Microsoft Invests In IBM Mainframe Nemesis
PSI, which plans to use its Series C round of $37 million to expand its engineering, marketing, and sales efforts, will also enter a joint sales agreement with Microsoft to sing the praises of Windows Server to enterprises with heterogeneous mainframe and server environments.
Founded in 2003 as a spinoff of mainframe maker Amdahl, PSI carved out a name for itself in the mainframe market by touting the fact that its Intel Itanium-based Open Mainframe servers can run IBM's z/OS mainframe operating system as well as Linux, Unix, and Windows, making it a perfect fit for data centers.
But PSI's ascent was interrupted last December when IBM filed a lawsuit claiming that PSI had violated its mainframe patents. PSI filed a countersuit in January accusing IBM of anti-competitive behavior.
In an August U.S. District Court filing, IBM alleged that "PSI's entire business model is built on PSI's theft of IBM's intellectual property," and that PSI has been engaged in "long term, systemic theft" of IBM's trade secrets, confidential documents, and copyrighted software.
In a September filing, PSI characterized itself as "the target for IBM's current campaign to eliminate competition in the worldwide market for mainframe computers".
In addition to Microsoft, PSI is backed by Intel, Goldman Sachs, InterWest Partners, and Blueprint Ventures.