Controversy Surrounds IBM's Mainframe Business in India
IBM Rebuts Allegations of Mainframe Market Domination
IBM, one of the world's leading technology companies, is facing criticism over its business practices in India. A report by the Indian Council for Research on International Economic Relations (ICRIER) and IT forum OpenMainframe.org has accused IBM of anti-competitive practices in the mainframe sector.
The report suggests that IBM should 'unbundle' its hardware and software, arguing that the company's bundling of operating systems with its mainframes makes it difficult for competitors to offer alternatives due to restrictive licensing practices.
This is not the first time IBM has faced scrutiny. In October 2009, the US Department of Justice launched an investigation into IBM regarding its mainframe business.
IBM's spokesperson has responded to the report, stating that OpenMainframe.org is "bought and paid for" by Microsoft. The spokesperson also defended the mainframe business, commenting that calling it a 'monopoly' is silly, and that only a decade ago, the IBM mainframe was on the verge of extinction.
However, the report alleges that IBM undercuts its competitors in terms of price, which could potentially stifle competition in the Indian market. Mainframe hardware manufacturer T3 Technologies has filed an official complaint against IBM, adding weight to these allegations.
A software company called NEON Technologies has accused IBM of "business disparagement and tortious interference". IBM denies wrongdoing in all cases related to the accusations by T3 Technologies and NEON Technologies.
The report surveyed more than 70 major IT deployments in India, including public sector institutions such as Indian Rail, the department of tax, and the Centre for Development of Advanced Computing. These findings suggest that IBM's mainframe business practices in India may be having a significant impact on the market.
IBM has invested billions of dollars to improve the mainframe platform, and its mainframe business, which has been largely unchallenged for at least a decade, has come under renewed criticism of late. IBM has responded to the report, stating that it will continue to focus on innovation and delivering value to its customers.
The controversy surrounding IBM's mainframe business practices in India is not yet resolved. The credibility of the report has been questioned by IBM, and further investigation is needed to determine the accuracy of the allegations. However, the report has sparked a discussion about competition and market practices in the Indian IT sector.
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