Hardware and IBM i pricing

How IBM Power Hardware Changes IBM i Pricing

See how the IBM Power hardware model and processor choice set the IBM i tier. Compare the server first because a different configuration can change the software bill.

New IBM i licenses are subscription-based in 2026. P05 and P10 price the licensed cores plus users. P20 and P30 price the processor entitlement without a separate user count. The server model and processor feature determine the tier before the buyer chooses a term.

A P05 software example tied to IBM Power hardware

IBM's published P05 example lists one IBM i core at $2,356 per year and a block of 10 users at $800 per year. That makes a one-core P05 starting point $3,156 per year for a multi-year term: $2,356 plus $800. IBM says a one-year purchase adds a 15 percent uplift, and the current quote still controls.

The IBM Power hardware choice sets the licensing question

The Power S1112 is the only Power11 server in the P05 tier. IBM i is limited to a combined 4 cores, 64 GB of memory, and four IBM i partitions on that system. Extra S1112 resources can run AIX, Linux, or VIOS, but they do not expand the IBM i limit.

Do not compare two hardware quotes until both name the IBM i tier, licensed cores, users, subscription term, Software Maintenance treatment, licensed programs, and transfer or conversion assumptions.

Where IBM Power hardware changes the upgrade decision

A newer server may complete the same work with fewer IBM i cores, but the saving only appears when the fitted processor feature and partition design actually reduce licensed capacity. Use Configuration Efficiency to size the workload, then place the resulting software quote into Annualized Ownership Cost.

For the deeper software-only comparison, including transfer and conversion questions, use the IBM i Software Economics Hub.

The IBM Power hardware model and processor feature set the IBM i tier. IBM's current Redbooks material identifies P05 through P30 as active Power11 software tiers. The P05 amount below is a planning example from IBM's Subscription Transformation FAQ, not a current quote.

Current IBM i subscription structure by software tier

TierLicensing MetricPublished Price or Quote StatusPower11 Fit
P05Licensed cores plus users$2,356 per core per year; $800 per 10-user block; $4,000 per year for unlimited users; one-year term adds 15 percentPower S1112, with IBM i limited to 4 cores and 64 GB across no more than four IBM i partitions
P10Licensed cores plus usersSubscription quote required for the fitted processor feature, users, term, and licensed programsPower S1122 configurations and other supported processor features assigned to P10
P20Licensed cores, no separate user feeIBM i P20 Standard Edition subscription bundle or current IBM quotePower S1124 configurations assigned to P20
P30Licensed cores, no separate user feeIBM i P30 Enterprise Edition subscription bundle or current IBM quoteLarger S1124 configurations and Power E1180 processor features assigned to P30

Software tier follows the machine type and processor feature. The tier name alone does not state the complete IBM i cost because licensed cores, users, term, licensed programs, support, conversion, and transfer rules still matter.

Power11 model choice changes the IBM i pricing conversation

A more capable server only saves IBM i cost when the fitted design reduces licensed capacity or avoids a more expensive tier.

Power11 ModelIBM i Tier DirectionEconomic Meaning
S1112P05Best fit for entry IBM i when the complete workload stays inside the 4-core and 64 GB IBM i limits.
S1122P10Adds capacity and I/O flexibility, but the buyer must price cores and users against the fitted processor feature.
S1124P20 or P30The processor feature and partition plan determine which subscription bundle enters the comparison.
E1150No IBM i supportDo not include this AIX and Linux model in an IBM i hardware comparison.
E1180P30 enterprise IBM i configurationsBuild the software quote with the complete partition estate, high availability design, and licensed programs.

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