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DAILY NEWS AND INFORMATION FOR THE GLOBAL GRID COMMUNITY / OCTOBER 6, 2003: VOL. 2 NO. 40

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Systems/Enterprise:

IBM'S GRID COMPUTING PUSH CONTINUES
By William Fellows For the451.com

IBM has added two new Grid computing packages to the 17 it already offers, which combine IBM technology, third-party apps and hardware, and most importantly, IBM Global Services. These are the first packaged Grid offerings from the company to include ISV applications, and IBM says it is now seeing repeat engagements. It's moving Grid technology up the enterprise stack.

Impact Assessment

The Message

IBM has two new packaged Grid offerings. They're the first to include ISV applications, and IBM says it's now experiencing its first repeat engagements.

Competitive Landscape

Many ISVs and major vendors –- including Sun and HP –- are enthusiastically market-making, but IBM appears the most commercially focused, engaged and organized.

The451 Assessment

IBM is moving Grid computing up the enterprise stack. Getting to the application layer is an important advance as the industry seeks to brings commercial apps -– and value -– to Grids. IBM forecasts "hypergrowth" for the sector next year, and its target of doubling its Grid revenue will set an interesting benchmark for other vendors.

Technology and partners Both new packages are in the business analytics space, one of five sectors across which IBM's 19 packages are organized.

The Customer Insight offering is targeted at retail banking. It combines SAS Credit Scoring, DataSynapse and Avaki middleware and systems, and IBM consulting, design and implementation. IBM claims it was instrumental in getting SAS to pony up for a Global Grid Forum membership and says that it will leverage SAS's own Grid middleware, MP Connect, in future.

The Risk Management and Compliance package is aimed at financial markets. It supports KMV, Algorithmics, SunGard, Fair Isaac and SAS applications; DataSynapse GridServer middleware; xSeries and the TotalStorage Virtualization engine, and IBM services. SunGard is now the owner of Reech Capital, a risk management ISV that developed its applications on a Grid, and it's this asset that SunGard brings to the package.

IBM has anointed United Devices and Avaki as master resellers –- a middle tier in IBM's PartnerWorld partner hierarchy. They join Platform and DataSynapse. Joint sales and marketing activity beckons.

Meanwhile, IBM has also revealed six new Grid customers, including Hewitt, Morgan Stanley and T-Systems in the commercial space.

Strategy

What's important here is not the addition of two new packages per se, but the fact each for the first time brings an ISV application into the product mix, demonstrating, IBM says, how Grid activity and interest is moving up the stack.

Also new are its first repeat engagements, IBM says, with customers configuring a Grid using a stack and services that IBM has already implemented elsewhere. This demonstrates traction, the company asserts.

IBM's Grid revenue stream isn't known –- "many millions" is what the company is able to offer. It expects the sector to move into "hypergrowth" next year, and has a target of doubling its Grid revenue. Grid computing technologies are moving 'from rocket science to business service' in 2004, as the451 explains in its in a new 451 Special Report.

IBM says it has more than 100 staff on its core Grid team, plus the associated sales force in all territories and Grid-related development attached to all product units.

It claims to have more than 100 Grid engagements on the go at any one time and to have already completed more than 100 Grid engagements. IBM says financial companies are getting somewhat more boastful about their use of Grids, while industrial users remain as secretive as ever because of competitive reasons.

Competition

Sun has announced its first "packaged" Grid offerings in two vertical industries. It claims several thousand instances of its Grid Engine in use, although there's no real comparison with IBM, since many are running on a single cluster, and Sun has not talked much publicly about specific commercial engagements.

HP continues to focus on UDC, the center of its current Grid activity. It has got a handful of users and is targeted primarily at server consolidation. HP has talked a lot about its Grid Resource Topology Designer and SmartFrog, which it says enable users to start experimenting with Grids, although it can't yet point to specific engagements. It also has a Globus toolkit for its HPC systems and partnerships with Platform, Avaki and United Devices.

Many of the Grid ISVs/IHVs are aligned by vertical industries, and IBM is already partnering with most of them. They're all enthusiastically market-making, but IBM appears to be the most commercially focused, engaged and organized in the space.

Courtesy http://www.the451.com

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