative

    Microsoft has plenty of money. If they don't like the way the mainframe market looks then they should enter and build their own. IBM has already been through the anti-trust wringer for their mainframe hardware and has spent decades under supervision by the Justice Department.

    The article is missing the fact that T3 bought it's technology from Platform Solutions. Platform Solutions was acquired by IBM. Without reselling Platform Solutions' product I don't see how T3 has any offerings that IBM competes with. They look like a distributor that has been cut off form a supplier, that's not grounds for anti-trust.

  16. Re:They could be right even when they're doing wro by Anonymous Coward · · Score: 5, Insightful

    How does IBM's practices in the 1960s and 1970s relate to the companies that were competing with IBM in the mainframe marketplace in the 1990s? Fujitsu and Hitachi, both huge corporations with substantial financial resources, were competing with IBM in the 1990s with mainframe compatible systems. Both Fujitsu and Hitachi decided they had better places to invest funds than developing mainframe servers. Both Fujitsu and Hitachi lacked IBM's faith in the technology and vision of where it could go. IBM is now reaping the benefits of its decision to continue investing substantial funds in mainframe R&D while many in the industry were declaring the technology a relic of a bygone era.