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IBM High-End Solution Competitive Brief Corporate Profile Introduction This paper is intended to assist Hewlett-Packard sales representatives in competing with our new high-end HP 3000 Corporate Business System 99X and HP Corporate Business Server 890. A comparison is presented of the systems marketed by IBM offering equivalent high-end performance. The high-end of the AS/400 product line overlaps the lower-end of HP's new 890 and 99X systems. The low and midrange models of the ES/9000 also overlap HP's new high-end Models. Both the AS/400 and the ES/9000 systems are discussed in this document. The RS/6000, because of its limited performance range, is not addressed. Financial highlights .G.IBM01.HPG;4.565";3.356";HPGL IBM's 1991 revenues totaled $64.8 billion down 7 percent from the preceding year. Net earnings declined from $6 billion in 1990 to a negative $2.8 billion in 1991. This includes a $2.7 billion restructuring charge resulting from actions to reduce the work force, consolidate facilities, reduce capacity, and reevaluate venture operations. Business at a glance .G.IBM02.HPG;4.565";3.356";HPGL Revenues by geographic areas show that IBM receives a slightly higher percentage of revenues from the European community than HP. Sales channels reflect a rise in IBM's use of the agents program. These agents act as IBM representatives in that they can represent IBM in contracts although they are not employed by IBM. IBM markets three major product lines. The ES/9000 is IBM's mainframe system, the AS/400 is a midrange system for commercial applications, and the RS/6000 is targeted at midrange engineering and commercial accounts. Both the ES/9000 and AS/400 use a proprietary operating system while the RS/6000 operates under AIX, IBM's UNIXª implementation. The percentage of revenues from hardware decreased by 9 percent from 1990. This has largely been made up in the areas of software and services. Software revenues have consistently grown as IBM focuses on increasing earnings from high-margin products. IBM's gross profit margin on software is 63 percent. Services, including systems integration, is also growing with IBM's goal to be a full-service provider. IBM is ranked number 4 on the Fortune 500 list. By year end 1991, IBM employed 344,396 reflecting a reduction of 62,000 from its 1986 peak of 407,080. It is estimated that IBM will further reduce employment in 1992 by approximately 20,000. Sales organization IBM's direct sales force will be involved in potential sales with revenues of $1 million or more. In protect mode, where IBM has an installed system, IBM representatives are very motivated to keep the system installed. If a system has been installed for less than three years and it is replaced with a competitive system, the IBM marketing representative will have a quota increase equivalent to the total system price or a prorated price over the three years. Be prepared for IBM to discount hardware and software upgrades, and maintenance prices and to offer discounted or free professional services. IBM will also offer free executive education to decision makers, which includes both information system updates and industry-oriented seminars. Reference selling is also used at all levels within the prospect's organization. An understanding of the business needs is a requirement when competing against IBM in this size sales situation. Financially justifying an HP solution should be part of the sales process. Selling at the executive level is also required. AS/400 Section The new HP high-end 890 and 99X, extend HP's performance far above IBM's AS/400 product line. Only two AS/400 models, the E80 and top of the line E90, offer the performance available on the low end of the models 890 and 99X. Product Family Characteristics Performance The AS/400 E models range in performance from an estimated 6 to 138 TPS. The family consists of three separate product lines and systems within a product line are field upgradeable. Published TPC-A results include: System Model TPC-A $K/TPS E10 9.92 9.9 E35 14.0 13.6 E70 54.9 17.6 Estimated TPS for the high end include: System Model Estimated TPS E70 56.8 E80 100.8 E90 137.6 The processor uses VLSI logic, has a 32-bit data path, and has 48-bit addressing. It is implemented with a software and hardware architecture that could obtain 64-bit addressing and accommodate the needs of voice, image, and artificial intelligence applications. Comparison of HP's high-end solution: The AS/400 maximum estimated TPS is 137. Compare this to the Corporate Business System 992 at 400 TPS or the Corporate Business Server 890 at 336 TPS. Both systems will double their top-end performance yearly through 1995. History reflects the AS/400 performance increasing at a much smaller rate of 70 percent annually. The market for the AS/400 does not include prospects requiring the high throughput achieved by HP's new top of the line products. Furthermore, the AS/400 is limited in disk capacity. A maximum of 125 GBytes is available on the AS/400 compared to HP's 660+ Gbytes. Management tools The AS/400 offers several features for systems management that ensure ease of use, installation, and maintenance. The system has an integrated relational database, has automatic configuration for local devices, and extensive online help. The system is built around an object-oriented architecture and enables concurrent operating environments from the System/36 and System/38, as well as, programs developed on an ES/9000 mainframe using Cross System Product (CSP). CSP is an application program generator. Systems Administration Tools/400 provides the ability to manage networks of multiple systems from a central system and to enhance change and distribution management. Comparison of HP's high-end solution: HP's OpenView offers similar functions and is HP's strategy for systems and network management. It has been accepted by OSF as the foundation for DME. Other tools include OmniBack for high-speed backup, HP Glance, LaserRX/UX, and Forecast RX/UX for performance management. Third-party solutions include enhanced systems management, work load scheduling, resource accounting, and resource allocation. Applications The number of applications available for the AS/400 is estimated to be more than 200,000. This includes image, telephony, fax, and publishing applications. Systems Application Architecture (SAA) is IBM's master plan for future systems. Announced in 1987, SAA is still evolving. SAA offers guidelines for development and a list of compliant software products. AD/Cycle, SAA's CASE offering, is still in the infancy stage. Comparison of HP's high-end solution: HP CASE tools include CGI, Softlab and TI. These products offer more functions than IBM's AD/Cycle and are available today. IBM has limited the access to OS/400, the operating system for the AS/400. Consequently, the number of third-party DBMS vendors is limited. Only Progress, Cognos, and Focus now run on the AS/400. Informix, Ingres, Oracle, Software AG , Unify, and Uniface do not run on the AS/400 and restrict the choices for DBMS. Enterprise-wide connectivity The