Does IBM i Have A Future? You Bet It Does!

The purpose of this blog is to assure IBM i POWER Users (who also think their server is an iSeries/AS400) that there is a future for IBM i. Disclaimer: “IBM i” is the operating system. “iSeries” and “AS400” are IBM servers that precede IBM POWER. I knowingly use these terms combined to reach a larger audience with web site that host my blog.

As an IBM Business Partner and cloud hosting provider, I talk to IBM i users every day.

A lot of “pundits” claim IBM i is old, dying technology. I have even heard CPAs and auditors question their clients about the merits of staying with the IBM i.

From what I see, hear and read, I cannot agree.

IBM i Is Less Expensive To Acquire And Manage

I don’t even need to brace for critics to dispute that the Intel server is way less expensive than an IBM i server.

While the cost of the IBM server is initially more expensive than an Intel server, it generally does not work out that way in the long run.

When you compare the cost of an IBM i platform to support an application to what is needed for an Intel environment, IBM i wins hands down. That’s because you generally need several Intel servers, plus OS licensing, SQL licensing, and professional setup services to do what the IBM i platform can do – shipped direct from the factory pre-loaded, pre-integrated and pre-tested.

Plus, all of us IBM i folks have seen first-hand that Intel environments require more people to manage. Why? Because x86 is simply not as reliable.

You can get your system set up faster and cheaper with IBM i. And the IBM i clobbers the competition with lower ongoing costs.

Once educated, business managers get this point. They may not understand technology but they DO understand lower cost.

Legacy Users – Very Satisfied With A Secure, Stable, Efficient Business Platform

Yes, there is a sizeable share of IBM i users running legacy applications (from software providers as well as custom written) that is perfect for their core business.

Most of these IBM i users would be categorized as Small-to-Medium (SMB) business. It is not surprising that this has been the target market for the IBM AS400, System i and iSeries.

Many of these users have spent decades refining and enhancing their core system tailored to their operation. These legacy systems are so efficient and effective that most have no cost-effective reason to change.

Can these legacy systems benefit much from the new enhancements made to IBM i? In most cases, probably not. The biggest benefits came with the initial implementation of ERP to get their business to run more efficiently. They have made modest tweaks to adapt their software to satisfy business changes and reporting.

While this group is value-sensitive (they don’t spend money unless they sense a good return), they will continue to make prudent investments in their IBM i systems.

That’s why IBM i users like North American Construction Group moved to IBM i. They moved their JD Edwards from x86 to IBM i on POWER and got a 52% reduction in IT cost year over year because IBM i is so much simpler and reliable to run.

Innovators Committed To IBM i – A Small And Vibrant Group Of Leaders

Most folks I talk to in this group either are very forward-thinking software developers that satisfy specialized needs – by industry, applications, middle-ware and reporting tools, or very unique businesses that understand how the IBM i platform benefits their operation.

These folks commonly praise the IBM i for its:

1)      ease of use (this often translate into highly productive programming with RPG and radically smaller IT staffs to support their operation),

2)     reliability (they have confidence they can run 2-3 shifts without the fears of disruption their friends with Intel servers must manage for),

3)     security (they are very conscious of proper user profile and system settings and understand their operating system is malware/virus – resistant), and

4)     IBM i enhancements (improvements in High Availability, mobile connectivity, DB2, and analytics)

“End Of Life” Applications Continue To Run On IBM i…For MANY YEARS

While I get sad when I hear about users moving off IBM i, I have come to accept that this is generally due to:

1)     acquisition (the new buyer imposes their system on the acquisition),

2)     younger managers favor Windows (they do NOT understand IBM i – nor do they want to) or

3)     top management has been bewitched by the sales pitch from the REALLY BIG EXPENSIVE ERP providers that their solutions will improve efficiencies and profits.

While these users may plan to have the new application up in 1-2 years, in my experience I see the most successful may achieve this in 7 years. I have also witnessed many that have taken 10-15 years and longer. (My IT contacts commonly tell me that their management does not understand the complexities of the operation…sadly, these managers don’t want to take the time to learn the complexities of their business.)

And when they are all done, there are still IBM i applications that cannot be satisfied with the new application software.

There is another major factor that affects the transition to a new ERP. On average, 70% of all software projects fail.

While these “end of life” folks may declare they are leaving the IBM i platform, my sense is that they will continue to rely on IBM i for many more years than they expect.

IBM i Has A Long Life Ahead

When I look at the facts and the trends:

• IBM i is less expensive than x86, and educated business people understand this,

• A sizable legacy community is satisfied with IBM i,

• IBM i has a vibrant group of leaders, and

• The “End Of Life” group has yet to understand they will be using IBM i for 7 years or more,

I conclude that IBM i has many years of life ahead.