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IBM pushes
hard for mainframe sales - Mainframe Markets - International
Business Machines Corp |
IBM ended the year in a frenzy of activity
to boost its sales revenue within the mainframe division, The
company was chasing new types of deals such as the ESSO, ELA or
OIO, which force users into a lung term commitment to IBM and
also more traditional deals based around 'an offer you can't refuse'
or budget based offers that do not require a budget increase.Some
of the latter deals can be simply based upon a good hardware price
together with lower software and maintenance costs into the future.
These typically increase IBM's profits, particularly where any
form of leasing is involved, and increase the current year's profits.
But they will also reduce the mid term IBM revenues a little.
Other budget based deals, however, do nothing for either IBM's
revenues or profits and can indeed dramatically reduce the profits--as
will be seen later.However, by far the biggest problem is that
such deals contribute a wide range of pricing depending upon the
exact circumstances rather than the fair market price. This range
is currently a full 300%--that means one user pays $1m and another
$3m for the same product. Other users pay prices that range between
these extremes but, to be honest, at this time they are mainly
closer to the top end of the range. |
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