AS/400 has the following supported protocols and networks: | IBM Token-Ring (IEEE 802.5 or 802.2) | Ethernet Version 2 or IEEE 802.3 | Asynchronous (ASYNC) | Binary Synchronous (BSC) | X.21 | X.25 | ISDN Basic Rate Interface | 5394 SNA Backbone support | TCP/IP | Fractional T1 Networks AS/400 Communications Utilities uses BSC or SNA to exchange mail or files to submit programs. Cryptographic Support assists the user in managing cryptographic functions. SAA SystemView System Manager allows a central system to act as a focal point and allows for central control and management of problem reporting and problem tracking. NetView File Transfer is designed for copying and updating data sets among network-connected systems. TCP/IP provides support through the Ethernet integrated adapter or using the 8209 LAN Bridge. ISDN support includes advanced networking features, calling party ID, call manager, dialed number ID, IDLC, and extensions. OSI/Communications supports layers 3 through 6. OSI file services support transfer and management as defined by the ISO 8571 FTAM. OSI Message services incorporates the X.400. ICF Retail Communications provides the ability to attach retail controllers using SNA/SDLC LU Type 0. UCF/Finance Communications support provides the ability to attach finance controllers. DataInterchange provides facilities for EDI in SAA operating system environments. Comparison of HP's high-end solution: HP's enterprise-wide connectivity products offer equivalent functions and are widely accepted as being extremely rich in networking programs. In 1993, HP will support HLLAPI (High-Level Language Application Programming Interface), LU6.2 API, SNA/X.25, and Token-Ring. In 1993, expect HP to support 3270 terminals. Availability The AS/400 offers disk mirroring and only recently has IBM announced save- while-active function. This function enables an operator to backup files while the system has active users. Battery backup is only available on the larger systems. Comparison of HP's high-end solution: Contrast HP's processors and peripherals with the industries leading reliability. HP has error-correcting circuitry in memory arrays, I/O channels and processor/memory bus. Features include automatic system recovery, de-configuration of failed CPU, and memory and interface modules. HP's systems achieve up time in excess of 99.97 percent. Increasing data availability is accomplished with disk arrays and disk mirroring. HP's SwitchOver/UX provides near-continuous operation, and HP Support Watch services provides system monitoring to detect and report transient hardware faults before they cause down time. Support and service IBM offers a one-year standard warranty on the hardware. Electronic customer support provides an electronic interface into IBM's marketing, administrative, technical, and service facilities. This system includes access to a question-and-answer database and the ability to ask new questions, which are answered by product experts. This IBMLink is also available to third-party software developers to support systems and networks from a central site. Using this facility, the AS/400 can detect and diagnose problems, create a system call, and initiate a call to the managing system for a software fix or initiate a call to the hardware service organization with the failed part number. IBM's systems engineers are part of the same organization as sales. SE services, such as system planning, education planning, technical assistance, and capacity planning, are often provided free to IBM's prospects and customers. IBM also offers a chargeable service called System Xtra. This has the added service of installing operating changes and doing simple systems administration. IBM offers professional services in the area of programming, migration support, systems integration, recovery services, and maintaining IBM and non-IBM equipment. Comparison of HP's high-end solution: Contrast these professional services with HP's similar, but superior, offerings. The advantage that HP services offer is the ability to partner with the best consultants and systems integrators in the industry today. HP is not locked into using a single vendor for providing hardware, software, and services. With HP's new announcement as a prime contractor, we do offer a superior solution. Futures IBM is replacing the AS/400 models every 9 months and increasing the price/performance of each model by 30 to 60 percent. High-end performance has increased by approximately 70 percent with each major announcement. Comparison of HP's high-end solution: With HP's plans to provide a doubling of performance annually and a 16-way by 1995, HP has the ability to satisfy customers needs today and into the next decade. Competitive Sales Strategies HP 3000 versus AS/400 HP 3000 IBM AS/400 Strengths Strengths (HP's Perceived Weaknesses) Parity (IBM Weaknesses) -Financially secure -Price/Performance -Number of applications -Worldwide support -Growth -Malcolm Baldrige Quality -Flexible financing -Data center Award functionality -Single-vendor solution -Client/Server functionality -Office -Open systems HP 3000 Strengths/Criteria for HP Win Price/performance HP advantage: The top-of-the-line AS/400 Model E90 with an estimated 137 TPS, offers less performance than the 992/200 at 145 TPS. Base system pricing is $1,068K versus $545K. Again, HP offers more performance at half the price. Customer benefits: HP provides better response time for end users to be more productive and faster turnaround times for important critical management reports. These benefits are provided at a price that is substantially lower than IBM's equivalent system, enabling customers to maximize investment dollars. Greater growth potential HP advantage: The top-of-the-line HP 3000 offers three times the growth path of the AS/400 Model E90. Customer benefits: A greater growth path enables installations to add more users and/or more applications without a costly disruption. When requiring more performance than the AS/400 offers, a second AS/400 or a time-consuming and costly migration to a mainframe may be required. The HP system offers mainframe performance with small systems ease of use at a significant price advantage. While the HP 3000 systems have increased performance with new processors, HP has protected its customers' investments with return credits. During this time frame, IBM has taken their customers through the S/3, S/32, S/34, S/36, S/38, and finally to the AS/400. None of these systems had return credits and, in some instances, major software conversions were required. Data center functionality HP advantage: HP's commercial functionality is more robust than IBM's AS/400. Customer benefits: HP's superiority creates an environment with lower operating costs, improved productivity and service quality, and increased control and management of the customer's information system. HP advantage: HP offers better online transaction processing (OLTP), than IBM's AS/400. Customer benefits: Because the new Corporate Business System 99X offers more performance than the AS/400, HP provides better response time for end users, which optimizes their