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Technology / AI and automation


The slowdown in new IBM Corp mainframe MIPS purchases and the changeover to new G5 models (see separate story) is creating a feeding frenzy amongst the independent software vendor community which see the trends as a new opportunity to lock users in to long and costly new software licenses, according to analysts the Meta Group. Meta says the cost of ISV contracts – with companies such as BMC Software Inc, Computer Associates International Inc, Candle Corp, Compuware Inc and even IBM itself for MVS software – can each exceed 50% to 100% of five-year CPU costs. More importantly, lock-ins prevent users from reducing ongoing long-term costs via replacements. If MIPS procurement continues at 25% or more a year then users’ capacity will triple during the lifetime of most of these new software license agreements, which means users will lose much leverage at renewal time.

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CBR Staff Writer

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