New CMOS Mainframes to Drive Price Below $5,000 Per MIPS.Carlsbad Carlsbad, cities, United States Carlsbad (kärlz`băd). 1 City (1990 pop. 63,126), San Diego co., S Calif., on the Pacific coast; settled in the 1880s, inc. 1952. , Calif.--(BUSINESS WIRE)--Aug. 3, 1998--The latest Computer Economics Inc. financial study of CMOS mainframes See Parallel Enterprise Server and Multiprise. projects that street prices for next generation machines may fall below $5,000 per MIPS (Million Instructions Per Second) The execution speed of a computer. For example, .5 MIPS is 500,000 instructions per second; 100 MIPS is a hundred million instructions per second. . This price/performance is based on actual negotiated selling prices rather than vendor initial offering prices. IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) G5 mainframes will sell at an average of $4,945 per MIPS, with a range of $4,379 per MIPS for the most economical models to $5,349 per MIPS for the most expensive. In comparison, Amdahl's Millennium 800 machines will average $4,203 per MIPS. The spread will be from a minimum of $3,897 per MIPS to a maximum of $4,366 per MIPS. IBM has announced a fourth quarter 1998 shipping date for its G5 mainframes, and Amdahl's schedule calls for release the first quarter of 1999. Managing editor Ed Pasahow said, "These savings will be available to aggressive buyers only. The lower prices are being driven by the extremely competitive market and the improvement performance of CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. technology." The total cost of ownership (TCO (1) (Total Cost of Ownership) The cost of using a computer. It includes the cost of the hardware, software and upgrades as well as the cost of the inhouse staff and/or consultants that provide training and technical support. See ROI. ) for the two vendors' equipment will differ significantly in composition. IBM hardware purchase costs, on average, will run about 11 percent above those of Amdahl (Amdahl Corporation, Sunnyvale, CA, www.amdahl.com) A computer manufacturer founded in 1970 by Dr. Gene Amdahl, chief architect of the IBM System/360. In 1975, Amdahl installed its first IBM-compatible mainframe, the 470/V6. . Software will also be less for Amdahl users, assuming that their buyers are able to take advantage of Multiple Server Feature credits. Staffing costs tilt in IBM's favor because of its many total solution offerings, which will lower the need for highly skilled and highly paid staff experts. In the facilities and maintenance category, costs will be similar. The current Computer Economics Insights, a supplement to the Computer Economics IT Sourcebook, provides a full discussion of the CMOS mainframe marketplace. Computer Economics is a research organization helping IT executives monitor their technology costs and plan future IT expenses. Clients also include enterprise executives focused on implementing successful e-business technologies. Based in Carlsbad, Calif., Computer Economics serves customers in 89 countries and 82 percent of Fortune 500 companies. For further information, please visit the Web site at http://www.computereconomics.com.
CONTACT: Computer Economics Inc.
Catherine Huneke, 760/438-8100 ext. 116
chuneke@compecon.com
http://www.computereconomics.com
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