RE: New Hardware Announcement

["Joe Pluta" <joepluta@xxxxxxxxxxxxxxxxx>]

> From: Mike.Crump@saint-gobain.com
>
> I have the same kind of shock but due to my circumstances they are
> minimized.  My original 820 upgrade was a move from P30 to P40.  Now with
> the 825 I can stay in the P30 tier.  So...............I'm
> spending 50% more
> on software and about 90% less on software........I think I net to a
> possible savings.........

Mike, where did you get your numbers for software costs?  The best I've been
able to dig up are the standalone costs of WAS5:

http://www.ibmlink.ibm.com/usalets&parms=H_202-316

Discounting the "Network Deployment" version (which I don't understand at
all), the basic version looks to cost $9000 per CPU, which price includes
one year of "software maintenance".

What's really interesting, though, is the various maintenance offerings.
First, there are two types, "normal" and "after License".  "After license"
is if you've been bad and let your subscription lapse.  IBM POUNDS you for
that.  But first, let's just take a look at the options:

1-year renewal:      $1967
3-year registration: $3980
3-year renewal:      $5970

Basically, it's $2000 per year.  Actually, it's $1990/year if you buy either
of the extended packages (remember, the 3-year registration basically
extends your initial one-year contract to three-years - it's a 2-year
addition), and $1967/year for the one-year renewal.  If you go back and
apply that to the original cost, you get $9000-$2000, or $7000 for the cost
of the software.  Which means software maintenance is 28% annually.

Not a bad gig.

Now, let's take a peak at the late fees, shall we?

Well, for the one year, it's basically a $3900 penalty, or nearly two years
worth of maintenance.  So, IBM is basically telling you stay on maintenance
or pay us through the nose.

I like this idea.  28% annual maintenance and a two year late fee.  I'm
going to incorporate it into all my software.

It's not as bad on the three year.  If you grovel nicely and buy the
three-year plan, you will only get stung for a $3275 late fee.  Not nearly
so bad, right?

Anyhow, that's the best I could make out of this announcement.  The Network
Deployment version numbers don't even fall into any sort of sane line with
those numbers.  The 1-year renewal is the same, but after that the prices go
through the roof.  So don't ask me.

Joe