productivity. HP advantage: HP provides better batch performance than IBM's AS/400. Customer benefits: Because the Corporate Business System 99X offers more performance than the AS/400, critical management reports will be processed faster, making decisions easier and management better informed. Client/server functionality HP advantage: As a server, the HP 3000 offers more functionality than the AS/400. Customer benefits: HP provides the resources to get to information easily. Unlike IBM, HP supports all the major database management vendors (Oracle, Informix, and Ingres) and offers superior integration in a multivendor environment. HP, through its superior functionality, offers the end user the ability to easily access more information on more systems. HP also protects past and future investments in software by supporting all the major database management systems and increasing the number of DBMS application available. Office HP advantage: HP has better desktop integration than IBM's AS/400. Customer benefits: Unlike the AS/400, HP offers integrated support for Apple Macintosh systems that ensures that the information residing on the desktop can be shared by all users and that Macintosh users can utilize system resources. Open systems HP advantage: The HP 3000 offers more open systems portability. Customer benefits: HP's superiority in open systems offers customers freedom of product choice. Some of the functions usually associated with portability that the 922 offers and IBM's AS/400 does not are OSF/Motif and X/Open NLS. IBM's AS/400 Perceived Strengths versus HP 3000 Handling objections IBM will lead with these sales tactics when competing against HP: | Because IBM has a large number of software applications available on the AS/400, IBM is able to offer the best application solution to meet the prospect's requirements. (IBM will try to differentiate on the application software features and will usually lead with an application from IBM.) Counter with: Unlike IBM, HP is not in the application software business. HP will propose the best application solution from a large number of available software applications. | The AS/400 is the leader in quality. IBM won the Malcolm Baldrige National Quality Award for the AS/400. Counter with: HP has consistently outperformed IBM on surveys for reliability and quality. HP's reputation is built on quality. HP has learned from building products for the medical industry that superior quality is essential and has factored that experience throughout HP's product lines. HP has also won the Deming Award. Winning the Deming Award is a very prestigious honor and is Japans equivalent to the Malcolm Baldridge for quality products. | IBM offers a single-vendor solution. The customer deals with one supplier for hardware, software applications, support, financing, and systems integration. (This only applies if the prospect licenses IBM's application software.) Counter with: HP provides the best support for hardware and operating system software. HP provides flexible leasing. HP chooses the best software and systems integrators in the market. IBM may focus on proposing IBM's own software solution. IBM is also entering the systems integration business and competing with SIs like Andersen Consulting and EDS. HP does not compete with independent software providers, ISVs, or systems integrators. HP's strategy ensures the optimum total solution: the best in hardware and support from HP and the best applications and services from HP's partners. Also, HP can now prime a contract, guaranteeing HP superiority with best- of-class partners. HP 9000 versus AS/400 HP 9000 Strengths IBM AS/400 Strengths Parity (IBM Weaknesses) (HP's Perceived Weaknesses) -Financially secure -Price/Performance -Quantity of applications -Worldwide support -Growth -Malcolm Baldrige Quality -Flexible financing -Client/Server Award functionality -Single-vendor solution -Office -Open systems HP 9000 Strengths/Criteria for HP Win Price/performance HP advantage: The AS/400 Model E90, with an estimated TPS of 137, offers less performance than the 890 2 at 185 TPS. Base system pricing is $1,068K versus $440K. The 890 2 offers more performance at half the price. Customer benefits: HP provides better response time for end users to be more productive and faster turnaround times for important critical management reports. These benefits are provided at a price that is substantially lower than IBM's equivalent system, enabling customers to maximize investment dollars. Greater growth potential HP advantage: The top-of-the-line HP 9000 Corporate Business Server 890 offers 2.5 times the growth path of the AS/400 Model E90. Customer benefits: A greater growth path enables installations to add more users and/or more applications without a costly disruption. When requiring more performance than the AS/400 offers, a second AS/400 or a time-consuming and costly migration to a mainframe may be required. The HP system offers mainframe performance with small systems' ease of use at a significant price advantage. Client/server functionality HP advantage: As a server, the HP 9000 offers more functionality than the AS/400. Customer benefits: HP provides the resources to get to information easily. Unlike IBM, HP supports all the major database management vendors and offers superior integration in a multivendor environment. HP, through its superior functionality, offers end users the ability to easily access more information on more systems. HP also protects your past and future investments in software by supporting all of the major database management systems increasing the number of DBMS applications available. Office HP advantage: HP's office automation is superior to IBM's OfficeVision and PC support. Customer benefits: HP offers the ability to integrate customers' Macintoshes into the user domain letting Macintosh users share the system resources. Productivity has increased dramatically using the HP NewWave Office software while IBM has delayed many of the announcements for OfficeVision. HP's office solution improves control of the work flow, improves time to action, reduces resource expenses and training costs, and protects the customer's investment. Open systems HP advantage: The HP 9000 offers more open systems portability. Customer benefits: HP's superiority in open systems offers customers freedom of product choice. Some of the features offered on HP's 9000 that are not available on the AS/400 include OSF/Motif, X/Open NLS, X/Open Branding, and OSF RPC and Directory Services. HP advantage: The HP 9000 offers more open systems interoperability. Customer benefits: HP's superiority in open systems offers customers easier integration of multivendor networks providing more information from more systems. Some of the HP 9000 interoperability features offered on the HP 9000 and not available on the AS/400 include OSF RPC and OSF Directory Services and X.500 directory Services. IBM's AS/400 Perceived Strengths versus HP 9000 Handling objections IBM will lead with these three sales tactics when competing against HP: | IBM offers the best application solution to meet the prospect's requirements. (IBM