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IBM Slashes Linux Mainframe Prices to Boost Declining Revenue

By Network World Wed, Aug 19, 2009

IBM has cut prices by half for Linux processors. The vendor has also released seven mainframe bundles designed for application workloads, saying its goal is to lure customers away from Sun and HP platforms.

IBM has argued that the mainframe, combined with the Integrated Facility for Linux (IFL), is for consolidating x86 and Unix applications.

IBM acknowledged new pricing for the IFL processors, but did not offer specific numbers. "The price change is due to the increased performance of the Nehalem EP Xeons," said Karl Freund, VP-System z Strategy and Marketing, IBM.

”Although mainframe revenue reports look poor in comparison to last year, we are tasting success on the Linux end,” said IBM. "More than 40 percent of new System z customers installed Linux last year, and Linux continued to grow over 15 percent during the first half of 2009," IBM added.

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