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Sales Of IBM "Baby' Mainframes Healthy Despite Slow Tech Spending.(INTERNET & TECHNOLOGY)(Q & A)
Byline: DOUG TSURUOKA
Not all the news from IBM these days is bad. Big Blue faces slow sales in key areas like disk drives and chips. But that's not true across the board.
Take IBM Corp.'s z800 "baby" mainframe.
IBM recently racked up its 200th sale of the entry-level mainframe in 60 days. That's no small feat in a market where clients are slashing information technology spending.
IBM started selling the z800 in March. Rich Lechner, an IBM executive who oversees marketing for the z800, says customers like its power and ability to replace racks of more costly servers from rivals like Sun Microsystems Inc. and Hewlett-Packard Co.
Lechner says the mainframe's typical price -- about $350,000 for hardware, software and maintenance for three years -- also is a draw. It compares with a $750,000 starting price for IBM's higher-rung z900 mainframe computer.
A case in point is Russell Corp., the world's biggest maker of athletic team uniforms.
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