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- Sequent High-End Solution
- Competitive Brief
-
- __________________
-
- Corporate Profile
-
- Sequent was one of the first companies to deliver fully symmetric
- multiprocessing computers based on the UNIX environment. Using off-the-
- shelf components and leading edge architectural technologies they were
- able to deliver high performance servers at a competitive price. The
- company continues to focus on developing their capabilities in parallel
- processing, open systems and on-line transaction processing. They have
- worked with Oracle in porting the parallel version of Oracle on to
- Sequent's systems. They have also helped develop a parallel version of
- ATT's STREAMS.
-
- Much of Sequent's success comes from smaller companies with revenues up
- to $500 million per year; Sequent has had very limited success with
- larger accounts due to a lack of name recognition and also due to
- financial instability.
-
- During fiscal 1991 (ending December 28, 1991), Sequent posted a loss of
- $48.7 million on revenues of $231.3 million. In the previous fiscal
- year, they posted earnings of $18.8 million on revenues of $248.8
- million. Their financial weakness caused Sequent to rethink their lofty
- goals of becoming a $1 billion company by 1993; they are now focusing
- on being a small and profitable company rather than a large and
- marginally profitable company. The company ended fiscal 1991 with more
- than 1350 people worldwide after having to lay off about 20 percent of
- its work force during 1991.
-
- Although they returned to profitability in the last quarter of 1991,
- the financial shortfall hurt Sequent in several ways. They are in a
- more difficult position in dealing with large accounts. This has also
- caused Sequent to cancel some important R&D projects and focus more on
- software. They cut about 20% of their work force during fiscal 1991;
- this excluded
- the sales force, in fact, they are focusing on expanding their direct
- and indirect channels and have assigned quotas to the support staff as
- well.
-
- An interesting recent development was the departure of President and
- Co-CEO Scott Gibson. One of the founders of Sequent, Scott left the
- company "to devote more time to the family". Casey Powell, Chairman and
- Co-CEO will assume sole responsibilities of CEO. The executive ranks
- now are as follows:
-
-
- .G.SEQ01.HPG;4.565";3.356";HPGL
-
-
- .G.SEQ02.HPG;4.565";3.356";HPGL
-
-
- Sales organization
- Sequent has 43 sales and service locations worldwide, including 28 in
- the U.S., 4 in Canada, 5 in Europe (Amsterdam, London, Munich, Paris,
- and Stockholm) and 3 in Asia- Pacific (Hong Kong, Sydney, and
- Auckland). Some of their sales offices were closed or consolidated
- regionally due to their financial difficulties during 1991.
-
- Sequent also has relationships with a variety of distributors to
- provide sales and service in other countries. These include Control
- Data in Mexico, International Turnkey Systems in the Middle East, Far
- East Computer in Singapore, Mitac in Taiwan and Ssang Yong in South
- Korea. In Japan, Sequent systems are sold through Pana-Sequent, a
- joint venture between Sequent and Matsushita Electric Industrial
- Company Ltd. In addition, Sequent has relationships with more than 20
- value- added resellers for such markets as telecommunications,
- financial services, library automation, and the public sector.
-
- Sequent has also renewed their OEM relationship with Unisys Corp which
- has been their largest OEM partner in the past. Business represented by
- this OEM agreement represented one-fourth of Sequent's backlog at the
- end of 1991. Sequent previously had OEM partners that also included
- Siemens Nixdorf Informationssysteme AG and MAI-Basic Four. There has
- been no revenue from MAI-Basic Four after first quarter 1991. Revenue
- from Siemens has been fairly consistent, but at levels of only about $2
- million annually.
-
- In 1991, Sequent's direct sales and service personnel worldwide
- included:
-
- | 130 sales representatives
- | 130 systems analysts
- | 150 service staff
- | 100 technical staff and management
-
- Sequent has recently been focusing on increasing the size of its direct
- sales force and support staff. As a result of their
- financial shortfalls during 1991, the company announced that the
- support staff would be given quotas in addition to the traditional
- quotas assigned to the sales staff.
