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SCMP Reporter

IBM is confident that HK users will not migrate to Windows-based machines

Hong Kong's public and private sectors are expected to continue investing in mainframe systems for their high-performance computing needs, according to local IBM  executives.

This was despite efforts by Microsoft and its partners to migrate more enterprise users to Windows-based machines, they said.

The executives said the market for mainframes remained rosy, and  vowed to add bourgeoning medium-sized businesses as users of the computer giant's line of bulky mainframes marketed as the eServer zSeries.

To  mark the 40th anniversary of its System 360 mainframe computer, IBM has introduced the z890 system - an entry-level mainframe option.

'This model delivers exceptional levels of flexibility, virtualisation, automation, security and scalability that could help mid-sized businesses simplify and lower the cost of their information technology environment,' said Desmond Yuen, the executive recently appointed  to lead IBM China/Hong Kong's Systems Group.

The z890 is based on IBM's z990 mainframe, code-named T-Rex, but begins at a size that is more than 30 per cent smaller in capacity than the previous z800 eServer  system.

James Hung, senior manager for IBM China/Hong Kong's eServer and TotalStorage products, said the company's optimistic outlook for the  zSeries was based on the small but steady and profitable local demand for mainframe applications.

Most IBM mainframe and mainframe-related sales come from the government and banks, sectors  that have remained steadfast in their IT spending even during the  economic downturn.

'In Hong Kong, there are approximately 50 mainframes and around 90 per cent of them are IBM systems. Worldwide, more than 70 per cent of  zSeries revenues come from new workloads,' Mr Hung said.

Research firm Gartner found that the number of new mainframe customers worldwide was increasing, even though Amdahl and Hitachi Data Systems exited the mainframe business several years ago.

More than 70 new IBM mainframe customers emerged in 2001, and about 100 new users were noted in 2002, Gartner estimated.

'That is compared to approximately 30 to 35 a year in the 1990s,' it said.

But Joelle Woo,  business group leader for Microsoft Hong Kong's server platform business, said existing mainframe users were faced with the challenge of adapting their systems and applications to changing business requirements.

These challenges included implementing a more service-oriented corporate IT architecture and supporting an increasingly mobile workforce.

'We at Microsoft have engaged global systems integrators like Fujitsu, EDS, Hewlett-Packard and Unisys for mainframe migrations. Our objective is to help [mainframe] customers understand that they can run a highly available Windows environment that is very similar to what they have done on mainframe or large Unix systems,' Ms Woo said.

Fred Sheu,  senior manager for solutions and marketing at HP Hong Kong's enterprise systems group, said redeploying legacy mainframe assets to newer and cheaper computer platforms saved time and money.

Microsoft claimed customers could halve their operating costs  by moving mainframe-based IT operations to an equivalent Windows platform.

Gary Barnett, IT research director at London-based corporate adviser Ovum, said Microsoft's alliances would 'help enterprise users take a more cost-effective and reliable approach to the task of migrating applications to the Windows platform than the expensive and risk-prone 'rip and replace' approach that was vogue in the late 1990s'.



Big Blue, Microsoft battle over mainframe