04
Mon, Nov
5 New Articles

IBM Posts Prices for New eServer i5 Models

Analysis of News Events
Typography
  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

When IBM announced two weeks ago that Mike Borman was taking over as General Manager of the iSeries group, the news riveted the attention of the midrange community. Indeed, the buzz about Borman caused many people to overlook another important announcement. Three days after the executive shuffle, IBM released new prices, terms, and conditions for its eServer i5 models.

While I examined the core concepts behind the announcements in an article that I posted two weeks ago, the official "letters"--as IBM calls them--contain details that deserve further exploration. This article starts the exploration process. However, before you venture out with me, I would encourage you to read (and perhaps reread) the aforementioned column as well as my July 19 article that examines the new Model 570 servers. The eServer i5 is a very different animal than the iSeries 8xx, so you should understand how IBM is packaging this versatile beast before tackling its finer details.

The Pricing Is in the Packaging

If there is one thing that you need to understand about eServer i5 prices, it is that the multiprocessor models use a more "unbundled" pricing system than the one that the iSeries 8xx models use. To put it another way, the price of an eServer i5 depends on the optional i5/OS licenses and Enterprise Enablement features--in other words, 5250 capacity--that you add to it. By contrast, the iSeries 8xx models include these options as standard features. This makes the multiprocessor 5xx models somewhat like cars on a showroom floor whose list prices do not include everything that you need or want, such as air conditioning and power windows. Each eServer i5 Standard and Enterprise Edition is more of a starting point than a complete package.

The following table takes this basic principle and applies some hard figures to it. The table shows the number of active processors for each of the multiprocessor eServer i5 models. It also shows the number of i5/OS licenses and Enterprise Enablement features that come standard with each model and edition.

 

New Packaging and Pricing for n-Way eServer i5 Models
Model Number
Active/Standby
Processors
Performance
Standard Edition
Base Offering
Enterprise Edition
Base Offering
Active Processors2
Processors with i5/OS Licenses3
Base
Price
Active Processors2
Processors with i5/OS Licenses3
Enterprise Enablement Features4
Base
Price
520-0905
2-way
6000 CPW
2
1
$59,000
2
1
1
$175,000
570-0930
1/2-way
3300-6000 CPW
1
1
$71,000
1 + 11
1
2
$300,000
570-0921
2/4-way
6350-12000 CPW
2
1
$82,000
2 + 11
1
4
$450,000
570-0922
5/8-way
15200-23500 CPW
5
4
$276,000
5 + 11
4
4
$662,000
570-0924
9/12-way
25500-33400 CPW
9
4
$339,000
9 + 11
4
4
$970,000
570-0926
13/16-way
6350-44700 CPW
13
4
$404,000
13 + 11
4
4
$1,358,000

1 The number of active processors includes one additional processor activation provided in the Enterprise Edition.
2 Additional processors may be activated at a cost of $7,700 per processor.
3 Additional i5/OS licenses are available for $45,000 per processor.
4 Additional Enterprise Enablement features may be purchased if required. The cost is $50,000 per feature for the Model 520 and $150,000 for the Model 570. On the Model 570, customers can also purchase maximum 5250 capacity on all active processors for $250,000.

As you study the table, note that it has a "base price" instead of a "list price" column. To determine the list price for a model you are considering, you should take the base price and add to it the cost of any extra i5/OS licenses and Enterprise Enablement features that you might need (the prices are in the footnotes). You should also add $7,700 per processor for any standby processors that you will need to activate. If you are wondering how many extra processors, i5/OS licenses, and Enterprise Enablement features you may need, use the following guidelines:

  • Each standby processor that you activate will give you an extra 2,700 to 2,750 CPWs of raw performance over and above the base CPW rating of the server. The base CPW rating is in the far left column of the table. You can use activated processors to run OS/400, Linux, or AIX applications. However, you will need to buy an i5/OS license in order to use the extra performance for OS/400 workloads.
  • Each additional i5/OS processor license that you purchase will give you the capacity of one extra processor (again, around 2,700 to 2,750 CPWs) to run OS/400 applications. Understand, however, that if you intend to use that capacity to run 5250 applications, you may need to purchase an Enterprise Enablement feature.
  • The Enterprise Editions come standard with a base number of Enterprise Enablement features. Each feature gives you the capacity of one processor to run 5250 applications. As a result, you get around 3,000 CPWs of 5250 performance on the 2-way Model 520, around 6,000 CPWs on the 1/2-way Model 570, and around 12,000 CPWs on the other Model 570 servers. Should you need more 5250 capacity than these levels offer you--and few customers will need more than these levels--you must buy additional Enterprise Enablement features. Each Enterprise Enablement feature will give you around 2,700 to 2,750 CPWs of 5250 application performance--in other words, one incremental processor's worth. By the way, an Enterprise Enablement feature does not limit you to running 5250 applications on a single physical processor. That would require you to use partitions to control where your 5250 applications run, and IBM is not forcing you to do that. An Enterprise Enablement feature simply provides one processor's worth of 5250 capacity that you can use across all of your active processors.

The Price of Freedom

While the new pricing system gives customers greater flexibility to configure their servers, that flexibility comes at a cost. The cost is the added burden that it puts on customers to know the computing resources that each of their iSeries applications is using. That burden was not as great on the iSeries 8xx Enterprise Editions because those offerings were relatively complete bundles. The problem with complete bundles, however, is that they allow their owners to be a little sloppy when it comes to monitoring resource usage. By contrast, you will need to measure and model your capacity usage at a fairly granular level before you order a multiprocessor eServer i5 model. If you don't, you could easily under-configure or over-configure your system.

There are many other details about the new eServer i5 pricing system that deserve examination, and I plan on visiting those details in future articles. Be on the lookout for columns about the costs of upgrading to the multiprocessor models and deploying Linux and AIX on the systems. For now, I would encourage you to power up your Performance Management for iSeries tools, run some capacity usage reports, and prepare yourself for our next journey into the brave new world of IBM's eServer i5.

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

LATEST COMMENTS

Support MC Press Online

$

Book Reviews

Resource Center

  • SB Profound WC 5536 Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application. You can find Part 1 here. In Part 2 of our free Node.js Webinar Series, Brian May teaches you the different tooling options available for writing code, debugging, and using Git for version control. Brian will briefly discuss the different tools available, and demonstrate his preferred setup for Node development on IBM i or any platform. Attend this webinar to learn:

  • SB Profound WP 5539More than ever, there is a demand for IT to deliver innovation. Your IBM i has been an essential part of your business operations for years. However, your organization may struggle to maintain the current system and implement new projects. The thousands of customers we've worked with and surveyed state that expectations regarding the digital footprint and vision of the company are not aligned with the current IT environment.

  • SB HelpSystems ROBOT Generic IBM announced the E1080 servers using the latest Power10 processor in September 2021. The most powerful processor from IBM to date, Power10 is designed to handle the demands of doing business in today’s high-tech atmosphere, including running cloud applications, supporting big data, and managing AI workloads. But what does Power10 mean for your data center? In this recorded webinar, IBMers Dan Sundt and Dylan Boday join IBM Power Champion Tom Huntington for a discussion on why Power10 technology is the right strategic investment if you run IBM i, AIX, or Linux. In this action-packed hour, Tom will share trends from the IBM i and AIX user communities while Dan and Dylan dive into the tech specs for key hardware, including:

  • Magic MarkTRY the one package that solves all your document design and printing challenges on all your platforms. Produce bar code labels, electronic forms, ad hoc reports, and RFID tags – without programming! MarkMagic is the only document design and print solution that combines report writing, WYSIWYG label and forms design, and conditional printing in one integrated product. Make sure your data survives when catastrophe hits. Request your trial now!  Request Now.

  • SB HelpSystems ROBOT GenericForms of ransomware has been around for over 30 years, and with more and more organizations suffering attacks each year, it continues to endure. What has made ransomware such a durable threat and what is the best way to combat it? In order to prevent ransomware, organizations must first understand how it works.

  • SB HelpSystems ROBOT GenericIT security is a top priority for businesses around the world, but most IBM i pros don’t know where to begin—and most cybersecurity experts don’t know IBM i. In this session, Robin Tatam explores the business impact of lax IBM i security, the top vulnerabilities putting IBM i at risk, and the steps you can take to protect your organization. If you’re looking to avoid unexpected downtime or corrupted data, you don’t want to miss this session.

  • SB HelpSystems ROBOT GenericCan you trust all of your users all of the time? A typical end user receives 16 malicious emails each month, but only 17 percent of these phishing campaigns are reported to IT. Once an attack is underway, most organizations won’t discover the breach until six months later. A staggering amount of damage can occur in that time. Despite these risks, 93 percent of organizations are leaving their IBM i systems vulnerable to cybercrime. In this on-demand webinar, IBM i security experts Robin Tatam and Sandi Moore will reveal:

  • FORTRA Disaster protection is vital to every business. Yet, it often consists of patched together procedures that are prone to error. From automatic backups to data encryption to media management, Robot automates the routine (yet often complex) tasks of iSeries backup and recovery, saving you time and money and making the process safer and more reliable. Automate your backups with the Robot Backup and Recovery Solution. Key features include:

  • FORTRAManaging messages on your IBM i can be more than a full-time job if you have to do it manually. Messages need a response and resources must be monitored—often over multiple systems and across platforms. How can you be sure you won’t miss important system events? Automate your message center with the Robot Message Management Solution. Key features include:

  • FORTRAThe thought of printing, distributing, and storing iSeries reports manually may reduce you to tears. Paper and labor costs associated with report generation can spiral out of control. Mountains of paper threaten to swamp your files. Robot automates report bursting, distribution, bundling, and archiving, and offers secure, selective online report viewing. Manage your reports with the Robot Report Management Solution. Key features include:

  • FORTRAFor over 30 years, Robot has been a leader in systems management for IBM i. With batch job creation and scheduling at its core, the Robot Job Scheduling Solution reduces the opportunity for human error and helps you maintain service levels, automating even the biggest, most complex runbooks. Manage your job schedule with the Robot Job Scheduling Solution. Key features include:

  • LANSA Business users want new applications now. Market and regulatory pressures require faster application updates and delivery into production. Your IBM i developers may be approaching retirement, and you see no sure way to fill their positions with experienced developers. In addition, you may be caught between maintaining your existing applications and the uncertainty of moving to something new.

  • LANSAWhen it comes to creating your business applications, there are hundreds of coding platforms and programming languages to choose from. These options range from very complex traditional programming languages to Low-Code platforms where sometimes no traditional coding experience is needed. Download our whitepaper, The Power of Writing Code in a Low-Code Solution, and:

  • LANSASupply Chain is becoming increasingly complex and unpredictable. From raw materials for manufacturing to food supply chains, the journey from source to production to delivery to consumers is marred with inefficiencies, manual processes, shortages, recalls, counterfeits, and scandals. In this webinar, we discuss how:

  • The MC Resource Centers bring you the widest selection of white papers, trial software, and on-demand webcasts for you to choose from. >> Review the list of White Papers, Trial Software or On-Demand Webcast at the MC Press Resource Center. >> Add the items to yru Cart and complet he checkout process and submit

  • Profound Logic Have you been wondering about Node.js? Our free Node.js Webinar Series takes you from total beginner to creating a fully-functional IBM i Node.js business application.

  • SB Profound WC 5536Join us for this hour-long webcast that will explore:

  • Fortra IT managers hoping to find new IBM i talent are discovering that the pool of experienced RPG programmers and operators or administrators with intimate knowledge of the operating system and the applications that run on it is small. This begs the question: How will you manage the platform that supports such a big part of your business? This guide offers strategies and software suggestions to help you plan IT staffing and resources and smooth the transition after your AS/400 talent retires. Read on to learn: