IBM has told AS/400 resellers in the US and the UK that it will be reducing the discounts they can claim on the machines from January 1 – and it has been suggested they may be cut in half, although that is not confirmed. Details of the revised terms have not been revealed, but XL/Datacomp of Chicago says that the new terms will mean that it must either sacrifice margins or settle for a reduced level of business next year, and has decided on the latter course which means that it will be selling fewer AS/400s. It is also considering diversification, offering its software with other manufacturers’ hardware. And its UK subsidiary, which is based in Slough, has been denied a stand at the IBM ’90 exhibition which is scheduled for the National Exhibition Centre in Birmingham in March. Full story – page four.
