The Numero Uno

Are more and more systems and companies shifting to Unix? Ask IBM, the
company, which continues to march ahead of its competitors in the worldwide
server market. According to IDC, in the second quarter of 2005, IBM had 31.9%
share in the worldwide server revenue, and a global Unix-base server revenue at
31.8%. IBM’s revenue grew 36% y-o-y in Q2 as opposed to IBM’s closest
competitors-HP’s revenues grew 2% and Sun’s grew 11%.

Today, IBM is the undisputed leader in the worldwide server market and a
significant share of its growth comes from Unix. IBM is the fastest growing Unix
vendor today. The company’s worldwide Unix-based server revenues across
geographies grew at over 20% in the last quarter while it’s India revenues
went up by 135% y-o-y.

Sanchez, GM,
server pSeries systems
& technology group, IBM

Clearly, India is IBM’s biggest bet for the Unix-based server market. While
India continues to be the fastest growing market in terms of revenues, the
largest share of revenues come from the Asean region with telecom being the
biggest driver. Says Gary Lee Lancaster, VP, pSeries, IBM Asia Pacific,
“Telecom is a booming sector in the region. We offer the perfect value
proposition that fits well with the requirements of these enterprises and allows
them the scale.” Significant growth is also coming from sectors like BFSI
and manufacturing.

The IBM Power microprocessor is the world’s most advanced processor
technology and the first server on a chip and is used in all IBM Unix systems
and IBM eServer iseries, the industry’s leading mainframe server for mid-sized
businesses. IBM is deeply committed to the Unix consolidation movement and this
gets reflected in the sheer growth the company’s Unix business witnessed in
the recent past. Says Adalio Sanchez, general manager, server pSeries systems
& technology group, IBM, “We are investing heavily on Unix.”

“The Unix server wars will be fought on a new battle ground-economic
efficiency,” predicts Dan Olds, founding principal of Gabriel Consulting
Group, which conducted a survey designed to understand how customers are using
their midrange and larger SMP Unix servers. The survey showed that Unix server
consolidation is happening in a big way.

“It was a conscious decision on IBM’s part to support the Linux
momentum. We have transferred the reliability and robustness of the Power
architecture on Linux,” says Sanchez. IBM’s Linux strategy is synergistic
and complementary to the Unix business. The company sees significant revenues
coming from the Linux server segment. Unix reliability coupled with the low cost
advantage of Linux is also likely to further boost IBM’s leadership in the
server market.

Bhaswati Chakravorty
was hosted by IBM, in Melbourne

The Perfect SMB Strategy

  •  Low-end products and
  • Focus on SIs, ISVs and key customers to drive growth in the SMB segment
  • Partner with regional sales team
  • Simple migration process-AIX allows high compatibility with Solaris or
    HP servers, which makes migration easier and cost-effective
  • Educating the SIs

IBM’s pSeries Roadmap

  • Virtualize the entire ecosystem
  • Commit to openness through support for open standards
  • Collaborate to innovate
  • Extend single server virtualization to multi-system virtualization
  • Extend micro-partitioning technology to further reduce TCO and extend
    business flexibility

The Power Edge

  • Simultaneous multi-treading
  • Virtualization
  • Micro-partitioning
  • Dynamic logical partitioning
  • Capacity upgrade on demand
  • Silicon on insulator
  • Copper circuitry

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