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IBM has unveiled a new mainframe that it hopes can compete with PC-based servers.

The zEnterprise EC12 has cost around £633 million to develop boosting processor cores around 25% more powerful than earlier attempts.

Prices for a standard lower end mainframe using the companies own chips start at about £633,000

Rather than purchasing a mainframe a large number of companies purchase and run banks of PC based servers for their processing needs.

It is widely believed the mainframe market will reduce by around 14% by 2016.

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