How the IBM Power Hardware Hold Changes IBM i Licensing
Using IT Jungle's reported P05 tier figures as a worked example: subscription pricing runs about $2,356 per core per year. Perpetual pricing runs about $3,315 per core as a one-time purchase, plus an ongoing software maintenance agreement (SWMA) fee to retain upgrade and support entitlement.
The IBM i breakeven formula for one hardware hold
Breakeven hold period, P05 tier example
At these P05 rates, the one-time perpetual purchase catches the subscription total before SWMA is added. A current SWMA quote is still needed to set the real breakeven.
| Year | Cumulative Subscription Cost | Cumulative Perpetual + SWMA Cost (illustrative) |
|---|---|---|
| Year 1 | $2,356/core | $3,315/core + SWMA |
| Year 2 | $4,712/core | $3,315/core + 2x SWMA |
| Year 3 | $7,068/core | $3,315/core + 3x SWMA |
SWMA rates are not published in the sources reviewed for this article; request current SWMA pricing from IBM or a business partner to complete this calculation for your own core count.
Why the hardware plan can still favor subscription
Subscription licensing avoids a large one-time cash outlay. IBM also offers conversion incentives for some existing P05 and P10 customers. The breakeven matters, but cash flow and the current IBM offer matter too.
Run this calculation with your actual core count and a current SWMA quote before committing to either model. The figures above are illustrative, not a quote.
Sources
- https://www.itjungle.com/2024/04/08/details-on-the-ibm-i-subscription-conversion-deals-for-p05-and-p10-tiers/
- https://www.itjungle.com/2023/09/18/the-subscription-pricing-for-the-ibm-i-stack-so-far/