IBM Discloses Details of 2009 Game Plan

But how can companies shell out for a new mainframe in this economy? The rationale is cost-cutting and quick return on investment. The z10 BC is said to dramatically cut energy consumption, giving businesses an incentive to buy even amid an economic downturn.

IT spending surveys say corporations are still willing to approve new projects that reduce operating costs. The business class mainframe allows data centers to unplug up to 232 "underutilized" x86 servers, or about 23 virtualized servers, says Jim Porell, System z platform distinguished engineer.

While some vendors still call the mainframe yesteryear's technology, back-of-the-envelope tradeoffs don't bear that out. Farina estimates a z10 BC model - all in - will run $150,000 to $200,000 - less than half the price of a fully comparable x86 installation bought today.

Making IBM's long-term EPS projections won't mean meeting hard expectations for each specific contributor, such as revenue growth, Loughridge says. "But over the longer term, we feel pretty confident that we have a good game plan to achieve that objective."