Unbundling

Definition
Unbundling means to offer hardware, software and services, allowing a customer to acquire the components for its information technology system from any vendor or combination of vendors.

IBM Unbundling of Software and Services
On June 23, 1969, IBM, under pressure from pending antitrust litigation by various competitors and the U.S. [[Department of Justice, announced that it would unbundle much of its software and services, and would price and offer many types of software and services separate from its hardware. Under the announcement:


 * Systems engineering work would be priced on an hourly basis, except for marketing

and sales support activities.


 * Equipment maintenance (field engineering) would be priced on a monthly fee basis.


 * Education was priced on a per-student or per-course basis, except for marketing and

sales classes.


 * Custom programming was initially to be priced on a cost-plus basis, with the future

option to bid fixed-price contracts.


 * Seventeen language, utility, and application software products were announced on a

monthly lease-pricing basis, which included telephone support, error correction, and some future enhancements. and services industries.