The purpose of this blog is highlight the evolving trends why IBM i users chose to host.
Disclaimer: IBM i is an operating system. iSeries and AS400 are servers. I use these terms interchangeably to make it easy for folks to find this information on the web.
The Unexpected Reasons Smart Businesses Are Moving Away from On-Premise IBM i Hardware
The reasons IBM i users are stepping away from on premise hardware have evolved significantly over the years.
The Original Drivers of IBM i Hosting Adoption
About 15 years ago companies moved to IBM i hosting for two main reasons:
- Lower Costs – With the introduction of IBM’s user-based pricing model, hosting became far more affordable than maintaining an on premise server—especially for small to mid-sized businesses.
- Lack of In-House Expertise – Many organizations didn’t have the technical skills to manage IBM i infrastructure on their own.
But Then, More Benefits Became Clear
As hosting matured, new advantages started to surface:
- Lower Cost – Part 2 – As the performance of IBM Power servers improved, hosting providers were able to support more clients per LPAR, further reducing hosting fees for new clients.
- Reliable Production Continuity – Data center redundancy and built-in disaster resilience ensure business operations stay online.
- Consistent Backups & OS Support – Regular system backups and fully managed IBM i OS updates relieve internal IT burdens.
- Affordable High Availability & DR – A hosted disaster recovery (DR) target is significantly cheaper than maintaining a second on premise system.
- Long-Term Archive Access – Even after transitioning off the IBM i platform, businesses still need access to legacy data for compliance (often for 7–20 years).
- Interim IBM i Hosting: Run Legacy Apps Without The On-Prem Price Tag
As more IBM i users transition to modern platforms, interim hosting offers a smart solution—keep your legacy applications running smoothly without the high cost of maintaining an on premise server.
And Now, Even More Reasons Are Emerging
Recently, companies are choosing hosting for unexpected, modern needs:
- Remote Developer Access – Developers who travel or work remotely need secure, reliable access to their environments—without managing hardware.
- Shift IT Focus – Businesses want their IT teams focused on application development and user support, not hardware maintenance.
- Geographic Risk Avoidance – Organizations prefer to house systems in data centers outside regions prone to natural disasters, including earthquakes, hurricanes, and floods.
- Stronger Security & Compliance – Hosting providers offer more robust security, compliance frameworks, and 24/7 monitoring.
- Superior Backups – Technologies like SAN-to-SAN and High Availability replication let users access production systems continuously, even during backups.
- Avoid End-of-Life Headaches – Hosting helps businesses sidestep challenges like IBM hardware “End of Life,” extended support costs, and software subscription renewals.
- Expert-Level Support – Hosting providers bring deep IBM i expertise that’s hard (and expensive) to maintain in-house.
Need help with your IBM i?
Call me at (714) 593-0387 or email me at [email protected]
