The Hidden Cost Lever in IBM i Tier Pricing: Cores, Not Just Tiers
It is a common misreading of IBM i licensing to assume a newer Power generation gets a pricing break on software tiers. It does not. P05, P10, P20, and P30 carry the same published per-core rate regardless of whether that core sits on a Power9, Power10, or Power11 chassis.
Where the real savings live
The lever is throughput per core. IBM's own benchmark data shows meaningful CPW gains generation over generation -- Power11's entry S1112 rates roughly 5.4% more total CPW than Power10's comparable S1012 configuration, and the generational gap from Power9 to Power10 is considerably larger. A workload that needed, say, six licensed cores on Power9 to clear a P20 ceiling might clear the same throughput requirement on four cores on Power10 or Power11.
Where this breaks down
This effect has diminishing returns. Once your workload is already comfortably inside a tier's core-count floor, buying a newer generation does not lower your software bill further -- you are already paying the tier's minimum. The core-count savings matter most for workloads sitting near a tier boundary, where a newer generation can drop you into a materially cheaper tier altogether or avoid an expensive tier upgrade.
Model this explicitly before assuming a hardware refresh pays for itself in software savings alone. See IBM i Tier Economics for the full tier table and Configuration Efficiency for where the core-count curve flattens.
Sources
- https://www.itjungle.com/2024/04/15/drilling-down-into-new-ibm-i-perpetual-and-subscription-pricing/
- https://www.itjungle.com/2025/07/08/with-subscription-price-ibm-i-p20-and-p30-tiers-get-bigger-bundles/
Related Generations
IBM Power9
IBM's 2018 Power generation. Standard IBM service for scale-out models ended 31 January 2026. Currently the strongest cost-per-CPW zone on the secondary market, for a defined, short remaining runway.
IBM Power10
IBM's 2021 Power generation, withdrawn from new-unit marketing 31 July 2026. Currently scores highest on the Power Value Index's value measure: strong performance, real modeled runway, and a secondary market that just started forming.
IBM Power11
IBM's current 2025 Power generation. Highest overall Power Value Index score, leading on performance, capacity, and remaining useful life, but the only generation carrying zero acquisition discount.