will try to differentiate on the application software features.) Counter with: Purchasing application software developed for the AS/400 severely limits users flexibility. AS/400 application software ties the account into IBM as the only hardware vendor. The benefits associated with portability and interoperability do not exist. An HP 9000 solution ensures the maximum flexibility. Unlike IBM, HP is not in the application software business. HP will propose the best application solution from a large number of available software applications. | The AS/400 is the leader in quality. IBM won the Malcolm Baldrige National Quality Award for the AS/400. Counter with: HP has consistently outperformed IBM on surveys for reliability and quality. HP's reputation is built on quality. HP has learned from building products for the medical industry that superior quality is essential and has factored that experience throughout HP's product lines. HP has won the Deming Award for quality products in Japan. | IBM offers a single-vendor solution. The customer deals with one supplier for hardware, software applications, support, financing, and systems integration. (This only applies if the prospect licenses IBM's application software.) Counter with: HP provides the best support for hardware and operating system software. HP provides flexible leasing. HP chooses the best software and systems integrators in the market. IBM may focus on proposing IBM's own software solution. IBM is also entering the systems integration business and competing with SIs like Andersen Consulting and EDS. HP does not compete with independent software providers, ISVs, or systems integrators. HP's strategy ensures the optimum total solution: the best in hardware and support from HP and the best applications and services from HP's partners. Marketing issues The AS/400 is being marketed as a downsizing solution. With the new announcement and availability third quarter '92 for CICS on the AS/400, it becomes a strong contender. CICS is the teleprocessing monitor used on most mainframes for online applications. IBM will discuss the benefits of migrating the mainframe code to the AS/400 versus the cost associated with rewrites, conversions, or purchasing new software applications. HP's strategy: | Is the account happy with the existing software? There may be a better solution available from an HP third-party software supplier. | Is there any planned modifications to the existing mainframe software? Again, there may be a better fit available from an HP third-party with a product for the HP system. What is the cost in personnel and time for these modifications? Utilizing an HP system with a CASE tool may be easily cost justified. Also, moving CICS applications to the AS/400 will seriously affect response times. Rewriting or purchasing third-party software applications that utilize the performance features unique to the hardware platform will often result in better response times. HP also offers third-party solutions that help migrate CICS applications to both the HP 9000 and the HP 3000. ES/9000 Section The ES/9000 section is a comparison of HP systems with IBM's ES/9000 offering. While it may be of some help in mainframe downsizing situations, it was not intended to reflect the advantages of downsizing. Please check the MFA hotlines for information and tools to assist in mainframe downsizing. Product Family Characteristics Performance Performance of IBM's ES/9000 processors is measured in MIPS. MIPS range from 2 to 235. The family consists of three product lines. The 9221 air- cooled rack-mounted models range from 2 to 6.5 MIPS. The 9121 air-cooled frame models range from 8.8 to 70 MIPS, and the 9021 water-cooled models range from 20 to 235 MIPS. The HP 9000 Corporate Business Server 890 and HP 3000 Corporate Business System 99X will compete with the top of the air- cooled models and the midrange of the water-cooled models. A rough calculation for estimating TPS was formulated using both mainframe replacement system configurations and data from industry analyst. The formula for calculating estimated TPS is 3.7 times MIPS. The following chart depicts MIPS and estimated TPS for ES/9000 systems in the HP 9000 Corporate Business Server 890 and HP 3000 Corporate Business System 99X performance range: Estimated List price MIPS TPS #CPU CPU only $(M) 9121 Air-cooled models 440 30 111 2 2.4 490 38 140 2 2.9 570 55 203 3 4.3 610 70 259 4 5.7 9021 Water-cooled models 520 45.5 168 1 4.6 580 65 240 3 6.0 640 84.4 312 2 8.2 660 86.6 320 2 9.2 720 117 433 6 11.0 740 121 448 3 11.6 820 159 588 4 16.5 Enterprise Systems Connection (ESCON) provides data rates of 17 Mbytes per second through IBM's fiber-optic channels and provides for I/O equipment to be located at distances up to 37 miles away. IBM's clustering is accomplished with Sysplex. This provides the ability to couple eight processors and manage them as one. Comparison of HP's high-end solution: HP's high-end systems compete with both the air-cooled and water-cooled models. Extrapolating HP's planned annual doubling of TPS at the high end, HP will exceed IBM's top-of-the-line Model 900, estimated TPS of 832, in 1993. Management tools In September of 1990, IBM announced SystemView, a strategy for planning, coordinating, and operating enterprise-wide information systems. The strategy consists of the SystemView structure and conforming products. The structure provides the customer with a consistent user interface, shared data, enhanced automation, and increased integration among systems management products. IBM formed the international alliance for SystemView, a partnership with software vendors that designates both a development and worldwide marketing relationship with IBM. Currently, there are 70 products that have been committed to conforming to SystemView guidelines. Some of the tasks planned for SystemView include change management, configuration management, operations management, performance management and problem management. Products also include an asset manager for inventory of software, hardware and related resources. Enterprise System s Connection (ESCON) Manager helps customers manage fiber-optic connections. ESCON Analyzer provides easy diagnosis of link errors. Graphics View/2 provides a graphical interface for displaying network configurations. Host Management Facilities/VM automatically monitors, controls, and schedules VM support activities. Systems management is one of the most important areas of information systems. IBM's SystemView is essential to IBM's strategy to maintain mainframes in a distributed environment. Because this area is becoming more complex, SystemView may also be essential to IBM's customers; however, SystemView is more a set of guidelines than a deliverable product. Comparison HP's high-end solutions: Compare IBM's strategy with HP's deliverable products such as OpenView and products from third-parties like Unison and Computer Associates. Also, HP will be delivering Central System Manager, CSM, in early 1993. This tool is based on HP OpenView and will allow for centralized management. This product will significantly reduce the