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He sold the mainframe leasing portfolio to IBM Credit Corp. for $485 million inMay 1999.
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Technology services company Comdisco cdo said it had agreed in principle to sell its mainframe computer leasing portfolio to IBM Credit Corp. as part of its plan to focus on the higher-margin, high-growth technology services business.
Half of mainframe computer systems are leased.
Find some way to collect a perennial stream of revenues from those customers as Microsoft does by selling upgrades, or IBM by servicing a legacy of mainframes, or Oracle by leasing its databases.
IBM made a fortune by leasing its big mainframe computers to customers, setting up the leases so the purchase price of the computer was covered in four years of lease payments, then carrying the lease on for years thereafter.
These include the lease-like revenues from licences relating to its mainframe computers and its pioneering "multi-core" semiconductors, which feature in (among other things) the three leading video-games consoles.Yet corporate IT departments are continually being pressed to cut costs.
In the spring of 1981 the two universities used leased telephone circuits to allow accounts on their respective mainframe computers to communicate, thus initiating what would eventually become known as BITNET.
When talking about the leasing model, Mr. Bergquist uses a phrase, "time sharing," that invokes the mainframe days of the 1960's and 1970's, when companies had no choice but to entrust their critical data to other companies.
Leasing works.
After all, the mainframe is still thriving.
I don't have a mainframe.
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