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Power Tools 1993 October - Disc 2
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Power Tools (Disc 2)(October 1993)(HP).iso
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ibmadm.txt
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1992-08-06
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Recently, IBM sales personnel have been using a publication titled
AS/400 In An Open World. This document is being used as a sales tool
to sell the AS/400 to prospects who are considering the purchase of an
HP 9000 series 800 system. This 56 page document written by ADM, a
consulting firm, is very well written, believable, and creates several
misconceptions about HP. It depicts the AS/400 as being more "open"
than the Series 900, suggests that the AS/400 price performance is
superior to the Series 900 and that HP uses deceptive advertising.
There is some evidence that this document has turned at least one HP
win into an HP loss.
The Cupertino Marketing Center, Competitive Programs Group, has
analyzed this document and created the following response. We are also
considering contracting a consulting firm to create an equivalent
document that can be used to set the decision criteria for an HP win
before the AS/400 becomes a threat. An example might be, "The
Importance of Open Systems and the HP 9000" or, if the AS/400 is
already a competitor, "If you are considering an AS/400, think again
and check out the HP 9000".
A COMPETITIVE ANALYSIS OF:
The ADM Consulting Update
The AS/400 In An Open World January 1992
HP INTERNAL USE ONLY
The ADM document states that it's objective is to eliminate some of the
mystery, mythology, and confusion surrounding open systems and the
AS/400. The following paragraph appears in the foreword:
"The content of this publication is the sole responsibility of ADM
Consulting, INC. A number of IBM employees were very helpful in
providing input for this document. IBM corporation has not, however,
endorsed or approved it."
It is doubtful IBM paid for the writing of this document. Instead, IBM
is likely to reference ADM as an unbiased consulting firm, increasing
IBM's probability of an IBM sale and increasing ADM's consulting
revenues. ADM personnel are in at least one of HP's large prospect
accounts.
ADM's document includes chapters on the concept of openness, business
needs, and the struggle to define openness. Another chapter includes
how the AS/400 addresses these needs, IBM's contention that the AS/400
is "Open Plus", and that thousands of users agree with this Open Plus
solution. The final chapter discusses the cost of ownership and
depicts three configurations where the AS/400 is least expensive, the
RS/6000 second and the HP 9000/800 most expensive.
If your prospect has seen this document, you may be requested to
address or compare the AS/400 with the HP 9000 in these specific areas:
A. Benefits of open systems and the HP 9000
B. The Wall Street Journal, June 6, 1991, Hewlett-Packard
advertisement comparing the AS/400 System and the HP 9000
Business Server
C. Cost of ownership for a 30, 60 and 120 terminal system
HP INTERNAL USE ONLY
A brief description of ADM's assertions, as well as, Hewlett-Packards
responses follows.
A. Benefits of open systems and the HP 9000
According to ADM, the areas of openness important to customers are:
1. Connectivity
2. Portability
3. Common skills
4. Scalability
1. According to Gartner Group, HP offers more connectivity features
than the AS/400. In Gartner's Midrange System and Server Evaluations:
1991/1992, the following functions are available on the HP 9000 but not
available on the AS/400: Peer Networking, LAN Performance Monitor,
Network File System, OSF DCE RPC, OSF DCE Directory Service, OSF DCE
Security Service, DECnet (end node), Xti Transport Interface,
Multivendor Network Management, OSI MAP and OSI X.500 Directory
Services.
2. ADM suggests that because there are more than 200 versions of UNIX
there is limited portability and buyers should look for a software
vendor who adheres to SAA and industry standards. SAA, Systems
Application Architecture, is IBM's blueprint for connectivity and
portability across IBM systems. Any prospect who is intent on creating
an all blue, and a corresponding needlessly expensive, environment
would probably agree with ADM's suggestion for choosing vendors that
adhere to SAA standards. A program written to take advantage of the
AS/400 features, the integrated data base, the screen design aids for
on-line applications, and the popular RPG III language will NOT port to
other vendor platforms nor to IBM's RS/6000, PS/2, or ES/9000. In
fact, moving programs from the AS/400 to any other hardware platform
can best be accomplished by re-writing the application. Compare this
to the minimum portability problems associated with UNIX applications.
3. The common skills area, according to ADM, is the benefit associated
with training both the technical and end users once. Again, ADM brings
in the SAA argument that SAA offers commonality across IBM's platforms.
The technical skills required to program in RPG III, the most common
language used on the AS/400, is not transferable to any other IBM or
non-IBM platform. One of the strategies inherent in SAA is the Common
User Access, CUA. This strategy defines guidelines to creating on-line
applications and, if followed, does decrease the amount of re-training
of end users that are moving to different applications. However,
technical skill cannot be transferred to any IBM or non-IBM system.
4. Scalability provides the benefits of using a single system
architecture for work groups ranging in size from 5 to hundreds. In
this area, Hewlett-Packard has a much better story. Our systems offer
a greater growth path than the AS/400 and are binary compatible across
a larger number of different configurations.
AS/400
*************
HP 9000/800
*********************************************
HP 9000/700
*********
-------------------------------------------------------
0 50 100 150 200
Estimated Transactions per Second
HP INTERNAL USE ONLY
B. Wall Street Journal advertisement, June 6, 1991
ADM's statement:
IBM AS/400 Systems HP Business Systems
6.5 TPS/$14.6K 20 TPS/$13K
10 TPS/$30K 33 TPS/$20K
32 TPS/$200K 42 TPS/$65K
This advertisement claims that HP offers five times more performance
per dollar than IBM's AS/400. Also, that the numbers HP used were
based on the Transaction Processing Council (TPC), benchmark known as
TPC-A and that this Council has strict rules on the use of TPC-A
results. HP used the base configuration price instead of the total
price of the configuration found in the TPC disclosure. "HP may have
violated those rules-the ads have been stopped while the issue is
debated."
