Mainframe computer

Mainframes (often colloquially referred to as big iron) are large and "expensive" computers used mainly by government institutions and large companies for mission critical applications, typically bulk data processing such as censuses, industry/consumer statistics, ERP, and financial transaction processing.

Market rebound

That trend started to turn around in the late 1990s as corporations found new uses for their mainframes, since they can offer web server performance similar to that of hundreds of smaller machines, but with much lower power and administration costs. The growth of e-business has also dramatically increased the number of backend transactions processed by tried-and-true mainframe software as well as the size and throughput of databases. As of late 2004, IBM's mainframe revenues are increasing even with price reductions, thanks to attractive TCOs.

Related Topics:
1990s - Web server - E-business - 2004 - TCO

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In 2005, numerous press stories detailed the loss of sensitive personal information from careless data handling. In one example, CardSystems, a U.S. credit card processor, discovered that thousands (if not millions — the exact number is unknown) of its credit card customers' records had fallen into the hands of hackers, thanks to a computer worm installed on one of its Microsoft Windows servers. The CardSystems breach cost an estimated $2.75 billion (U.S.), although the exact figure is difficult to ascertain. Financial institutions have not experienced these security-related failures with their mainframes, so many organizations are reassessing their entire data handling practices, often focusing on data recentralization on secure systems. In another example, ComAir's airline crew scheduling system, installed on a non-mainframe server, failed during the busy Christmas travel season in 2004. ComAir's Board of Directors fired its CEO as a consequence. Analysts expect a "flight to quality" to boost mainframe business given continuing high profile IT failures. (Mainframes do enjoy a justified reputation for reliability and security.)

Related Topics:
2005 - CardSystems - Computer worm - Microsoft Windows - Data recentralization - ComAir

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Replacement of older 31-bit systems, including Amdahl and Hitachi models, should also positively affect IBM's mainframe revenues, especially in 2006 as those older systems reach their end-of-life. (z/OS will only support 64-bit systems from early 2007 onward.)

Related Topics:
31-bit - Amdahl - 2006 - Z/OS - 2007

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Another factor currently increasing mainframe use is the development of the Linux operating system, which is capable of running on many mainframe systems, either directly or, more commonly, in virtual machines. (See Linux on zSeries.) Linux allows companies and governments to take advantage of the software and development expertise from the open source community while enjoying the low per-user costs and high reliability (and security) of mainframes.

Related Topics:
Linux on zSeries - Open source

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