IBM eyes Java marketplace with AS/400

In what could prove to be a major boost for establishing the corporate credibility of Java-based application servers, IBM’s AS/400 Division is planning a Java-centered version of its server for OEMs.

Though the idea of licensing the AS/400 server’s proprietary technology has been in and out of fashion the last few years at IBM, company officials said they believe that with the rise in awareness of server-side Java, coupled with a growing demand for application-specific servers, the timing may be right.

“We are actively looking at ways to take some of our technologies into the marketplace, particularly around Java and Domino-specific servers,” said Tom Jarosh, general manager at IBM’s AS/400 Division.

Although he wouldn’t identify the companies IBM has approached with the idea, Jarosh said he believes there is a healthy amount of interest in the idea.

As part of the OEM package, IBM would make a scaled-back version of the 64-bit OS/400 operating system — perhaps just its kernel — available with a Java engine sitting on top. The company would also market such a system and would include any number of Java-based vertical applications to industries such as banking, insurance, and others.

What is further encouraging IBM to move forward with the idea is the performance of Java on its OS/400 platform. Company officials attribute that performance, in part, to the marriage of two pure object-oriented technologies: Java and the OS/400 operating system.

Over the past two years, IBM officials have said OS/400 is the only top-to-bottom object-oriented operating system on the market.

“The full implementation of Java we have [on OS/400] scales and performs really well. And it is something we can package all together so users do not have to worry about gathering up all these parts,” Jarosh said.

“It does seem that IBM is finally putting some overdue and well-deserved emphasis on the AS/400,” said John Wilkins, a technical consultant at a glass manufacturer based in the Midwest. “I know they are working feverishly in this area to expand out some of its capabilities that might be useful to users looking at server-based Java.”

“This move makes sense, particularly from a Java standpoint and as a way of providing another channel for selling the platform. For OEMs, there is a lot of technical value in the box,” said Steve Josselyn, a research director at International Data Corp., in Framingham, MA.

One industry observer said the move could be a double-edged sword for Sun Microsystems. On one hand, it furthers Sun’s mission to establish Java as an industry standard. But on the other hand, it could hurt sales of Sun’s SPARC-based machines.

IBM officials have reported double-digit revenue growth for the AS/400 in each of the last four quarters, and remain confident that this trend will continue based on anticipated customer demand, a company representative said.