HP Rebuttal:
First, the ad appeared in the June 24 issue and not ADM's alleged June
6. Second, HP did not violate any TPC rules nor did the Council
question HP's use of the numbers. If HP were to use the actual TPC
Disclosure configurations and prices, the ad may have appeared in this
form:
IBM HP
D10 6.5 TPC-A $119.2K 807S 20.8 TPC-A $350K
D35 10 TPC-A $190.5K 827S 33.7 TPC-A $487.6
D60 32 TPC-A $687.1K 847S 42.8 TPC-A $623.6
HP outperforms the Model D10 by a factor of 3.2 with only a 2.9 price
differential. HP outperforms the Model D60 by a factor of 3.5 with
only a 2.6 price differential. The HP 847S offers 33% more performance
with a 10% price advantage.
Note the HP TPC-A numbers have increased since this ad.
In conclusion, HP continues to offer more performance for investment
dollars. If you need more information on this rebuttal, please call
the SRC.
HP INTERNAL USE ONLY
C. Cost of ownership for a 30, 60 and 120 terminal system.
ADM present three different configurations. All three compare HP
systems that offer considerably more performance, as a 5 to 1 ratio!
All systems used in these configurations have published TPC-A numbers.
It is unknown why ADM chose to compare such diverse systems.
This is a summary of the ADM configurations.
HP INTERNAL USE ONLY
**************************30 TERMINAL SYSTEM***************************
AS/400 D10
-----------
5 year
Price service
16 MB, 800 MB, OS, 30 terminals, 840 LPM $ 76,060 $12,942
Grand total over 5 years $ 89,002
HP 807S
-------
32 MB, 677 MB, 32 user license, Informix,
30 terminals, 840 LPM, Teamline support,
OS and software updates, DAT media updates 83,775 56,810
Grand total over 5 years 140,585
A better comparison would have the following modifications:
- 16 MB equal memory on both systems $ -6,400
basic line support -15,325
Revised 807S Grand total over 5 years -118,860
IBM does not charge for software support. SE resources are offered at
the branch discretion. IBM standard maintenance is 24 hours by 7 days
a week. The HP systems are priced with priority plus.
Conclusion
----------
The 807S offers 4.6 times the performance of the D10. For an increase
in investment of 30%, you receive more than 4 times the power.
*************************60 TERMINAL SYSTEM*********************
AS/400 D35
----------
5 year
Price service
AS/400 D35
24 MB, 1.3 GB, OS, 60 terminals, 8 mm tape drive,
849 LPM $176,478 $23,148
HP 827S
64 MB, 1.3 GB, 64 user license, Informix
60 terminals, 840 LPM, Teamline support, OS
and software updates, DAT media updates 146,130 85,077
Grand total over 5 years 231,207
- 16 MB -6,400
Basic line -19,125
Revised 827S Grand total over 5 years 205,682
Conclusion
----------
The HP 827S, at 51.8 TPS, is 5.2 times the power of the D35, at 10 TPS.
For a 16% increase in your investment, you receive 5 times the power!
HP INTERNAL USE ONLY
**************************120 TERMINAL********************************
AS/400 D50
----------
5 year
Price service
MB, 1.3 GB, OS, 120 terminals, 8 mm tape drive,
840 LPM $367,240 $ 41,868
Grand total over 5 years 409,108
847S
128 MB, 1.3 GB, 128 user license, Informix,
120 terminals, 840 LPM Teamline support,
OS and software updates DAT media 292,800 167,252
Grand total over 5 years 460,052
- 80 MB -36,000
basic line support -36,360
Revised 847S grand total over 5 years 387,692
Conclusion
----------
The HP 847S, at 60 TPS, is 1.9 times the performance of the D50 at less
than 32 TPS. For approximately the same investment you get twice the
performance with an HP 847S.
-----------------------------------------------------------------------
HP INTERNAL USE ONLY
Summary:
1. ADM suggests that the AS/400 offers more open system functions than
Hewlett-Packard's HP 9000 Series 800. Using ADM's own list of business
requirements in the area of open systems, HP has a better solution.
Use ADM's own definition of openness to show the superiority of the HP
9000. Or discuss the Gartner Group findings that show HP offers more
open systems functions than the AS/400
2. ADM suggests that HP uses deceptive advertising to compare the
price performance ratio of the AS/400 to the HP 9000. ADM suggests
that HP should have used TPC-A and $K/TPS results. Instead, HP used
base level pricing. If HP had used the $K/TPS numbers, the
advertisements would have depicted the HP 9000 as having the same price
performance advantage. Don't let this argument of not using $K/TPS
cloud the issue. HP still has better price performance.
3. ADM suggests that the AS/400 offers a lower price for environments
of 30, 60 and 120 terminals. However, the configurations used show the
HP systems with considerably more performance in each of the three
environments. In fact, the 60 terminal configuration depicts an HP
system with 5 times the performance of the AS/400 Model. Using ADM's
configurations, either the HP systems chosen would have substantial
idle capacity or response times on the AS/400 systems would be measured
in minutes. When competing with the AS/400, insist that your prospect
use TPC-A results to compare system performance.
For more information, contact Nadine Halsted, Competitive Programs
Group, Cupertino Marketing Center, (408) 447-1055.