DBMS

The IBM Enterprise

By Stewart McKie
DBMS, April 1996

With a strong battle strategy and the right ammunition, IBM may lead the charge to the "interactive enterprise."


Only 20 years ago, it could have been said that IBM Corp. defined enterprise computing. Computer technology vendors either competed with IBM or competed for IBM's attention. Customers were proud of running "true blue," or IBM-only computing shops. This, of course, was before the introduction of the PC, the promise of open systems, and the maturing of IBM's star pupil, Microsoft Corp. However, rumors of IBM's imminent death are greatly exaggerated. Although the elephant may not be a tap dancer yet, IBM i s still by far the world's largest computer company in revenue. (See Table 1.)

Background

Founded in 1924, IBM became the U.S.'s largest office machinery firm by 1940 with sales of almost $50 million. Aggressively international from the start, IBM is famous for its patent-prolific R&D achievements and legendary salesforce. IBM entered the com puter market in 1952 with its 701 machine and now has hardware offerings across four primary platforms. (See Table 2.) The following traces the genesis of these platforms:

1970 System 370 Mainframe Series
1981 Personal Computer Series
1984 RT/6150 AIX (Unix) Series
1988 AS/400 Midrange Series

IBM is the quintessential "one-stop shop" for enterprise-level computing technology. Under the IBM umbrella is a vertically integrated business that provides computer and peripheral hardware and develops the application and tools software for those platf orms. This breadth is backed by a range of international consulting, training, and system integration services that position IBM as the world's leading supplier of enterprise computing solutions.

While the primary channel for IBM's products used to be direct sales, today a diverse range of third-party channels supplies IBM products, including global systems integration firms, midrange and open systems solutions providers, value-added resellers, r etail, and mail order. IBM's channel marketing strategies have been widely adopted and emulated throughout the industry. In fact, IBM created entire markets for peripherals (that is, software and services to enhance their core platforms). This began with the "plug compatible" market for mainframe components and peripherals, and continued with the System 36/38 midrange computers, the AS/400, and the PC. These markets are each worth billions of dollars and have stimulated the funding and growth of hundred s of complementary businesses.

Client/Server Takes Its Toll

A blue chip stock, IBM's revenues peaked at $69 billion in 1990. Since then, revenues have been relatively flat while income has been hit hard: The company took a $6.9 billion loss in fiscal year 1992. One reason for this stumbling was certainly a failur e by IBM's management in the late 1980s to take the move to client/ server computing seriously. Therefore, they did not anticipate the impact that the new paradigm would have on IBM's core lines of business. With hindsight, you can view the rise of client/server (from a commercial perspective) as a convergence of five tr ends over the last decade: While IBM has strategies and products in all of these areas, it is fair to say that it has not captured the most marketshare in any of them. This is not due to inferior products, but rather to a combination of poor marketing, smart competition from forme r partner Microsoft, and some degree of consumer backlash against a proprietary system icon. In the past, IBM could be excused from some dysfunctional strategies in its mainframe, midrange, workstation, and PC departments in order to maintain their diffe rentiation and price points. But today the story must be different. One of the big problems with client/server as a computing model from the perspective of a company such as IBM is that client/server cuts across traditional systems boundaries.

Some of the most visible of IBM's recent strategies, such as the positioning of OS/2 and IBM's closer ties to Apple Computer Inc., are not gaining the market momentum they need. In fact, it appears that the future is cloudy for core parts of these strate gies, such as OS/2 on the desktop, Taligent, and even OpenDoc and the PowerPC chip (especially with the rumors of the impending acquisition of Apple Computer). As a result, it is clear that reactive strategies to combat the increasing influence of the In tel/Microsoft juggernaut are a long way from the proactive strategies of the old IBM -- those that created blossoming markets rather than withering diversions. Notwithstanding this, however, IBM has a number of successful strategies and products for clie nt/server computing.

Database Management

IBM's DB2 RDBMS is the foundation of IBM's cross-platform database server strategy. The DB2 engine is available across all IBM server operating systems (MVS, VSE, VM, OS/400, AIX, and OS/2). The engine is also available on HP-UX, Sun Solaris, and Microso ft NT. However, DB2 is not yet fully homogenized across all platforms, so features and functions may vary.