complexity associated with systems management. Applications There are thousands of software applications written for the mainframe environment. There are four different operating systems marketed for IBM's mainframe systems. MVS, VSE, and VM are proprietary. AIX is IBM's UNIX and will be compatible with OSF/1. IBM is targeting AIX as a technical computing system only. AD/Cyle, IBM's CASE, is a set of rules and guidelines for creating application development tools and does include a repository. AD/Cycle is still in its infancy and is not complete. The current repository is difficult to use, and even IBM admits to its complexities. The major 4GL products on IBM's mainframe system include FOCUS, IDEAL, and Cross System Product (CSP). For database management systems, IBM has IMS, DL/1, and DB2/SQL. IMS is a hierarchical DBMS, difficult to use and hard to tune. Third-party DBMS products that run on both IBM and HP are Software AG's Adabas, IBI's FOCUS, and Oracle. Comparison of HP's high-end solutions: In the area of CASE, HP offers Softbench to encapsulate some to the best tools. HP's CASE tools are equivalent in function and are available today. CGI, Softlab, and TI all have excellent offerings. HP's 4GL offerings include Infocentre, Ingress, Powerhouse, and Informix. HP also offers OODB, Open Object-Oriented Database. Companies providing conversions from IBM mainframe systems to HP include Infosoft, VISystems, Innovative Information Systems, Integris, and Zortec. Enterprise-wide connectivity IBM's enterprise networking provides customers with the capability of collecting, managing, accessing, and integrating information from both IBM and non-IBM systems. IBM uses NetView to integrate graphics workstation, object-oriented data management server, and remote management capabilities using LU 6.2. Comparison of HP's high-end solutions: HP is widely know in the industry for its networking ability and currently supports the most comprehensive suite of IBM networking services. In 1993, HP will support HLLAPI (High-Level Language Application Programming Interface), LU6.2 API, SNA/X.25, and Token-Ring. IN 1993, expect HP to support 3270 terminals and a transparent link between X.400 and IBM PROFS (e-mail). Availability IBM defines three components for continuous system availability. These include high availability, continuous operation, and remote site recovery. Both hardware and software capabilities are required. IBM starts at the memory chip level with fault-tolerant dynamic memory arrays that are available on some water-cooled models. Enterprise Connection Architecture(ESCON) Director with enhanced availability option has a spare power supply and a spare port and can be quickly substituted for failed components with minimal user disruption. The processor availability facility allows a failed instruction stream to be recovered on another processor that is still operational. Concurrent channel maintenance lets you repair I/O channels while the system is running. Concurrent processor maintenance allows you to repair a processor while the rest of the system continues to handle the workload. CICS and MVS support many software maintenance and change operations while these software systems continue to process transactions. Capabilities exist that allow changes to be made to the hardware, software, and terminal definitions while application processing continues. A recovery facility enables you to create a system with takeover, recovery and restart facilities. Comparison of HP's high-end solution: Contrast HP's processors and peripherals with the industries leading reliability. HP has error-correcting circuitry in memory arrays, I/O channels, and processor/memory bus. Features include automatic system recovery, de-configuration of failed CPU, and memory and interface modules. HP's systems achieve up time in excess of 99.97 percent. Increasing data availability is accomplished with disk arrays and disk mirroring. HP's SwitchOver/UX provides near continuous operation and HP Support Watch services provides system monitoring to detect and report transient hardware faults before they cause down time. Services and support IBM has a one-year warranty. With larger accounts, IBM does not usually charge for software support. Free System Engineering services include technical assistance, system planning, and capacity planning. Professional services include use of the IBM Information Network, network custom services, application development, system integration, recovery services, and educational and maintenance services for IBM and non-IBM hardware. Comparison of HP's high-end solution: HP will provide a Comprehensive High-End Support Service providing customers with data center level support encompassing maintenance, professional, and other services under a single contract. HP is now able to prime contracts providing customers with HP's reputation and partnerships with the best-in-class system and services providers. Futures IBM will continue to increase performance at the high end. Industry analysts also suggest more specialized processors, such as a sort processor, to offload the main CPU. Competitive Sales Strategies HP 3000 versus ES/9000 HP 3000 Strengths ES/9000 Strengths Parity (IBM Weaknesses) (HP's Perceived Weaknesses) -Financially secure -Price/performance -Growth -Worldwide support -OLTP design -High availability -Flexible financing -ease of implementation -Systems management -ease of maintenance -Single-vendor solution -Staffing HP 3000 Strengths/Criteria for HP Win Price/performance HP advantage: HP offers exceptional price/performance advantages over IBM's ES/9000 series systems. Customer benefits: The new 992/100 offers 145 TPS at a base price of $545K. IBM's ES/9000 Model 490 compares with 140 TPS at a base price of $2,900K. HP offers more performance at 20 percent the investment of the equivalent ES/9000. At the high-end, HP's new 992/400, at 400 TPS compares to IBM's ES/9000 Model 720 with an estimated TPS of 433. HP is priced at $1,030K versus IBM's at $11,000K. HP offers approximately the same performance at a price one-tenth the cost of IBM's solution. This price differential frees up dollars for other capital expenditures or investments in other areas. OLTP design HP advantage: HP's 3000 was designed to address the development and maintenance of programs written for online transaction processing. Customer benefits: The HP 3000 offers the convenience, ease of use, and maintenance usually associated with smaller systems and enhances this environment with offering the power of large systems. Programs are developed in considerably less time, bringing the productivity improvements to end users in a shorter period of time. Maintenance of existing application systems is also enhanced with a simpler approach to program changes. Because the system is much easier to create and modify existing applications, companies become more competitive by reacting to market changes faster. Staffing HP advantage: The design of the HP system optimizes the productivity of your information systems staff. Customer benefits: Industry analysts agree that the HP 3000 environment doubles the