PSI workers and intellectual property will be melded into IBM’s "long-term mainframe product engineering cycles" and future product plans, according to the computer industry behemoth.<\/p>\n
"This acquisition makes the most sense for our companies," PSI chief executive Michael Maulick said in a release. "To collaborate on future technology offerings."<\/p>\n
Financial details of the deal were not disclosed.<\/p>\n
PSI and IBM were suing one another in federal court in New York state, where IBM is based.<\/p>\n
IBM accused PSI of violating its patented technology in plug-in mainframe computers. PSI counter-sued, accusing IBM of trying to lock-up the market by refusing to license critical software to other companies.<\/p>\n
A condition of the acquisition deal is that IBM and PSI drop their respective lawsuits.<\/p>\n
The Computer & Communications Industry Association condemned the tie-up as a move by IBM to "foreclose competition in the mainframe marketplace, protecting IBM’s cash cow at the expense of consumers."<\/p>\n
"This is a black hole acquisition," said CCIA president Ed Black.<\/p>\n
"It sucks the life out of the market and destroys the matter, transforming a market with latent potential for competition and innovation into asector with little prospects for anything but complete domination by IBM."<\/p>\n
More than 80 percent of the world’s government and corporate data is stored on computer mainframes, with 95 percent of Fortune 1000 companies using IBM hardware for the job, according to the CCIA.<\/p>\n
Black called on government regulators in the United States and Europe to scrutinize the acquisition even though it does not meet standards for mandatory review.<\/p>\n
"More commercial transactions are processed on mainframes than on any other platform," Black said.<\/p>\n
"And yet, the mainframe market is completely dominated by one company IBM, with well over 90 percent market share. Antitrust authorities must pay attention."<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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