When IBM Corp officially unveils the new E series of AS/400 mid-range computers next Tuesday, it is also expected to announce a startling shift in its marketing strategy, Timothy Prickett writes from New York. According to industry sources, resellers will be given additional price advantages that are likely to put their aggregate sales volume ahead of IBM’s own. And in a completely unexpected move, IBM plans to double the discount offered to dealers on processor upgrades, thereby loosening its grip on the aftermarket. The manufacturer has in the past determinedly maintained control over every segment of the computer market except personal computers. AS/400 resellers will be offered a larger discount on complete systems. The new maximum price break will be increased to 30% from the current 25%. The same 30% reduction from list price will be provided to high-volume dealers selling processor upgrades, a huge jump from the current maximum of 16% – and the biggest resellers could win even higher discounts. These discounts will enable resellers to match or beat IBM’s direct pricing at all but the very largest accounts. The price breaks will apply across the AS/400 line, a family of computers that after Tuesday will range from the personal computer-sized E02 (priced from about $10,000) to the three-engine E90 (which could list for $835,000). The E models will bear the same numeric designations as the D machines now in production, but provide an average of 25% to 30% more throughput. They will also accommodate more main memory, up to 512Mb in the case of the top-end E90. The first shipments of the new machines are believed to be scheduled for March 6, but one or more models may not be available until a few weeks later and IBM may hold upgrades from Ds for a few months to ensure maximum new business. In addition to greater processing speed, the smaller E models will come with new disk drives. Processors in deskside cabinets – 9202s and 9404s – will use a new 3.5 988Mb disk drive said to be the Corsair that IBM has been selling OEM. Up to now, the most capacious disk in the small AS/400 D models has been the 400Mb Turbo Lightning. IBM is also expected to offer a new remote terminal controller, the model 5494, capable of supporting up to 40 workstations (28 directly attached, the rest on a local area network). By contrast, the previous model 5394 terminal interface can control up to 16 terminals. IBM will require users of the E models to use the most recent version of its OS/400 operating system, but has already assured key customers that the latest software will run on every other AS/400 including the very first models, which were announced in June 1988.
