| |
|
| Name |
Hardware Servers / Mainframe Server Manufacturing |
| Overview |
Mainframes are general purpose computers that typically perform at more than 25 MIPS and solutions are implemented primarily in hardware / firmware. Mainframes combine: single-thread performance; maximum I/O connectivity; maximum I/O bandwidth; and reliability, including managed degradation of performance. |
| Geographic Scope |
Global |
Industry Attractiveness:
|
|
| - Rating |
137 |
| - Level |
Very High (Industry Score: 136-150) |
| Industry Hierarchy |
| IT, Business Consulting & Business Services |
| IT Hardware & Peripherals |
| Enterprise Hardware Systems |
| |
| |
| Mainframes with MIPS < 4K |
| Mainframes with MIPS between 4K - 10K |
| Mainframes with MIPS > 10K |
| Mainframe off-line engine optimized for Linux development |
| Mainframe off-line engine optimized for Java development |
| Mainframe off-line engine optimized for massive content integration |
| Industry standard mainframes assembled like PCs |
| Linked parallel sysplex mainframe capabilities |
| Mainframes with on-demand capacity options |
| |
| Governments |
| Financial services companies |
| Airline companies |
| Outsourcing and web hosting companies |
| Other companies with massive data and security needs |
| Companies that never owned a mainframe |
| SMB |
| Java-heavy enterprises |
| Linux and Unix-heavy enterprises |
| Windows-heavy enterprises and Microsoft SQL server environments |
| Hardware resellers |
| Value Added Distributors |
| ISVs |
| Global System Integrators |
| Regional System Integrators |
| |
| Employees |
[Ops ] - IT Professionals |
| Employees |
[Ops ] - Application Developers |
| Employees |
[Ops ] - Data Analysts & Database Designers |
| Employees |
IT architects - systems analysts / designers & integration managers |
| Employees |
Mainframe programmers |
| |
|
| Mainframe attached hardware |
| Mainframe O/S |
| Mainframe utilities |
| Mainframe databases |
| Mainframe applications |
| Server virtualization software for enterprise data centers |
| Mainframe maintenance services |
| Disaster recovery services |
|
|
| Grid computing solutions |
| Unix servers |
| High-end servers |
| Nonstop fault tolerant servers |
| Trend Type |
Trend |
| Competitor Trend |
Industry consolidation continues, with leading firms growing in terms of revenues, employees, and geographic scope. |
| Competitor Trend |
There is an increasing need to provide products and services on a global basis, including China, India, and the rest of the world. |
| Competitor Trend |
Services continue to be provided more and more within the context of vertical industry models and specialization. |
| Competitor Trend |
Competitors continue to decrease cycle time in bringing new products and services to market. |
| Substitute Trend |
Outsourcing represents a growing trend and a significant industry alternative / substitute choice. |
| Customer Trend |
Security is a growing concern |
| Customer Trend |
The number of channels is increasing. |
| Customer Trend |
Buying decisions increasingly need business and technology expertise, as vendors transform and operate parts of their business operations. |
| Customer Trend |
An increasing number and percentage of customers will rely on Internet sources for purchase-related information. |
|
|
| Trend Type |
Trend |
| Global Trend |
Business growth & GDP increases globally are improving industry environment |
| Global Trend |
Economic growth in China and India is fueling industry growth |
| Trend Type |
Trend |
| Architecture Trend |
Companies are moving their technology infrastructures to a services-oriented architecture (SOA) based on Web services. |
| Architecture Trend |
New business designs & open standards & new computing architectures exploiting Internet ubiquity are increasing. |
| Architecture Trend |
Grids and grid computing continue to grow in use and importance |
| Hardware Trend |
Hardware prices continue to decline on a price / performance basis. |
| Memory Technology Trend |
Faster-Bigger-Better-Cheaper Memory |
| Software Trend |
Encryption & Cryptography Advances |
| Software Trend |
Java explosion growth |
| Software Trend |
Virtualization |
| Software Trend |
Linux explosion & acceptance of Linux as a business-critical option |
| Software Trend |
Movement to an open application foundation including: Java2EE Platform, Web services, Linux |
| Software Trend |
Web Services |
| Software Trend |
Delivering applications as services that can be shared horizontally across the company reassembling the application pieces into a more flexible and configurable model that consists of independent, yet interconnected, business components |
| Software Trend |
Improved IT utilization - IT utilization with applications that can sense and respond to changes in system demands and other system instabilities and automatically allocate resources based on customized business policies. |
| zOther Technology Trend |
High performance computing trends |
| zOther Technology Trend |
Increasing number of self-managing autonomic solutions to facilitate management of growing complexity of IT environments. |
| zOther Technology Trend |
Server optimization technologies such as virtualization and clustering |
| zOther Technology Trend |
Enhanced need for connectivity and management software and services |
| zOther Technology Trend |
Convergence of voice, data, and video over the Internet. |
