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Big Blue slashes prices

IBM is kicking Sun when it is down by slashing memory prices on its Power Systems line. Memory prices are being slashed by between 28 percent and 70 percent and it is convinced that will enable more than $500 million in competitive takeouts of Sun and HP each year.

IBM wants people to replace those machines with Power-based servers generally running AIX, but also with a smattering of Linux and i/OS. So far Big Blue has found a small number of companies interested in doing that but they make it a lot of dosh.

The number of defecting businesses has been growing lately too. Big Blue said that it nicked $150 million in competitive takeouts in the third quarter alone, and has busted through $400 million in the first nine months of the year.

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