-
-
- Sequent High-End Solution Strategies
-
-
- Performance
- Although Sequent can configure up to 30 processors in their systems,
- they have published TPC benchmarks for configurations up to 16
- processors only. It is also common belief (among industry consultants)
- that the current Sequent bus and I/O architecture cannot support more
- than 16 or 18 processors due to bus saturation issues.
-
- Sequent has published a few TPC-A results but have not published any
- results for configurations with more than 16 processors. They use Intel
- 80386 processors and both versions of the Intel 80486 processor
- (running at either 25 MHz or 50 MHz). They have achieved a peak of
- 214.53 tps-A with a 16 processor configuration using 50 MHz Intel 486
- processors. Sequent has also achieved comparable performance between a
- 16 processor configuration (166.2 tps-A) and a configuration involving
- four uniprocessor clients and a server with 8 processors (168.9 tps-A);
- in both cases, the server was using 25 MHz Intel 486 processors.
-
- Note that as seen in results achieved by the IBM RS6000/560,
- client/server configurations achieve greater performance than
- traditional monolithic configurations (72 tps-A versus 61 tps-A
- respectively) with all other aspects of the benchmark remaining
- constant.
-
- See Appendix for system comparisons with respect to TPC-A and B
- benchmark results.
-
-
- Enterprise-wide connectivity
- Sequent offers products that can provide
- connectivity to industry standard conventions such as NFS, TCP/IP, OSI
- and X.25. A suite of TCP/IP products provide connectivity to IEEE
- 802.3, X.25 and Berkeley networking facilities. The NFS product allows
- diskless Sun workstations to boot from a Sequent NFS server. The X.25
- product is available with parallel STREAMS for high performance.
-
-
- An LMserver product conforming to Microsoft LAN Manager version 2.0
- provides PC integration and interoperability with other vendors'
- implementations of LAN Manager. Ethernet/802.3, Token Ring/802.5 and
- FDDI provide additional connectivity.
-
- Sequent also offers proprietary protocols such as NetWare, DECnet, LAT,
- SNA and BiSync. IBM connectivity is delivered through products that
- provide SNA based 3270, RJE and LU6.2 functionality as well as Binary
- Synchronous protocols based 3270 and RJE functionality. Controllers are
- available to provide direct connectivity between Sequent and IBM
- systems. HP offers comparable connectivity with industry standard as
- well as proprietary protocols. In addition, HP's OpenView network
- manager has been widely recognized as a leading product. Some of the
- licensees include IBM, Anderson Consulting, GM/EDS and
- Synoptics.
-
-
- System management
- Sequent offers software products for backup, disk management and
- transaction monitoring. ptx/Backup allows "files and databases to be
- backed up even while users are at work". It can back up multiple
- machines concurrently, to one or several storage devices in a fully
- automated manner. It can also support machines from Sun, IBM RS/6000
- and Mips on the network.
-
- ptx/SVM (Sequent Volume Manager) optimizes disk I/O in several ways. It
- offers disk mirroring, making up to eight copies of data. It also
- offers disk concatenation, which allows two or more disks to be viewed
- as one. Another feature, disk striping, allows portions of multiple
- disks to be viewed as one logical entity, so that data on a heavily
- used partition can be split over several disks. This product also
- allows data to be moved among disks while the system is running.
-
- ptx/Transaction is a monitor based on Tuxedo from the Unix Systems
- Laboratories. It manages
- all communications within an OLTP client/server environment. It also
- shortens the time required to develop complex applications and improves
- their quality.
-
- Sequent provides a menu based "easy-to-use" system administration
- package.
-
- HP offers all of these functionalities through products such as
- OmniBack, disk mirroring, SwitchOver/UX, System Administration Manager
- (SAM), GlancePlus/UX, LaserRX/UX, RXForecast, Tuxedo and OpenView
- Network Management Server. In addition, Computer Associates will make
- available on HP-UX, their UNICENTER product to provide centralized
- control and administration of the data center.
