The purpose of this blog is to briefly summarize key factors beyond the server hardware that affect IBM user choices when selecting an on premise server or cloud hosting.
Because there is much to cover, this blog will only cover explanations for:
1) IBM Licensed Program Products
2) IBM Software Tiers
3) Entitlements
4) Passport Advantage
Disclaimer: IBM i is an operating system. iSeries and AS400 are IBM servers. I use these terms interchangeably to make it easier for folks to find information on the web.
IBM Licensed Program Products (LLPs)
LLPs include the software most associated with the IBM AS400, iSeries, and newer POWER server. These are the most common programs that are needed to run applications. LLPs include compilers (now branded Rational Development, RDi, formerly known as WebSphere Development Studio), including RPG Heritage and Legacy, COBOL, Java, C, and PHP. They also include Query400, DB2 Query, Performance Tools, iAccess for the Web (formerly Client Access. iAccess for Windows is being phased out), and a variety of other utility software associated with the IBM i/OS400 operating system.
Generally, within an enterprise (user company) LLPs transfer from a donor server to a new server without any IBM fees.
Software Tiers
IBM has 5 software tiers – P05, P10, P20, P30, and P40. Each successive tier has higher software prices. The idea is that the higher the tier, the “bigger” the user and higher value the user gets from the IBM LLPs.
For example, an entry P05 user is a small server with limited memory, disk storage, and performance that often has 5-50 users. So, IBM i OS activation is priced at $2245.
In contrast, a P10 server has more disk, memory, and performance capabilities. IBM charges $14,995 for IBM i OS activation.
Entitlements
Entitlements include special IBM software that users must pay to license.
Several factors make entitlements unique.
First, since POWER6 was introduced in 2007, the user is charged an IBM i OS activation fee for each core active with IBM i. As mentioned above, P05 activation is $2245 and P10 activation is $14,995.
Second, there is a user count fee of $250 per user per block. For P05 the block increment is 5 users, the fee is $1250 per block of 5 up to $18,750 for unlimited users (80 users).
For P10, the fee is $2500 for a block of 10 users up to $50,000 for unlimited users (200 users).
When a user migrates from his donor server to the new on premise server, he can either pay for the entitlements or pay a $5,000 entitlement transfer fee.
For very small P05 users with fewer than 10 users, it can be less expensive to pay the entitlement fees than the transfer fee.
Passport Advantage
Passport Advantage software must be licensed through IBM Passport Advantage, and is generally available through IBM software business partners with special certification and unique expertise for the software.
The pricing includes a general license fee and thereafter an annual support fee which must be renewed for active IBM support.
The most common Passport Advantage software includes BRMS (Backup, Recovery and Media Service, advanced software for sophisticated backup), Advanced Job Scheduler, MQSeries, and RDi (not to be confused with Heritage and Legacy, the traditional RPG programming tools).
Next Week:
1) HWMA (Hardware Maintenance Agreement)
2) SWMA (Software Maintenance Agreement)
3) After License Fee (ALF)
4) Service Extension (SE)
5) Software Keys
Need assistance to determine your best options for support of your IBM i applications over the next 10-20 years, email me at blosey@source-data.com or call me at 714-593-0387.
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