04
Mon, Nov
1 New Articles

IBM Prices eServer i5 to Win Customers

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

When IBM announced its eServer i5 systems two weeks ago, the company stated that it was pricing the new models aggressively. Now that list prices for i5 configurations are available, it is becoming clear that Big Blue meant what it said. The i5 servers offer 35% to 60% better price/performance than the iSeries 8xx models did before IBM slashed their prices in late April. Even with those price cuts, most i5 models still cost less on a per-CPW basis than their iSeries counterparts do. Moreover, costs to maintain i5 servers are substantially less than those for iSeries models.

Let's Do the Numbers

The eServer i5 models come in the same three basic types as their iSeries 8xx predecessors. You can get an entry-level i5 with a fixed number of CPWs for 5250 interactive workloads, a Standard Edition model with no interactive CPWs, or an Enterprise Edition with unlimited interactive CPWs.

In the i5 family, the "fixed interactive" servers are Model 520s that are comparable to the iSeries Model 800. The 520 models come in two editions. The Value Edition is a "bare bones" configuration of the Model 520 running at 500 or 1000 CPWs that offers 30 or 60 interactive CPWs. The Express Edition is a more full-featured version of the Value Edition that IBM will sell through its distributors. For instance, the Value Edition of the 520-0900 comes with only 512 MB of memory, a single 35 GB disk drive, and no twinaxial adapter at a list price of $9,995. By contrast, an Express Edition of the same model comes with 1 GB of memory, two 35 GB disks, and a twinaxial adapter for $11,500.

IBM has published suggested retail prices for the Express Edition models, but it will allow resellers to price them based on local market conditions. Regardless of the price, most customers will get more system for their money if they buy the Express Editions. Indeed, I expect that most entry-level customers will purchase Express Editions rather than Value Editions. As such, I have used Express Edition prices in the comparison table that follows. For the purposes of this table, I have lined up the iSeries 8xx and i5 models so that models with similar performance appear on the same rows.

A Comparison of the eServer i5 520 to iSeries Models
iSeries Model
Batch/
5250
CPWs
List Price
Cost per
Batch CPW
i5 520 Model
Batch/
5250
CPWs
List Price
Cost per
Batch CPW
Entry-Level Models with Fixed Interactive CPWs
800-2463
Value Edition
300/25
$9,995
$33.32
520-0900
Express
Edition #1
500/30
$11,500
$23.00
800-2463
Standard Edition
300/25
$17,445
$58.15
520-0900
Express
Edition #2
500/30
$14,500
$29.00
800-2464
Advanced Edition
950/50
$36,958
$38.90
520-0901
Express Edition #3
1000/60
$29,900
$29.90
Standard Edition Models
810-2465
750/0
$11,000
$14.67
520-0902
1000/0
$12,000
$12.00
810-2466
1020/0
$12,000
$11.76

810-2467
1470/0
$18,000
$12.24
520-0903
2400/0
$33,000
$13.75
810-2469
2700/0
$35,000
$12.96
520-0904
3300/0
$50,000
$15.15

520-0905
6000/0
$104,000
$17.33
Enterprise Edition Models
810-2465
750/750
$50,000
$66.66
520-0902
1000/1000
$48,000
$48.00
810-2466
1020/1020
$60,000
$58.82

810-2467
1470/1470
$80,000
$54.42
520-0903
2400/2400
$103,000
$42.92
810-2469
2700/2700
$150,000
$55.56
520-0904
3300/3300
$149,000
$45.15

520-0905
6000/6000
$270,000
$45.00

As you can see from the above table, the i5 Express Edition models are a definite value compared to the iSeries 800 lineup. Depending on the model, customers will spend anywhere from 10% to 60% less on a per-CPW basis for the i5 models. As I explained two weeks ago, however, realizing this value will require customers to upgrade to i5/OS. That may not be immediately possible for you if your software vendors have not yet certified their applications on the new operating system release.

By the way, the Express Editions vary significantly from each other in the software that they include. While all models come with OS/400, DB2 UDB, and WebSphere Application Server Express, the Express Editions #2 and #3 also include DB2 Query Manager, Query/400, iSeries Access, and WebSphere Development Studio.

