System iNetwork

June 2007

June 28, 2007 7:57 AM

DB2 Web Query Just the Beginning?

With at least half of all System i shops already using Query/400, IBM's replacement, DB2 Web Query, is bound to see a lot of action. It lets you build new queries as well as import existing Query/400 queries and push them out via a browser — or transform them into a variety of report formats. IBM partnered with Information Builders to offer it, and IBM will ship it sometime before the end of this year.

In his new iMonthly video series, Bob Cozzi made an interesting point in his coverage. He said, referring to DB2 Web Query:

"In addition, it also puts other powerful tools such as those from mrc or NGS out in front of every System i shop."

The typical perception of DB2 Web Query is that Information Builders will reap all the benefits and mrc and NGS will face much stiffer competition. But typical perceptions aren't always accurate, so what gives?

I went back to Bob to follow-up. Here's his take:

"Reporting/Querying has been around forever, but it's only given any attention in the press when it's called BI, Executive Dashboards, Datamarts, etc.

The reality is that reporting with tools like Web Query is good for one-way communication, but what comes after that is the need for two-way communication — that is, input from the user. If you start out with a Web Query that generates a Sales Portal, what do you do when you need to allow all the sales people to enter their budgets using a similar interface? Most reporting-only products like Web Query only handle the first part (the output/reporting of data), but more powerful tools such as mrc's m-Power can help companies with their entire set of business needs.

So while I think Web Query is a long overdue replacement for Query/400, it only does what Query/400 can do: reports, albeit much prettier reports, than Query/400 could ever do.

This will, in my opinion, get people to start looking at what needs to be done with reporting and hopefully with user interfaces in general. I believe the browser is the best choice today as a user interface for business applications. By getting System i developers to deliver browser-based interfaces to their end users, the doors may start to open up (I hope the browser will actually kick the doors down) to moving to what is truly needed to help this platform grow — browser-based interfaces for virtually any application.

Tools such as mrc's m-Power or NGS's IQ can do all of this today, and Web Query is, I hope, just the beginning."

Posted by cmaxcer on June 28, 2007 at 7:57 AM | Comments (5)

June 26, 2007 9:13 AM

Must Watch the Flickering Light

When I was in college, a professor was prepping our class with some pre-movie information. It was something about what it means to be human in an age of robots . . . but I forget exactly because the television screen was sitting off to the side, waiting, just showing the "snow" without sound. There were three dozen students, and all of our heads kept turning to the left so that we could look at the screen. We'd watch the snow for a second, realize it was just snow, and turn back to the professor before glancing back to the snow again.

There's something compelling about TV.

Now you have an excuse to watch it at work: We've got a new blog called iStudio, and it features Bob Cozzi on video. In the first installment, Cozzi interviews IBM's System i "big honcho" Mark Shearer, who talks about the last two and half years of System i innovation. Shearer doesn't offer anything startling or even new, but in four minutes he reminds us of the key highlights — positive things about the System i. Cozzi, for his part, notes the pricing difference between a Dell server and a new entry-level 515 System i, which is, in itself, worth hearing.

Cozzi also interviews RJS's Richard Schoen, who talks about iPDF and iForms. iPDF, by the way, is an application that converts RPG to .pdf files — pretty handy for RPG programmers writing reports or print programs — and it gives them an option for some easily portable, high-quality output.

In the third video, BOSaNOVA's Martin Pladgeman discusses the Q3, which is a new backup encryption appliance that sits between a System i host and a tape drive and encrypts on the fly using two soft keys and one hardware chip key. "You don't even need to change one line of code," Pladgeman notes. "We intercept the data on the fly from the system, encrypt it, and send it onto the tape drive."

Video Is Good

Aside from the mindless ability of anyone to lose two hours watching sea slugs barely move in high-definition underwater shows, today's Internet video tends to capture real people in real conversation, and that can make it easy to grok new ideas — plus it makes eating a sandwich at your desk a lot more enjoyable. So check 'em out!

