Maxed Out

Because the System i can run at redline speed all day long . . .

April 14, 2008

The Pros of Power and i: Number One -- IBM Had No Choice

IBM's switcheroo from an AS/400-selling midrange powerhouse to something altogether different has hardly been fast, surprising, or pleasant for those who understood -- and built their careers around -- IBM's 400 and its ecosystem. IBM has changed, though, and so has the industry at large . . . and this is the first premise that results in a check in the "pro" column in favor of IBM's new Power and i direction.

There are cons, of course, such as naming an entire operating system, not to mention the solution-centered industry built on top of it, with a lowercase i. Sure, there are some trademark issues that crop up with i OS and its variations, but still, "i for Business" is so freakin' stupid that I can't imagine hearing anyone in a meeting where adults wear button-up shirts uttering the phrase as in, "You know, what we really need to be running is i for Business. It's a mainstream operating system."

Imagine the dumbfounded looks, until one person pipes up:

"i for Business? That is its name? Yeah, OK, Jack. But let's continue running AIX for Play, Linux for Messing Around, and Windows for Kicks and Giggles, too. We need to cover our bases."

So Mr. i for Business gets a little red-faced, and the funny guy says, "Sorry, Jack, couldn't resist. What's your point about i for Business, anyway?"

So Yeah, I Could Slam Power and i All Day

Many of us could. However, I don't find that particularly helpful to our world, to our careers, or to our personal health. Frustration with something almost completely out of our control is like a festering wound, and I'm not a fan of festering, so I'm going to post some "pros" each day about IBM's Power and i announcement until I run out. There are positives here -- some pretty compelling positives, I might add -- and I'm excited to share them.

The first, of course, starts off with the cold hard truth: IBM is incapable, unwilling, and disinterested in creating a single awesome platform and fostering an ecosystem to support it.

IBM Has a Fractured Identity

IBM is a services company, a software company, a manufacturer, a research organization, and above all, a public company. Its primary goal is to maximize profit and do it in the safest way possible. So back when the AS/400 was still strong and Windows servers started multiplying like lemmings, IBM saw a fast path to growth if it could build more reliable hardware for Windows. Windows servers were a particularly profitable -- despite the competition -- method for selling because really, no company of any size just buys one. It buys several, and then a few months later buys some more. Pretty soon the company is in a cycle where it needs more, and if IBM were a drug dealer, IBM would peddle the System x all day long, all around the world, and when the addicts realized there had to be a better way, IBM could produce the BladeCenter, with supporting products.

What's even more important is that these companies needed help! By giving customers what they wanted in iterations just a little bit better than the competition, IBM won. Then when it all got unruly, IBM won again by selling services or upselling an easy-to-sell alternative, which would be AIX, which has competitors and solution providers already out in the wild who are also busy promoting Unix-based solutions.

The point is, if I'm a hamburger vendor and I see customers who are interested in hot dogs, I'm going to add hot dogs to the menu. There are other hot dog vendors out there on the street, and they're innovating, and I'm seeing that, so I'm going to have to innovate, too. I'm adding chili dogs to the menu and sausage and sauerkraut -- and what the heck -- shaved ice in funky cone-shaped paper cups? Gotta offer that, too.

But Where's the Beef?

Sure, the argument is, if I would have focused on making the best hamburgers in the world, I would have maintained market share and convinced most customers to stick with hamburgers. I would have had a kick-butt identity as being the best hamburger place on the planet. My business partners who sell ketchup, lettuce, tomatoes, and onions would all be eternally happy.

The point is, there's no way that IBM could have ignored the market trends going on around it, even at the height of the AS/400, and particularly as a public company with shareholders who want to see the fastest growth curves and the most sales possible on a quarter-by-quarter basis. Seriously, a machine that never goes down, that's so reliable that Global Services barely knows it exists, is not a growth machine.

In any event, in chasing after hot dogs, IBM let the AS/400 falter, and once it started slipping, there was no stopping it. With anything on a grand scale, such as OS/2, IBM learned that it couldn't convince the world that something different -- and better -- was the way to go. It sure as heck wasn't going to throw a lot of money into the AS/400 and System i in an effort to build up the platform.

Used All Over the World

The AS/400, System i, and Power and i is a niche system. It brings in a fraction of IBM's revenue each year, and although it's found in a majority of major companies in the world, it's most often found next to many other platforms. IBM's most successful sales came in niche situations where specific solutions found a perfect type of company and thrived -- like any of the manufacturing, ERP-related solutions, of which, J.D. Edwards springs to mind, which happened to sell a lot of boxes for IBM.