productivity of the IS personnel when compared against the average ES/9000 shop. According to Aberdeen, development time for HP's systems ranges from 75 percent to 85 percent faster than a mainframe environment. These savings are also reflected in software maintenance costs, which is 75 percent of the mainframe budget compared to 25 to 35 percent for midrange systems. The benefit to the customer is increased availability of the IS staff to focus on additional business tasks instead of functions associated with complex system environments. In summary, HP's operating environment benefits end users with increased responsiveness, faster implementation, and higher quality without a corresponding increase in expense. IBM's ES/9000 Perceived Strengths versus HP 3000 Handling objections | IBM's ES/9000 is extremely scalable and reflects a growth of more than 100-fold from the entry model to the high-performance top of the line. The ES/9000 is the industry's broadest single-family range of performance and upgrade operations. It addresses the needs of system loads generated from hundreds of users to thousands of users requiring subsecond response times. This growth is accomplished with software investment protection. Applications can be developed once, and are capable of running on the smallest to the largest systems. In summary, IBM offers the hardware and software platforms to achieve your company's goals through the 1990's and beyond. Counter with: It is true that IBM offers a more powerful growth path; however, very few environments require the processing power of IBM's top-of-the-line processors. If this type of performance is required, IBM offers a horizontal growth path. HP offers a more flexible alternative, with a vertical growth path of multiple systems located close to the end user and at a better cost per user basis. | High availability is a requirement in today's competitive environment. Extensive reliability, availability, and serviceability functions have been built into both the hardware and software of IBM's System/390 platform. Error detection/correction codes are used extensively. In expanded storage, double-bit errors are corrected, and triple-bit errors are detected and captured. This information can be used to automatically initiate a call to IBM's service network. Processor controllers monitor thousands of areas and take corrective action. Duplexing of critical elements is part of the hardware functions. Also, instruction retry, channel retry, and element deletion are used. Reconfiguration of channels and input/output equipment without impacting the system is provided . No other vendor can offer the functions that ensure availability and are inherent in IBM's System/390 hardware and software. Counter with: It is important that you or your mainframe downsizing SE understand what the actual requirements are. The definition of availability differs between accounts, and you may find that the required feature is not needed due to the architecture of HP systems. Some surveys show HP leading the industry in hardware and peripheral reliability. Both IBM and HP offer disk mirroring and processor switchover; however, in the area of software, IBM offers a more robust environment for companies requiring high availability. | IBM provides the tools to optimize system resources to achieve the highest throughput and availability for all of your system demands. IBM understands the need to allocate resources to critical applications that are required to ensure your company's ability to react quickly to changing environments. Tools are provided for system capacity management, resource allocation, load balancing, and processor resource utilization auditing. Counter with: Functions to assist in the area of systems management are very extensive on the IBM system. Many of these functions are not required on the HP system because of the architecture. Again, it is important for you to understand the actual requirement to respond to this. The IBM mainframe environment can be very complex and require tools to monitor and modify this environment. If you are proposing a system to coexist in this environment, the complexity may not require this level of systems management capabilities. | IBM has listened to their customers and understands their needs and offers all of the services to turn your systems into the strategic advantage that your business needs. IBM is ranked number one in support and service. Systems engineers assist you in planning your education, provide information on new features, assist in capacity planning, help identify software problems, plan for new software and hardware platforms, and provide how-to seminars. All of this support is provided free of charge and is part of the value of doing business with the IBM company. IBM also provides customized programming, systems integration support, recovery services, help desk for end users, an information network, multiple vendor support, and financing for IBM hardware and software and non-IBM software. IBM's standard warranty is also 1 year. Counter with: Many of the services that IBM provides through its System Engineering group is provided free to the customer. Remember that the cost of the system and IBM software is considerably more than HP's equivalent solution. The System/390 environment is considerably more complex and requires more "hand holding" than HP's offering. HP has chosen not to compete with system integrators or consulting companies. This ensures HP the ability to work with the best of the consulting and systems integrators that specialize in the area of the prospects industry. HP is not restrained to use only one source. Industry analysts agree that using the hardware vendors' services may not always be the most cost-effective solution. HP 9000 versus ES/9000 HP 9000 Strengths ES/9000 Strengths Parity (IBM Weaknesses) (HP's Perceived Weaknesses) -Financially secure -Price/Performance -Growth -Worldwide support -Open (UNIX) environment -High availability -Flexible financing -Staffing -Systems management -Single vendor solution HP 9000 Strengths/Criteria for HP Win Price/performance HP advantage: HP offers exceptional price/performance advantages over IBM's ES/9000. Customer benefits: At the high-end, HP's new 890 4, IBM's ES/9000 Model 660 offers approximately equivalent power. The 890 4, at approximately $640K base, is compared to the Model 660 at $9,200K base. The cost of the 890 4 is 7 percent of the 660 or the investment required for the ES/9000 Model 660 is four times that of the 890 1. For HP's new 890 1, IBM's ES/9000 Model 440 offers aproximately equivalent performance. Approximate prices are $335K and $2,400K. HP's solution is 14 percent or IBM's offering is seven times the cost. This price differential enables companies to better allocate their capital expenditure and investments to maximize their return. Open environment HP advantage: HP's UNIX implementation, HP-UX, is available on the HP 9000 series systems. Customer benefits: When compared to IBM's MVS or VSE operating systems, HP-UX is a better alternative. While MVS and VSE are both proprietary operating systems, HP- UX is