October 8th, 2009
DOJ probes IBM's mainframe business
The Department of Justice is looking into IBM’s mainframe business for anticompetitive behavior.
According to a bevy of reports, the DOJ is requesting information from IBM’s smaller rivals. The Computer and Communications Industry Association has been stumping for a probe of IBM’s mainframe practices.
The CCIA argues that IBM is really the only player in mainframes. CCIA notes:
Although the mainframe market is not perceptible to the average consumers, these large expensive computer systems power most fortune 500 companies, governments, and financial institutions. IBM plug-compatible mainframe (PCM) computers, which have been in use for over a half a century, are the most popular platform for business computing today. It is estimated that $5 trillion of corporate and government data and applications are stored on mainframes. They serve as the backbone for 70-80% of the world’s computer-based transactions involving ATM sessions, airline bookings, tax filings, health records, and other essential services.
In an AP report, IBM said it will cooperate with the probe.
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
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