DB2 has been criticized in the past for not having the same extensive feature set as other RDBMS engines such as Oracle and Sybase, and for uncompetitive pricing on the Unix and OS/2 platforms. However, the recent release of DB2 version 4.0 (for MVS) inc ludes many of the features necessary to bring DB2 in line with the competition, including stored procedures, parallel query processing, row locking, and outer join support. The starting prices of the AIX, OS/2, and NT versions of DB2 have dropped to less than $1000 for single-user versions. These efforts bring DB2 broadly in line with the competition's functionality and price points.

The AIX and OS/2 versions of DB2 are able to handle multimedia and user-defined data types and content-based querying of that data. The NT version of DB2 also includes a new, more user-friendly front end that was built using the recently acquired Lotus A pproach desktop data manager. These "relational extenders" enable DB2 to handle a broader range of application solutions better, while new querying functions recognize the requirement of users for better decision support. Unlike its three leading competi tors -- Oracle, Sybase, and Informix -- IBM has not yet acquired third-party technology to enable online analytical processing (OLAP) from its relational engine.

The DB2 engine is supported by an array of complementary products, many of which are listed in Table 3. DB2 may also act as a client or server for IBM's Distributed Relational Database Architecture (DRDA). DRDA is middleware technol ogy that defines protocols for the interoperability of clients and servers running RDBMS systems from multiple vendors, thereby providing an "any-to-any" solution for multiplatform data access. DRDA enables an IBM database to act as a client to one of ma ny third-party RDBMS engines, and vice versa. It also allows DRDA-compatible client applications to access any DRDA-compatible server.

Workgroup Management

While Microsoft dominates the desktop, and as Novell watches Windows NT and BackOffice eat its lunch, the PC workgroup sector is up for grabs. This was clearly the impetus behind IBM's recent acquisition of Lotus Development Corp. for its Notes product. IBM is now repositioning OS/2 as a server, rather than a desktop operating system. IBM is said to have shipped approximately eight million units of OS/2 Warp in 1995 -- a respectable figure, but no match for the tens of millions of units of Microsoft Win dows 3.x and Windows 95. OS/2 Warp Server is now IBM's answer to NT and possibly another nail in Novell's coffin. OS/2 is the operating system platform for a range of workgroup solutions listed in Table 4.

IBM CEO Lou Gerstner has promised to provide the necessary funds to capitalize on Notes' user base of 4.5 million copies. You can see the first fruits of this support in Lotus Notes 4.0. This new version delivers a range of new functionality, positions N otes as a viable Internet and Intranet server, and lowers the cost of Notes client software to $69 in order to speed up its seeding onto the corporate desktop. IBM has announced that Flowmark, its rule and event management, extended transaction, workflow product, will integrate more closely with Notes. Notes clients will be able to initiate and monitor workflows managed by Flowmark, while Flowmark clients will be able to do the same for Notes.

Object Technology

IBM is extremely committed to a future of component-based applications, business model frameworks, and distributed object management. Like workflow and the Internet, object technology (OT) is another "paradigm shift"; that is, leaders such as IBM can lev erage the change from procedural to object software to sell more products.

At the heart of IBM's OT strategy is System Object Model (SOM), which the company introduced in 1993 and based on the Object Management Group's (OMG) Common Request Broker Architecture (CORBA). SOM lets developers code to a single interface for local obj ects (using SOM) and distributed objects (using DSOM). In this way, SOM provides standards for object interoperability across platforms and development languages. IBM's SOMobjects Developer Toolkit is available for OS/2, AIX, Windows, and MVS (OS/400 sup port is imminent). SOMobjects Workgroup Enabler is available for OS/2, AIX, and Windows for access to local and remote objects.

You can create SOM objects using "direct-to-SOM" compilation extensions to IBM's VisualAge for C++ and VisualAge for Cobol programming languages and compilers. Alternatively, you can create application components with VisualAge for Smalltalk. Therefore, IBM provides an integrated visual development environment. OpenDoc is an IBM-supported specification and set of APIs for delivering cross-platform, distributed objects. OpenDoc is positioned to compete with Microsoft's OLE and OCX component strategies.