-
- These products are among the reasons for the superiority of HP-UX in
- commercial environments when compared to other UNIX products.
-
-
- Applications
- Sequent provides a single system architecture that allows binary
- compatibility across their entire systems family. A comprehensive set
- of library routines are provided that support parallel programming in
- all languages available on Sequent systems. A parallel debugger is also
- available to execute parallel programs in a controlled environment
- where all execution streams can be monitored.
-
- Sequent provides development language support for C, C++, FORTRAN,
- Pascal and MicroFocus COBOL/2. Third-party products are available for
- development in BASIC, LISP and Prolog. A third-party FORTRAN
- parallelizing preprocessor is also available. For commercial
- development, the FOCUS, INFORMIX, INGRES, ORACLE, PROGRESS, SYBASE and
- UNIFY relational database management systems are also available.
-
- HP offers the common development languages and tools listed above
- including the leading database products. Agreements with companies such
- as Computer Associates, Software AG, Cincom, IBI/Focus and Lawson
- Associates, help provide capabilities similar to a mainframe
- environment. In fact, partners that include Innovative Information
- Systems Inc (IISI), Infosoft, VISystems, CGI Consulting and Anderson
- Consulting, help HP provide customers assistance in reducing their
- dependence on expensive mainframe systems.
-
-
- Service and support
- Sequent offers support with their own staff as well as in partnerships
- with strategic multi- vendor service providers. Sequent provides
- coverage 24 hours per day, 7 days per week through more than 200
- offices across the US and Canada. A variety of service agreements are
- offered that range from simple parts replacement, software support,
- software updates or a complete set of system services.
-
- Consulting services are available to provide technical expertise in
- developing applications, databases, networks or in migrations.
- Educational services provide instruction at Sequent facilities or at
- the customer's site. Custom Integration services provide special
- solutions that customers might require.
-
- When it comes to overseas support, Sequent is strong in the UK.
- However, in most parts of Europe, Far East and Latin America, they have
- minimal support capabilities if any at all. In contrast, HP offers its
- industry leading support regardless of geographic location.
-
-
- High availability
- Sequent does offer disk mirroring functionality with the ptx/SVM
- product as described earlier. However, CPU fail-over and fault-tolerant
- products are not available. HP has superior capabilities in this area.
- The range of high MTBF, disk mirroring, CPU fail- over and fully fault-
- tolerant systems enables HP to offer solutions with increasing degrees
- of high availability.
-
- Although Sequent claims to put emphasis on quality in their
- manufacturing process, they do not publish any information on failure
- rates or mean time between failure of their systems.
-
- Disk array functionality
- Sequent provides I/O controllers that are capable of
- providing functionality equivalent to HP's disk arrays. Each of these
- "Quad Controllers" can support four I/O channels, each channel being
- capable of supporting six disk connections. This provides a disk
- capacity of up to 32 GB per Quad Controller, using 24 disk drives that
- can be either SCSI or SCSI-2 devices.
-
- HP offers disk arrays with a variety of benefits compared to stand-
- alone disks; these include high data availability, data protection,
- increased disk connectivity, enhanced performance, on-line replacement
- of failed disks and uninterrupted access to user data in case of disk
- failure. The disk array controller supports up to five separate
- channels which can be used simultaneously for disk I/O.
-
-
- Futures
- Sequent has substantially reduced its hardware related research and is
- putting more emphasis on software research. This resulted from weak
- financial performance during fiscal 1991. The project to evaluate RISC
- processors to be used in future systems was cancelled due to this
- change in R&D focus. For now, Sequent is planning on using Intel 80586
- processors in future systems. They are concentrating on building their
- relationship with Novell (developing a parallel version of Netware) and
- on finding ways to use parallelism to improve batch performance.
