The purpose of this blog is to provide steps to help prevent overspending for IBM i Software Subscriptions.
Disclaimed: IBM i is an operating system. AS400 and iSeries are legacy servers. I use these terms interchangeably to make it easier for folks to find this kind of information on the web.
Since IBM’s July 8, 2025 Power11 announcement, I’ve spent nearly a month trying to navigate IBM i software subscription pricing for my clients—most of whom run Entry or Enterprise servers.
Why the confusion?
First, the Power11 launch was massive. It introduced powerful new hardware and an impressive suite of software enhancements that make IBM i more robust, secure, and AI-ready.
Second, the new Power11 Enterprise chip offers up to 16 cores—and requires a minimum of two active cores for IBM i. This new baseline has caused confusion when using IBM’s configuration tool.
Here’s an example: One of my Power9 clients currently runs 3 active IBM i cores, delivering roughly 36,000 CPW. When we submitted a Power11 configuration, the team automatically licensed 3 IBM i cores. But each Power11 core delivers about 30,000 CPW—so 3 cores gave the client 90,000 CPW, far more than needed and much more expensive.
A seasoned IBM i configurator finally clarified how to check your active IBM i core licenses: look for “5665-SP1 IBM i Subscription Term Processor” in the configuration. That will show how many IBM i core licenses are included.
If I’m struggling to get this right, others likely are too. So, I’m sharing the key steps to help you avoid overpaying for IBM i software:
✅ 1. Accurately Determine How Many IBM i Cores You Need
- Why it matters: IBM i licensing is core-based. Power11 P10 servers require at least 2 active cores, even if your workload only needs one. Most of my clients find that 1 core is enough.
- Action: Use IBM’s CPW performance estimates or work with a trusted partner to model your actual needs.
- Tip: If your workload needs 1.5 cores, you must still license 2. Need 2.1? You’ll need 3. Each licensed core significantly increases software subscription and maintenance costs.
✅ 2. Avoid Licensing Unused Features
- Why it matters: IBM i includes many optional features. If you don’t need them and they’re billable, don’t license them.
- Action: Run GO LICPGM → Option 10 to review your installed programs. Identify what you actually use.
✅ 3. License Only the OS You Need
- Why it matters: Accidentally licensing AIX or Linux LPARs adds unnecessary cost.
- Action: Verify which LPARs will run IBM i, and ensure your software quote reflects only those environments.
✅ 4. Use Sub-Capacity Licensing
- Why it matters: IBM allows you to license only the cores used by IBM i, even if the server has more total cores.
- Action: Make sure your configuration limits IBM i to the necessary processor entitlements, and confirm the quote reflects this.
✅ 5. Consider Hosting or Managed Services
- Why it matters: For workloads under 2 cores, hosted IBM i services (like Cloud400) may be far cheaper than buying a P10 system and licensing it outright.
- Action: Request quotes for both hosted and on-premises options.
✅ 6. Compare Power10 vs. Power11 Licensing
- Why it matters: On Power10, you may be able to license just one core—potentially cutting software costs in half if your workload allows.
- Action: Compare total cost of ownership between Power10 and Power11 P10 servers.
✅ 7. Check If You Qualify for the P05 Software Tier
- Why it matters: The P05 tier offers significantly lower IBM i software costs. However, Power11 does not support P05 until Q1 2026.
- Action: If your workload qualifies, consider: Staying on Power10 to retain P05 pricing Hosting with a provider who can offer P05-tier pricing now
Conclusion
IBM Power11 offers powerful improvements—but understanding the licensing changes is key to avoiding overspending. Work with an experienced IBM i expert who understands the configuration and subscription rules, and make sure your system is sized for what you truly need—nothing more.
Who Am I?
I’m Bob Losey. My career has focused on Small-to-Medium (SMB) business with IBM midrange servers (S/3X, AS400, iSeries, IBM i) and software solutions including ERP, High Availability, and Business Analytics. Over the decades I have earned numerous IBM and software developer certificates in addition to working in the field.
Need Help?
Call me at 714-593-0387 or email me at [email protected]. Let us know how we can help!
To learn more about us, and view our customer testimonials, please visit our website: www.Source-Data.com and see our other links:
1) IBM I on POWER (iSeries/AS400)
https://www.source-data.com/ibm-i-on-power-server/
2) IBM I (iSeries/AS400) Cloud Hosting
https://www.source-data.com/cloud-400/
3) IBM I (iSeries/AS400) Disaster Recovery Options
https://www.source-data.com/cloud400-disaster-recovery/
4) IBM I (iSeries/AS400) Version Upgrade
