Monday, March 23, 2009

Rivals Accuse I.B.M. of Stifling Competition to Mainframes - NYTimes.com

An example of the sort of unwelcome scrutiny IBM will face as it moves forward with its Sun strategy; see the full article for more details

I.B.M. has dominated the mainframe computer business since the category was created four decades ago. And it still gets about one-quarter of its $100 billion in annual revenue from sales, software, services and financing related to the machines.

So when an upstart, Platform Solutions in Sunnyvale, Calif., developed software that turned standard servers into systems that mimicked I.B.M.’s expensive mainframes, Big Blue fought back. After legal action failed to fend off the pipsqueak, I.B.M. resorted to a bear hug: it bought Platform in July for $150 million. And then it promptly terminated the innovative product.

Rivals Accuse I.B.M. of Stifling Competition to Mainframes - NYTimes.com

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