Bonus: Aaron Bartell on Air Guitar

System i RPG-XML and Web services expert Aaron Bartell has posted a funny first attempt at a System i viral video on YouTube: http://www.youtube.com/v/czWvC2xRnRo.

Posted by cmaxcer on June 26, 2007 at 9:13 AM | Comments (1)

June 25, 2007 10:19 AM

The System i and the Future of Rewards

A lot of companies keep their IT strategies and investments to themselves, and they do this for a variety of reasons: sometimes it's a security issue, sometimes it's often not related to a company's core PR and marketing needs, and sometimes it's to keep their key employees' names and titles hidden from headhunters and or other possible employers.

No matter what, I keep an eye out for System i-based deals and IT investments, and the latest is a deal that was big enough for IBM to put out a press release: CEO Creditz Inc. has signed a $1.1-million agreement with IBM for software, servers, and hosting services for its global loyalty and micro-payment service.

In a two-part deal, Creditz signed a five-year, $600,000 managed services contract in June to have its digital currency system hosted at IBM's Toronto Global Services Data Centre. Previously, in late 2006, IBM says Creditz signed a $500,000 agreement with IBM to purchase System i servers, DB2 database software, and WebSphere middleware for the project.

The total, of course, is $1.1 million.

Creditz?

The Creditz service is essentially a consumer rewards card, which may or may not become the next-generation of rewards. Here's how it works: any participating merchant can create custom micro-payment rewards or points, which all go the Creditz account holder. With typical reward-based credit cards, you have to make your purchases with the credit card in order to get the "points," which you can then redeem through a multi-step process that is usually irritating and sometimes painful.

Creditz seems to be similar but entirely different. It doesn't matter what method of payment you choose, you can still gain "Creditz." For example, let's say you buy a bag of water balloons at a participating store. You pay with cash but also swipe your Creditz card. The store gives you some incentive Creditz for your purchase. The Creditz accrue in your account until you decide to spend them at any participating merchant.

The stores can create special Creditz programs to stimulate sales — for example, a store could give you triple Creditz whenever you purchase both water balloons and squirt guns on hot sunny days in June.

Sounds Complicated

Because the Creditz can be used at any participating merchant, and because the merchants can create their own Creditz programs, the whole thing sounds a bit complicated and seems like it might be ripe with the potential for error. Creditz is a lot like cash that ends up in a customer's account, and customers tend to like uninterruptible access to their cash.

Now You Know Why the System i Is Involved

OK, I don't know this for a fact, but it stands to reason that the System i was chosen because of its legendary security and reliability. (Sure, there could be dozens of other reasons, but I like this one best, so we'll go with our assumptions here . . . but IBM does allude to this — more in a second.)

Creditz — the organization, I mean, not the payment unit — will use IBM's services to run the system, which it will then offer access to merchants so that merchants can implement loyalty systems without heavy startup costs.

Providing consumers and retailers with a universal currency that has the privacy of cash, and the convenience and scalability of credit and debit cards, IBM says, requires a secure and robust infrastructure for Creditz to house its data. IBM is building a data center for Creditz that will support these initiatives in multiple geographies.

"Creditz wants to expand throughout Canada, USA, UK and Russia, and into emerging markets," says Don Blue, IBM Global Services Server, Storage and Services executive. "IBM's flexible capacity and secure systems will allow them to grow as they go global."

The Guts

IBM doesn't mention this in its press release, but the System i used by Creditz is a model 9406 i550+ with four processors turned on, running V5R4 and Linux.

So, if you're a Creditz user — or ever consider it — all your Creditz will be running through a System i.

Posted by cmaxcer on June 25, 2007 at 10:19 AM | Comments (3)

June 21, 2007 10:54 AM

CIOs and Gaping Holes Between IT and the Biz

A new IBM survey of 170 CIOs revealed that 84 percent of them believe that technology is significantly transforming their industries, but only 16 percent feel their own companies are taking full advantage of IT's potential. Furthermore, IBM says, companies that have invested in extensive IT and business integration projects are growing revenue 5 percent faster than their competitors.

In addition, the CEOs from companies that are into extensive integration efforts also reported greater customer satisfaction, speed, and flexibility than their less integrated peers.

