IBM Announcement Letter - PPA Software Price Increases Effective July 1

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IBM Passport Advantage Discount Change
(IBM Software Price Increase)
Effective July 1, 2020


IBM released Announcement 320-120<http://r20.rs6.net/tn.jsp?f=001s3NbtpxUFqsqLe0UkdEvhCEo0BTw7_Me7ibQIv-zz00F_EABy18VbVczBdHWIhVmV4a7lFHvTxxfSUDyrU_4ns0-_DNytmr0cQU9C19KeqUqFa5wy4BpR95sBmI_L5Xor7OqlMN5mAPwcH0ZuZOuCtlZvaT60lxbW7591M-t3E8G6Y6nCbzQ5MC0d8HklgWbbD4qHoSDYNJHVlXE-Bjkpa1GHbYaAXphOZJAxbfOcMKJybpNrV0UW9M0kxx_m87UIq7ig0o_jBDkGm8zXazJPtCYFHAtfcYjX9Qz2NTySkKxKqbos1dM_rL7pLRnle34&c=RsCR-6hzKbMQsw-LjQB-uD8gneziDMlqpXw0J9OKiA8ZPDqFkyjznw==&ch=YFnvmdp8FsSOMeA0JOAhqo0s0NuKmZe069qiJ7mqc_MdNpDtodcNRQ==>, "Price Change(s): PPA Entitlement Discount Change for IBM Passport Advantage - Effective July 1, 2020". It begins with:

"IBM is making changes to its Passport Advantage benefits by removing the entitled discounts for a select number of products traditionally deployed on-premises. Entitled discounts will remain unchanged for our on-premise hybrid, and multi-cloud platforms where we will continue to focus our investment and innovation. Your company will still be able to earn points on the offerings no longer eligible for discounts. For new purchases, your company will enjoy longer term benefits and entitled discounts when adopting IBM's equivalent cloud and hybrid-based offerings.

Based on these changes to entitled discounts, it is recommended that your company evaluate and plan a transition to the equivalent, cloud- and/or hybrid cloud-based offering. Please consult with your local IBM Sales representative or IBM Business partner to and make any recommended changes to your portfolio of IBM offerings accordingly."

What does this mean?

- As IBM validates the deployment of many of their legacy solutions in cloud and hybrid environments, they are creating new part numbers for solutions that are no longer limited to on-premise deployment and re-branding them as Cloud Pak for Data solutions.

- IBM's largest and most valued customers, those with Enterprise License Agreements ("ELAs"), will not be impacted by the new pricing - the price increase will only impact small and midsize customers purchasing IBM solutions.

- This is a price increase. The list of the 7,700 impacted part numbers sent to IBM's Business Partners who resell IBM solutions is titled, "Price Increase Part Numbers".

The Fillmore Group understands that many/most IBM solutions have always worked either on-premise or in the cloud. And of course, as with all software measured using server size or data quantity metrics, in order to remain compliant with IBM software license guidelines, software can only be deployed in one location at a time.

IBM recommends completing all pending license purchases by June 30th (surprise!) and they are also recommending implementation services from their Data & AI Expert Labs (DAEL; formerly Lab Services) organization. More on this in my post on The Fillmore Group's blog.



About The Fillmore Group

Frank Fillmore founded The Fillmore Group in 1987 to provide expert technical services to customers using IBM's relational database software product, Db2. Since then The Fillmore Group has delivered expert consulting services, technical education, and is an IBM software reseller.

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