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What is the Total Cost of Ownership for IBM i and Power i Servers?

Posted by Dave Kravitt

ibm_i_cost_of_ownershipIn this blog, we discuss a report on the total cost of ownership (TCO) of IBM i and Power i servers. PSGi’s ground-level experience working with a variety of manufacturing and distribution companies across North America suggests that this IBM pairing can be extremely effective, generating substantial long-term ROI. This TCO report provides data to back our experience (and in the time since, IBM has confirmed that this ecosystem will be supported through at least 2032). 

Why do IBM i and Power i Servers Continue to Offer Excellent Value? 

We’re all familiar with that old saying, “if it ain’t broke, don’t fix it”, but in the world of IT infrastructure, virtually anything not seen as next-gen is often viewed with deep suspicion. That certainly holds true for the enterprise hardware and operating system software that form the backbone of business applications. 

So when IBM research and analysis firm ITG updated its Total Cost of Ownership Report, chances are good that a lot of eyebrows were raised. It turns out that IBM i and the servers it runs on are not only still a solid, cost-efficient SMB IT infrastructure solution, they blow the competition out of the water when it comes to TCO.

How does IBM i / Power i hardware and software TCO compare to competitive systems? 

We’re not exaggerating – i Series hardware and software cost an average of almost 56 percent less to own than comparable competitive systems. 

What makes this so compelling is the across-the-board savings SMBs are realizing using this tried-and-true midrange systems workhorse. ITG’s evaluation pitted IBM Power S814 and S824 servers against two different Intel E5 and E7 processor-powered X86 servers. One ran Microsoft Windows Server 2012 and SQL Server 2014 while the other was a Linux server combination running Oracle Database 12c.  

ITG considered a comprehensive set of criteria for determining TCO when evaluating the i Series, including:

  • Hardware purchase and maintenance
  • Licenses and operating systems support
  • Databases and other systems software
  • Systems management and database administration costs
  • Energy costs 

How do IBM i and Power i Servers acquisition and ongoing costs compare with competitive systems? 

This data offers a more detailed breakdown of how IBM i/Power i costs are lower both upfront and on an ongoing basis. 

IBM i/Power i Acquisition Costs

  • 35% Less than the Windows-based server
  • 46% Less than the Linux/Oracle server combo 

IBM i/Power i Ongoing Costs

  • 49% Less than the Windows-based server
  • 53% Less than the Linux/Oracle server combo

The Impact of IBM i / Power i’s Excellent TCO

What makes these numbers even more compelling is the fact that the average SMB has to deploy three to five competitive servers to match a single Power system and that IBM i powered systems experience up to 79% LESS downtime than the other systems – vital for any organization with mission-critical data management needs, such as companies with a mobile workforce or e-business environment. 

As if that isn’t enough, the most substantial cost savings realized with IBM i powered systems is in systems management. IBM i simply needs much less administrative support which can result in significant employee overhead savings. 

So if you’re under pressure to replace your “old” i Series infrastructure, use these ITG report results to rest easy, knowing that the industry’s most reliable and cost-efficient SMB IT infrastructure is set to provide excellent value well into the future. 

legacy erp

Learn More About Services and Support from the IBM i Experts

With this hyper-competitive TCO for the IBM i operating system and Power i servers, now is a great time to consider your organization’s long-term technology strategy. For example, we recently explored how well-planned integrations can help enhance your business capabilities while continuing to get the most out of your technology investments. Click here to read our article on Carefully Planned Integration for IBM i Enhancement with Maximum ROI. 

PSGi has a deep well of experience helping manufacturers identify and execute the right support strategy for their IBM i applications. If you are interested in reaching out to learn more about identifying the right long-term approach for your ERP, contact our team using the button below.

Reach Out to the IBM i Experts

 

Tags: Enterprise Planning, IBM i Platform