IBM defends S/390 with reworked prices

New software prices set to combat Unix and NT.

[QQ]IBM has radically changed the pricing of software for its S/390 mainframe platform to defend it against its Unix and NT rivals.[QQ] Big Blue has abandoned its traditional approach of basing prices on the total processor power available, usually measured in mips (millions of instructions per second). Instead it will set prices according to the machine it runs on, rather than processing power, to make it more attractive for small-scale application use.[QQ] The model-based pricing has been introduced for a new S/390 family, dubbed the Multiprise 3000.[QQ] "Pricing is determined by market considerations rather than the slope of the mips-based curve," said Bob Yelland, S/390 marketing manager for IBM Europe, Middle East, and Africa.[QQ] "The problem IBM has had is that we have customer usage ranging from one mip to 20,000. We have lacked the ability to treat medium-sized users differently from larger users."[QQ] Phil Payne, analyst for Isham Research, said: "This is IBM's final recognition that Unix and NT servers are starting to do some serious damage to its S/390 base.[QQ] "The big question is what the independent software vendors will do. It's what they decide to charge for their software that counts."[QQ] The Multiprise 3000 range will be available by the end of the month.[QQ] Yelland said performance will be up to 20 per cent higher than the existing Multiprise 2000 family.