System iNetwork

March 16, 2009

IBM Targets Forgotten i Boxes

IBM has launched a new incentive program designed to up sell new hardware to hibernating AS/400, iSeries, or System i customers. Under IBM's iLoyalty program, customers can move to select i Editions of the Power 520, Power 550, and IBM BladeCenter with a no-charge IBM i processor license. Plus, customers can acquire IBM i user licenses at a 50 percent discount.

While the iLoyalty program is generally inclusive of any IBM i-focused customer, the target customers tend to be those who have installed their systems but haven't upgraded recently -- those who leave their boxes running quietly in the corner and just forget they exist.

"This is an effort to reach out and deliver a compelling value proposition to these customers, many of which have not been touched [by IBM] for quite a while," explains Todd Morris, director of worldwide sales for IBM Power Systems.

"The sweet spot is for customers who bought an i box 3, 4, 5, 6 years ago," he notes.

Saving Hundreds or Thousands

"In many cases these customers can instantly save hundreds of dollars a month by going to a new Power 520 or BladeCenter," Morris says. "They'll save in software and hardware maintenance, and at the same time benefit from a pretty nice hardware update."

"This is designed to save cash from month one -- assuming they lease," Morris notes.

Of course, for customers who are not on software or hardware maintenance, the savings aren't quite as compelling. Still, the processor entitlement equates from $15,000 to $44,000 in value, depending on what a customer is upgrading from and moving to.

In addition, customers can also often reduce their system's power consumption.

In Europe and some international markets, IBM has similar programs in place with slightly different names, such as iCare. "They are not identical, but the core value proposition is pretty much the same," Morris says.

Playing with Blades

IBM, of course, is hoping that some of these customers might become reinvigorated through the adoption of a BladeCenter that will let them consolidate their i and Windows workloads in the blade form factor. In addition, a BladeCenter can help customers establish a more manageable Storage Area Network setup, as well as give them room to add Linux or Unix workloads with additional blades.

"This is very much a Partner-led play," Morris says, noting that IBM's Business Partners will be reaching out to customers targeted under its iLoyalty program.

To learn more about the program, IBM has created an iLoyalty site with handy resources like a tool for calculating your likely cost savings.

The iLoyalty offers are slated to end June 19.

Posted by cmaxcer at March 16, 2009 9:56 AM