New Payment Processing Demands, New Pricing on IBM z Systems
The most difficult objection to overcome when it comes to mainframe adoption is price, especially acquisition costs. Mainframe hardware, compared to most x86-based servers, is expensive. And related systems software, middleware, transaction processing environments and management software can also be expensive. In head-to-head competition, x86 solutions almost always look cheaper – and, accordingly, IT executive managers most often purchase x86-based servers on the basis of that perceived lower price.
With this new utility pricing model for payment processing, IBM has taken a giant step forward in using capacity pricing to process highly variable workloads to correct what some perceive as a punitive, even disastrous pricing scheme. By doing so, the company is also protecting its mainframe base as the transition to real-time pricing takes place and opening new, future opportunities for its z Systems as demands for stronger security and higher system capacity drive more prospects to consider z Systems mainframes.
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NOTE: This column was originally published in the Pund-IT Review.