The purpose of this blog is to share 3 shocking trends that I sense hurts IBM i Users. I have also provided some action items you can take to protect yourself. Disclaimer: IBM i is an operating system and iSeries and AS400 are IBM servers. I use the terms interchangeably to make it easier for users to find this information with search engines.
I am a big fan of the IBM i and its amazing design.
Even so, I am saddened to see 3 alarming trends that can hurt IBM i users.
1. New CFOs & CIOs that want popular, big ERP or Windows-based solutions
2. HUGE software transfer fees
3. End of Service Hardware Announcements
These trends undermine the IBM i install base longevity.
Let’s look at each.
New CFOs and CIOs Want “Premier-Class” ERP or Windows-Based Software
I am frequently told by IBM i users how the new CFO/CIO looks upon the IBM i system with disdain, without understanding how well it is supporting the company. These new executives’ perception is that a business must have “modern” GUI-based software that runs on Intel throughout. They proclaim a new system will be installed in 1-2 years with a ridiculously low implementation cost.
What’s missing?
These new executives are clueless about what they have – stable, reliable custom applications that have supported the operation for decades. They are completely unaware of the nuances of custom subsystems and tailored reporting.
Worse, these new executives have no idea what it takes to 1) implement a new system and 2) the effort and cost of the new system.
In the pursuit of the “new system” I generally see the cost as WAY MORE to implement than expected, take WAY LONGER to roll out than planned (5-15 years or more), and require a SIGNIFICANTLY LARGER staff than the usual 1 or 2 to manage the IBM i.
What can you do?
Before these new executives arrive, take the time to educate your current team what your system does and how well it works. Help them understand how much less expensive that IBM i is compared to other platforms.
When the new executives arrive, help them understand what you have and the special subsystems that took special time and effort to create that will not be easily re-created. Help them understand the reliability of the current server and how much more staffing will be required for the new system.
And, if they still won’t listen…many of my disappointed IBM i users prepare their resume or think of retirement.
Some of the new management just will not learn.
HUGE Software Transfer Fees
When it comes to charging outrageous software transfer fees, I do not have to mention any names. In regards to the worst culprit in the IBM i market, most well-informed users know what they are “in for.”
The fees they demand when you change your serial number are so gigantic they alienate IBM i user management to the point they want to run away from IBM i. To them, anything else that seems reasonable is better.
I get it.
This nasty practice engenders distrust and loathing for such software providers. When this practice happens, customers will do whatever they can to get rid of it…even if it does not always make economic sense.
What shocks me is that:
1. This practice still continues.
2. These bad actors do not seem to care how it hurts their reputation and their future business.
3. These bad actors seem oblivious to how this shrinks their install base…aggressively.
What to do?
1. Learn how best to negotiate with these ding-dongs. (Let us know if you need help. We have helped several clients.)
2. Find an alternative. (I do not sense that these bad actors will ever change.)
End of Service Hardware Announcements
Many readers have probably received End of Service (EOS) hardware announcements for their current server.
For many users with servers that are 15 years or older, the EOS was just a matter of time. As an IBM i insider, I know the maintenance parts are not made any longer. These older servers are more expensive and problematic to keep supported.
On the other hand, many EOS announcements went to IBM i users that bought a new server 4-5 years ago.
So what?
These users feel uncertainty with the purchase of a new server.
They ask,
1. “How long will a new server be supported?”
2. “If a new server only lasts 5-7 years, does buying a new server make economic sense?”
3. “If so, will I be vulnerable to an outrageous software transfer fee next time I need to upgrade?”
Under this uncertainty and the pricing of Windows-based software, on the surface a Windows-based solution can look appealing. The new CFO/CIO can make a compelling argument to management to change.
What can you do?
If your IBM i future is uncertain and buying a new server does not make sense, consider IBM i cloud hosting. You get flexible terms and IBM i expert management that can often be less expensive than buying a new server.
Conclusion
I believe the IBM i will be around for decades to come with a devoted fan base and continued innovation.
Nonetheless, the 3 trends I have discussed can squeeze some IBM i users from the install base.
As an IBM i fan, my hope is:
1. More case studies will reveal the failures of unaware CFOs/CIOs who brashly proclaim the need for new systems. This will bring deeper study by those who think about making changes and how to evaluate the high risk and costs related to “rip and replace” solutions.
2. IBM i support will last 10-15 years to give confidence to server buyers.
As far as the software firms that charge outrageous fees, their days are numbered. Economic history and studies document that such practices are unsustainable.
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