Re: New iSeries and XA License Keys

Hi Ann,

When I joined Tegal in 2001, we had a model 530 that was I believe in the P30 
processor group. I had been warned that a hardware upgrade was too costly due 
to the MAPICS licensing.

With my local IBM VAR, I was able to get a really great deal on a then new 
AS/400 model 270 which was in the p10 processor group. Everyone of my software 
vendors quoted me reduced rates except MAPICS. Our then affiliate explained 
that we would have to go to a user based fee from our *nomax and that it would 
potentially be an increase of double for our annual maintenance. I went into 
heavy negotiations with them and eventually got a reduced MAPICS license fee 
and stayed at *nomax; I think it was the final threat that we would migrate 
from MAPICS to one of the other AS/400 ERP systems. We installed the smallest 
AS/400 yet it was 3 times the processing power, twice the memory and twice the 
DASD. We saved over $14,000 in annual maintenance from all of our software 
vendors including MAPICS in the first year alone. 

Last year we upgraded again to an iSeries model 520; once again tripling the 
processor, doubling the memory and DASD (and reduced the footprint to a small 
PC Server sized boxed - Scary). Our new Affiliate also warned that we might 
need to go to a per user license and that it could potentially be an increase 
in the annual fee. however, they were able to come back with no price increase 
for the new licenses but a minor fee for migrating; something a number of the 
other vendors also charged this time around although in total I think it came 
to under $2,000 for all of our software. 

We are running version 5.5 and will be looking to upgrade and I am sure the per 
user fee issue will come up again. The thing I found interesting in both of our 
discussions regarding these upgrades was that no one seemed to know what the 
algorithm was to determine the annual license fee. They put numbers in to a 
website and then received a quote from MAPICS that then needed to be negotiated 
between the affiliate and MAPICS. Both times there were discussions abut how 
the new machines could support more users because of the processing power. In 
fact, the number of Tegal users is really pretty small; we have less than 30 
MAPICS users. In my 30 years of I.T. experience, I have yet to migrate away 
from a software vendor due to price; it has always been driven by functionality 
or radical changes in business models. It will be interesting to see if that 
continues to hold true as tegal looks to either upgrade from version 5.5 or 
move to another package.

Regards,
Jon Le Roi
Director of Information Systems
Tegal Corporation 


-----Original Message-----
From: mapics-l-bounces@xxxxxxxxxxxx
[mailto:mapics-l-bounces@xxxxxxxxxxxx]On Behalf Of Ann Neal
Sent: Wednesday, April 05, 2006 8:23 AM
To: MAPICS ERP System Discussion
Subject: [MAPICS-L] New iSeries and XA License Keys


Hi List,

Just adding our frustration to prior threads on getting new iSeries and the
XA $$ charges resulting.  IBM has done such a great job at what they do that
we can't get a new machine as slow as our old one!  We are staying at a P10,
but having to pay for new license keys.  Here is our history:

1998 leased (5yr) S20 4-way processor P40 purchased many modules with *NOMAX
of MAPICS users
2003 (May) leased (3yr) 810 single processor P10  (no rebate for dropping
tiers or going to a single processor)
2006 (March) leased (3yr) 520 single processor P10   We are going to have to
pay for license keys to stay at the same tier (although like I said, IBM has
done such a great job that even staying at the same processor level you get
a faster machine).  We are being encouraged to change to (pay for) user
based licensing so we won't be charged for the next machine change.  Notice
we paid in the beginning for *NOMAX users

We were incredulous that by staying at the same tier we are now getting
charged for license keys.  (didn't get a rebate in 2003, but no charge,
either)   Course we can't install the new machine until we get them, so kind
of like being held over a barrel.  Wish there was a standard formula so a
customer knew where they stood.

Ann Neal




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