The VisualAge development suite is IBM's primary offering to the application software development community. VisualAge delivers programming languages and compilers that are designed to help programmers build graphical applications and make the transition from procedural to object-enabled or fully object-oriented software development paradigms. The VisualAge suite includes: VisualAge for Cobol, VisualAge for C++, and VisualAge for Smalltalk. Complementary to the VisualAge suite is Object REXX for OS/2, a revamped version of IBM's REXX scripting language, and a new Basic development environment designed to compete and coexist with Microsoft's Visual Basic.

IBM has begun the task of building class libraries and business frameworks for reuse by application developers. This effort is supported by tools such as ObjChart, which lets developers model, execute, and debug application objects, and Open Class, which is a set of class libraries for C++ and Smalltalk that provides prebuilt and tested frameworks for GUI building, database access, and task management.

IBM is also building the infrastructure to support the growth of component software. It started the Object Connection Program, which is an effort to foster a component software development, distribution, and support channel, and the Object Technology Uni versity, which offers more than 150 courses in OT. IBM sponsored the Object Technology Conference in 1995, a six-day event attended by more than 1000 people.

IBM and the Internet

IBM, like every other vendor in the industry, recognizes the opportunity offered by the Internet. Consequently, it has a foot in the door already with its packaged Internet browser, server, and firewall software. But the real action is not in this area, which is already on its way to becoming a commodity market, but in the delivery of a strategic set of infrastructures and applications for supporting Internet and Intranet business applications in an enterprise environment.

By the time you read this, IBM will have announced Project Eagle, a comprehensive strategy for delivering workgroup applications on the Internet. This strategy is based on delivering server-based applications that integrate approximately 57 IBM software products across OS/2, AIX, and Windows NT Server platforms. The strategy is founded on IBM's DB2 RDBMS and Lotus Notes. DB2 will act as an Internet database services engine through its recently announced World Wide Web Connection. Lotus Notes 4.0 already includes Internet functionality to allow a Notes server to service Internet browser clients. Meanwhile, mature system and transaction management products such as SystemView and CICS will provide the monitoring, security, and transaction throughput contr ols essential to run high-volume OLIP (online Internet processing) applications. This functionality will no doubt be supplemented with network management technology from IBM's recent acquisition of Tivoli Systems.

IBM's Client/Server Vision

There are signs that IBM's reengineering, under CEO Lou Gerstner, is moving in the right direction. First, there is the recent acknowledgment of the ascendancy of software as IBM's primary growth area, and, second, the company has a new mantra: network-c entric computing. The vision, as articulated in an IBM white paper (IBM's Software Strategy, D.H. Andrews Group, 1995), hinges on the following scenarios: I spoke with Tim Nicholas, IBM's vice president of Sales and Marketing, about the client/server enterprise from an IBM perspective. Our conversation focused on two strategic "pillars": legacy system integration and the interactive enterprise. Legacy inte gration is the task of mobilizing IBM's resources to modernize legacy systems and integrate them into the client/server world. The interactive enterprise is IBM's term for computing that leverages the synergies among network, workflow, and object technol ogy.

The foundation for these directions is IBM's own version of three-tier client/server in which there are enterprise servers, operations servers, and desktop servers, each fulfilling a specific functional role in managing the enterprise information assets in a networked architecture. The enterprise server (mainframe) may be used for purposes such as running the primary corporate transaction databases, providing a central repository for corporate objects (business objects or data objects such as documents, sound, and vision), or managing transaction routing and interapplication communications. The operations server may utilize IBM's AS/400, AIX (Unix), or OS/2 server platforms, performing functions such as running line-of-business applications, providing data warehousing platforms and decision-support servers, or running extended enterprise applications such as Internet and workflow servers. The desktop server may utilize IBM's AIX or OS/2 server platforms for providing localized information processing s ervices such as managing replicated database snapshots for decision support.

