I didn't say it would be painless... Andrew Price 16.Oct.02 03:36 AM Lotus Notes General 6.0All Platforms
The world has changed in the last two years.
IMHO the opportunity for IBM is in service, consulting and hardware; software box sales is vanishing as a major revenue opportunity.
You say the opportunity for a 1000 user sale is $36k in my scheme. I say it is $36k + server + maintenance agreement for same + consulting to set up + Tivoli + DB2 + MindSpan sales + training + ..... This is all long-term revenue that IBM can collect than MS cannot -- even though it is very hard work to get into MS shops initially. These packages are designed to help get IBM and its partners into accounts that have thus far been unavailable; they are designed to enable BPs and IBM Consulting to exploit chinks in MSs armor that are only now appearing. They are also designed to keep Notes/Domino in the race for messaging seats.
MS did not get where it is by making its products relatively expensive. BTW how are Discovery Server sales going in accounts of under 1000 users?
I don't think many buyers are willing to tolerate traditional software markups any more (especially until the high-tech economy picks up) -- this is partly why Linux has become popular on servers (as NT was when Novell ruled) and why it will be driven to the desktop over the next little while. The Wintel gravy train has been derailed by the economy and will stay that way.
Just my observations of the business opportunity, if IBM can't or won't fill that niche then capitalism ensures that someone else will somehow. If the margins are not fat enough for you then you need to become more efficient.