As for me, this is all the evidence I need to justify spending $599 on an Apple iPhone. Integration, baby, is where it's at. Seriously, though, the iPhone . . . didn't really need this survey to tell me I need one. And I suspect that for all of you System i pros out and about in the world, you don't need a survey to tell you that your companies aren't taking full advantage of the System i — at least, I'm guessing 84 percent of you feel that way.

Either way, IBM's study* is important because it attempts to describe the vision of CIOs.

At the Nexus

Today, according to IBM, "CIOs see themselves at the nexus of a radically reshaping business landscape and believe their end-to-end view of businesses allows them to see first-hand the role of technology as an enabler and source of competitive advantage and they want a greater voice in capitalizing on that opportunity."

Wow, big sentence. Reminds me to keep mine short. In any event, CIOs are unique in that they should be aware of all the business units in an organization. After all, their IT infrastructure and solutions touch most everything in the business.

While some CIOs read System iNEWS magazine and log onto SystemiNetwork.com, a lot more readers are either working hard from the trenches or are active, hands-on managers. Because the System i tends to run core business processes, System i pros tend to have a pretty good handle on some of the most important parts of their organizations.

So here's what I'm proposing:

Let's do a little exploring of our own. Post a comment that notes whether you believe your own organization is taking full advantage of your System i's potential. . . . While "yes" and "no way" are acceptable comments, I'm hoping that some of you will share your thoughts — either frustrations or excitement — about the System i and the organization that it drives.

• Any projects that you're excited about?
• Any frustrations with the business not seeing opportunity?
• Any tips on how to get CIOs (and business leaders) to invest in System i and IT?

I will, of course, excerpt some comments in NEWS Daily over the next few days — while I encourage everyone to use their real names, you can also use a pseudonym if you need to.

Share your thoughts!

* Actually, IBM cited several studies in a well-crafted press release designed to rally the masses around investing more in business IT integration projects and the CIOs who are likely to trumpet them.

Posted by cmaxcer on June 21, 2007 at 10:54 AM | Comments (3)

June 19, 2007 11:07 AM

Plenty of Room for Competition After Vision-Lakeview-iTera

My first reaction to the Vision-acquires-Lakeview news was what you might expect: Wow, with a slow whistle. On the surface, this is a massive move in our industry. Not only does it create a large and global System i infrastructure provider, but it also removes what was Vision's most dangerous competitor.

I was relieved that Thoma Cressey had a hand in the acquisition. Private equity companies are all about making a profit, of course, but at least Thoma Cressey's business model is based on growth rather than milking maintenance streams, booting employees, and eventually selling the empty husk of a building in a tidy real estate transaction. The new Vision Solutions may or may not be able to achieve greatness in the hearts and minds of System i customers, but at least it's not looking to cut and run.

Obviously, Vision has a lot of big questions to answer, not the least of which is what the company's product roadmap will look like, which Vision says it will announce by the end of the third quarter of this year. So, yeah, I'm inserting a reminder into my calendar to follow-up. What Vision needs is a public document come September — a map that anyone can read and understand. I hope Vision will provide a true map rather than say it has one internally, a private plan described in the nebulous terms of far-away galaxies. After all, this company is asking other companies around the world to trust their businesses with Vision's solutions, and while Vision is a private company, it has bitten off an even greater share of responsibility.

A Few Details Now

The new Vision boasts about 6,000 customers and has approximately 400 employees. The annual revenue and profit are bigger than many System i solution providers, but Thoma Cressey is holding those numbers close to the vest. I spoke to Vision CEO Nicolaas Vlok last week, and here are the most interesting points from him that we haven't already covered:

History and Who's Next?

Vlok first approached Lakeview in April of 2000 to discuss a merger/acquisition, and Vlok had been testing the waters ever since. Thoma Cressey, of course, was the catalyst that led to the deal.

"I believe in maintaining a relationship with the CEOs of many companies," Vlok noted. "We're constantly in outreach mode and believe in keeping good relationships with our peers and similar businesses. We are focused on integrating the acquisition and building a great company."

