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IBM's Linux Mainframe Helps Users Slash Costs.(INTERNET & TECHNOLOGY)

Investor's Business Daily

| February 01, 2002 | COPYRIGHT 2002 Investor's Business Daily, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: DOUG TSURUOKA

With firms looking to cut costs in tough times, IBM Corp. says it can help by taking mainframes to a new step.

The company says it's making mainframes less expensive and easier to run by coming out with the first one to run solely on Linux.

The world's largest computer company unveiled the machine last Friday, just ahead of the LinuxWorld Conference & Expo in New York.

The latest Z-series mainframe will add zest to a rebound in Big Blue's mainframe sales that began more than a year ago.

IBM says that while revenue was flat in the fourth quarter vs. the year earlier, its mainframe sales, as measured in millions of instructions per second, rose 12%. MIPS is the standard tool for measuring mainframe usage. IBM also says its sales per MIPS rose 40% in the third quarter.

"We're building on the momentum we saw in the mainframe market last year," said Peter McCaffrey, IBM's platform director for the z900 mainframe series.

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