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Technology : IBM to Unveil More Powerful Workstations

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From Reuters

International Business Machines Corp. will unveil advanced workstations today that could boost its position in the fast-growing market, industry sources say.

The company said it will offer more powerful and speedier RISC System/6000 models--powerful desktop machines that are used in design, engineering and science. The new products substantially boost performance, according to industry consultants briefed Friday by IBM officials.

IBM has amassed a big chunk of the fast-growing workstation market in a short period.

IBM was No. 4 in the market last year and could grab a 14% share in 1991, according to International Data Corp., a Framingham, Mass.-based market research company.

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Workstations, more powerful versions of desktop personal computers, have attracted a growing number of commercial users as well as buyers in the traditional technical market.

Annex Research President Robert Djurdjevic said IBM will introduce several new RS/6000 models in the first half of 1991, including a top-price server and a new low-cost machine. Servers are systems that can power a network of computers, allowing them to share data.

Analysts predict that the company will add a new low-cost model that sells for less than $10,000 later this year, helping it substantially boost unit shipment volume.

New price levels would help IBM become more competitive with key rivals, including market leader Sun Microsystems Inc., said Sam Albert, president of Sam Albert Associates.

“They are going to continue narrowing the gap between Sun and themselves,” he predicted.

Albert estimates that IBM will garner total revenue of $1.5 billion to $2 billion in 1991 from its RS/6000 models.

IBM has set a goal to lead the workstation market in terms of revenue by 1993, consultants said.

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IBM said in January that it posted $1 billion in revenue for RS/6000 hardware, software and related products in 1991.

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