Over the last several months, IBM has been quietly enhancing its current eServer i5 models to make them faster, more flexible, and less expensive. This morning, it is unveiling the revamped models with a new name: System i5. In addition, Big Blue is announcing i5/OS V5R4, a new operating system release that will make it easier for companies to modernize their applications. The refreshed server lineup and software will become generally available on February 14.

While the enhanced servers retain the same model numbers as last year's eServer i5 systems, they are significantly different on the inside. With the exception of the revamped Model 595, the new models sport faster POWER5+ processors and speedier DDR2 memory. In addition, the refreshed models are the first that can run without any I/O processors, though they can support IOPs from older servers. Since the System i5 models can run either i5/OS V5R3 or V5R4, current V5R3 license holders can upgrade to them without having to install a new operating system release.

The Model 520 Redux

To understand what IBM has wrought, let's review the System i5 models in order. At the entry level, the revamped Model 520 continues to come in Value, Express, Standard, and Enterprise Editions. However, all editions now pack POWER5+ processors with 1.9 GHz clock speeds. In addition, every processor comes with an L3 cache. This gives the Value and Express editions an extra performance boost, as these editions lacked an L3 cache.

Speaking of performance boosts, the refreshed Model 520 Value and Express Editions offer a new feature that lets users dramatically increase their batch performance with a flip of a virtual switch. The feature, known as Accelerator for System i5, removes the "governor" that prevents Value and Express Edition servers from utilizing their processor's full capacity. Removing the governor is as simple as applying an install key, which costs $13,500.

Once the Accelerator is turned on, batch performance skyrockets from 600 CPW to 3,100 CPW on the entry-level Value and Express Editions and from 1,200 CPW to 3,800 CPW on the "growth" configurations. This gives the models a Capacity on Demand (COD) capability that the original models lacked. The COD capability makes it easier for users to support Web-based applications that used to require the up-front purchase of a 2,400 CPW Value or Express Edition. Now, customers can buy a less-expensive configuration and accelerate it "on demand" when their Web-enabled applications require the extra horsepower.

The following table provides some Value Edition prices that IBM was willing to provide as this article went to press. As the table shows, the Value Edition now comes in four configurations. There are two "non-accelerated" models in the P05 and P10 tiers. Each of these models can be accelerated at a cost of $13,500.

While I do not yet have access to prices for the refreshed Express Editions, I can tell you that the 600/30 CPW configurations will cost the same as current 500/30 CPW models. In like fashion, prices for new 1,200/60 CPW configurations will match those of the current 1,000/60 CPW models. As a rule, the accelerated versions of these two configurations will cost roughly the same as the current 2,400/60 CPW models but may vary from them by as much as $2,000.

The Model 520 Standard and Enterprise Editions have also undergone important changes. IBM has reduced the number of processor feature codes for these editions and replaced the 2-way configuration with a 1/2-way COD model. Activating the second processor on the 1/2-way configuration costs just $1,800. Moreover, running i5/OS on that second processor now costs just $24,000 instead of $49,000, and that price includes one year of maintenance. The following table provides an overview of the original and refreshed models.

As the above table indicates, IBM has significantly improved the price/performance of the Model 520 Standard Edition. On average, the refreshed models offer a cost per batch CPW that is 34% to 39% less than that of their predecessors. This makes them considerably more competitive with Windows servers when it comes to running Web-based workloads. On the Enterprise Editions, the price/performance of the new 1/2-way model is especially attractive.

Pumping Up the Models 550 and 570

While IBM made extensive changes to the Model 520 lineup, it barely tweaked the Model 550. This model continues to be offered in a 1/4-way COD configuration. The only differences between the original and refreshed version are as follows:

• The POWER5 processors running at 1.65 GHz have been replaced with POWER5+ processors running at 1.9 GHz.
• The DDR memory has been replaced with faster DDR2 memory.
• These changes boost the performance of the Model 550 by 15%.
• IBM will ship a new High Availability Edition of this model.

Customers who purchase a new Model 550 Enterprise Edition will be pleased to learn that they will get a price break on additional Enterprise Enablement features. On the original Model 550, these features—which add one processor's worth of interactive performance—cost $100,000. On the refreshed model, they cost only $50,000. This significantly reduces the cost of supporting 5250 workloads on the Model 550.

Within the System i5 family, the one server that IBM really juiced up is the Model 570. On this system, IBM replaced POWER5 processors running at 1.65 GHz with POWER5+ processors that clock in at a screaming 2.2 GHz. This boosts performance by just over 30% and reduces the cost per CPW of the server by similar percentages. Besides turbocharging the Model 570, IBM made the following changes to the server:

• It reduced the number of processor configurations within the model from five to three. This was accomplished by dropping the 1/2-way configuration (which the 1/4-way Model 550 replaces) and combining the old 9/12-way and 13/15-way configurations into a new 8/16-way model.
• As it did on the Model 550, IBM reduced the cost of Enterprise Enablement features to $50,000. Moreover, it is reducing the number of Enterprise Enablement features that come with the Model 570 from four to one. These changes represent an enormous reduction in the cost of running 5250 workloads on the server. They also give customers more flexibility in running non-5250 workloads.

An Expanded Model 595

Unlike its refreshed brethren, the Model 595 will continue to run on POWER5 processors, but at a faster 1.9 GHz clock speed. This cycle time improvement helps to boost overall performance anywhere from 7% and 11%, depending on the configuration. In addition, the revamped model comes with expanded I/O capabilities. It can support more High-Speed Link loops: two more on the 8/16-way, three more on the 16/32-way, and nine more on the 32/64-way. The 32/64-way configuration can also support up to 96 I/O expansion units versus the previous limit of 72. High-end users will welcome the addition of High Availability and Capacity Backup Editions to the Model 595 lineup. These editions could significantly reduce the cost of securing the large volumes of data that such servers support. Speaking of costs, IBM has also reduced the price of Enterprise Enablement features on the refreshed configurations from $150,000 to $50,000.

Getting from There to Here

The System i5 models come with upgrade paths that are quite similar to those of the original eServer i5 models. As the following table indicates, owners of iSeries 8xx models can upgrade to the same Model 5xx configurations as before. As IBM promised back in 2004, the Standard and Enterprise editions of the original POWER5 models can be upgraded to POWER5+ servers that bear the same model number. In addition, original Model 570s can be upgraded to refreshed Model 570s, refreshed Model 595s, or original Model 595s.

As IBM has stated in the past, customers can only upgrade their servers to like editions (for instance, from Standard to Standard). While the refreshed POWER5+ models support the same I/O devices as their predecessors, they do not support the same memory features. That is because the POWER5+ servers—the refreshed Models 520, 550, and 570—use faster DDR2 memory. As a consequence, customers must buy new memory when upgrading to these models. Since the refreshed Model 595 still uses DDR memory, upgrades to this model do not require new memory features.

The Big Picture

Whenever IBM makes a substantial hardware announcement, it is easy to lose sight of the big picture amidst all the details. With that in mind, let's step back to see if we can understand what Big Blue is really trying to do with this announcement. As I see it, the computer giant is trying to do three things:

• By offering COD capabilities on entry-level Model 520 configurations, IBM is making it easier and less expensive for smaller companies to run Web-based workloads and Domino applications. That makes the System i5 more competitive with Windows servers and more attractive to software vendors that serve smaller firms.
• By putting the fastest processors on the Model 570, IBM is positioning the server as a platform that can cost-effectively consolidate OS/400, UNIX, and Linux workloads. Companies that run these workloads will find the new Model 570 quite attractive.
• By reducing the cost of Enterprise Enablement features on the refreshed models, IBM is acknowledging that its customers are tired of paying steep prices for 5250 workloads. The vendor is also acknowledging that these workloads will be with us for years to come. Having accepted these facts, IBM will focus on making it easier for customers to modernize their 5250 applications while reducing the penalties for not modernizing them.

To prove my final point about application modernization, I will need to discuss the software announcements that IBM made today. However, that discussion will have to wait until next week. Be sure to join me this coming Monday when I examine i5/OS V5R4 and some exciting Windows integration capabilities that the new operating system release will support later this year.

Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology. You can reach him at This email address is being protected from spambots. You need JavaScript enabled to view it..

Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology.

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