Computer Associates International and IBM last week announced a collaboration in pricing, software-package development and support for the IBM OS/390 platform.
The two companies are betting that 'OS/390 will become the e-business server of choice', said David Carlucci, general manager for the S/390 division at IBM.
The pricing alignment for IBM's Multiprise 3000 Server will deeply cut CA software costs, said Charles Wang, CA chairman and CEO.
CA is offering another price break to companies migrating from the VSE to OS/390 operating systems. During the transition - for up to three years - companies pay none of CA's VSE software licensing fees, said a CA spokesman.
'It's a bold approach,' said Charlie Burns, an analyst at Giga Information Group. While mainframe hardware prices have dropped, software prices haven't, he said. 'People try to upgrade, and they save on the hardware, then get hit with millions of dollars of upgrade costs on the software,' he said.
The new e-business applications will further buttress a company's decision to stay with its mainframe environment, Burns predicted.