Virtualization News Desk
Virtualization - EC Asks Questions About IBM's Mainframe Business
EC Questioning Due to the Complaint the PSI Made Against IBM Last October, Charing it with Violation Article 82 of the EC Treaty
Apr. 28, 2008 05:15 PM
IBM may be starring down the barrel of an EC investigation
of its precious mainframe business, significant to its bottom line.
According to both Bloomberg and Dow Jones, the commission
has sent Big Blue a questionnaire asking for details about its mainframe
business practices and questionnaires have a way of leading to formal
investigations.
The EC is asking because of the complaint that Platform
Solutions Inc (PSI) made against IBM last October, charging it with violating
Article 82 of the EC Treaty, the very abuse-of-dominance provision used to nail
Microsoft, a charge IBM ironically urged the EC to find against Microsoft.
PSI told the EC that IBM won’t give it the interface
information and licenses it used to give plug-compatible makers when there were
plug-compatible makers.
IBM is the only remaining mainframe maker and may be in
something of a pickle here since back in the 80s it promised both European and
US regulators that it would always make what PSI wants available to competitors
to make the mother of all antitrust actions go away.
PSI is a would-be competitor with a so-called Itanium-based
Open Mainframe that can run IBM’s z/OS – as well as Windows, Linux and Unix –
only IBM is attempting to block it from marketing the thing.
PSI is highly reluctant to talk about its EC complaint, but
marketing VP Christian O’Reilly confirms that the commission has been back
asking PSI questions multiple times, which suggests that this isn’t the first
questionnaire IBM has gotten.
IBM told the SEC and its stockholders it answered questions
about the PSI complaint last year.
PSI, an Amdahl spin-off funded by Intel and Microsoft, among
others, also has a major antitrust suit lodged against IBM with the US courts in
answer to IBM’s suit charging PSI with patent infringement, a charge IBM made
without examining PSI’s machine.
The allegations made to the EC echo PSI’s suit.
And speaking of the suit, PSI the other day asked the court
of a summary judgment on IBM’s claims of trade secret misappropriation and
tortious interference with contractual relations, practically the only
documents in the case not under seal.
It claims IBM’s actions are a smokescreen, intended to
eliminate competition.
PSI calculates, based on IBM’s Q4 numbers, that 40% of its
software business and perhaps a third of it services revenues are ultimately
driven by mainframes, making worth about $30 billion a year. Something like
60%-70% of corporate data is controlled by the mainframe.
About Maureen O'GaraMaureen O'Gara is the Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.