IBM shuts up competitor PSI by buying it
The power of the dark side
BIG BLUE ALMIGHTY crowned itself mainframe king yesterday when it bought out Platform Solutions (PSI), for an undisclosed sum, putting an end to a patent infringement lawsuit filed by Big Blue against PSI back in November 2006.
The move all-but destroys any competition IBM might have in the main-frame arena, critics argue.
IBM had accused PSI of infringing on copyright by building PCs that let users run IBM's System z OS as well as the firm’s software on computer mainframes that, - shock! horror! - weren’t IBMs.
Rightfully indignant at the Big Blue giant’s attempt to squash it into the ground, PSI responded with a counter law suit two months later, in January 2007, claiming IBM was acting in violation of antitrust laws and using unfair competition.
Now, all of a sudden, PSI has been snapped up by Bigger and ever-growing Blue, effectively neutralising its most noteworthy competitor in the mainframe market.
Advocacy outfits are outraged. PC World reports that the Computer and Communications Industry Association (CCIA) immediately cried foul play.
The CCIA president and CEO, Ed Black muttered, "This is a black-hole acquisition, it sucks the life out of the market and destroys the matter."
Black added that the move would cripple any potential competition in the mainframe market, darkly noting that now there was little prospect for ," anything but complete domination by IBM". Or in other words, if you’re a mainframe vendor, you will either surrender to IBM or die.
The CCIA has now desperately urged US and EU authorities to take a look at the possible implications of the deal and to see whether IBM can in fact be charged with antitrust violations.
Because PSI products are based on open systems whilst IBM’s are patented and copyrighted to the teeth, the deal could be pretty bad news to PSI’s customer base.
In a brave but probably foolhardy move of defiance, little mainframe vendor T3 Technologies has piped up to say that it will now file an antitrust complaint against IBM with the European Commission. T3 will accuse IBM of freezing other mainframe vendors out of the market by refusing to support older mainframe systems and not licensing its mainframe software to rivals.
Watch this space for “IBM buys up T3 technologies to shut it up”.
Shaking his head woefully, Black sighed, "when it comes to violations of competition law, IBM appears to be an unrepentant recidivist."
IBM company spinner Tim Breuer said IBM was in fact very focused on making its mainframes open servers that run open technologies such as Linux and Java. “I find your lack of faith disturbing,” he wheezed, before going on to say that IBM's acquisition of PSI would actually "enhance the ability of IBM's mainframes to compete against those alternative platforms." If there are any alternative platforms left, that is.
Michael Maulick, PSI's president and CEO piped up with: "We are pleased to become part of IBM". He said the acquisition, "makes the most sense".
Meanwhile, for IBM, this will be a day long remembered. It has seen the end of PSI, it will soon see the end of the Rebellion. µ

Comments
Cheekiness
From wikipedia (which I believe largely to be correct):Bbout 'mainframe': "the term usually refers to computers compatible with the IBM System/360 line, first introduced in 1965. (IBM System z10 is the latest incarnation.) Otherwise, large systems that are not based on the System/360 are referred to as either "servers" or "supercomputers"."
So yeah only IBM makes IBM computers, shocking.
Clearly there are many other manufacturers of large servers/supercomputers that can compete fine with IBM, and in fact I bet IBM isn't even the biggest in that segment, so this article is a bit cheeky in its insinuations I'd say.
CCIA
I'm no apologist for IBM, but I have to point out that the ONLY "advocacy outfit" "outraged" by this is CCIA. The same one who helped bring the EU antitrust suit against Microsoft way back when. MS consequently bribed them several million dollars, and since then, CCIA has been an extension of MS PR.