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In response to Jack's points...

#1 - Yes, CapEx vs Operating can be a BIG issue.

At a previous employer, we were in dire need of new phone switches for two properties (enterprise level switches). They were on their last legs and, obviously, a failure would be devastating.

Well.... Except, apparently, to management. They consistently refused to allocate capital. It got to the point that our support vendor offered to install new switches and finance them by rolling the purchase price (amortized) into the annual maintenance for a few years - they figured I would at least have a shot at getting an increase in operating expense. It never came to fruition - too many land mines down the road potentially.

#2 - Absolutely. We all want immediate savings, but some long-term consideration is critical.

Roger Harman
COMMON Certified Application Developer - ILE RPG on IBM i on Power


-----Original Message-----
From: MIDRANGE-L <midrange-l-bounces@xxxxxxxxxxxxxxxxxx> On Behalf Of Jack Woehr via MIDRANGE-L
Sent: Thursday, August 31, 2023 9:43 AM
To: Midrange Systems Technical Discussion <midrange-l@xxxxxxxxxxxxxxxxxx>
Cc: Jack Woehr <jwoehr@xxxxxxxxxxxxxxxxxxxxxxxx>
Subject: Re: IBM will withdraw the ability to acquire non-expiring IBM i entitlements for the P05 and P10 software tiers, effective March 26, 2024.

A couple of thoughts about that.


1. A one-time license can be regarded as a capital expenditure. A
subscription is an operating cost. It may well be advantageous to the
enterprise to have the licensing as a subscription cost (taxes,
amortization of permanent license, etc.)
2. I don't see anything wrong with IBM making some revenue. If the
revenue stream becomes inadequate, the platform will be retired.


On Thu, Aug 31, 2023 at 10:39 AM Patrik Schindler <poc@xxxxxxxxxx> wrote:

Hello Rob,

Am 29.08.2023 um 13:34 schrieb Rob Berendt <robertowenberendt@xxxxxxxxx>:

There will no longer be *PERM keys for IBM i software.

https://www.ibm.com/docs/en/announcements/sww-selected-non-expiring-i-license-offerings-as-transforms-i-business

"As the IT industry is moving toward licensing software in a subscription
model, the IBM i business is responding to the requests of clients and
partners as their businesses follow suit. Subscription licensing offers
clients predictable and consistent payment options while maximizing the
ability to remain current with their technology."

Using "everybody else does likewise" is just laughable. As if IBM needed
to care what others do. They could just offer both options.

I believe this is only to maximize revenue to IBM to benefit their
shareholders. As almost always nowadays.

Just my $0.02.

:wq! PoC



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