UNIX-based and provides the interoperability and portability that is becoming a necessity in todays competitive arena. Interoperability benefits the customer by ensuring the accessibility of more data on more systems within a multivendor environment. Portability benefits include the freedom of choice. HP's UNIX is a proven operating system and our experience with open systems is second to none. AIX, IBM's version of UNIX, is available on the ES/9000. IBM has repeatedly stated that this offering is targeted at the engineering and technical users and not for commercial users. AIX currently runs as a guest under the VM operating system and requires customers to install and pay for both operating systems. In the third quarter of 1992, IBM will deliver an OSF-based AIX that runs natively on the ES/9000. IBM continues to suffer from a perceived lack of UNIX trained support personnel. Again, HP has the expertise to ensure a successful implementation and provides continuous superior support. Staffing HP advantage: HP's 9000 series systems offer significant productivity gains. Customer benefits: Industry analysts agree that the HP system environment doubles the productivity of the IS personnel when compared against the average ES/9000 shop. According to Aberdeen, development time for HP's systems ranges from 75 percent to 85 percent faster than a mainframe environment. These savings are also reflected in software maintenance costs, which is 75 percent of the mainframe budget compared to 25 to 35 percent for midrange systems. The benefit to the customer is increased availability of the IS staff to focus on additional business tasks instead of utilizing these highly specialized personnel with functions associated with complex system environments. In summary, HP's operating environment benefits end users with increased responsiveness, faster implementation, and higher quality without a corresponding increase in expense. IBM Perceived Strengths Handling objections | IBM's ES/9000 is extremely scalable and reflects a growth of more than 100-fold from the entry model to the high-performance top of the line. The ES/9000 is the industries broadest single-family range of performance and upgrade operations. It addresses the needs of system loads generated from hundreds of users to thousands of users requiring subsecond response times. This growth is accomplished with software investment protection. Applications can be developed once and are capable of running on the smallest to the largest systems. In summary, IBM offers the hardware and software platforms to achieve your companies goals through the 1990's and beyond. Counter with: It is true that IBM offers a more powerful growth path; however, very few environments require the processing power of IBM's top-of-the-line processors. If this type of performance is required, IBM offers a horizontal growth path. HP offers a more flexible alternative with a vertical growth path of multiple systems located close to the end user and at a better cost per user basis. The HP 9000 will offer 8-way processing in 1993, 12-way in 1994, and 16-way in 1995. Also, HP will have systems offering more performance than IBM's current top of the line by 1993. | High availability is a requirement in today's competitive environment. Extensive reliability, availability, and serviceability functions have been built into both the hardware and software of IBM's System/390 platform. Error detection/correction codes are used extensively. In expanded storage double-bit errors are corrected, and triple-bit errors are detected and captured. This information can be used to automatically initiate a call to IBM's service network. Processor controllers monitor thousands of areas and take corrective action. Duplexing of critical elements is part of the hardware functions. Also, instruction retry, channel retry, and element deletion are used. Reconfiguration of channels and input/output equipment without impacting the system is provided . No other vendor can offer the functions that ensure availability and are inherent in IBM's System/390 hardware and software. Counter with: It is important that you or your mainframe downsizing SE understand what the actual requirements are. The definition of availability differs between accounts, and you may find that the required feature is not needed due to the architecture of HP systems. Surveys show HP leading the industry in hardware and peripheral reliability. Both IBM and HP offer disk mirroring and processor switchover; however, in the area of software, IBM offers a more robust environment for companies requiring high availability. Discuss the HP 890's error-correcting circuitry of its memory arrays, I/O channels, processor, and memory bus. HP's advanced technology and features of the 890 enable the Corporate Business Server to achieve up time in excess of 99.97 percent. Features include automatic system recovery, and deconfiguration of failed CPU, memory or I/O interface modules. HP's SwitchOver/UX also provides near continuous operation for mission critical applications at a fraction of the cost of the equivalent functions on the ES/9000. | IBM provides the tools to optimize system resources to achieve the highest throughput and availability for all of your system demands. IBM understands the need to allocate resources to critical applications that are required to ensure your company's ability to react quickly to changing environments. Tools are provided for system capacity management, resource allocation, load balancing, and processor resource utilization auditing. Counter with: Functions to assist in the are of systems management are very extensive on the IBM system. Many of these functions are not required on the HP system because of the architecture. Again, it is important for you to understand the actual requirement to respond to this. The IBM mainframe environment can be very complex and require tools to monitor and modify this environment. If you are proposing a system to coexist in this environment, the complexity may not require this level of systems management capabilities. | IBM has listened to their customers and understand their needs and offers all of the services to turn your systems into the strategic advantage that your business needs. IBM is ranked number one in support and service. Systems engineers assist you in planning your education, provide information on new features, assist in capacity planning, help identify software problems, plan for new software and hardware platforms, and provide how-to seminars. All of this support is provided free of charge and is part of the value of doing business with the IBM company. IBM also provides customized programming, systems integration support, recovery services, help desk for end users, an information network, multiple vendor support, and financing for IBM hardware and software and non-IBM software. IBM's standard warranty is also one-year. Counter with: Many of the services that IBM provides through their system engineering group are provided free to the customer. Remember that the cost of the system and IBM software is considerably more. HP has chosen