-
- Some of the key issues that Sequent needs to address are as follows:
-
- | Need a system bus with higher bandwidth. Their servers currently use
- a bus with 53MB/s (sustained) bandwidth which reaches bus saturation
- with SMP configurations of 16 to 18 processors. This is one of the
- reasons that Sequent has not published any performance data for systems
- using more than 18 processors. As a result of this limitation,
- capability of configuring up to 30 processors in their server is of no
- consequence when the practical limit is much lower.
-
- With their new emphasis on software R&D, development of a new system
- bus may be affected.
-
- | Batch performance is very weak. While an SMP architecture can help
- deliver high performance servers, it does not provide any benefits in a
- batch environment. Improvement in batch performance is directly related
- to processor performance. Since Sequent's processors are Intel 80486
- processors, the servers are severely limited with regard to batch
- performance.
-
-
- Sequent Competitive Selling Strategies
-
-
- HP 9000 versus Sequent
-
-
- Parity HP's Strengths HP's Perceived
- (Sequent's Weaknesses
- Weaknesses) (Sequent's Strengths)
-
- -Open systems -Contribution to open -Perception of easy
- -Scalable OLTP standards upgrades
- servers -Financial stability -Parallel processing
- -Multivendor networking -Leading support services -Aggressive prices/
- -Distributed computing -RISC discounts
- -Leading OLTP -Leading batch performance
- performance -Commercial UNIX
- -Fault-tolerance
- -Lower cost upgrades for
- midrange performance
- -Incremental and fully
- compatible growth path
-
-
-
- The issues listed under parity reflect areas that may be important in a
- sales situation but both vendors offer equivalent products or services.
-
- The HP strengths or Sequent weaknesses reflect areas that HP should
- discuss and sell as being critical to the prospect's success. Being in
- the account first and discussing the importance of these items may set
- the criteria for an HP win.
-
- Sequent's perceived strengths reflect areas that Sequent will discuss.
- These may be HP's perceived weaknesses and HP can expect to be
- challenged on these issues. The handling
- objections section discusses tactics to discount or turn these issues
- into an HP strength.
-
-
- HP's Strengths Against Sequent
-
-
- Financial stability
- HP advantage:
- HP is a $14.5 billion company ranked Fortune 29 in Fortune magazine's
- ranking of U.S. based companies.
-
- Customer benefits:
- HP will be a long-term and stable partner. Our financial stability
- ensures that we can maintain levels of R&D budgets in developing new
- technologies and that we can maintain and improve our customer support
- resources.
-
- Support services
- HP advantage:
- Aside from leading UNIX-based systems, HP provides an extensive range
- of support, maintenance, and consulting services on a worldwide basis.
-
- Customer benefits:
- HP's support services on a worldwide have been consistently rated among
- the best in the industry. Customers can be assured that any
- difficulties they encounter will be quickly and efficiently dealt with
- by HP regardless of their geographic location. HP's support has been
- consistently highly rated by industry sources on a worldwide basis.
-
-
- RISC
- HP advantage:
- Unlike Sequent's systems which use Intel 80486 processors, HP uses RISC
- processors.
-
- Customer benefits:
- RISC technology has proven benefits with regard to scalability, range
- of performance points, price-performance, reliability and easy growth
- paths. PA-RISC is helping HP deliver systems that provide all these
- benefits. This architecture will protect customers' investment while
- allowing them to upgrade to higher performance systems in the future.
- Although Sequent is delivering systems with comparable performance
- today, their growth path is questionable. Over the next 3 - 5 years,
- Sequent will be forced to use higher performance RISC processors in
- their systems. Intel, their current processor supplier is moving to
- RISC technology. The investment protection that Sequent will be able to
- offer in moving to RISC based systems, is very questionable.
-
-
- Batch performance
- HP advantage:
- HP is far better positioned for superior batch performance. It is
- common knowledge that symmetric multiprocessing technology is
- beneficial in on-line applications but does not have any advantage over
- a uniprocessor architecture in batch environments. For batch
- applications, processor performance plays a key role in determining
- overall system throughput.