So who's next? DataMirror? You never know, but Vlok did not give me the impression that there are any other deals or ideas in the works. Who knows for sure, but most definitely there's plenty of work for the company to accomplish right now. DataMirror, by the way, is publicly traded on the Toronto Stock Exchange, so an acquisition could be much more difficult than the iTera or Lakeview deals.

Bringing the Strengths Together

There's a risk that whenever you remove your toughest competitors, you could get big, bloated, and lazy. Will Vision bloat? Will Vision get lazy?

"We might be one of the larger infrastructure companies for the System i, but we certainly know that no company completely drives an industry or shapes it," Vlok noted. "There are a lot of credible, successful players in regional markets."

Indeed, DataMirror is the next largest player in the market, with 2,200 customers in regions around the world. New Zealand's Maximum Availability offers *noMAX and has been expanding aggressively. It seems to have customers that number in the low hundreds. Also of note is France's Trader's, which offers its Quick-EDD HA/DR solutions. (If I'm missing any players with the potential to grow fast, do holler and post a comment.)

The point is, the HA/DR market remains a growing market, driven by regulations and more cost-effective solutions, including IBM's inexpensive CBU boxes.

Vision says the System i market is only 5 to 8 percent penetrated with HA-related solutions; I've also heard 10 percent bandied about here and there, but either way, there's still a lot of opportunity.

"The level of penetration is so low that anybody who now sits back in a comfortable position and feels they don't have to compete is making a mistake because anyone else can grow to another 5 or 8 percent in a short space of time," Vlok noted. "Our investments are totally focused on driving growth."

Cross Pollination?

The big question is if Vision can take the best of all three solution sets and create products that work well. Success in other industries with other products has been mixed, at best. (Oracle's acquisition of PeopleSoft and the J.D. Edwards World line appears to be doing remarkably well, I've heard, and if true, indicates that success is possible. Of course, Oracle is also maintaining and upgrading each product line. A true collision of solutions is yet to come.)

"Our solutions are going to be even better because we can sit down and look at the technologies in each of them and cross pollinate from one solution to another. Ultimately, we think there will be much less differentiation between our enterprise solutions," Vlok explained.

SMB Is Where It's At

I remember back in 1997 when all three of the big HA vendors were touting the SMB space as the next big growth area. You might argue that iTera was the only company that really capitalized on it in the System i world, and only recently at that.

Vision may or may not be able to find new enterprise-class accounts, but the company sees SMB as its biggest growth area. The main competition in the SMB space is price and convincing customers that they need a solution. If the SMB space tips, growth could outpace and expand beyond the current enterprise levels in the market.

Three Solutions

Lakeview's MIMIX, Vision's ORION, and iTera HA will be Vision's tri-solution product set for the future — at least until we get the roadmap. Vision said it's committed to developing and supporting MIMIX, and at least in the near term, differentiation at the enterprise level and SMB level will occur in pricing models. Vision will price iTera HA for SMB customers and MIMIX and ORION for enterprise customers. ORION and MIMIX be priced essentially the same, and business partners focusing on one or the other will not be forced to learn or sell the other solution, but you can expect to see traditional Lakeview business partners look to broaden their market opportunity and begin selling iTera HA.

All three solutions, of course, will still be sold to any size customer who has a specific preference that doesn't fit Vision's positioning.

Posted by cmaxcer on June 19, 2007 at 11:07 AM | Comments (2)

June 14, 2007 12:57 AM

Nortel VoIP to Go After the S in SMB

So, about this Nortel VoIP on System i deal . . . I spoke with Jim Herring, IBM's director of System i products and business operations, Wednesday morning, and here's the skinny. First, this deal is still in the nascent stages of development because IBM and Nortel wanted to take advantage of the Nortel Global Connect 2007 conference that kicked off on Sunday. Good timing for an announcement but bad timing for details like packaging, pricing, availability, and distribution. But hey, a six-month lead-time announcement worked for Apple and the iPhone, so no worries. I like hearing about things early anyway.

The biggest question is what does this mean for the 3Com System i telephony solution, and moreover, how does Nortel fit in? This is a joint offering with IBM, so it's not like Nortel just decided to deliver a package on System i all on its own.

"It really has to do with customer segmentation, market segmentation," Herring said. "We think that our partnership with 3Com has been extremely successful to date with us in the mid-market, and we're looking forward to addressing the S in SMB with our Nortel alliance. We've been working with Nortel for a while now on developing a truly integrated turn-key, software-based IP telephony solution that is appropriate for smaller companies that don't have networking and the wherewithal to roll out a huge VoIP or IP telephony implementation. The 3Com solution is outstanding today and the Nortel will be as well."

Fortuitous Timing

IBM wasn't exactly courting Nortel or vice-versa . . . the new VoIP relationship just sort of came together, Herring said, as Nortel worked on its solution and IBM was looking into IP telephony. The two companies have had a long-standing alliance in various business units over the last decade, so as Nortel looked at implementing its software-based initiative, it was aware of the System i and the market opportunity, as well as IBM's collaboration strategy with Lotus-based solutions. It came about through open doors and fortuitous timing.

Will It Scale?

On scalability . . . The 3Com IP telephony solution is robust and can scale in a big way, so it begs the question of Nortel's offering — will it scale, too?

Herring said that it should scale well, based on the architecture that IBM's seen so far, but Nortel and IBM are not looking to sell into a 50,000 handset-sized customer anyway. He pegs the sweet spot for the Nortel solution at the 5-to-100 handset market.

A Few Notes
Nortel has worldwide outlets, but at this point, Herring isn't sure which geographies they'll start selling into.

The Nortel-IBM solution, like the 3Com solution, will run on a Linux partition, and it will come prepackaged and ready to run.

IBM and Nortel are still working through what the offerings will look like, but the likely scenarios are buying a CD and handsets from Nortel, then loading it up on your existing System i, assuming that your network is ready to rock, too. IBM isn't ruling out special bundles or appliance-like boxes that you pickup on your doorstep, then more simply plug in and turn on.

Integration, Collaboration, Etc.

Herring is particularly excited about the integration elements of the package, working with solution providers to deliver integrated applications, not to mention all the Lotus Sametime features.

"I realize we are just at the beginning, but if you think about ten, twelve years ago before everyone had e-mail, who would have thought then that e-mail would become a major part of a company's business processes. And yet, everybody, including IBM, does a tremendous amount of invoicing, notification, everything else, through e-mail," Herring explained.

"I do believe the same thing will be true for unified communications as this technology becomes integrated with the business processes and business applications out there," he added.

Still, even these smaller companies will get a tremendous return on investment just on the IP telephony implementations . . . which will only get better as the organizations add additional features.

Selling Into the VIP Program

The Nortel-IBM VoIP solution will also be available to IBM Business Partners working in the VIP program, giving BPs a chance to offer a solution that's even more valuable — and differentiated from competing ad hoc solutions, because let's face it: the System i is not such a great head-to-head low-end comparison box. It's only when you start adding up the pluses of the System i, so to speak, the things that make it different, that it really starts looking attractive. Integrated offerings have the potential to speak to businesses that want modern, reliable, and cost-effective pre-built solutions. There's definitely potential here. Your thoughts?

Posted by cmaxcer on June 14, 2007 at 12:57 AM | Comments (3)

June 12, 2007 9:39 AM

System i VoIP: Now Calling Nortel

Nortel and IBM have teamed up to deliver a new unified communications suite — read "VoIP, etc" — for small and medium businesses. The exact naming of anything VoIP or IP telephony is pretty fuzzy these days, and the Nortel-IBM solution is no exception. There are so many components, both hardware and software-related, that naming a solution is nearly impossible.

In any event, IBM is referring to it as the Nortel-IBM System i Unified Communications solution, and neither company is completely clear on the details yet. Of course, we should give them a break because the offering(s) won't hit the streets until the fourth quarter of 2007.

The solution will combine IBM's System i and Lotus Sametime unified communications solutions with Nortel's suite of VoIP and multimedia technologies into a complete package that runs on a single system.