not to compete with system integrators or consulting companies. This ensures HP the ability to work with the best of the consulting and systems integrators that specialize in the area of the prospects industry. HP is not restrained to use only one source. Industry analysts agree that using the hardware vendors' services may not always be the most cost-effective solution. Appendix TPC-A numbers have been announced: Model TPC-A $K/TPS E10 9.9 9.949 E35 14 13.690 E70 54.9 17.592 AS/400 9402 low-end systems standard configurations: Processor, 8MB, 988MB 3.5-inch disk unit, 525MB 1/4-inch cartridge tape unit, communication line (E04, E06), and workstation controller. Model E02 E04 E06 Relative performance 1.5 1.9 2.6 Memory 8 8 8 max 24 24 40 Disk (MB) 988 988 988 max 1976 3952 3952 Comm. lines 0/3 1/8 1/8 LAN adaptor 0/1 0/1 0/1 Workstation controllers min/max 1/1 1/3 1/4 * ASCII users 12 48 66 * Twinaxial 14 42 68 Price $10,200 12,500 16,500 Operating system 1,800 3,935 7,715 * Twinaxial controllers have 8 ports and can connect up to 8 devices per port. Maximum users is the total number of twinaxial users. ASCII and twinaxial users can be mixed on the same system but the total will not exceed the twinaxial number of users. AS/400 9404 mid-range systems standard configuration: Processor, 8MB (E10 and E20), 16MB (E25), 988MB, 525MB 1/4-inch, cartridge tape, communication line, workstation controller. Model E10 E20 E25 *Relative performance 2.6 3.5 4.2 Memory 8 8 16 max 40 72 80 Disk (MB) 988 988 988 max 11856 11856 15808 Comm. lines 1/14 1/20 1/26 LAN adaptor 0/2 0/2 0/3 Workstation controllers min/max 1/9 1/9 1/9 ASCII users 162 162 162 Twinaxial 160 160 240 Price $16,100 33,000 69,000 Operating system 7,715 13,650 18,480 * Relative performance to the AS/400 B10. To calculate estimated TPS multiply relative performance by four. Additional features for low and mid-range systems: 988MB disk $6,000 16MB memory $5,940 AS/400 high-end systems standard configurations: Processor, 8MB (E35), 16MB (E45), 32MB (E50), 64MB (all others), 1.28Gb, communication line, workstation controller Model E35 E45 E50 E60 E70 E80 E90 2-way 3-way *Relative performance 3.4 4.8 6.4 10.2 14.2 25.2 34.4 Memory 8 16 32 64 64 64 64 max 72 80 128 192 256 384 512 Disk (GB) Internal 1.28 1.28 1.28 1.28 1.28 1.28 1.28 External 27.4 27.4 47.9 75.4 75.4 123.4 123.4 Comm. lines 1/20 1/33 1/33 1/33 1/49 1/64 1/64 LAN adapter 0/4 0/4 0/4 0/4 0/4 0/6 0/6 Workstation controller min/max 1/9 1/12 1/18 1/25 1/35 1/60 1/60 ASCII users 162 216 324 450 630 1080 1080 Twinaxial 360 480 720 1000 1400 2400 2400 Price $33,000 69,000 110,000 220,000 335,000 640,000 900,000 O.S. 18,480 36,750 52,500 75,600 99,750 141,750 168,000 * Relative performance to the AS/400 B10. To calculate estimated TPS multiply relative performance by four. Additional features for high-end systems: 32MB memory $ 27,000 64MB memory $ 54,000 128MB memory $108,000 3490E tape attachment $ 4,500 3490E cartridge tape system, 2.4GB per cartridge, with automatic cartridge loader (ACL), up to 28.8GB of unattended backup single cartridge $27,280 1 ACL $32,780 2 ACL $64,000 Model 9221 120 130 150 170 System Characteristics: Date announced 9/90 9/90 9/90 9/90 Date first delivered 12/90 12/90 12/90 4Q/91 Field upgradable to 130 150 170 210, 260 Number of Processors 1 1 1 1 Cycle time (nanoseconds) 30-38 30-38 30-38 30-38 Cooling Air Air Air Air Main Memory: Min. capacity (MB) 16 16 16 16 Max. capacity (MB) 256 256 256 256 Input/Output Control: No. of Channels: -Parallel 0-12 0-12 0-12 0-12 -ESCON 0-12 0-12 0-12 0-12 Integrated I/O buses 4 4 4 6 IBM MIPS 2.0 3.5 5.0 6.5 Minimum Config.($K)* $60 $99 $155 $245 ES/9000 Series System Comparisons Continued Model 9121 190 210 260 320 440 System Characteristics: Date announced 9/90 9/90 9/90 9/90 9/90 Date first delivered 3/91 1/91 9/90 9/90 3/91 Field upgradable to 210,260 260,320 320,440,480 440,480 480 Number of Processors 1 1 1 1 2 Cycle time (nanosecond)s 15 15 15 15 15 Cooling Air Air Air Air Air Main Memory: Min. capacity (MB) 64 64 64 64 128 Max. capacity (MB) 512 1024 1024 1024 1024 Input/Output Control: No. of Channels: -Parallel 8-24 8-58 12-48 12-48 12-48 -ESCON 0-20 0-36 0-36 0-36 0-36 Integrated I/O buses 6 0 0 0 0 IBM MIPS 8.8 12.0 16.0 20.0 30.0 Minimum Config. ($K)* $575 $820 $1,125 $1,470 $2,400 * Minimum configuration includes processor, minimum memory and minimum number of channels. ES/9000 Series System Comparisons Continued Model 9121 480 490 570 610 System Characteristics: Date announced 9/90 9/90 9/91 9/91 Date first delivered 3/91 3/92 3/92 9/91 Field upgradable to 500 570 610 640 Number of Processors 2 2 3 4 Cycle time (nanoseconds) 15 15 15 15 Cooling Air Air Air Air Main Memory: Min. capacity (MB) 128 128 192 256 Max. capacity(Bytes) 1024 M 2.25 G 2.25 G 2.25 G Input/Output Control: No. of Channels: -Parallel 12-48 0-96 0-96 0-96 -ESCON 0-36 0-88 0-88 0-88 Integrated I/O buses 0 0 0 0 IBM MIPS 38.0 38.0 55.0 70.0 Minimum Config. ($K)* $3,120 $2,900 $4,300 $5,700 ES/9000 Series System Comparisons Continued Model 9021 330 340 500 520 580 System Characteristics: Date announced 9/90 9/90 9/90 9/91 9/90 Date first delivered 2Q/91 9/90 9/90 3/92 9/90 Field upgradable to 500 500 580,620 640 720,820 Number of Processors 1 1 2 1 3 Cycle time (nanoseconds) 15 15 15 15 15 Cooling Water Water Water Water Water Main Memory: Min. capacity (MB) 64 64 64 128 64 Max. capacity (Bytes) 640 M 1152 M 2.25 G 2.25 G 2.25 G Input/Output Control: No. of Channels: -Parallel 16-32 16-32 32-64 32-64 32-64 -ESCON 0-32 0-32 0-32 0-68 0-32 Integrated I/O buses 0 0 0 0 0 IBM MIPS 20.0 23.5 45.0 45.5 65.0 Minimum Config. ($K)* $2,300 $2,456 $4,431 $4,700 $6,081 * Minimum configuration includes processor, minimum memory and minimum number of channels. ES/9000 Series System Comparisons Continued Model 9021 620 640 660 720 System Characteristics: Date announced 9/90 9/91 9/91 9/90 Date first delivered 9/90 3/92 3/92 9/90 Field upgradable to 720, 820 740 820 900 Number of Processors 4 2 2 6 Cycle time (nanoseconds) 15 15 15 15 Cooling Water Water Water Water Main Memory: Min. capacity (MB) 64 128 256 128 Max. capacity (Bytes) 4.5 G 4.5 G 4.5 G 4.5 G Input/Output Control: No. of Channels: -Parallel 64-128 64-128 64-128 64-128 -ESCON 0-64 0-48 0-96 0-64 Integrated I/O buses 0 0 0 0 IBM MIPS 83.0 84.4 86.6 117.0 Minimum Config. ($K)* $8,509 $8,200 $9,200 $11,074 ES/9000 Series System Comparisons Continued Model 9021 740 820 860 900 System Characteristics: Date announced 9/91 9/90 9/90 9/90 Date first delivered 9/91 3Q/91 9/90 3Q/91 Field upgradable to 820 900 900 NA Number of Processors 3 4 5 6 Cycle time (nanoseconds) 15 N/A N/A N/A Cooling Water Water Water Water Main Memory: Min. capacity (MB) 256 256 384 512 Max. capacity (Bytes) 4.5 G 9.2 G 9.2 G 9.2 G Input/Output Control: No. of channels: -Parallel 0-48 0-96 0-96 0-96 -ESCON 16-128 32-256 32-256 32-256 Integrated I/O buses 0 0 0 0 IBM MIPS 121.0 159.0 193.0 225.0 Minimum Config. ($K)* $11,600 $16,485 $19,810 $22,810 * Minimum configuration includes processor, minimum memory and minimum number of channels. Performance positioning .G.IBM03.HPG;4.565";3.356";HPGL