IBM Software Maintenance Increase

In this article, Ben Williams gives you an update on the latest software maintenance price increases for IBM i and what this will mean for you.

Happy New Year! What better way to welcome in the New Year than with an increase to Software Maintenance charges for IBMi? It’s all about the timing.
I came back to the Office to find an email in my inbox as follows: –

Quite a large increase in the SWMA for IBMi but some better news in the disaster recovery/availability areas.  With regards to the increase, it shouldn’t really have come as much of a shock as we have already seen increases applied to the IBMi SWMA in the US last year.  The US announced these in February 2020 and implemented them from April of the same year.  Where the industry standard for enterprise class software is to charge somewhere between 20-25% of the license cost IBM are bringing IBMi SWMA charges into line with everyone else.

For those of you who have set out budgets for the year based on previous figures you will need to acknowledge the changes in the table below and ensure adjustments are made to accommodate the increases.  Interestingly enough, when I ran through the pricing using the online configurator I found the license increases did not match the initial email for IBMi so would encourage everyone to use the figures below: –

I thought I would give a sample price for budgeting purposes and have based this on a worst case scenario but I think it will resonate with some.

My customer has a single P10 processor which is due for renewal on 1st May 2021 but has not yet upgraded beyond IBMi 7.2.  Last year we paid £3,854 for our SWMA and budgeted the same for this year.  However, due to situations out of our control (pandemic anyone?) we have not been able to upgrade the OS as planned and need to apply a Service Extension to IBMi 7.2 to ensure continued support.  May’s renewal now looks like being in the region of £9,176.

In the example above I am using an estimate for Service Extension based upon the figures we have previously seen for the same software band, P10, on IBMi 7.1.  I have no reason to believe that IBMi 7.2 will be so much different in costs but will be able to confirm this in the coming weeks.

Whilst we are on the subject of Service Extension, I understand there has been some confusion around end of support dates for both IBMi 7.1 and 7.2.  Please use the following link to IT Jungle where they explain all the information you need to know.

Chilli IT help organisations bridge the IBM skills  gap by providing technical support, professional services and hardware and software upgrades to organisations across the world.

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