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While the lower prices are tempting, it remains to be seen whether they will be tempting enough.
Earlier this month, IBM took action to make its current line of iSeries servers more attractive to customers. It slashed sticker prices on the i870, cut charges for upgrades to the i870 and i890 Enterprise Editions, and flattened
fees for its Capacity on Demand offerings. It also offered a sneak preview of a new high-availability iSeries offering that will debut next week.
The good news started hitting the wires on February 3, when IBM released an announcement letter that listed price reductions with little commentary and no fanfare. As observant readers soon learned, the announcement included the following price cuts:
$200,000 off the Enterprise Edition of the i870 5/8-way
$100,000 off the High Availability offering of the i870 5/8-way
$100,000 off the Enterprise Edition of the i870 8/16-way
$50,000 off the High Availability offering of the i870 8/16-way
The new prices represent 21%, 15%, 8%, and 2% discounts off the old prices,
respectively. According to sources inside IBM, the company cut the prices in response to customers that have shown interest in the i870 but have complained that its cost per CPW was higher than that of the i825 and i890. IBM's move makes sense, as the i870 could be an attractive server consolidation platform for thousands of customers that do not need the horsepower of an i890.
While IBM was in a price cutting mood, it also took aim at upgrades from the iSeries 820, 830, and 840 to the Enterprise Editions of the i870 and i890. After analyzing the price cuts, I've discovered that IBM reserved the biggest reductions for upgrades to the i870 and upgrades to the i890 that involve big increases in interactive CPW levels. The bigger reductions for the i870 upgrades make sense, as they include the list price reductions shown above. However, the price differences for upgrades to the i890 require a closer look |
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