Many questions remain. For instance, how does 3Com fit in? Right now, it looks like the 3Com-based IP telephony solution will be a competing offering that also utilizes the System i. As for the tech portion, we might assume that the Nortel solution will run on a Linux partition like the 3Com version does, but then again, it might not.

Still, This Deal Rocks

The important point to take away is that Nortel is already selling into the SMB IP telephony space, and the company has a set of solutions geared specifically to SMB customers. The System i will benefit by the Nortel distribution, service, and support. IBM solution providers will also be able to sell and support the solution.

I'm working on the details and will post a follow-up soon.

Posted by cmaxcer on June 12, 2007 at 9:39 AM | Comments (0)

June 11, 2007 10:03 AM

Doom, Gloom, and Better Numbers

In recent memory, IBM has reported declines in System i revenue on a quarterly basis. In last week's "Server Market Sees Modest Growth for 2006," we covered reports from IDC and Gartner that detailed server sales for 2006, reinforcing IBM's reports for Wall Street.

More recently, Gartner and IDC have both released research detailing the first quarter of 2007, and on the surface, not much has changed: IBM and HP each hold about 30 percent of the server market, with Dell and Sun battling it out for 10-12 percent.

The numbers ebb and flow, with IBM, HP, Dell, and Sun all taking market share from one another and with Linux, Windows, Blade, and Unix all tending to rise more often than fall. The System i, which is limited to the IBM playground, has tended to fall.

Gartner notes that 2005's hardware-based System i take was just over $2 billion in 2005, slipping to just under $1.8 billion in 2006. Unit volume, according to Gartner, also slid from 25,950 to 21,678. This last number isn't surprising at all considering the System i's increasing performance and virtualization capabilities.

IDC's Jean Bozman, a research vice president in IDC's enterprise server group, pegs 2006 closer to $1.6 billion for System i factory revenue. "This is for the hardware only — IBM also sells additional storage, software, and services to the System i customers, and so generates more than the $1.6 billion for the overall System i system solutions," Bozman notes.

Basically, she told me that IBM's System i is a foundation for a much larger business than the $1.6 billion would suggest.

Behind the Scenes

While not surprising, it's heartening news, of course, and a reminder that there are a lot of behind-the-scenes numbers that we are never privy to. The System i, while dropping in overall sales, may remain highly profitable for IBM.

In a briefing at COMMON with Mark Shearer, IBM's general manager for the System i, I asked him about the IBM quarterly reports to Wall Street. I can't imagine that those days are particularly sunny for Shearer.

While acknowledging that he would indeed like to report an increase in System i sales — who wouldn't? — he said that IBM views the System i market as part of a bigger whole. Basically, many of IBM's customers and nearly all of its very largest customers have System i solutions in place alongside other IBM solutions.

So it behooves IBM to take care of those customers. If they're happy, and one would assume profitable for IBM overall, IBM's broader view of customer service and profitability wouldn't necessitate freaking out over lost market share.

If the System i is profitable and if customer engagements are profitable, who cares if IBM ships 4,000 fewer boxes year-over-year?

That's a short-term view, of course, because volume is the nectar that feeds the System i ecosystem, and IBM is well aware of the value of the ecosystem. A case in point is the VIP program. This program came from a couple of successful IBMers who were kicking butt and taking names in the Unix world by displacing competitors with the System p. Do you think IBM could not have rolled out the VIP program with the System p or System x? It most definitely could have poured VIP effort into those platforms, but it instead chose System i. We don't know the numbers behind IBM's reasoning, but IBM chose to invest in the System i with the VIP program.

Don't forget the 3Com IP telephony deal. That's another major i-focused investment. Does anyone believe that IBM could not have created a specialized Linux appliance box that it could take to every single IBM customer? It would scale. It would be reliable. It would even be simpler to sell because IBM wouldn't ever have to educate a new customer about the System i.

But IBM chose the i.

I find that particularly compelling, and it points to a positive future. Maybe not this quarter, maybe not this fall, but soon, I believe, I'll be reporting better numbers.

