IBM unveils new mid-range zEnterprise BC12 mainframe

New mainframe will cost upwards of $75,000 and be sold to governments and financial services companies

IBM has unveiled a new mid-range z-series mainframe, the zEnterprise BC12, 49 years after the company created its first mainframe.

The new product, which will cost organisations about $75,000, has a 4.2GHz processor and double the memory of its predecessor, the z114. It is based on the same z12 engine used for IBM's higher-end zEnterprise EC12 machines.

The lower price and lack of capabilities compared to the higher-end machines indicates that IBM is targeting mid-market customers that have smaller budgets and less processing needs.

IBM will be aiming at government organisations, banks and financial services companies with this latest product, unveiled alongside upgraded software and operating systems across its zEnterprise portfolio.

It has updated its z/OD operating system to version 2.1 and z/VM to version 6.3, and introduced other updates in a bid to keep the mainframe relevant in the modern world; this includes a focus on cloud, analytics and mobile computing.

In addition, IBM has launched the DS9980 Business Class configuration storage system for the new machine, which analyst group ITCandor claims will cost upwards of $70,000 in the US, as well as a bundled Linux Enterprise Server. It has added high-speed data compression and high-speed communications fabrics to the zBC12.

IBM claims to have invested about $1bn in the various offerings included in the announcement, $50m of which has been invested in the mainframe this year.

Although mainframes are demonstrably in decline in the era of the internet and cloud computing, IBM beat second quarter earnings estimates, due in part to growth in its mainframe and software units.