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John Jones wrote on Wed, 16 Feb 2011 00:03:05 GMT:

Can anyone cite the IRS publication or rule that specifies
limits on computer processing power upgrades?

I cannot find the specific rule. However, it is not applied to
each an every purchase by individual businesses. It is applied
in general across the broader category of the vast majority of
upgrades offered by a company like IBM.

As I recall, if at least 20% of the system cannot be brought
forward in the process of the upgrade, upgrades cannot be
offered. In the specific case of going from POWER5 or POWER5+
technology, in over 90% of all upgrades, 100% of the equipment
currently installed would be replaced as part of the upgrade.

You will replace the CPU and memory. You will replace all the
I/O enclosures (no HSL is supported on POWER7 and no 12X is
supported on POWER5/5+). The 12X enclosures that make the most
sense economoically only support PCIe adapters so all tape
controllers, disk controllers, LAN controllers and WAN
controllers will be replaced. There are no SCSI disk adapters in
PCIe form factor, so all SCSI disk will be replaced.

Your specific situation may not require replacing everything, but
by IBM's estimate over 90% of our customers would require the the
rip and replace scenario leading to IBM's inability to offer
upgrades for POWER5/5+ to POWER7 directly.



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