The purpose of this blog is to explain the 6 most common factors why IBM i users go to cloud hosting rather than remain with an on premise server.
Disclaimer: IBM i is an operating system that runs on IBM POWER. iSeries and AS400 are former IBM servers that users commonly refer to when describing their system. I use these terms interchangeably to make is easy for IBM i users to find relevant content on the web.
1. Superior Performance.
IBM i Hosting Providers Can Provide Comparable To Superior Performance At A Lower Cost Than An On Premise Server.
How can that be possible?
With IBM PowerVM virtualization.
IBM PowerVM virtualizes the resources of an IBM POWER server like Vmware virtualizes an Intel server. PowerVM allows the hosting provider to tailor your virtual server to fit your needs of CPU performance, RAM memory and disk storage so you do not overpay for an on premise server.
Many IBM i users are unaware that a limited number of disk units can restrict the actual performance you can get. This means that while a POWER processor may offer 10,000 CPW, if you only have 8 disk units you may actually only get about 1600 CPW (or about 200 CPW per disk unit) of throughput. In other words, to attain rated speed of 10,000 CPW per core you may need as many as 40-50 disk units.
So, how does PowerVM help with this disk performance restriction?
With storage virtualization.
You may only need 1 TB of disk storage. With an on premise POWER server, that is about 5 disk units with RAID protection. With an on premise server, that may be about 1000 CPW.
However, your 1TB of allocated disk storage may be distributed over 50-100 physical disk units with storage virtualization.
So, with PowerVM you pay a fraction of the storage requirements you need and get better performance.
2. Big IBM Software And Support Savings.
IBM i Hosting Providers Can Provide IBM Software, Software And Hardware Support For Less Than An On Premise Server.
Again, with PowerVM virtualization, a hosted user shares the cost of the IBM software, software and hardware support.
When you buy an on premise server, you may have to pay $20,000 to $65,000 for IBM i OS activation and unlimited users. You may have extra software fees for IBM Licensed Program Products (LLPs). In addition, HWMA and SWMA can add $4000 to $10,000 per year more for an on premise server.
In contrast, an IBM i hosting provider may include in their hosting fees all the IBM software, software and hardware support. So, instead of paying $20,000 to $70,000 on top of the cost of the POWER server hardware, you and other hosted tenets split these costs.
So, your IBM software and support are in included in your hosting fee with no extra cost.
If you are currently running your applications on an older iSeries or AS400, this is a “no brainer” to cost justify compared to an on premise POWER server.
3. Flexible Terms.
IBM i Cloud Providers Can Tailor Flexible Terms To Fit A Client’s Needs…Unlike A Capital Expenditure.
Many IBM i users move to cloud hosting because they have short-term needs…from a few months to a few years.
We most commonly encounter users that are testing software and upgrades, phasing out their end-of-life IBM i applications, or want access to an archived IBM i system.
For clients who only have short-term needs or want flexible terms with the option to terminate when a project is completed, cloud hosting is ideal.
4. Data Centers – Safe, Secure, Redundant.
IBM i Cloud Providers Host Their Servers At Hardened Data Centers For Disaster Resistance.
With the extreme weather headlines and heightened awareness of natural disasters, I hear more IT executives want to move their critical system to secure and redundant data centers.
I have heard data centers charge from $500 to $2000 per month to host IBM POWER servers depending on your geographic location.
Clearly, data centers are in greater demand because they offer higher levels of safety and redundancy than most business can afford themselves. While companies can justify a UPS, a firewall and localized air-conditioning, few can justify the cost of backup diesel generators, high-speed redundant access to the internet, multiple levels of security, and the related costs to keep all the elements modern and current.
An IBM i cloud provider includes this secure data center with its offering. This higher level of safety is already included in the hosting fee.
It is as though you get the safety, security and redundancy of a data center at no extra cost.
5. IBM i Expertise.
IBM i Experts Manage Your System So You Don’t Have To.
IBM i cloud hosting providers offer IBM i expertise to manage your server operations. These activities include managing backups, applying PTFs (software patches), Technology Refreshes (software updates), OS version upgrades, and responding to error messages.
For many companies with limited in-house IBM i skills, this is HUGE. In such cases, the IT staff no longer has to struggle with unfamiliar processes, commands and error messages. These activities are done for you.
Even for organizations with in-house IBM i skills, this is still very attractive. By outsourcing the server support to IBM i experts, the IT team can focus on applications, user support and moving the business forward…not distracted by IBM i operation issues.
In fact, IBM i expertise server support can be a major element for savings and hosting cost-justification. Many of our clients have determined that outsourcing their IBM i operations can save them from $7,000 to $14,000 per year… or about $583 to $1166 per month. The range reflects differences between companies and complexity of their server support.
Frequently we hear how important and cost-effective IBM i expert support can be for prospective cloud hosting clients.
6. Save On Related Expenses.
Hosting Fees Include Power, Air Conditioning, And Infrastructure Research And Management.
Your on premise server has extra costs that you may not think about. These extra costs include power, air conditioning, media, and services to get your media offsite, and online backup to the cloud, to mention some of the most common expenses.
IT departments also have to update their infrastructure. At a minimum this includes UPS, firewall, security software, backup devices and new announcements that may affect their IBM i server. More frequently I am hearing from prospective hosting clients that they want out of managing their data center operations so they can focus on supporting their business and users. They want to avoid these related costs and distractions from their primary focus.
Conclusion
IBM i cloud hosting is gaining in popularity for users that look to:
· Lower costs,
· Augment their IBM i expertise,
· Want flexibility, and
· Need to disaster-proof their operation.
When IBM i users examine these issues, cloud hosting beats on premise hands down.
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