NEW YORK: IBM's dominance in large computer systems called mainframes may make it look like the US government has an open and shut case of
monopoly, but upon closer examination it appears there is more competition than critics suggest.
Analysts say the mainframes in question represent a small segment of the broader server market, where rivalry is heating up due to Oracle Corp's planned acquisition of Sun Microsystems Inc, as well as, network equipment giant Cisco Systems Inc's recent market entry.
The Computer and Communications Industry Association (CCIA), which urged the US Justice Department to investigate International Business Machines Corp, said the vendor of technology hardware and services had a 100 percent grip in mainframe operating systems.
IBM does dominate when it comes to supplying mainframe systems that run on its own operating system. But analysts say competition exists in other kinds of high-end servers, which similarly process large workloads and serve as the central nervous system for ATMs and airline bookings.
Technology research firm IDC's data shows IBM's high-end mainframe products, called System z, accounts for around 10 percent of worldwide server revenue of $53.3 billion.
In overall servers, IBM had 34.5 per cent market share, with HP holding around 28.5 per cent share, according to IDC.
Analysts said that since customers can switch to other mainframes or other servers, it made sense to look at the broader market.
"It's not as though people don't have other choices or can't turn to other products to do the work," said Jeffrey Hewitt at Gartner.
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