So IBM gained success with the AS/400 and System i largely through its Business Partner network, which is basically a management effort -- not a leadership effort. Turning a platform into a mind-share and market-share winner requires leadership -- serious day-in-day-out leadership. Think Bill Gates, who was able to turn Windows into a household name. Think Steve Jobs, who was able to create an iPhone that spanked the wireless telecommunications industry while ushering the Mac into a resurgence.

Who's leading IBM? Maybe the better question is, what is IBM's leading product?

The point is, IBM is fundamentally incapable of pushing a solution into the market and winning over the world on its vision. In this kind of IBM, the System i could not possibly have had a future.

The move to Power and i aligns the i world more closely to the rest of IBM. Instead of the System i being a neighbor kid who's usually welcome at the dinner table, the new Power and i combination is at least a sibling now, guaranteed a plate every night.

In the new IBM, i will be more recognizable, more acceptable, and mainstreamed in how IBM treats it. In some ways, i is now just another operating system, but in how I see IBM, that's the only way i could possibly survive, and that's why this is a "pro" . . . albeit the most difficult one to swallow.

Posted by cmaxcer at April 14, 2008 8:49 AM

Comments

I think the laments regarding the death of the standalone AS400 are way overblown. Good riddance to geared down, over priced hardware. It is the IBM i OS that counts. That is what runs our applications. What we have now is great, market priced hardware to run our apps.

Looking forward, I would like IBM to focus its efforts on providing the basic building blocks of the OS which 3rd party software vendors can build upon. An example is the ILE language precompiler and integrated debugger. IBM does not have to provide new features to CL, RPG and even SQL procedures. What it needs to do instead is provide the base features in the pre compiler APIs that customers and vendors can use to enhance those languages as they would like.

The precompiler and debugger view APIs enables customization of the RPG compiler. Would you like RPG to support a new BIF that makes it easier to call a web service? You can use the precompiler to translate the RPG code that contains your new BIF to RPG code which implements that BIF ( similar to how a Macro is expanded to actual executable code ).

To complete my example, I would like IBM to improve on the pre compiler and integrated debugger view APIs. Currently, you can't map variable names between debugger views. This is why ( guessing ) sql procedure debugging is such a hassle. Also, the mapping of source code lines from one view to another is not as clean as it could be ( use F10 in the debugger to step thru a running sql procedure to see what I mean )

-Steve

Posted by: Steve Richter at April 14, 2008 12:11 PM

Hey Chris -
Good thoughts, but not complete. IBM does market an all-in-one machine- the mainframe. Like the '400, the mainframe has suffered through some serious naming issues; S/390 -> zSeries, etc.

The difference is that the '400 is aimed for small to medium business, though it can grow to support fairly large business sites. The mainframe was initially aimed at the government, a few universities, and only the very largest business entities of the time.

The mainframe also has a much longer history. It is what made IBM sucessful of course, and the IBm 360 mainframe was wildly sucessful when introduced in 1962. (1964?)

But here's the key, the IBM Model 360 computer was a "bet the company" deal back in 1960. IBM spent close to a billion *1960* dollars on it.

IBM officially expected to sell a couple dozen of them - but wihtin six months of its introduction, they had more than a 100 orders for 'em. And those orders kept pouring in.

Companies like RCA, then competing in the computer market, took one look at the 360 and exited the computer business.

Incountable billions have been spent on the mainframe since then, counting both R&D, Design, and of course, customers buying the things!

IBM certainly hoped for as similar buying frenzy with the AS/400. They wanted a wildly sucessful platform that would generate an IBM controlled marketing space in the SMB market.

The 400 and the S/36 S/38 machines before it, were affordable to even very modest businesses. Far less expensive than say a Vax, and much more capable than a PDP-11.

And compared to the UNIX machines of the day, such as VAX's - they were fantastically well supported.

But, they were also critically crippled in comparison to a mainframe. IBM did not exepct any compeition between the platforms.

And as expected, the AS/400 platform shone in its day, and as you mentioned, it generated not only a fanatically loyal following, it also generated an entire ecosystem of products around it, very similar to the mainframe.