-
- Customer benefits:
- The same systems from HP can deliver superior batch as well as OLTP
- performance. The Symmetry systems deliver good OLTP performance but
- very poor batch performance. Although Sequent is examining ways to use
- multiprocessing concepts in order to deliver better batch performance,
- these projects are only in the research stage.
-
-
- Commercial UNIX systems
- HP advantage:
- HP is the premier choice of commercial UNIX systems VABs and offers the
- largest selection of commercial applications running on UNIX systems.
-
- Customer benefits:
- A number of leading commercial ISVs, including those from the mainframe
- environment such as Computer Associates, Lawson Associates, and
- Software AG, have chosen HP to be the platform for their UNIX system-
- based products. Customers can be assured that HP will be able to
- provide a full range of applications for all their business needs.
-
-
- Fault tolerance
- HP advantage:
- HP offers fully fault tolerant systems for absolutely critical
- applications.
-
- Customer benefits:
- HP can deliver fully fault tolerant systems if customers need it. These
- are source-code compatible with the HP 9000 Series 800 systems. Sequent
- does not offer fault tolerant systems.
-
-
- Complete solutions
- HP advantage:
- HP offers a full range of products in addition to computer systems
- workstations, X-stations, peripherals, networking, and support
- services.
-
- Customer benefits:
- HP provides a complete solution to fit the customers' needs. Sequent
- only makes computer systems and disk drives. Other components of the
- overall solution must be obtained from third-party vendors.
-
-
- Sequent's Perceived Strengths Against HP
-
-
- Handling objections
- | Sequent offers integration and customization
- services.
-
- Counter with:
- Sequent does indeed offer integration services to customers. This is
- to compensate for a major weakness that Sequent has, which is lack of
- their own peripherals. HP offers not just systems but also all the
- peripherals and networking that customers need for a complete
- configuration. HP also offers industry-leading support services as
- necessary. HP support has been consistently ranked number one for a
- number of years.
-
- | Sequent is the pioneer in parallel processing technology--first with
- symmetric multiprocessing systems and now with parallel enabled
- software for RDBMS and networking.
-
- Counter with:
- Sequent's differentiation has been the use of symmetric multiprocessing
- in their systems. This technology is becoming commonplace today. There
- is another technology, RISC, that is becoming increasingly commonplace
- but Sequent has still not adopted it as yet. Their pioneer position
- seems to be just a "flash in the pan." Regarding databases tuned for
- multiprocessing, HP has special versions of the leading databases
- running on the 870 multiprocessing systems. The parallel enabled
- networking software that Sequent developed with Novell will not be
- shipping until sometime in 1992. Besides, Novell will also be making
- this available on HP systems.
-
- | Scalability of Symmetry systems--they can support up to 30 processors
- at the high end.
-
- Counter with:
- The largest working configuration tracked is a 16-processor system.
- Industry sources agree that having more than 16 processors will not
- improve system performance significantly with
- Sequent's current implementation; Sequent has not published any
- performance data to indicate otherwise. Having the capacity of 30
- processors with nominal performance improvements beyond a 16-processor
- configuration is not a tremendous benefit for customers. The 870 and
- also the 890 multiprocessing systems show consistent and substantial
- improvements in performance all the way to the 4-way configuration.
