IBM Power 10 Subscription Pricing Model

IBM has recently shifted to a subscription pricing model for its Power10 systems, marking a significant change from their traditional perpetual licensing approach. Here are the key details about IBM's new Power10 subscription pricing model.

Subscription Model Overview

IBM now offers subscription-based pricing for Power10 systems running IBM i, available on all Power9 and Power10 servers. This model covers the core license, users, zero-dollar Licensed Program Products (LPPs), and software maintenance.

Pricing Tiers

The pricing structure is divided into different tiers based on the system size:

P05 and P10 Tiers

• These tiers have per-user charges and unlimited 5250 Enterprise Enablement greenscreen processing.

P20, P30, and P50 Tiers

• These tiers offer unlimited users but have tiered pricing for 5250 EE processing.

Specific Pricing Examples

P10 Tier Annual Subscription Costs (as of April 2024)

• OS Licensing: $8,925 per core
• Users: $80 per user (sold in blocks of ten)
• Unlimited Users: $16,000

Conversion Pricing

IBM is offering special conversion pricing for customers switching from perpetual licenses to subscriptions:

• OS Licensing: Reduced from $8,925 to $7,140
• Users: Reduced from $80 to $10 each
• Unlimited Users: Reduced from $16,000 to $2,000

Subscription Terms

• Available in contract terms of 1, 2, 3, 4, or 5 years
• Charges are based on an annual schedule and due annually
• One-year contracts have a 15% premium over multi-year prices3

Benefits of the Subscription Model

1. Lower entry point compared to non-expiring licenses
2. Predictable budgeting for executives
3. Eliminates missed software maintenance payments through auto-renewal
4. License portability to new systems within the subscription term4

Important Dates

• May 7, 2024: Deadline after which customers can no longer transfer existing perpetual licenses to new Power10 machines for P05 and P10 tiers

Availability

• The subscription model is available for Power9 and Power10 servers
• Supports IBM i versions 7.2, 7.3, 7.4, and 7.5

This new subscription model represents a significant shift in how IBM prices its Power systems, aiming to provide more flexibility and potentially lower costs for businesses, especially those looking to upgrade to Power10 hardware.