This is an open letter, composed by a 25-year veteran of IBM midrange systems to AS/400 software vendors. As vice president of strategic IT development, I deal with new business initiatives, programs, systems, and revamps to existing applications. So I’m often the bearer of bad news, in the form of huge AS/400 software and (to be fair) hardware prices. In short, you AS/400 software vendors are killing me! Here’s a (paraphrased) conversation I recently had:

BOSS: We need a heterogeneous network monitoring tool that’ll graphically show us the operational state of systems in our network.

ME: I’ll get right on it. Will other folks be looking at NT and UNIX vendors?

BOSS: Yep.

[Two weeks later...] BOSS: Kris? Got a candidate for that network monitoring tool?

ME: Yep. It’s [insert any software vendor/product name], and it costs [insert figure between $20,000 and $1 million].

BOSS: That’s money! Lemme think about that.

Conclusion—we installed the monitor: NT-based, UNIX- and AS/400-compatible. It cost $650 for the server software and something ridiculous like $50 per active monitoring station. I’m sure this has happened to you. Someone says he needs, say, a product that takes an AS/400 spool file, publishes it on the Web, indexes fields of the report, makes the report queryable, and archives it to optical. Sure, you could write that process on the AS/400 yourself, but buying a packaged solution for a business need like this is much faster and (usually) much less painful. But the prices!

I’ve Heard That Story Before

At this point, I can imagine a sound like a chorus of scorched cats emanating from AS/400 software vendors reading this article. The protestations usually go something like this:

• “We have such a small market to sell to in the AS/400 software arena that we have to get a ‘decent’ price for our software just to survive.”

• “Don’t worry: Management will get tired of those Toys ‘R’ Us software packages. They’ll come back to our good, solid AS/400 software.”

• “We know our software carries a hefty price, but you get what you pay for.”

Sound familiar? I’ve heard those stories, too, and I’m sick of fighting this battle. And, Mr. AS/400 Software Vendor, allow me to share a few thoughts with you, too.

First, the issue about the amount of income your company needs to survive doesn’t cut it. Do you know what it’s like to defend—day after day— the prices charged for AS/400 software against similar software offerings from Windows NT and UNIX? Sure you do—from a salesperson’s perspective—but if you lose a sale, you pack up and move on. We, on the other hand, have to live with the results day after day.

Then there’s the argument that management will get tired of “toy solutions” and come back to the AS/400. In my experience, management doesn’t come back to the AS/400 fold when some bargain-basement NT solution goes awry. Instead, they throw more money at the NT solution: more servers, more software, and more “paper” Microsoft Certified Systems Engineers (MCSEs)—most of whom are clueless about running a business. I hear: “NT clustering! That’s the ticket. A few thousand bucks, and we’ll have this problem whipped,” or the ever-popular, “Fibre Channel! That’s the ticket. A few grand more, and we’re there!” Meantime, AS/400 gurus are saying, “We could do this on the AS/400...but...aw, skip it.”

Then there’s getting what you pay for. Note to vendors: Reread the previous section of this article. Twice. Rarely do AS/400 professionals question the quality/value proposition of the AS/400. However, the price of AS/400 software is killing us, Mr. Software Vendor. Help us with software pricing, won’t you? Before we stop tap dancing about how much AS/400 software costs and start the solemn dance of AS/400 software death.