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December 11, 2013

In a slowing market, things can shift quickly

Whoa-stopOur November printed edition of The 3000 Newswire carried a headline about the success that the Stromasys CHARON emulator is experiencing in your community. However, one of the green lights we noted in that article turned red during the time between writing and delivery into postal mailboxes.

Ray Legault has checked in to report that the project to virtualize HP 3000s closing down in a soon-to-be-closed disaster recovery site has been called off. The close-out doesn't appear to reflect any shortfall in the value of the CHARON element. But carrying forward applications has proved to be complicated.

Page 1 Nov 13In particular, the costs for license upgrades of third-party software came in for special mention. This isn't standalone application software, like an Ecometry or MANMAN or even an Amisys. That sort of app isn't in wide use in 3000 customer sites, and to be honest, off the shelf solutions never were. The software license that needed a transfer wasn't from HP, either. MPE/iX has a ready, $432 transfer fee to move it to an industry-standard Intel system. No, this well-known development and reporting tool was going to cost more than $100,000 to move to a virtualized HP 3000.

"Our project was cancelled due to other reasons not related to the emulator," Legault said. "Maybe next year things will change. The apps not having a clear migration path seemed to be the issue."

So file this blog report under a correction, or perhaps an update. But I wouldn't want to be the bearer of incorrect news, and there's something virtuous about filing a correction, anyway.

Where we made our mistake was in observing activity in license transfer inquiries, then getting information about a pending CHARON purchase, but not seeing a confirmed PO. That's a document we rarely see here at the Newswire. These days, it's a rare thing for anyone to share a number as specific as, say, $110,000 for a license fee.

For a company which has eight remaining applications to push into the year 2018, and needs to keep those apps hotsite-recoverable, an emulated 3000 with low hardware costs makes good sense. But there are license budgets to resolve in order to proceed with this sort of transition activity. 

Most important, we haven't heard any reports yet of any vendor who flat-out refuses to license their MPE/iX software for CHARON. Perhaps when a vendor has to watch a $110,000 sale disappear, it could spark a different approach to the business proposition of serving a slowing marketplace. Maybe next year, things will change.

In the news business when there's a mistake, we were always taught to close the correction with "We regret the error." In this case, everybody regrets the shift in strategy.

06:21 PM in Homesteading, Newsmakers, User Reports | Permalink

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