Posted by cmaxcer on June 11, 2007 at 10:03 AM | Comments (11)

June 7, 2007 9:34 AM

System i Academic Initiative Makes Huge Leaps in Europe

The IBM System i Academic Initiative is one patch of blue sky that has the potential to help change the drizzle that's been pouring on System i sales during the last couple of years.

Here's why: Smart IT pros think about talent as they make technology decisions, and if there's not readily available talent, that's going to skew their decision-making process away from the technology in question. Similarly, if there's lots of talent with a particular skill, that knowledge (and perception of knowledge) work to promote the technology in the industry at large.

I wrote about IBM's System i education efforts about a month ago and only briefly mentioned Europe. Our sister publication, System i NEWS UK, just published "Academic Initiative goes from strength to strength."

In Europe, where much of the education programs are heavily managed by centralized government programs, IBM is able to make massive leaps when those programs choose to offer System i curriculum. Dozens of colleges may suddenly, at the same time, begin teaching the System i. Frank Booty reports:

A coup for the Academic Initiative was the Scottish Qualifications Authority saying it was implementing a Higher National Diploma to include System i — to be taught at all 43 colleges of further education in Scotland from September onwards. The move means System i certification will be an academic qualification in its own right as opposed to an award given purely by IBM.

Beck has undertaken a customer-mapping exercise in which she looked at the customers Big Blue has in the different areas where there is a college and put the company in touch with those clients.

"A large number of customers in Scotland are interested in this program," says Beck. "I've had tremendous support from our internal sales teams in selling the concepts to customers and business partners. People are excited that students on these courses will be able to actually do something when they leave a college as opposed to just owning a certificate."

This work experience element was crucial to the Scottish Qualifications Authority's decision. Although SQA already runs courses on Microsoft, Oracle, Cisco, and Apple, these vendors do not provide a link between students and local businesses.

Booty reports much more, of course, so check out the full story. This last point about providing a link from students to businesses . . . that's critical to the success of these programs. In the U.S., we lost System i curriculum in schools where the jobs dried up. IBM's proactive work in education might not be flashy, but it's definitely a ray of sunshine.

If you're seeing similar action (or inaction) on the education front, post a comment here on Maxed Out and help share the knowledge!

Posted by cmaxcer on June 7, 2007 at 9:34 AM | Comments (3)

June 6, 2007 8:16 AM

IBM's Printing Division Morphs, Goes Live with Ricoh

IBM previously announced the sale of its printing division to Ricoh this year, and now it's official: the division is now operating as a new, albeit jointly owned entity, InfoPrint Solutions Company (IPS).

Ricoh now owns 51 percent and will progressively acquire the remaining 49 percent from IBM during the next three years. IPS has 1,200 employees in 18 or so countries. The printing business generated a cool $1 billion in revenue last year, and, as you might guess, IBM will be supporting the sale by providing maintenance services to IPS for one year, after which 1,000 IBM printer maintenance specialists may leave IBM and join IPS.

The System i

Many System i customers have also been Big Blue printer customers, some with serious investments in complicated printing solutions. Might these customers experience troubles with the transition?

"I don't see any immediate concerns for System i customers," notes Charles King, principal analyst for Pund-IT. "Ricoh is a solid company with well-regarded products, and the IBM acquisition provided the company the means to step up its visibility and opportunities in the enterprise space. In other words, I expect them to keep things on an even keel with existing products and to make sure existing IBM customers — including those using System i — stay happy. If they don't take this approach, they run the risk of cutting their own throat."

In addition, King says that Ricoh's existing small business products should be of interest to System i SMB customers, so this deal should expand the range of printer options available to those clients.

The Payment Plan

The staggered payment structure of the deal, which is common for a variety of financial reasons, also influences a positive shift with employees and helps ensure business continuity.

"It's a model IBM has used previously," King says. "In Hitachi's purchase of IBM's disk drive business, 70 percent of the cost was paid up front with the remaining 30 percent delivered over three years. In the Lenovo deal, IBM retained 18.9 percent ownership."

Posted by cmaxcer on June 6, 2007 at 8:16 AM | Comments (0)