"IBM's System z mainframe running z/OS experienced its third consecutive quarter of growth, increasing revenue 9.9% year over year to $1.2 billion, representing 9.8% of all server revenue in 2Q13."[0]
IBM makes some big systems. To me, it's not terribly surprising they'd be willing to part with their lower-end units. Mainframes are where the money is for IBM.
>IBM makes some big systems. To me, it's not terribly surprising they'd be willing to part with their lower-end units. Mainframes are where the money is for IBM.
Yup. even if that's only 10% of their revenue, I bet it's a lot more of their profit. Margins on assembling servers are driven down by massive competition, and by the fact that it's really difficult to 'differentiate' x86; your product is the same microchips as the competition on very similar boards in very similar metal boxes. (Which isn't to say the margins are zero, it's just that the customer has a lot more negotiation ammo. Your sales person has to work a lot harder.)
This situation is very good for the consumer, of course; they can reasonably play one supplier off of five. But it isn't as great for the suppliers.
IBM makes some big systems. To me, it's not terribly surprising they'd be willing to part with their lower-end units. Mainframes are where the money is for IBM.
[0]http://www.idc.com/getdoc.jsp?containerId=prUS24285213