NEWS & ANALYSIS

EU Commission initiates formal investigations against IBM in two cases of suspected abuse of dominant market position

by Directorate General for Competition of the European Commission

(26 July, 2010)

The European Commission has decided to initiate formal antitrust investigations against IBM Corporation in two separate cases of alleged infringements of EU antitrust rules related to the abuse of a dominant market position (Article 102 TFEU). Both cases are related to IBM's conduct on the market for mainframe computers. The first case follows complaints by emulator software vendors T3 and Turbo Hercules, and focuses on IBM's alleged tying of mainframe hardware to its mainframe operating system. The second is an investigation begun on the Commission's own initiative of IBM's alleged discriminatory behaviour towards competing suppliers of mainframe maintenance services.

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BowlerRoger Bowler Responds to IBM Patent Attack on Open Source

by Roger Bowler Creator of Hercules and Co-founder of TurboHercules

(Posted in News & Blogs section of turbohercules.com on 6 April, 2010)

As many of you know, the company I founded to promote the Hercules open source mainframe emulator, TurboHercules SAS, has filed an antitrust complaint against IBM with the European Commission in Brussels. We are not asking that IBM be subjected to punishing fines or anything like that. We simply want IBM to agree to allow legitimate paying customers of its z/OS mainframe operating system to deploy that software on the hardware platforms of their choice – including, should they so choose, on low-cost servers using Intel or AMD microprocessors and Hercules.

I want to make clear that we undertook this action reluctantly, and only after a long period of reflection during which we reached out to IBM to see if there was some way to resolve our differences amicably. I regret to report that IBM rebuffed our efforts at conciliation, and even added fuel to the fire by launching accusations against Hercules. I would like to take this opportunity to respond to some of those charges.

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The Issues of Competition in Mainframe and Associated Services in India

by Indian Council for Research on International Economic Relations and Indicus Analytics

Very little is known about the extent and nature of competition in the mainframe and associated services market in India. This is the first study to analyze competition and related issues in the Indian server market, with an extensive focus on mainframe computing.

Download the report PDF (4MB)

Steven FriedmanThe T3 Technologies story

by Steven Friedman, T3 Technologies

For over 15 years, my company was a successful IBM Business Partner. I used to have a thriving company with over 50 employees, nearly 1,000 customers in 28 countries (including 200 customers in 15 European Community states) and a profitable revenue stream earned through selling mainframe solutions to IBM customers. However, now our company is effectively out of business due to the direct actions of the company I used to be closely aligned with: IBM.

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Wednesday
Aug252010

The next steps for the mainframe

(CIO.uk) By Graham Jarvis

The demise of the mainframe has been predicted since around 1981, but IBM is hoping to put an end to this discussion once and for all with the launch of its zEnterprise mainframe server.

The company’s latest mainframe is described by Mark Anzani, IBM’s Vice President and CTO of System Z, as being a “new workload optimised system.” Reflecting upon the new offering he says: “It is going to shift the conversation towards who can offer the best deep management of the infrastructure, and also towards the company that can drive the broadest economic benefit.”

...Mainframe pricing nevertheless remains a hot issue, and one that puts people off it as a viable platform. “We have our own mainframe and distributed servers,” says Lacy Edwards, CEO of mission-critical mainframe experts NEON Enterprise Software. He argues that it’s not just the cost of the mainframe hardware that remains prohibitive to many people, but the high expense that is attributed to software licensing. “If you look at it from the customers’ perspective, that’s why they are comparing the different systems, and software is the key reason why they say the cost of running a mainframe is too high.”

"...I am not aware of anything else that is like what zPrime is doing, and I have not personally seen any impact at this point on the way customers are making their purchases,” comments Anzani. “The only product where there are objections regarding its installation comes back to the difference of opinion between NEON and IBM regarding zPrime.” Although IBM usually welcomes the exploitation of the specialty processors, the company views any installation of zPrime as being unauthorised. NEON has therefore raised the question about whether customers need the authorisation of IBM to install ‘exploitative technologies’ like this.

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