IBM Offers Modest Rebates to Spur iSeries Business

by Timothy Prickett Morgan

As expected, IBM last week announced several rebate deals that aim to boost sales of the iSeries server platform among new and existing customers. These rebate plans are similiar to the on-again, off-again rebate and discount deals that successive general managers and marketeers in the MidMarket Server Division have used for the past several years to push OS/400 servers. There's always a slightly different twist to these deals, however, which is why customers have to pay attention.

Under the eServer iSeries High Availability Implementation Services Rebate, customers who buy a new Model 8XX server or an upgrade to an 8XX server that is used as a target system for a high availability cluster can get a rebate equal to 10 percent of the cost of the new 8XX server or 5 percent of the cost of the processor upgrade. As part of this deal, customers have to spend at least $1,000 on HA implementation services. Customers who either prepay for three years of Software Subscription for the new 8XX machine or upgrade can get a 50 percent discount on the price of that Software Subscription license. (I will present a detailed analysis of the revamped Software Subscription and Software Maintenance services that took effect last week in the next issue of The Four Hundred.)

Some Model 820 server configurations are not eligible for this rebate/discount offer, but all Model 830 and 840 servers are. Specifically, Model 820s with processor features 2425, 2426, 2427, 2456, 2457, 2458, 0150, 0151, and 0152 cannot be acquired under this deal. The latter three Model 820 processors are used on the special low-cost (relatively speaking, of course) no-interactive machines IBM announced in October 2000 and April 2001. HA software packages from DataMirror, Lakeview Technology, and Vision Solutions are included in the deal. Solutions from H.A. Technical Solutions, iTera, and Maximum Availability are not included in this deal, but this could change in the near future.

OS/400 shops can get the eServer iSeries Enterprise and e-Business Application Rebate if they buy a new Model 270 or 8XX server, buy a qualifying new application, and buy at least $1,000 worth of implementation services for that application. IBM will offer a rebate equal to 3 percent of the invoiced price of the Model 270 acquired and 8 percent of the invoiced price of the Model 8XX server. Model 270s with processor features 2250, 2252, 2253, 2231, 2232, and 2234 that also have interactive feature 1516 installed can not take part in this deal, and neither can Model 270 servers with processor features 2422, 2423, 2424, 2452, or 2454. These are all machines with zero interactive processing capacity. All of the Model 820 machines with zero interactive capacity are also restricted from this rebate. To see a full list of the applications available under this deal click here.

With the eServer iSeries Server Consolidation and Replacement Rebate, customers who replace two or more vintage AS/400 servers or two or more non-AS/400 servers with modern iSeries servers, and actually move workloads to these new servers, can get rebates against the cost of the new iSeries machines. Customers replacing non-IBM machines can get an 8 percent rebate on the iSeries 8XX machines they acquire, while those replacing vintage AS/400s--which means the B, C, D, E, F, CISC AS, RISC AS 4XX/5XX, and AS/400e 6XX/SXX generations of machines--will get a rebate equal to 5 percent of the invoiced price for the new iSeries machines they acquire. As with the other two rebate promotions, customers cannot buy the Model 820 servers with no interactive processing capacity as part of this deal. Customers who buy an Integrated xSeries Adapter card along with their new Model 8XX server can get a further rebate of $1,000 on the cost of the IxA card, which allows them to link xSeries servers to iSeries machines in a hybrid OS/400-Windows environment.

All three of these deals are clearly and squarely aimed at traditional RPG and COBOL shops looking to beef up the availability of their machines, add new software to them, and consolidate existing machines.