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Insider Weekly's top 10 events of 2004

      Since the announcement of i5 and i5/OS spanned a six-month time frame, the new i5 models and enhancements to the iSeries operating system generated excitement all through 2004. In addition to these important events out of Rochester, the year was also filled with acquisitions, revenue dips, and a rejuvenation of iSeries marketing.

      Insider Weekly presents the top 10 events that shaped the iSeries market in 2004:

      1. IBM announces the i5 server line. On May 4, 2004, Big Blue officially announced the i5 Models 520 and 570, which were the first IBM servers to feature the Power5 processor — reassuring iSeries customers that IBM is still serious about the platform. Throughout the subsequent six months, hardware announcements continued to roll out — with the expansion of the Model 570 to a 16-way, the Model 550, and the Model 595 (IW 5/3/04, 7/12/04, 8/23/04, and 10/18/04).

      2. The iSeries and OS/400 are rebranded i5 and i5/OS. With mixed reactions from customers, IBM has stood by the new i5 and i5/OS nomenclature coined in the May 2004 announcement. Some customers say that i5 and i5/OS breathed new life into the platform, while others say that the name change created confusion in the market. Also in on the fun, the pSeries was renamed p5, creating even greater similarities between the two platforms (IW 12/6/04).

      3. iSeries pricing is brought down to the masses. Big Blue announced i5 hardware at prices comparable to its sister pSeries p5 boxes. This move ultimately aligned iSeries and pSeries pricing, making the cost of iSeries servers more affordable for smaller companies. Pricing changes for the iSeries include: lower entry prices into models, Express Editions, aggressive price/performance ratios, and decreases in memory and DASD (IW 5/3/04, 5/24/04, 7/26/04, 8/2/04, 8/16/04, 8/30/04, and 12/6/04).

      4. Revenue declines for three quarters in a row. After an entire year of revenue growth for the iSeries in 2003, 2004 has not proved to be of the same caliber. In 2004, iSeries revenue declined three consecutive quarters in a row: 7% in Q1, 28% in Q2, and 26% in Q3 year-over-year. Attributed to the i5 product transition, the decline is expected to halt in 2005 when shops begin picking up the new hardware (IW 4/26/04, 7/26/04, and 10/25/04).

      5. The Hardware Machine Console (HMC) is the new user interface for LPARs. The announcement of the HMC also had mixed reactions from customers. This technology changed the face of iSeries LPAR management and created controversy in the iSeries market. Was the HMC ready to be shipped when IBM released it to the market, or did it have too many gotchas that should have been dealt with beforehand? At COMMON’s Fall 2004 conference, IBM executives addressed criticisms about the HMC and ensured iSeries customers there is a specific team working on improvement for future releases of the HMC (IW 5/3/04, 7/12/04, 10/11/04, and 10/25/04).

      6. iSeries marketing picks up steam with iSeries.mySeries and TV commercials. Throughout 2004, iSeries marketing presented the iSeries.mySeries campaign, giving customers lapel pins, T-shirts, tattoos, posters, and bumper stickers sporting the logo. More recently was the debut of iSeries commercials on ABC — giving the iSeries much-needed airtime (IW 3/8/04 and 12/13/04).

      7. IBM’s Systems group and Technology group merge. In late January 2004, IBM announced that the Systems group (responsible for the eServers and data storage systems) and the Technology group (responsible for the microchip business) joined to become the Systems and Technology Group. John Kelly and William Zeitler co-lead the newly created division, focusing on uniting the marketing and sales messages between the two groups (2/16/04).

      8. J.D. Edwards (JDE), PeopleSoft, and Oracle become one. This saga began in the spring of 2003 when PeopleSoft and Oracle vied for JDE. In July of 2003, PeopleSoft and JDE merged — which left iSeries customers that utilize JDE solutions hanging in the interim. Then, throughout the late quarters of 2004, the saga continued as Oracle tried to take over PeopleSoft, succeeding on December 13, 2004. Although Oracle has announced that JDE and PeopleSoft solutions will continue to be supported and enhanced, ultimately iSeries shops utilizing these solutions will have to make a decision about where their loyalties lie (IW 3/15/04).

      9. V5R3 brings long-awaited AIX support, CL enhancements, and more. With i5/OS V5R3, IBM officially announced support for AIX 5L version 5.3. Support for this OS gives shops the long-awaited ability to consolidate UNIX workloads onto their iSeries (IW 7/12/04). Also with V5R3, Big Blue announced the biggest changes to the CL compiler since System/38, including 57 new commands and 247 changed commands (IW 5/31/04).

      10. Fast400 architect and founder reveal themselves. In August of this year, Jim Stracka (founder) and Leif Svalgaard (architect) announced that they were the faces behind the controversial Fast400 product. Fast400 has thwarted IBM since 2002 (when it was introduced into the iSeries market), because it offers an alternative to paying the 5250 Interactive tax imposed by IBM. Currently, Stracka is suing IBM for false and malicious prosecution (IW 8/2/04 and 8/23/04).

       Insider Weekly for iSeries-AS/400 Managers is published 48 times a year. Next week is a skipped issue. Your next issue will arrive on January 3, 2005.