This blog looks at the projected costs of a used IBM server compared to buying a new one. Clearly, there are variations in pricing and server capacity. Nonetheless, without going into excessive detail you will get the point that a used server is generally a poor value for your next IBM i/iSeries server.
Think Used IBM i (iSeries/AS400) Servers Are A Good Value? Think Again.
You may recall a time when a used IBM iSeries/AS400 server offered a significant savings compared to a new IBM server.
In my opinion, I think those days are mostly gone.
Here’s why.
Let’s say you have a 9406-520 or 9406-810 and you want to get a newer server to support V7R1 and beyond.
Before we even consider the cost of the server, you need to understand several steps required for this newer used server to be productive in your environment.
1. User Count. The newer used servers you may consider will most likely be POWER6 or POWER7. These servers are user-based. This means you need to find a server that already has entitlements for the number of users you need to support.
Let’s say you need 30 concurrent users. If your used servers do not have this entitlement, you will have to license 30 concurrent users. IBM will charge about $7,500 for that many users.
2. Core Activation for IBM i. More often I see used Power servers that have moved their entitlements for user count and IBM i activation to their new server. This means that not only does this used server NOT have any entitled users, it also does NOT have IBM i activation. This means IBM will charge about $2500 (P05) or about $15,000 (P10) to activate a core to support the IBM i (i5/OS, OS400) operating system.
3. SWMA. You will probably want to migrate your IBM License Program Products (LPPs) from your current legacy server to the newer server. To do so you must buy a Software Maintenance Agreement (SWMA) before IBM will provide you software keys for your LLPs.
SWMA can generally range from $1500-$4500.
Your used server also needs to be properly registered with IBM in your enterprise so you can transfer your software keys. This is a tricky process unless you work with someone who understands how to register your new used server with IBM. And it can take 2-8+ weeks.
4. ALF. You will also need to pay for After License Fee (ALF), a charge to add SWMA to a used server in a different enterprise than originally installed. ALF can run about 2x the cost of SWMA – so this can run in a range of $3,000 – $9,000.
So, let’s add up what you will have to pay to get software keys, core activation and users for the used server:
SWMA $2,500 – $ 4,500
ALF $3,000 – $ 9,500
Core Activation $2,500 – $15,000
30 users $7,500 – $ 7,500
IBM Fees $15,000-$36,500
So you need to budget about $15,000 to $36,500 on top of the cost of a used server, which will range about $5,000 – $10,000.
Total estimated cost – $20,000 to $46,500.
How much for a new IBM POWER server? My sense is a range of $22,500 (P05) to $35,000 (P10).
5. NEW Server Includes 3 Year Hardware Warranty. The new IBM server comes with 3 year hardware warranty. You get IBM hardware support Monday through Friday 9-5 Next Business Day. If you bought this for your used server this would be an extra $4,500.
Here’s the point. When you look what you have to spend to legitimately make a used server productive in your enterprise and compare that with cost for a new IBM server – the new IBM server is the clear winner in value.
And you get the new server without the hassle of registering your used server, getting SWMA and ALF, coordinating core activation and user count, and collecting software keys from the IBM key center.
Need Help?
Call me at 714-593-0387 or email me at blosey@source-data.com. 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
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