But it never made profits like the mainframe systems - how could it? It was affordably priced, but not so affordable that a SMB wanted to replace or upgrade it. And they could get along pretty well with one or two programmers too!

Once people bought one, they stopped spending on 'em! Horrors of horrors! What had IBM done?

They created a micro sized mainframe and an ecology to support it, and did it so well that they could not make outrageous profits off it that everyone had been led to expect.

Add one other factor, IBM has always portrayed the '400 as the machine you don't need to know anything about to use. You don't need to know how the processor operates! Or operating system internals. You could not study the assembler code and make the program more efficient, or handle bottlenecks, and so forth. IBM just claimed to know a lot more about that stuff than the end users. IBM's viewpoint was for platform programmers to write everything in RPG or COBOL and be quiet about it!

This of course, alienated all of the "old school" mainframe people, because on an mainframe, everything is configurable. System Programmers (the equivalent of AS/400 Operators I suppose) routinely write operating systems level code in assembler.

So what happened again? IBM made the gear so good and priced it high enough that small business owners were absolutely loath to upgrade.

Yet they hid the internals of the system so well that really good programmers disliked the machine because they had no opportunity to tune it or the software to their liking. Argh! Double Whammy!

And for the coupe de grace, IBM made the OS and programming tool licenses so restrictive, there were few-to-no people who could afford to have one and run the OS on it legally. (They changed all that a few years ago though.)

Now the one good thing to come out of the latest dustup is that the platform is perhaps about to be opened up a bit. It will be probably be a case of too little too late, but who knows? IBM is, altogether pretty smart! They may know something I don't! I hope they do. :)

-Paul

Posted by: Paul Raulerson at April 14, 2008 1:45 PM

What is IBM's leading product? It has been a while since I've read their financial statement, but I seem to recall that most of their revenue comes from Global Services which defies definition, so perhaps the leading product is the IBM name itself. And Power is becoming a leading name too.

One thing that IBM is not, is a consumer products company, and particularly not a consumable products company, so I'm not sure the burger and hot dog analogy applies, but there has been too much competition and too little differentiation (except price) between "i" and "p" for too long. It's better to merge the two, and let IBM i join AIX and Linux as a mainstream offerings.

The merger dashed hopes of a number of programmers holding out for IBM to release a native GUI with support comparable to 5250 which would be a clear differentiator and presumably propel "i" back to its former glory. Oh, Well. Que sera, sera. What will be, will be. It's actually a relief to hear the refrain "it's over, O-V-E-R, it's done" repeated with regards to the separate servers. Now let the healing begin.

For disenfranchised RPG programmers, my advice is to find ways for RPG to participate in a Web services world.

[*Note From Chris: Re "programmers holding out for IBM to release a native GUI with support comparable to 5250 which would be a clear differentiator" . . . this is a particularly apt statement. At COMMON, Ian Jarman made an offhand comment on a tangential subject to me and several of my System iNEWS colleagues -- I don't have an exact quote, unfortunately, but basically my take away is that it's going to be less and less likely that we'll see any truly i-specific application innovations out of IBM . . . that couldn't be translated across IBM's product lines. IBM will certainly continue to make some investments in RPG, but I think there's a reason IBM has resurrected EGL . . . as "IBM's newest business language." Any significant new investment out of IBM will likely be cross-OS functional. That's my take. Not sure how that will shake out in reality this year, next year, and the year after, though. . . .]

Posted by: Nathan Andelin at April 14, 2008 2:22 PM

There has been discussion on this pre-and-post the IBM announcement on Power systems at COMMON-Nashvile.

With the continual name changes that plague tracing the systems and applications, IBM still insists on "i".
Someone or more than one person mentioned Power/OS. I think power/OS would be the best choice as the Power chip has been in this system for years. Power could have much better marketing slogans than "i." They could market something like "I want Power for business." and it can run AIX and Linux too.

Although there is truth to the fact that IBM did themselves in by making such a reliable platform as S36/S38/, AS/400 and i, and this could be oversimplification, but if they get the hardware/OS/DB2 to (they have approached it but not yet equaled Windows boxes) a more affordable level, why would you order a Windows/Intel/AMD/Citrix box that will crash, when the AS/400, i, and now Power systems can run mulitple OS's, have 15,000 applicationas available for them, and ISVs that are working on more, and the system is rock-solid reliable for the price. IBM could have the majority of the market in mainframes and power servers.

Posted by: Gary Miller at April 15, 2008 10:41 AM

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