Comments on: The Mainframe Tax: Every Year A Rebate.. from Sweden to Hong Kong, making SOA work http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/ An industry analyst blog looking at software ecosystems and convergence Fri, 03 Feb 2012 10:35:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: james governor http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/comment-page-1/#comment-1522 james governor Mon, 08 May 2006 16:25:39 +0000 http://www.redmonk.com/jgovernor/wp/?p=591#comment-1522 Anne: yep. legacyboy. as you know economics is often based on faith rather than real analysis. often its a very blunt instrument. Dennis: what do you mean i forget dennis? thats a key part of the analysis. in fact that was my point. mainframe shops tend to know their outgoings pretty well, so this is a chance to plan around cutting that budget for maintenance, and driving it towards new opportunities. philip: thanks. its always very useful to see some customer-driven benchmarking... Peter- thanks for taking the argument seriously enough to call me on the HK angle. What I basically meant was the HK is a low, rather than high, tax geography... but your feedback is right on. Anne: yep. legacyboy. as you know economics is often based on faith rather than real analysis. often its a very blunt instrument.

Dennis: what do you mean i forget dennis? thats a key part of the analysis. in fact that was my point. mainframe shops tend to know their outgoings pretty well, so this is a chance to plan around cutting that budget for maintenance, and driving it towards new opportunities.

philip: thanks. its always very useful to see some customer-driven benchmarking…

Peter- thanks for taking the argument seriously enough to call me on the HK angle. What I basically meant was the HK is a low, rather than high, tax geography… but your feedback is right on.

]]> By: Dennis Howlett http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/comment-page-1/#comment-1521 Dennis Howlett Sat, 06 May 2006 12:39:15 +0000 http://www.redmonk.com/jgovernor/wp/?p=591#comment-1521 James - you forget...you have to apy the tax in the first place in order to qualify for the rebate. James – you forget…you have to apy the tax in the first place in order to qualify for the rebate.

]]> By: Philip Hartman http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/comment-page-1/#comment-1520 Philip Hartman Sat, 06 May 2006 04:30:45 +0000 http://www.redmonk.com/jgovernor/wp/?p=591#comment-1520 Your readers may want to check out this post which cites some really high-speed performance processing of web services using zAAP's: <a href="http://artsciita.blogspot.com/2006/01/incredible-web-services-performance.html" rel="nofollow">http://artsciita.blogspot.com/2006/01/incredible-web-services-performance.html</a> Your readers may want to check out this post which cites some really high-speed performance processing of web services using zAAP’s: http://artsciita.blogspot.com/2006/01/incredible-web-services-performance.html

]]> By: Peter Norris http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/comment-page-1/#comment-1519 Peter Norris Sat, 06 May 2006 02:14:23 +0000 http://www.redmonk.com/jgovernor/wp/?p=591#comment-1519 James - I'd like to pay my taxes in Hong Kong. But look again and you see that the tax rate has gone up over the 2 years that PWC cites. This is not like IBM's mainframe. As you move from IFLs (I call these zIFLs by the way) on old boxes to zIFLs on new boxes you get the extra capacity of the bigger processor size - AT NO EXTRA COST. This also applies to zAAPs (z990/z890 to z9). So unlike HK taxes which are very low (but going up YtY) IBM mainframes are providing a tax rebate with every physical technology upgrade - eg. G5/6 to z900 to z990 to z9 to .... This applies equally to zIFLS, zAAPs and in the future to zIIPs. So great analogy - once again - and many thanks for the thought provoking set of ideas. James – I’d like to pay my taxes in Hong Kong.

But look again and you see that the tax rate has gone up over the 2 years that PWC cites. This is not like IBM’s mainframe.

As you move from IFLs (I call these zIFLs by the way) on old boxes to zIFLs on new boxes you get the extra capacity of the bigger processor size – AT NO EXTRA COST. This also applies to zAAPs (z990/z890 to z9).

So unlike HK taxes which are very low (but going up YtY) IBM mainframes are providing a tax rebate with every physical technology upgrade – eg. G5/6 to z900 to z990 to z9 to …. This applies equally to zIFLS, zAAPs and in the future to zIIPs.

So great analogy – once again – and many thanks for the thought provoking set of ideas.

]]> By: Anne http://www.redmonk.com/jgovernor/2006/05/05/the-mainframe-tax-every-year-a-rebate-from-sweden-to-hong-kong-making-soa-work/comment-page-1/#comment-1518 Anne Fri, 05 May 2006 23:49:29 +0000 http://www.redmonk.com/jgovernor/wp/?p=591#comment-1518 Very interesting. I don't know much about mainframes, but I'm fascinated by how modern economics gets things wrong. Didn't know you were a legacy kind of guy... Very interesting. I don’t know much about mainframes, but I’m fascinated by how modern economics gets things wrong.

Didn’t know you were a legacy kind of guy…

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