14 DAY TRIAL // Just a few days after IBM introduced a new line of System z servers designed for efficiency when running the Linux operating system, Big Blue is called to court by NEON Enterprise Software over alleged foul methods of discouraging mainframe holders from using the zPrime technology. This is not the fist foul play lawsuit that emerged in the IT Industry, nor is it likely to be the last. What is true, however, is the fact that the zPrime genuinely is capable of impacting upon IBM revenues, and strongly, at that.
Neon zPrime is a proprietary software product that allows the lower-cost zIIP and zAAP specialty processors to run the IMS, DB2, CICS, TSO/ISPF and batch workloads just as fast as the processors normally used in System z setups. This fact has been confirmed by almost 50 organizations and it was proven that the zPrime can allow for annual mainframe cost reductions of 20 percent or more.
The technology was proven to provide U.S. consumers with an increased control over their IT investments and a dramatic decrease in workload processing costs. Still, even though the technology does this through completely legal means, it also means that enterprises that supply said System z servers would, consequently, see lower revenues.
According to NEON, IBM allegedly tried to use unfair means of discouraging such owners from implementing the technology. The lawsuit was filed in the Austin Division of the United States District Court for the Western District of Texas and has NEON demanding that IBM disgorge profits, a declaratory judgment and reasonable and necessary attorneys’ fees.
Among the charges brought against IBM are the violation of the Lanham Act and state unfair competition laws, implying that the enterprise is liable for business disparagement and tortuous interference with prospective contracts.