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IBM to Unveil New Mainframe

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TIMES STAFF WRITER

IBM Corp. will announce its first new mainframe computer design in 10 years today, along with a new pricing system based on how much processing power, storage and software a customer uses.

The world’s largest computer company is trying to take ground away from Sun Microsystems in the competitive market in large-scale computers for businesses that handle electronic commerce.

IBM’s new fee system charges a basic price for the mainframe computer and additional fees based on use of additional storage power.

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This pricing system would allow more flexibility for sudden fluctuations in usage. It follows similar pricing schemes from rivals including Hewlett-Packard Co.

“The goal is to only pay for what you use,” said analyst Vernon Turner of International Data Corp. in Framingham, Mass. “Hopefully, IBM can attract the same enthusiasm” from Internet service providers as from its traditional mainstream business customers.

IBM’s “Z” series mainframes will start at $750,000 and begin shipping in December, with a new software operating system available in March.

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IBM officials said the computers, in development for two years at a cost of $1 billion, have a range of innovations, including a system directing the machines to communicate with IBM when they need maintenance.

Analysts said they expected the new system, supported by a marketing effort tying together IBM’s disparate lines of servers that run computer networks, to boost Big Blue’s profit starting next year.

IBM shares rose $5.19 to $117.81 on the New York Stock Exchange.

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