Several commentators have told me that they are surprised large Enterprise users are interested in cloud hosting. These folks reference surveys that suggest large IBM i users have large IT staffs, sophisticated data centers and favor on-premise technology.

Clearly, we see that with a portion of the IBM i market. We also believe the commentators are correct about that part of the market. There are many factors that favor on-premise technology for these users.

Larger Clients Who Want To Host

There is another significant portion of the larger IBM i market that benefits from cloud hosting. We see a strong interest from larger clients who want to host as they

1) transition to new software that run on non-IBM i platforms, or

2) need access to an archive system, generally to satisfy compliance or queries to historical data not available on their new systems.

Custom Software

More particularly, these clients come to us with applications that run primarily on IBM i, often custom software (RPG and COBOL), with little-to-no Intel sever integration.

Back-Level POWER4s And POWER5s

Not surprisingly, these users may have several POWER4 (9406-810, 9406-825, etc.) and POWER5 (9406-520, 9406-525, etc.) servers at multiple locations on IBM V5R2, V5R3, and V5R4.

How come?

Corporate Planning vs. Implementation

We commonly hear that “corporate” has mandated a move to SAP or Oracle and “we were supposed to cut-over in 2008. It’s now 2017 and we may have 4-6 more years to go. We just aren’t sure when we will be ready.”

Or, corporate has acquired new business units that run their operations on legacy iSeries systems.

This explains why these users are on older IBM servers on back-level IBM iOS.

Unable To Upgrade To New IBM iOS

We commonly hear that it is impractical for these users to consider upgrading to newer IBM iOS.

Also, it is not feasible or cost-effective to upgrade to newer POWER servers with large user count and core activation fees.

Cloud400 Hosts Legacy Systems On Back-Level iOS

So, larger Enterprise users move to Cloud400 to host their legacy systems on back-level IBM i.

End Of IBM Hardware Support January 31, 2019

Further, IBM has announced that these servers will no longer have hardware support after January 31, 2019.

IBM i Expertise With Cloud400

With Cloud400, they can count on IBM i expertise. (We are IBM i experts since 1988 – when IBM AS400 was first introduced.) This is especially attractive as these enterprises experience a shrinking pool of IBM i talent. (We find in many cases these clients no longer have in-house IBM i expertise.)

Cloud400 is SSAE-16 certified safe, secure and redundant so users can rely on service continuity.

Cloud400 Handles Server And Data Center Management

We take care of all aspects of server and data center technology management, including PTFs, daily backups, version upgrades and disaster recovery.

Operating Expense For Only What Is Needed Instead Of Capital Expense For Over-Sized Server

These large Enterprise users only pay for what they need and only for as long as they need it.

So, they don’t have to deal with capital expenditures for over-sized servers with an uncertain term of useful need.

No HWMA And SWMA Costs

Nor do they have to deal with raising IBM hardware and software costs which are generally more than the Cloud400 hosting fee.

So, while we hear from several commentators that they continue to see ongoing demand for on-premise servers with Enterprise users, we also see a growing demand for Enterprise users that want to host with Cloud400.

Compelling Hosting Benefits

For the Enterprise clients we attract, the hosting benefits are too compelling.