While the i5 Express Editions are clear price/performance leaders over the iSeries, the Standard Editions are another story. Here, the cost per CPW of the iSeries 810 is quite competitive with the 520 Standard Editions. However, there is another factor to consider when comparing these models--or for that matter, when comparing any eServer i5 model against the iSeries. Compared to the iSeries 8xx family, the entire eServer i5 lineup offers substantially lower maintenance prices. For instance, while a 24/7 maintenance contract for the 810-2469 Standard Edition costs $450 per month, a comparable maintenance contract for the 520-0904 costs just $261 per month. Over four years, that adds up to $9,072 in savings. Moreover, if you include four years of 24/7 maintenance charges in the overall cost of these two models, the cost per CPW of the 520-0904 turns out to be over 9% lower than that of the 810-2469. In short, be sure to consider the maintenance contract savings of the i5 as part of any purchase decision.

The i5 520 Enterprise Editions represent a definite value over comparable iSeries 810 servers. This value is all the greater because maintenance contract prices for all i5 Enterprise Edition models are identical to those for Standard Editions of the same models. By contrast, maintenance charges for iSeries 8xx Enterprise Edition models were up to twice as much as those for Standard Editions. To understand the savings this represents, consider the fact that when excluding maintenance charges, a 520-0904 Enterprise Edition has a cost per CPW that is 19% better than that of the 810-2469. When one adds four years of maintenance to the cost of each model, the cost per CPW of the 520-0904 becomes 32% better than that of the 810-2469.

The lower maintenance prices of the eServer i5 come into play as well when comparing the Model 570 to its iSeries predecessors. The following table compares the two server families to each other.

A Comparison of the eServer i5 570 to iSeries Models
iSeries Model
Batch/
5250
CPWs
List Price
Cost per
Batch CPW1
i5 570 Model
Batch/
5250
CPWs1
List Price
Cost per
Batch CPW
Standard Edition Models
825-2473
(3/6-way)
3600-6600/
0
$80,000
$22.22
570-0919
(1/2-way)
3300-6000/
0
$74,000
$22.42
870-2489
(5/8-way)
7700-11500/
0
$230,000
$29.87
570-0920
(2/4-way)
6350-11700/
0
$133,000
$20.94
870-2486
(8/16-way)
11500-20000/
0
$310,000
$26.96

Enterprise Edition Models
825-2473
(3/6-way)
3600-6600/
3600-6600
$330,000
$91.67
570-0919
(1/2-way)
3300-6000/
3300-6000
$300,000
$90.91
870-2489
(5/8-way)
7700-11500/
7700-11500
$600,000
$77.92
570-0920
(2/4-way)
6350-11700/
6350-11700
$498,000
$78.43
870-2486
(8/16-way)
11500-20000/
11500-20000
$900,000
$78.26

1 Based on the CPW ratings of the models with the minimum number of active processors

Overall, the cost per CPW of the i5 570 models is fairly close to that of the iSeries 825 and 870. The only 570 model that has clear price/performance leadership is the 570-0920 Standard Edition, which has a cost per CPW that is 30% better than the 5/8-way iSeries 870. However, when one considers maintenance charges, every i5 Model 570 becomes a price/performance leader. For instance, the cost per CPW of a 570-0920 Enterprise Edition with four years of 24/7 maintenance (and the minimum number of active processors) is $88.25. By contrast, the cost per CPW of an iSeries 870-2489 Enterprise Edition with the same maintenance contract and the minimum number of active processors is $98.49.

As the blank spaces in the above table make clear, the i5 570 does not yet cover the full performance range of the iSeries 870, much less that of the 890. However, IBM will remedy that situation this summer when it will enable customers to tightly couple up to four of the 2/4-way 570s to create symmetrical multiprocessing (SMP) systems with up to 16 POWER5 servers. It is likely that the costs per CPW of these configurations will be in line with those of the iSeries 890 models, but with significantly lower maintenance charges.

While the above tables do not evaluate the cost of iSeries and i5 feature codes, let me remind you that IBM reduced prices for many of these items in late April. The reduced prices apply to both iSeries 8xx and i5 feature codes, so costs for hardware such as memory and disk storage are the same across both product families.

The Net of It All

There is a simple way to summarize what all of these numbers are saying. If you buy an iSeries 8xx, you will get price/performance that is close to that of a comparable i5 server. However, you will not get significantly lower maintenance charges, new On Demand capabilities such as Memory on Demand, automatic workload balancing across logical partitions (LPARs), LPAR support for AIX, and many other i5-exclusive features. You will get all of this if you purchase an i5, but you will not get support for OS/400 releases before i5/OS. That is why IBM is still offering iSeries 8xx models and is doing so at attractive price points.

Of course, many iSeries customers will upgrade into the i5 servers rather than purchase them on an outright basis. With that in mind, I'll be dedicating an entire article to an analysis of upgrade options. If you are considering those options, be sure to join me next Monday.

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: