RE: Model 170 for Personal Development -- MIDRANGE-L

1/2 of $11,354 is under $6 grand.  1.5% of $11,354 is under $180.  1
year hardware maint is included and it looks like 1 year SWMA is also
included, which covers SW maint & support. 

First year costs for leasing a basic box would thus be under $180 a
month.  More in year 2 when the warranty runs out.

As Mark noted, the cost would be somehwat higher depending on what SW
options you bolt on to that.  So it may become too expensive once fully
equipped.

Of course, you don't need to depreciate it to get a tax benefit.  All
related expenses should be a tax write-off like any other business
expense if you use the iSeries for your business somehow.  Either for
development or to manage your accounting or somesuch.  That should
reduce the net expense by another 20+%.  Ask your accountant.

John A. Jones
Americas Security Officer
Jones Lang LaSalle, Inc.
V: +1-630-455-2787 F: +1-312-601-1782
John.Jones@xxxxxxxxxxxxxxxxxxxxxxx

-----Original Message-----
From: Mark S. Waterbury [mailto:mark.s.waterbury@xxxxxxx] 
Sent: Thursday, June 10, 2004 9:48 AM
To: Midrange Systems Technical Discussion
Subject: Re: Model 170 for Personal Development

Some clarifications are in order:

You can EITHER lease at 1.5% per month, OR you can purchase at 50% off
list, IF you are a member of ParterWorld for Developers at the
appropriate level (costs around $600+ per year fees to join at that
level). 

So, you would be looking at a minimum of around $500 per month for a
lease on the hardware with the basic i5/OS that comes "bundled" with the
hardware.

Notice that this includes only the "base" i5/OS, without any compilers,
development tools, etc.  So, you would have to add whatever other IBM
Licensed Program Products you might need (e.g. 5722-WDS, 5722-QU1,
5722-ST1, etc.) and then add the cost for the software licenses fees for
those products to the total, and then compute the lease amount based on
that total... this can easily double your monthly payments, depending on
what software you need.

Also, if you lease a box from IBM, you must keep the machine under a
maintenance contract for the hardware and software, (SupportLine or
whatever they call it now, combining hardware and software support), so
add another $250+? per month or so for that... 

I think you are probably looking at about $1,250 per month for an i5 520
with a reasonable set of development tools software...

IMHO, for one person doing development, an i5 model 520 is far more CPU
power than you would ever need; it has a CPW rating of 500... I know
several consulting firms who run on a model 270 with a rating of  ~150
CPW (batch); they have 10 developers banging away, full-time! 

I am not "knocking" IBM's pricing here; I just want to try to give a
more accurate picture, for anyone who is considering looking into such a
lease for "personal" use.  

Remember, companies can "expense" lease costs different from how they
must depreciate equipment purchases (say, over 5 years). The idea behind
the PartnerWorld for Developers lease is that a BP leases it for 24
months, and then turns it in and lease a brand-new one. That way, the
BPs always have the "latest and greatest" hardware and software, so they
can support their (and IBM's) customers with all the latest stuff (at
least, in theory).

I think it is terrific how IBM continues to improve the
"price/performance" of these systems, year after year. They basically
double the performance for the same price every two years! Phenomenal!

Hope that helps...

Regards,

Mark S. Waterbury

----- Original Message ----- 
> From: "Jones, John (US)" <John.Jones@xxxxxxxxxxxxxxxxxxxxxxx>
> To: "Midrange Systems Technical Discussion" <midrange-l@xxxxxxxxxxxx>
> Sent: Thursday, June 10, 2004 7:48 AM
> Subject: RE: Model 170 for Personal Development
>

> That would make an i5 520 Value Edition come in at under $6 grand.  Or

> under $180 a month for leasing. And that's for a box with 70GB disk, 
> 512MB RAM, and 500 CPWs.  Nice.
> http://www-1.ibm.com/servers/eserver/iseries/hardware/smallmed/520/bro
> ws
> e.html
> 
> John A. Jones
> Americas Security Officer
> Jones Lang LaSalle, Inc.
> V: +1-630-455-2787 F: +1-312-601-1782
> John.Jones@xxxxxxxxxxxxxxxxxxxxxxx


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