Last Tuesday, IBM gave its customers several more reasons to increase their investments in the System i. The computer giant unveiled new editions of the System i Model 520, announced the shipment date for a long-awaited IP telephony offering, and enhanced several hardware and software features. The announcements represent another step by IBM to make the System i more competitive with Intel processor-based servers.
If there is one area where the System i can fight toe-to-toe with Intel servers, it is when the two platforms are running mission-critical applications for hundreds of users. To give its champion a more powerful punch, IBM announced the System i5 520 Solution Edition for SAP applications. The offering represents Big Blue's first attempt to pit an entry-level System i running SAP solutions against commodity servers from rivals such as Dell and Hewlett-Packard.
The new Model 520 edition includes a single processor (which can be upgraded to a two-way system) running at 3800 CPW and either eight 70 GB or six 141 GB drives. It also comes with licenses to i5/OS, DB2, and WebSphere Application Server Express. The offering supports up to 100 users running mySAP ERP, mySAP All-in-One, and other SAP applications.
At a base price of $25,900, the new Solution Edition is worth including in any request for competitive bids. Companies that support more than 100 SAP users will also be glad to know that IBM has quietly slashed prices by a full 25% for its more powerful System i5 550 Solution Edition for mySAP ERP. This knocks the two-way version of the Model 550 down to $49,900 and the four-way configuration down to $84,900. Between its Model 520 and 550 configurations, the System i can now offer some of the lowest per-user prices for SAP applications.
Thanks to last week's announcement, System i users will also enjoy low prices for IP telephony. That is because IBM declared that 3Com will ship its IP telephony software for the System i on November 3. While the software will run on already-installed System i5 models, IBM also intends to announce new Express Editions of its servers that come packaged with the 3Com software. According to sources inside the company, customers can expect Express Editions that start at $37,900 for 100 seats and scale up to 1,000-seat offerings. For more information about IP telephony on the System i, check out the excellent article that MC Press Editor-in-Chief Thomas Stockwell wrote about the subject last month.
IBM also used last week's announcement to unveil the first Capacity BackUp (CBU) Edition for Model 520 owners. Beginning on October 27, the company will ship Model 520 CBU configurations that start at $33,000. If you have not heard about the new capabilities of the latest CBU models, be sure to read Maria DeGiglio's informative write-up on the topic. The Model 520 CBU will make it much easier for small companies to ensure the availability of their mission-critical applications.
Something for Almost Everyone
While IBM focused last week's announcements on entry-level models, it did not forget users of larger systems. For instance, the company announced a 16 GB DDR2 memory card (feature code 4499) for the Model 570 that costs $28,000 versus $32,000 for the existing 16 GB card (feature code 4497). The 4499 runs at a slightly slower clock speed than other Model 570 memory features, which precludes it from working with other cards except the 32 GB feature. Still, the 4499 could help many Model 570 customers save thousands of dollars.
IBM also announced several enhancements that will make it easier for i5/OS users to deploy and optimize Web applications. For instance, the company improved Web Enablement for i5/OS—a bundle of WebSphere application servers that comes with every order of i5/OS V5R3 and V5R4—to include Express Runtime Web Environments. The new feature automates much of the installation and configuration of the application servers. Another enhancement enables administrators to manage i5/OS resources from a Web browser without having to install WebSphere Application Server. In addition, IBM has added a Web Performance Advisor to iSeries Navigator V5R4 that helps users explore various options for tuning their Web applications. To make it easier for users to understand how those applications are performing, Big Blue is improving the performance tools in i5/OS V5R4 so that they gather performance data for WebSphere Application Server V6.0.
The enhanced version of Web Enablement for i5/OS is being made available as a no-charge licensed product; its product code is 5722-WE2. The other enhancements will be provided via PTFs that IBM will start shipping on October 20. The company will soon post details about the PTFs on its WebSphere Application Server for i5/OS Web site.
A Step in the Right Direction
Taken together, last week's announcements give IBM and its Business Partners more ammunition when they are competing against commodity servers. That's good news. However, the new ammunition will only be effective in certain cases, such as with companies that are deploying SAP applications or seeking cost-effective IP telephony solutions. This analyst believes that if IBM is to take back market share from Intel servers, it must do more than reduce prices on selected entry-level packages; it must slash entry-level prices across the board.
In all fairness to IBM, it is important to note that the vendor is extending its program under which customers receive substantial rebates when they purchase a System i with qualifying products from a number of software vendors. However, these rebates are set to expire at the end of the year unless IBM extends them once again. I would encourage the company to make these rebates permanent and extend them to customers who purchase any third-party software product with an entry-level system. If IBM were to do that, it could win the business of thousands of organizations in which the System i is still called an AS/400 and dismissed as a "legacy system" that has no future.
Lee Kroon is a Senior Industry Analyst for Andrews Consulting Group, a firm that helps mid-sized companies manage business transformation through technology. You can reach him at
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