IBM sales tactics upset users

11 Sep 2001

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IBM risks alienating loyal customers by adopting increasingly aggressive sales tactics in its mainframe market, say users.

Ray Titcombe, chairman of the IBM UK computer users association, said that Big Blue is slipping back into its old, over-confident ways and that users are not happy.

"Some users feel IBM has taken its gloves off. It is cock-a-hoop after a staggeringly positive financial quarter and the danger is it thinks it can do what it wants. IBM is becoming its 1980s arrogant self again," he complained.

Rakesh Kumar, programme director at analyst Meta Group, believes that lacklustre growth in IBM's zSeries mainframe has resulted in the increased use of tougher tactics to improve profits.

"IBM has a monopolistic position in mainframes and there is internal pressure to take advantage. It is showing an intransigence and unwillingness to compromise," he said.

Kumar added that IBM risks jeopardising its customer relationships and urges users to concentrate on areas where IBM has stronger competition.

Carol Stafford, European vice president of IBM's eServer business, openly admitted that the company is taking a more aggressive approach to take on hardware rivals such as Sun Microsystems and software competitors such as Computer Associates. But she insisted that IBM would do nothing to harm users.

"I'm happy to see they've noticed us getting aggressive. Our intent is to be very aggressive on software and hardware. Clearly we don't want to be perceived as arrogant; we don't want unhappy customers. I will listen to any concern and investigate it," she said.

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