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  3. April 2007

User Pricing Was: used 9406-270

My sense has been that the whole structure is heading that way and I think it will be coming soon. Although the i5 hardware will never be the same price as a p5 or an x, user pricing is the only way IBM can achieve some parity with the HP/Dell/Microsoft server platforms out there. The System i has been sold as a multiuser system where Dell and HP have an aggressive entry point and everything else is ala carte. So the i can't compete at the low end because the "system" is compared to a hardware only solution and you can't buy an i without an OS.
I can imagine that IBM could sell an "uncapped" i5 for around $10k and then use the User pricing model to gain back some "lost" revenue. That still puts about a $4k-5k gap in pricing on the system when compared to a Dell, but it might get some folks to kick the tires.
Whether the i should even be compared to a Dell or HP "traditional" server is another question. 

Pete



Steve Richter wrote:

On 4/1/07, Pete Helgren <Pete@xxxxxxxxxx> wrote:

Yep.  User based pricing is just around the corner.



It is?  ITJungle appears to have lost interest in the i5 so there are
no intelligence reports to rely on.   Once we have UBP of i5/OS there
is no longer a business reason for i5 hardware. We would just run
i5/OS in a partition on the fast, market priced p5.

-Steve

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