Tampa-based T3 takes on mighty IBM

Can Tampa's T3 somehow become the "Terminator" of IBM's monopoly grip on the world's mainframe computer business? Legal actions brewing last week may test that notion.

T3 Technologies, based on West Shore Boulevard, has operated here since the early 1990s. Online, T3 touts itself as "the Other Mainframe Company" by providing mainframe and software services that compete directly with IBM.

Did I say mainframe? It sounds so 1980s, but mainframes remain a huge global business serving giant corporations, banks and defense agencies in need of massive computing power. IBM owns 85 percent of that industry.

"Despite reports in the press that the mainframe market is shrinking, nothing could be further from the truth," T3 president Steven Friedman said early this year. "The mainframe market is not only vibrant, but growing."

That's why T3 once filed an antitrust claim against IBM in federal court in New York alleging antitrust violations and unfair competition.

T3's complaint? It alleged that IBM abuses its monopoly power in mainframes, preventing sales of competing mainframe hardware products by tying the sale of its operating system to its mainframe hardware.

That case was dismissed this month. But T3 has made more recent arguments to the European Commission.

Now IBM's mainframe business faces a review from the U.S. Justice Department over whether it excludes competitors, according to a trade group. The Computer and Communications Industry Association sent a report to the Justice Department last month, arguing IBM exploits its monopoly in operating systems for mainframes. The report cites T3's experience. IBM says it is cooperating with any Justice inquiry.

To say this is David vs. Goliath would be a remarkable understatement — except for one thing. The Justice Department, under the Obama administration, seems willing to revive antitrust policies that have been gathering dust in Washington for decades.

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CEO George M. Gordon is taking the plunge from professional manager to corporate owner. On Monday, Gordon announced he is the majority owner of Tampa-based Enporion. The private, online supply chain management solutions and services company run by Gordon was founded by power companies and serves the electric utility industry.

The good news for Enporion's 22 employees? Thanks to Gordon, 62, they also become equity owners in the company. "This is exciting," Gordon said in an interview. None of Enporion's employees was an owner before, Gordon included.

Employees may have had incentive stock options and wanted to see the company do well. But this, says Gordon, an ex-U.S. Navy officer, is different. "Now you want to throw yourself into it. It's a reflection of my belief that this team can fuel tremendous growth moving forward."

Like many businesses, Gordon says, Enporion has fewer employees than it did a year ago (the company once had 50 on staff) and the company has even trimmed its paychecks. But Gordon says Enporion is profitable and thinks the worst of the recession is over. "Things are starting to pick up," he says, "but we have a long way out of this mess."

Robert Trigaux can be reached at trigaux@sptimes.com.