Re: The demise of Midrange Computing - Is AS/400 is dead ? -- MIDRANGE-L

Al,

Keep it up.  I'm hopeing that you will drive enough people away from the
iSeries that you will actually change the job market. :)

barsa@barsaconsulting.com wrote:
> 
> Hi,
> 
> IBM is in the highest corporate tax rate. Lets say for the sake of argument
> that's 36%.   With that in mind, today IBM pays a profit ox X, and pays a
> tax of Y.  If they advertised the AS/400, they would sell more of them.
> The AS/400 is a high profit margin product, so certainly any advertising
> they did would more than offset the expense in profits.
> 
> So for every dollar they make in additional income (additional income from
> selling more AS/400s less advertising dollars), they would pay an
> additional $0.36 in taxes.  That means they would keep an additional $0.64
> in net profit.
> 
> For every additional $1,000,000 in profit they would make, they would pay
> an additional $360,000 in taxes.  That means that they would keep an
> additional $640,000 in net profit.  God forbid that they would ever have to
> pay that additional $360,000 despite whatever other consequences (like
> additional net profit).
> 
> Keep in mind, "relevant" platforms (despite however irrelevant they might
> be) like Oracle, sponsored the first night of the World Series, but IBM
> keeps silent on the iSeries.  Oracle gets students coming out of college to
> learn their technology, compared to a relative poor job that IBM is able to
> do with the iSeries.
> 
> The entire industry is having massive layoffs, but not the iSeries.
> 
> Is this a spoof comment, you bet it is.  IBM is consistently spoofed by
> their own senior management, by prohibiting the iSeries from doing
> competitive advertising.  The iSeries-AS/400 is the best computer
> technology in the world.  Let's keep the secret safe, and save IBM from
> paying all those taxes.
> 
> Al - in Boston on vacation
> 
> Al Barsa, Jr.
> Barsa Consulting Group, LLC
> 
> 400>390
> 
> 914-251-1234
> 914-251-9406 fax
> 
> http://www.barsaconsulting.com
> http://www.taatool.com
> 
> 
>                     MacWheel99@aol.com
>                     Sent by:                   To:     MIDRANGE-L@midrange.com
>                     owner-midrange-l@mi        cc:
>                     drange.com                 Subject:     Re: The demise of 
>Midrange Computing - Is AS/400 is dead ?
> 
> 
>                     08/01/01 01:52 PM
>                     Please respond to
>                     MIDRANGE-L
> 
> 
> 
> Al Barsa writes:
> 
> > IBM is at the highest tax rate.
> >
> >  Advertising the 400 would increase their profits, and consequently the
> >  amount of tax they had to pay.
> 
> This might be a spoof comment.
> 
> However there is the topic of marginal rate on advertising.
> I have to work harder to get that extra buck because more bucks means more
> taxes, so at some point the extra work isnt worth the extra money.
> 
> Also how much market share will grab the attention of the Justice
> Department.
> We might argue that the Anti-Trust Division should be reviewing Microsoft &
> 
> was right to go after IBM 1/2 a century ago, but from the perspective of
> the
> company at risk of such review, one might not trust the Justice Department
> to
> weild Justice, so one might go after market share just below the threshhold
> 
> of Justice Dept interest.
> 
> MacWheel99@aol.com (Alister Wm Macintyre) (Al Mac)
> 
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