IBM plugs software gap for its AS/400 platform

By ADAM GIFFORD

IBM has plugged a gap in its supply chain management (SCM) software offerings for its AS/400 platform.

"Supply chain started taking off, and we saw we didn't have any market leaders like i2 on the AS/400 platform," said Paul Woods, the head of business development for the AS/400 server.

More than 600,000 AS/400s are installed worldwide, making it the most popular platform for running applications in what IBM calls the midmarket - pretty much everything below the largest customers. It is particularly popular with mid-range manufacturing and distribution companies, and has a strong presence in New Zealand.

At IBM's second SCM conference in Las Vegas two weeks ago, the company announced that applications from four of the leaders in business-to-business software - i2 Technologies, QAD, SynQuest and Logility - would in future run on the AS/400.

In January it announced that JD Edwards Active Supply Chain, the name given to the Numetrix supply chain optimisation tool when used in a JD Edwards environment, was being modified to run on the platform.

"We've got the lead players. i2 is the gorilla in this space, and with them alone we would have a great story," Mr Woods said.

i2's eBusiness and TradeMatrix allows users to link with electronic marketplaces like TradeMatrix.com.

QAD's eQ software handles business-to-business order management over the internet, allowing companies to integrate existing enterprise applications into e-business. It serves as a bridge between the company website and back-end systems.

SynQuest makes an advanced planning and scheduling tool for manufacturers. Logility's Voyager product allows distribution companies to do collaborative planning, forecasting and replenishment.

The global midmarket business organisation is the latest step in IBM's attempt to brand itself as a provider of e-business solutions. As well as the new products, it involves alliances and partnerships with other vendors. One of the most important is a three-way alliance with i2 and online procurement specialist Ariba to develop a complete end-to-end package for business-to-business commerce.

It will use IBM hardware, software and services, the Ariba e-commerce platform and i2's TradeMatrix services and platform.

Peter Rowley, the Australian who heads IBM's newly formed global midmarket business organisation, said IBM would invest $US300 million this year in brand and corporate marketing campaigns aimed at midmarket businesses.

Mark Ryan, the midmarket organisation's vice-president for marketing, said the midmarket was a $US135 billion-a-year opportunity for IBM and was growing faster than other parts of the market.

The success of the AS/400, now 12 years old, was based on the availability of applications and the fierce loyalty of its customers.

"That box is a cult, a religious experience. It has the lowest total cost of ownership for any server because it requires very little expertise or management to run. It sits in a corner and runs.

"It is also one of the most secure boxes out there. For legal reasons, I can't say the AS/400 has never been hacked, but it is very secure."

* Adam Gifford attended the SCM conference in Las Vegas as a guest of IBM.