Article Abstract:
IBM is introducing new mainframes that are both cheaper and easier to use. The move is in response to increased competition and lower prices in the mainframe market. The company's mainframe revenue is currently about 50 percent of what it was in 1990. IBM is actually selling more mainframes, but the lower prices have seriously reduced the profits in this market. Still, mainframes and their related hardware, software and services still earn over half of the company's profits. The new mainframes are based on processors similar to those used in PCs. They are cheaper to build and to operate because they use less power and do not require water-cooling systems. These systems do not provide the power of high-end bipolar systems and IBM is losing sales to Hitachi and Electronic Data Systems in this market. IBM is not expected to market mainframes that match bipolar power until 1998.
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Article Abstract:
Amdahl Corp is planning to deliver a line of mainframe computers in late 1991 that will include a model capable of 323 million instructions per second, the fastest and most powerful of any mainframe computers on the market. The new Amdahl 5995 series of mainframes will include 10 models, with a top-of- the-line mainframe that will use an eight-way multiprocessor, which is three times faster than any current Amdahl mainframe and will be the first IBM-compatible to use eight CPUs. The new mainframes, which will range in prices from $3.2 million to $32 million, are equipped to handle massive amounts of memory with each microprocessor capable of supporting a total of 10Gbytes of processor storage. Amdahl stock fell 37.5 cents and closed at $12.125 on Sep 18, 1990.
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Article Abstract:
IBM reveals that its new mainframe products, scheduled to ship in 1991, will operate 10 percent to 15 percent faster than had been expected. The machines' central processors will operate at 45 to 46 mips (millions of instructions per second), rather than at 40 to 41 mips, which was originally announced in fall 1990. This announcement could help IBM, which has been experiencing various difficulties, to achieve respectable numbers in the 4th qtr of 1991, in spite of a weak economic situation overall. Nevertheless, Dan Mandresh, an analyst with Merrill Lynch & Co, expects earnings of $4.85 a share for 1991, down from $10.51 1990.
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