| |
|
| Trend Type |
Trend |
| Global Trend |
Freedom and capitalism continue to expand, increasing the geographic scope of business opportunities. |
| Regional Trend |
Sarbanes-Oxley and other regulations have increased the demand for these products and services. |
| |
|
| Customer need for data security and global accessibility 24x7 are increasing |
| Customer ability to hire mainframe programmers and technicians is a major concern |
| Industry standard mainframe computers represent a relatively new segment that uses industry standard processors and can run multiple operating systems including some combination of: Windows; Unix; Linux; and potentially z/OS |
| IBM purchased PSI in 2008 |
| Trend Type |
Trend |
| Competitor Uncertainty |
The number of industry mergers and acquisitions between competitors is uncertain. |
| New Entrant Uncertainty |
The number of new entrants in the next few years is uncertain. |
| Customer Uncertainty |
The growth rate of the number of customers is uncertain | |
|
| Industry Structure (Porter 5 Forces) |
Force
Weight |
Force
Strength |
Force Level |
| Competitive rivalry |
30 % |
55 |
Very Low |
| Threat from new entrants |
10 % |
55 |
Very Low |
| Bargaining power from substitutes |
15 % |
95 |
Medium |
| Bargaining power from customers |
30 % |
60 |
Very Low |
| Bargaining power from suppliers |
15 % |
58 |
Very Low |
| |
100 % |
|
|
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|
|
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|
|
| Year |
Est. Revenue
Each Year
(US $ millions) |
Estimated
Growth Rate
Each Year |
| 2008 |
$4,680 |
5 % |
| 2009 |
$4,914 |
5 % |
| 2010 |
$5,160 |
5 % |
| 2011 |
$5,418 |
5 % |
| 2012 |
$5,689 |
5 % |
| 2013 |
$5,973 |
5 % |
| 2014 |
$6,272 |
5 % |
| 2015 |
$6,585 |
5 % |
| 2016 |
$6,915 |
2 % |
| 2017 |
$7,053 |
2 % |
| 2018 |
$7,194 |
|
|
|
| Region |
Revenue |
Revenue % |
| United States |
$1,404 |
30 % |
| Canada |
$140 |
3 % |
| Americas – All Other |
$281 |
6 % |
| Europe |
$1,217 |
26 % |
| Middle East |
$94 |
2 % |
| Africa |
$47 |
1 % |
| Japan |
$608 |
13 % |
| China |
$515 |
11 % |
| Other Asia Pacific |
$374 |
8 % |
| TOTAL |
$4,680 |
100 % |
| Name |
| [Firm] - CEOs |
| [Firm] - Business Unit Managers |
| [Firm] - Chief Financial Officers and Treasurers |
| [Ops ] - Chief Information Officers & CTOs |
| [Ops ] - IT Professionals |
|
|
| Decision Type |
Decision |
| Financial |
Purchase price |
| Financial |
Maintenance Costs |
| Financial |
Total cost of ownership / All inclusive total cost |
| Financial |
Availability and attractiveness of upgrade pricing discounts |
| Financial |
One-stop shopping for purchasing products and acquiring financing |
| Marketing & Market Image |
Number of customers / market share |
| Marketing & Market Image |
Perceived brand image |
| Marketing & Market Image |
Perceived product quality and market image of products provided |
| Marketing & Market Image |
Knowledge and expertise of sales force |
| Marketing & Market Image |
Financial soundness of company offering the products and services |
| Marketing & Market Image |
Advertising / Cumulative advertising |
| Product / Service Features |
Breadth and scope of product functionality |
| Product / Service Features |
Energy efficient design for fuel savings |
| Product / Service Features |
Optimal design for environmental safety |
| Recommendation |
Reviews by industry analysts |
| Technology (IT) Related |
System scalability |
| zOther |
Prior purchasing of similar or complementary products and services |
| zOther |
Strength of the personal customer relationship |
| zOther |
Time required to deliver |
| zOther |
Warranty provisions |
|
|
| Decision Type |
Decision |
| Financial |
Channel ability to retain large percentage of purchase price as a fee. |
| Financial |
Promotional support including market development funds |
| Financial |
Financial Soundness of Company Offering the Product / Service. |
| General |
Business partner program rules and general ease of doing business |
| Marketing & Market Image |
Number of customers / market share |
| Marketing & Market Image |
Perceived overall corporate image |
| Marketing & Market Image |
Perceived quality of service / service market image |
| Marketing & Market Image |
Perceived product quality / product market image |
| Product / Service Features |
Product functionality |
| Product / Service Features |
Quality of customer service provided to end customer |
| Product / Service Features |
Quality of service provided to the channel to help support the end customer |
|
|
| Ability to attract new customers to increase market share |
| Customer retention / repeat customers |
| Ensure growing ecosystem supporting hardware platform |
| IT infrastructure related products and services |
| Consulting and market research services |
| Semiconductor processors for high-performance computing |
| High perfomance computing enterprise servers |
| DASD and main storage |
|
|
| Economic |
Economic - Anticompetitive industries and/or market share dominance |
| Environmental |
Environmental - Energy use reduction |
| Social |
Social - Computer literacy around the world |
|
|
| SIC Code |
Description |
| 3571 |
Electronic Computers |
| NAICS Code |
Description |
| 334111 |
Electronic Computer Manufacturing |
| ISIC Code |
Description |
| 3000 |
Manufacture of office, accounting and computing machinery | |