IBM Power hardware library

How IBM Power Hardware Changes IBM i Tier Cost

Updated October 20, 2026

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 newer IBM Power hardware saves software cost

The lever is throughput per core. IBM's benchmark data shows meaningful CPW gains from one hardware generation to the next. A workload that needed six licensed cores on Power9 might clear the same throughput requirement on four cores of Power10 or Power11.

Fixed by IBMPer-core tier price (P05-P50)
Fixed by IBMPer-user fees where applicable
Variable by generationCPW delivered per core
Variable by generationCores needed to clear a tier ceiling

Where the IBM Power hardware advantage stops

This effect has diminishing returns. Once the workload sits inside a tier's core-count floor, newer hardware does not lower the software bill further. The saving matters most near a tier boundary where a faster server can avoid the next tier.

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.

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