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IBM Doubles Incentive to $8,000 for Ditching Sun

By - Source: Tom's Hardware US | B 19 comments

IBM has doubled the incentive for users to ditch Sun equipment.

According to a report on InformationWeek, Big Blue is taking advantage of the uncertainty surrounding the Sun-Oracle merger and upped the offering for those willing to switch from Sun to IBM.

IBM’s rewards program was launched last April and applied to Sparc-based Sun hardware, such as the Sparc, UltraSparc, and Sparc 64 servers, as well as Fujitsu systems that run on Sparc chips. Previously the company offered $4,000 in software and services for every Sun Spar processor replaced with an IBM Power server. The company will now offer $8,000 in software or services for every Sun Sparc processor replaced with an IBM Power server. IBM has helped 1,640 customers migrate from other manufacturers' hardware in the last year, thanks to the rewards program.

The aggressive offering comes after IBM made significant movement towards acquiring Sun Microsystems. The company missed out when Oracle swooped in and bought the struggling company in late April. Expected to be stitched up this summer, Oracle will fork out $7.4 billion for the company.

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  • 4 Hide
    timaahhh , May 5, 2009 2:43 PM
    Is this basically a rebate to not use Sun gear? Isn't this basically what Intel is in huge trouble for?
  • 2 Hide
    JMcEntegart , May 5, 2009 2:50 PM
    timaahhhIs this basically a rebate to not use Sun gear? Isn't this basically what Intel is in huge trouble for?


    Yes and yes. I'm wondering how this will pan out. That said, IBM has been doing it for a year, with no trouble from the antitrust police so who knows..
  • -4 Hide
    Anonymous , May 5, 2009 3:01 PM
    Byebye sun java?
  • -1 Hide
    astrotrain1000 , May 5, 2009 3:13 PM
    Too me this sounds no different than buying a dell and getting 2 years of free tech support or free dvd burning software. I don't see why they would get in trouble for it.
  • -6 Hide
    bill gates is your daddy , May 5, 2009 3:13 PM
    blahblahblah...IBM..Sun..computers..antitrust. whatever.

    That is all good and wonderful but I think we need to understand why amidst this great and powerful news is seems that H|OCP is putting out even more hard hitting news such as the following (actual link on their site...Thank you God)

    http://www.esquire.com/the-side/video/megan-fox-video?bcpid=21913413001&bctid=21845810001
  • 2 Hide
    megamanx00 , May 5, 2009 3:14 PM
    Bwa ha ha, we don't need to buy you when we can just buy your customers instead.

    Seriously because of the things Sun was complaining about on their offer, you can't really blame IBM.
  • 5 Hide
    verenos , May 5, 2009 3:18 PM
    This is not the same as Intel. IBM is not going behind SUN's back and paying people not to use them. They are giving rebates for you to buy migrate to their product. It is more on the level of a Car Dealer giving you $1500 for any trade in.
  • -1 Hide
    JMcEntegart , May 5, 2009 3:21 PM
    bill gates is your daddyblahblahblah...IBM..Sun..computers..antitrust. whatever.That is all good and wonderful but I think we need to understand why amidst this great and powerful news is seems that H|OCP is putting out even more hard hitting news such as the following (actual link on their site...Thank you God)http://www.esquire.com/the-side/vi [...] 1845810001


    I'll be the first to say that despite her trashy tattoos, Megan Fox is a slammin' hottie but seriously, at least try and keep it tech related.

    If you want to look at videos of pretty girls go ahead, but don't complain that IBM/Sun are not pretty girls in bikinis.
  • 0 Hide
    mtyermom , May 5, 2009 3:48 PM
    ProDigit80Byebye sun java?


    Here's to hoping...


    Though, it's funny to read this while downloading Win 7 RC with a Sun Java applet from the MS site.
  • 0 Hide
    bill gates is your daddy , May 5, 2009 3:56 PM
    JMcEntegartI'll be the first to say that despite her trashy tattoos, Megan Fox is a slammin' hottie but seriously, at least try and keep it tech related.If you want to look at videos of pretty girls go ahead, but don't complain that IBM/Sun are not pretty girls in bikinis.



    Hey...I was just running through the news at H|OCP and this is what they posted. She claims to be a nerd so i figure it's more relevant than IBM antitrust blah. I wonder what would happen if IBM used her to coax companies from Sun?
  • 0 Hide
    starryman , May 5, 2009 4:02 PM
    There's reason for anti-trust laws... it first and foremost protects consumers of the long-term economic effects. I don't know if this is an anti-trust issue but it is simply bad business at the end of the day.
  • 0 Hide
    captaincharisma , May 5, 2009 4:09 PM
    why would anyone be getting sued over something like that? the cable companies do it to combat satellite tv.
  • 0 Hide
    solymnar , May 5, 2009 4:40 PM
    Its the difference between offering incentives that can be taken piecewise vs. negotiating contracts and doing pay offs to bar another company behind the scenes. You can offer cupons and discounts to customers.

    You can't negotiate contracts with customers to boycott your competitors.
  • 5 Hide
    hellwig , May 5, 2009 4:46 PM
    This is NOT antitrust behavior. Intel got in trouble becuase it was offering Dell money to not sell AMD processors. Had Intel simply offered rebates to AMD owners to replace their computers with Intel CPUs, that would have just been fine. IBM isn't limiting it resale partners to only sell IBM, its reaching out to SUN owners and giving them incentive to switch, nothing wrong with that.

    Its just like when you can get a cable TV discount by being a new customer, while existing customers get screwed. Only people getting screwed here are those who already bought IBM servers.
  • 1 Hide
    ta152h , May 5, 2009 6:45 PM
    Why is everyone talking about IBM doing something illegal? Hello, they aren't considered a monopoly! That was thrown out in 1981, with President Reagan.

    Also, I'm not sure I like the term "missed out", when it refers to IBM and Sun. They decided not to proceed with the purchase, how is that missing out? If Oracle swooped in and stole them while the negotiations were ongoing, then, I'd agree, but it was nothing like that.
  • 0 Hide
    laserlight_2 , May 5, 2009 7:11 PM
    JMcEntegartYes and yes. I'm wondering how this will pan out. That said, IBM has been doing it for a year, with no trouble from the antitrust police so who knows..

    Yes and wrong, you could consider it like a rebate. But nothing they are doing here is illegal. It's like intel giving $80 in free gpu software or a game. What intel is in trouble for is offering the OEM sellers money and other benefits, not the customer.
  • 1 Hide
    Anonymous , May 5, 2009 8:58 PM
    SRSLY, this is NOT the same thing as what Intel does. If Intel offered customers a $100 rebate to switch from AMD, I would be fine with that. Intel offered rebates to OEMs, in an attempt to shut AMD out of some OEM computers, which in turn would mean less computers featuring AMD CPUs available at retail outlets.
  • 3 Hide
    cruiseoveride , May 5, 2009 11:58 PM
    I'll take my $8k in cash thank you.
  • 0 Hide
    68vistacruiser , May 13, 2009 4:40 PM
    JMcEntegartI'll be the first to say that despite her trashy tattoos, Megan Fox is a slammin' hottie but seriously, at least try and keep it tech related.If you want to look at videos of pretty girls go ahead, but don't complain that IBM/Sun are not pretty girls in bikinis.


    Nothing skanks out a chick faster than trashy tattoos.