-
-
- Appendix
-
-
- Systems specifications:
-
-
- Models s2000/250 s2000/450 s2000/750
-
- CPU 80486 80486 80486
- Clock speed (MHz) 33 33 33
- MIPS 82 per board 82 per board 82 per board
- No. of processors 2-6 2-10 2-30
- Cache 512 KB 512 KB 512 KB
- Memory in Mbytes 16/320 16/512 16/960
- (min/max)
- Disk in MB (min/max) 316/76000 540/130260 540/259900
- # slots 5 VME 8 VME 8 VME
- 6 Sequent bus 12 Sequent bus 26 Sequent bus
- Base config price $53,500 $152,000 $226,000
- includes: 2 cpu 2 cpu 2 cpu
- 16MB memory 64MB 64MB
- 16MB disk 2.7GB 2.7GB
- 16 user OS 16 user OS 16 user OS
- ________________________________________________________________________
-
- Models s2000/40 s2000/200 s2000/400 s2000/700
-
- CPU 80486 80486 80486 80486
- Clock speed (MHz) 33 25 25 25
- MIPS 20 28 per board 28 per board 28 per board
- No. of processors 1 2-6 2-10 2-30
- Cache 8 KB 512 KB 512 KB 512 KB
- Memory in Mbytes 8/64 16/320 16/416 16/816
- (min/max)
- Disk in MB 316/2500 316/15000 540/24800 540/86800
- (min/max)
- # slots 8 ISA bus 5 VME 7 Multibus 12 Multibus
- 6 Sequent 12 Sequent 26 Sequent
- bus bus bus
- ________________________________________________________________________
-
-
- Models s3 s16 s27 s81
-
- CPU 80386 80386 80386 80386
- Clock speed (MHz) 33 20 20 20
- MIPS 8 10-30 10-50 10-150
- No. of processors 1 2-6 2-10 2-30
- Cache (all ECC) 64 KB 128 KB 128 KB 128 KB
- Memory in Mbytes 4/40 8/80 8/128 8/384
- (min/max)
- Disk Mbytes 330/1800 316/2500 150/6300 264/25300
- (min/max)
- # slots 8 ISA bus 5 VME bus 7 Multibus 12 Multibus
- 6 Sequent 12 Sequent 26 Sequent
- bus bus bus
-
- ________________________________________________________________________
-
- Price/performance
- The following audited benchmarks have been comparisons published by
- Sequent.
-
-
- TPC-A benchmark:
-
-
- Model Database Total cost tps-A $/tps-A
-
- Symmetry 2000/200 (4 cpu) Informix 4.0 $ 746,920 49.96 $ 14,950
- Symmetry 2000/700 (8 cpu)* Sybase SMP 2,476,493 168.91 14,662
- Symmetry 2000/700 (12 cpu) Informix 4.0 2,868,018 129.19 22,200
- Symmetry 2000/700 (16 cpu) Oracle V6.0.33 3,831,032 166.20 23,051
- Symmetry 2000/750 (16 cpu) Oracle V6.0.33 3,970,280 214.53 18,507
-
- * Using four clients - the uniprocessor S2000/40 systems.
-
-
- TPC-B benchmark:
-
-
- Model Database Total cost tps-B $/tps-B
-
- Symmetry 2000/700 Oracle V6.0.32 $2,016,039 319.60 $6,308
-
-
-
-
- Compare these to HP's published benchmarks for TPC-A:
-
- Model Database Total cost tps-A $/tps-A
-
- 9000/807 Informix 4.0 $ 422,217 30.4 $13,889
- 9000/817 Informix 4.0 606,509 51.2 11,846
- 9000/827 Informix 4.0 645,274 51.8 12,457
- 9000/837 Informix 4.0 769,369 60.0 12,823
- 9000/847 Informix 4.0 788,315 60.1 16,473
- 9000/857 Informix 4.0 990,037 60.1 16,473
- 9000/867 Informix 4.0 1,156,431 74.9 15,440
- 9000/877 Informix 4.0 1,184,886 74.9 15,820
- 9000/870-100 Informix 4.1 1,737,699 74.5 23,325
- 9000/870-200 Informix 4.1 2,360,217 111.2 21,233
- 9000/870-400 Informix 4.1 2,566,843 173.2 14,820
-
-
-
- Multi-user performance estimates for the 890 are as follows:
-
- 890 1 110 tps
- 890 2 185 tps
- 890 3 275 tps
- 890 4 336 tps
-
-
-
- Also compare HP's published benchmarks for TPC-B:
-
-
- Model Database Total cost tps-B $/tps-B
-
- 9000/807 Informix 4.0 $106,066 41.07 2,583
- 9000/817 Informix 4.0 125,666 64.79 1,940
-
-