Tactically, IBM must support these roles by enriching the functionality and extending the connectivity of its core platforms. Recent initiatives include:

Legacy integration is not just a way for IBM to protect its franchise, but a reflection of the realities of business computing. Customers cannot switch to client/server overnight: They need a migration strategy that either lets them make the transition i n a controlled manner or gives them the means to extend accessibility to their data assets to more internal users and external business partners. Several IBM sites are unable or unwilling to give up the transaction processing power of the mainframe or it s superiority in providing mature, secure asset management software.

The interactive enterprise, on the other hand, offers an opportunity not just for IBM but for any technology provider that appreciates the synergies between workflow, the Internet, and object technology. All three technologies have not yet fully matured or intertwined: Object technology will be the foundation of component-based software, the Internet will be the infrastructure for distributing and using these components, and workflow will be the "glue" holding it all together. The database (or more like ly the operating system that includes a database, similar to OS/400) is the obvious repository for the various application software and user data objects that the interactive enterprise will have to manage.

The interactive enterprise is a term that could describe the future of client/server. In this brave new world, workgroups will consist of internal corporate users combined with outsourcing and electronic-commerce partners. The workgroup will implement vi rtual applications assembled from business objects, with the connection logic supplied by workflow. The applications will process extended transactions that span multiple, traditional application modules, or composite transactions that involve multimedia data sources. The transactions will be managed by networks that combine LAN, WAN, and Intranet and Internet servers. This network computer will cross organizational boundaries and will be impervious to platform differences. The interactive enterprise is the computing space for which enterprise client/server application vendors will be fighting over the next decade.

Keepers of the Castle

IBM's client/server enterprise seems to be a great castle under siege, surrounded by an army flying the colors of multiple factions. While the central keep may hold out forever, there are some nasty breaches showing in the outer walls. The database turre t is under constant battery from the big guns of Oracle, Sybase, Informix, and Microsoft. The workgroup turret is not completed and in danger of disintegration in the face of an assault by Windows NT and BackOffice. The desktop turret is already flying t he Microsoft flag. The OT and Internet turret stands secure in splendid isolation, but who can predict who could lead the charge here? Let's hope Lou Gerstner proves to be an expert both in siege management and counter insurgency.


TABLE 1. IBM's 1994 Revenues and Sales

US$
(in billions)
Key Financials
Revenues 64.05
Net Income 2.88
Breakdown
Mainframes 5.96
Midrange 5.76
Workstations (Unix) 3.21
PC 8.77
Networking 3.59
Peripherals 8.58
Software 11.53
Services 16.65


TABLE 2. IBM's Strategic Platforms

Platform Operating System
Mainframe MVS
Midrange OS/400
Unix server AIX
PC server OS/2


TABLE 3. IBM's Database Management Products for DB2

Product Name Function
IBM DataJoiner Defines SQL joins across heterogeneous RDBMS sources
IBM DataHub Database administration tools for OS/2 and Unix versions of DB2
DB2 Visual Explain Manages the access plans used by OS/2 and AIX DB2
DB2 Performance Monitor Manages the performance analysis of OS/2, AIX, and MVS DB2
DB2 Estimator Models the performance of DB2 databases
DataPropagator Provides replication functions across main DB2 versions (available in relational and nonrelational versions for IMS)
IBM ADSTAR Provides automated backup for AIX DB2 databases
IBM DataGuide Used for launching and sharing information on PC LANs
IBM Visualizer An OS/2 product for querying data from DB2 engines
IBM QMF Query management facility for queries and reports from mainframe DB2 data (uses prompted, SQL, and QBE styles)


TABLE 4. IBM's Workgroup Applications

Product Name Function
Time and Place/2 Provides group scheduling, calendars, and email
Visual Document Library Used for the maintenance, query, and retrieval of electronic document files
ImagePlus VisualInfo Cross-platform image management software
Lotus Notes A group collaboration and information-distribution database
Lotus SmartSuite A desktop productivity applications suite
Lotus cc:Mail An email client software and messaging architecture
Flowmark A task-based, event-driven workflow management tool
MQSeries Message-oriented middleware for inter-application messaging


Stewart McKie is principal of PinPoint Inc., a financial software consulting firm based in Redmond, Washington. He also edits the CFO/Info newsletter. You can email Stewart at 74660. 3123@compuserve.com.


* IBM Corp., 800-426-3333.
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Updated Monday, November 4, 1996.