IBM slashes Linux mainframe prices to boost declining revenue

17.08.2009
IBM is slashing prices on mainframe Linux products and selling new to try to reverse declining revenue.

IBM has cut in half prices for some specialty Linux processors, according to a in the Channel Register. The vendor has also released seven new designed for specific application workloads, with IBM saying that its goal is to lure customers away from Sun and HP platforms.

Last month, IBM reported that mainframe server revenue decreased 39% year-over-year in the second quarter, while overall company revenue declined 13%.

Mainframe revenue goes in cycles, with IBM posting big numbers shortly after new releases, and then seeing a gradual falloff thereafter, notes Pund-IT analyst Charles King.

Thus, a drop in revenue this year is not surprising, given that IBM unveiled a major new mainframe server, the System z10, in . But the revenue decline is still steep, because of the general downturn in IT spending.