Geeks may roll their eyes at the news that Namibia is only now getting its first
mainframe — a technology that most consider obsolete. Yet the First National
. But many large compa-
are handling the transaction.
maintain. But others have no choice. Banks, for instance, use decades-old appli-
cations to manage customer accounts. Moving these programs to other computers
would be expensive and sometimes impossible. Most firms that can move off the
Distributed system — распределительная система.
Proprietary technology — несвободная технология, являющаяся собственностью автора.
Big iron — «большая железяка» (прозвище сверхмощного большого компьютера).
3. Reading
11
High “switching costs” explain in large part why mainframes are still a good
business for IBM. It is the only big firm left selling them, at prices that start at
$100,000 but often reach the millions. Sales of mainframes are said to have brought
in about $3.5 billion a year, on average, in the past decade. Although this is only
about 3.5% of the firm’s overall revenue, each dollar spent on hardware pulls in at
least as much from sales of software and maintenance contracts.
To preserve its mainframe business, IBM has regularly modernised its line-
up
5
of machines, lowering prices and improving performance. It has also given
cash and computers to hundreds of universities and schools to get them to train
replacements for retiring mainframe administrators.
In addition, IBM is trying to get customers to use mainframes for more func-
tions. For some years it has offered specialised add-on processors at considerably
lower prices, to run a greater variety of programs, mostly based on Linux, an open-
source operating system. And last year IBM started bundling
6
mainframes with
applications at a discount.
IBM is also trying to attract new customers, particularly in fast-growing
emerging markets. Without mainframes, India’s Housing Development Finance
Corporation and the Bank of China in Hong Kong would have a hard time dealing
with their explosive growth.
All these efforts have had a degree of success, although mainframe revenues
have been badly hurt by the recession. About 1,300 firms, a third of IBM’s main-
frame customers, have bought add-ons enabling them to use Linux. But IBM is
in legal trouble again, as it was in the 1970s. It is accused of abusing its mainframe
monopoly by refusing to license software that allows other firms to build cheaper
clones of its machines. Regulators in Washington and Brussels are looking into the
case.
More worrying to IBM is a run-in with Neon, a software company. It sells a
program that allows computing tasks that usually run on a mainframe’s regular
processors to be shifted to the discounted ones meant to run things like Linux.
Predictably, IBM is not happy and is said to have threatened to charge higher li-
censing fees to customers using Neon’s software. This, in turn, has led Neon to
file a lawsuit against IBM. Defeat would make a big dent in IBM’s mainframe
revenues.
5
A line-up — ассортимент.
6
To bundle — поставлять в комплекте.
Unit 2
12
Still, the computer industry seems to be moving IBM’s way. The mainframe
may well find a new home in corporate computing clouds, the pools of data-
processing capacity many firms are building. Many companies are also increasingly
interested in buying simpler, more integrated computer systems, even if this means
a higher price. Reacting to this, IBM’s rivals are making bets on mainframe-like
products. On January 13th HP and Microsoft announced a pact to come up with
tight packages of hardware and software. Brad Day of Forrester Research, another
market-research group, puts it thus: “We are on the way back to the future”.
Adapted from the “Economist”, 16th November 2010
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