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zPrime cost-cutting mainframeware gets traction

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Ken Porowski

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Nov 9, 2009, 12:53:06 PM11/9/09
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http://www.theregister.co.uk/2009/11/09/neon_zprime_update/


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Lizette Koehler

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Nov 9, 2009, 1:06:13 PM11/9/09
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Very interesting. I was interested in the last paragraphs that gave some figures on cost of software vs. savings.

In a relatively small mainframe shop, it might cost $250,000 a year to license zPrime, and it could cost $8m to $10m per year on a big box. But the savings can be substantial. On one large deal that Neon is working on, the company calculates that using zPrime to defer hardware upgrades, cut maintenance fees, and lower software rental fees could save that prospective customer $100m over a two-year period.

That's real money, and you have to figure that IBM, and therefore its lawyers, must be hopping mad.

Lizette

Ken Porowski

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Nov 9, 2009, 1:37:18 PM11/9/09
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So at $50m per year times the top 20% of the 6,000 installed base IBM
stands to lose $60 billion (US billion) in revenue? Should be enough
for a serious campaign.
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