In 2016, IBM announced that it will terminate hardware support (HWMA) for IBM POWER5 iSeries and older AS400 servers. In essence, these older servers are End Of Life (EOL).
Will More Than 24,000 EOL iSeries/AS400 Users No Longer Get HWMA After 2019?
IBM does not publish how many iSeries/AS400 users are affected. Based on my installed IBM i users database, my guess is that there may be between 8,000 – 12,000 affected users in the US.
If so, my sense is that there may be 16,000-24,000 affected users worldwide. (Over the years I have understood that there are as many IBM i servers outside the US as in the US.)
What Do I Do When I Can No Longer Get IBM Hardware Support For My EOL iSeries/AS400?
While the exact number of affected iSeries/AS400 may not be available, this is a sizeable portion of the entire IBM i install base that is faced with a major decision – “What do I do when I can no longer get IBM hardware support?”
Inquiries Surge For IBM i Application Cloud Hosting
More than any other trend, this IBM announcement has resulted in a surge of inquiries for IBM i application cloud hosting.
Let’s take close look at the causes.
IBM POWER Servers Now Include “New” Software Fees
When these older iSeries/AS400 users consider a new IBM POWER server, they now see added costs for IBM i activation and concurrent user count they have not had to deal with.
Originally, they may have paid from $15,000 to $65,000 for their EOL server.
Now, when they consider a new POWER server which can start in a range of $16,000 to $25,000, they also see the added entitlement software costs for IBM i activation and concurrent user count. These two entitlements can add from $5,000 – $65,000 to the overall cost of the replacement server.
Additionally, most will also have extra costs related to Web Query. Web Query is a program most iSeries/AS400 users do not use but MUST pay for if they want to continue to use Query, which most all have to have.
All this means that a new server is more like $25,000 to $95,000 to replace their EOL iSeries/AS400.
So what?
Well, there are key dynamics in play.
iSeries/AS400 Users Face An Uncertain Future
So many iSeries/AS400 users I talk to face uncertain futures.
Several factors contribute to the uncertainty:
· These users see their IBM i expertise retiring and a smaller talent pool to draw from.
· They are evaluating replacement ERP software, either for more modern functionality or better industry fit, or they are upset with the exorbitant pricing some of the software vendors charge.
· They are migrating to new software. At some point the iSeries/AS400 will be for archive only.
· The business owners are in the midst of selling their businesses. The new owners want different software.
· The new IT talent on board does not understand IBM iOS and want to replace it with technology they know.
So, when faced with these trends of uncertainty, what sense does it make to buy a new IBM POWER server for $25,000 to $95,0000…particularly if you can rent IBM i hosting for only as long as needed.
Affordable, Flexible IBM i Application Hosting With IBM i Expert Support Has Big Appeal For iSeries/AS400 Users
When faced with the choice of a big capital investment with uncertainty, hosting has very strong appeal.
As you would expect, you can host for as long…or as short…as needed.
The hosting fee is often less than the amortized cost of a new server.
Expert IBM i support is VERY attractive, particularly for those businesses that have limited or no IBM i expertise.
Plus, with Cloud400 there are no IBM i, user count, hardware or software support fees. Just a simple monthly hosting fee.
When you add up the affordability and flexibility of expert IBM i application hosting, it is no wonder that this is a popular choice of EOL iSeries/AS400 users.
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