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Volume 17, Number 29 -- July 28, 2008

IBM Ultrium Media Pricing: Told You This Story Wasn't Done

Published: July 28, 2008

by Timothy Prickett Morgan

My journalistic spidey sense is still pretty good, it looks like. Two weeks ago, I told you that IBM lowered prices on Ultrium tape cartridges by a pretty big percentage and then raised them right back up again a week later. I also said that I couldn't wait to see what IBM did on July 15 or July 22, because this story wasn't over.

Well, as it turns out, it wasn't over. Let's recap, just so we don't cause as much confusion on this as IBM has. Here are the price changes on Ultrium media announced on July 1, in announcement letter 308-800:



IBM's July 1 Ultrium Media Price Cuts
Machine Feature List Price Price
type number Description Old New Change
3573 8305 Data cart, 5-pack 400 GB cartridge $349 $187 -46.4%
3580 8301 Single 400 GB cartridge $69 $38 -44.9%
3580 8305 Data cart, 5-pack 400 GB cartridge $349 $187 -46.4%
3589 0820 20-pack 400 GB cartridges, with labels $1,416 $1,172 -17.2%
3589 0920 20-pack 400 GB cartridges, no labels $1,396 $1,152 -17.5%
3589 1020 20-pack 800 GB cartridges, with labels $3,202 $2,584 -19.3%
3589 1120 20-pack 800 GB cartridges, no labels $3,182 $2,564 -19.4%
3589 2820 20-pack 400 GB WORM cartridges, with labels $2,184 $1,414 -35.3%
3589 2920 20-pack 400 GB WORM cartridges, no labels $2,164 $1,394 -35.6%
3589 3220 20-pack 800 GB WORM cartridges, with labels $4,348 $3,018 -30.6%
3589 3320 20-pack 800 GB WORM cartridges, no labels $4,328 $2,998 -30.7%
3589 6020 20-pack 200 GB cartridges, with labels $1,026 $1,004 -2.1%
3589 7020 20-pack 200 GB cartridges, no labels $1,006 $984 -2.2%
7212 8103 5 200 GB cartridges, plus test and cleaning $476 $396 -16.8%

But, alas, IBM giveth a discount, and it taketh it away on July 8, in announcement letter 308-805:


IBM's July 8 Ultrium Media Price Increases
Machine Feature List Price Price
type number Description Old New Change
3573 8305 Data cart, 5-pack 400 GB cartridge $187 $349 86.6%
3580 8301 Single 400 GB cartridge $38 $69 81.6%
3580 8305 Data cart, 5-pack 400 GB cartridge $187 $349 86.6%
3589 0820 20-pack 400 GB cartridges, with labels $1,172 $1,416 20.8%
3589 0920 20-pack 400 GB cartridges, no labels $1,152 $1,396 21.2%
3589 1020 20-pack 800 GB cartridges, with labels $2,584 $3,202 23.9%
3589 1120 20-pack 800 GB cartridges, no labels $2,564 $3,182 24.1%
3589 2820 20-pack 400 GB WORM cartridges, with labels $1,414 $2,184 54.5%
3589 2920 20-pack 400 GB WORM cartridges, no labels $1,394 $2,164 55.2%
3589 3220 20-pack 800 GB WORM cartridges, with labels $3,018 $4,348 44.1%
3589 3320 20-pack 800 GB WORM cartridges, no labels $2,998 $4,328 44.4%
3589 6020 20-pack 200 GB cartridges, with labels $1,004 $1,026 2.2%
3589 7020 20-pack 200 GB cartridges, no labels $984 $1,006 2.2%
7212 8103 5 200 GB cartridges, plus test and cleaning $396 $476 20.2%

On July 22, in announcement letter 308-808, IBM reduced the prices on the Ultrium media with only a few variations. Check it out:


IBM's July 22 Ultrium Media Price Decreases
Machine Feature List Price Price
type number Description Old New Change
3573 8305 Data cart, 5-pack 400 GB cartridge $349 $186 -46.7%
3573 8405 Ultrium 4, 5-pack 800 GB cartridge $514 $420 -18.3%
3580 8301 Single 400 GB cartridge $69 $37 -46.4%
3580 8305 Data cart, 5-pack 400 GB cartridge $349 $186 -46.7%
3580 8405 Ultrium 4, 5-pack 800 GB cartridge $514 $420 -18.3%
3589 0820 20-pack 400 GB cartridges, with labels $1,416 $1,172 -17.2%
3589 0920 20-pack 400 GB cartridges, no labels $1,396 $1,152 -17.5%
3589 1020 20-pack 800 GB cartridges, with labels $3,202 $2,584 -19.3%
3589 1120 20-pack 800 GB cartridges, no labels $3,182 $2,564 -19.4%
3589 2820 20-pack 400 GB WORM cartridges, with labels $2,184 $1,414 -35.3%
3589 2920 20-pack 400 GB WORM cartridges, no labels $2,164 $1,394 -35.6%
3589 3220 20-pack 800 GB WORM cartridges, with labels $4,348 $3,018 -30.6%
3589 3320 20-pack 800 GB WORM cartridges, no labels $4,328 $2,998 -30.7%
3589 6020 20-pack 200 GB cartridges, with labels $1,026 $1,004 -2.1%
3589 7020 20-pack 200 GB cartridges, no labels $1,006 $984 -2.2%
7212 8103 5 200 GB cartridges, plus test and cleaning $476 $396 -16.8%

The price cuts are essentially the same as those announced on July 1, with the price going down by $1 for the 3573 feature 8305 and IBM adding price cuts on Ultrium LTO-4 five-pack cartridge bundles, which I highlighted in bold blue in the table. I would guess the price flip-flopping is done now. But we'll see. . . .


RELATED STORIES

IBM Lowers and Then Raises Ultrium Media Prices

LTO Tape Drive Sales Increased 15 Percent in 2007

LTO-5 On Course for 2009

IBM Rolls Out LTO 4 Tape Drives and Libraries

LTO Consortium Spins Ultrium 4 Tape Format with Native Encryption



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TABLE OF CONTENTS
IBM Reaches Out to Midmarket Business Partners

Sundry July Power Systems Announcements

IBM Updates DB2 Web Query Business Intelligence Tool

As I See It: Babes in Broadband

SAP Shuts Down TomorrowNow Support Biz

But Wait, There's More:

Reader Feedback on What the Heck Is the Midrange, Anyway? . . . Gartner Predicts Half of Users Dissatisfied with IT Pace by 2013 . . . IBM Ultrium Media Pricing: Told You This Story Wasn't Done . . . Middleware Makers Are Sued Over Server Patents . . . Mike Borman Lands the CEO Job at Avocent . . .

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