IBM Tweaks Various System i5 Server Deals

Published: October 9, 2006

by Timothy Prickett Morgan

IBM's marketeers have been taking their grease pencils to the System i5 playbook, and in recent weeks have made some tweaks to existing deals to help them better make deals.

IBM has tweaked a special rebate offering that has been on the books since May 2 that gave customers cash back if they upgraded selected iSeries 8XX or System i5 models or bought new System i5 machines entirely in conjunction with application software from key i5/OS application software vendors. Last week, IBM rejiggered the machines that were eligible for the rebates on this ISV deal, and also changed the rebates. Under the old deal, companies buying new System i5 servers could get rebates that span from $1,750 on a small i5 520 to $140,000 on a large i5 595. Customers could get rebates spanning from $1,200 to $38,400 if they upgraded their iSeries 8XX machines, or get from $525 to $42,000 if they upgraded to System i5 machines.

Under the revised ISV rebate deal that was announced last week, you cannot upgrade an iSeries 8XX box any more. And you have to get a new i5 520, 550, 570, or 595 machine or upgrade to one. The older i5 gear (based mostly on Power5 rather than Power5+ processors) is no longer part of the deal. But, IBM has cranked up the rebate machine. Now, rebates range from $4,500 on the smallest i5 520 to $175,000 on the largest i5 595. Rebates on upgrades to the 2006 iteration of the i5 line range from $1,350 on the i5 520 to $52,500 on the i5 595.

To take part in the System i5 ISV rebate deal, you have to buy i5/OS-based software from the following vendors:

BlueWare, CMS Software, Healthcare Management Systems, International Business Systems, Infor, Lavender & Wyatt Systems, Lawson Software, Manhattan Associates, Oracle (not the database software, just the JDE ERP suites), SAP, and Vormittag Associates.

IBM also last week tweaked its long-standing ServerProven rebate program, taking out older machines from the mix and changing the rebates. Just as in the past, customers can get ServerProven rebates when they acquire a new System i5 or System x server or an upgrade to a System i5 server in conjunction with a software program that has been certified as ServerProven on i5/OS or Windows. The rebates range from $750 on a small i5 520 to $70,000 on the largest i5 595. Upgrading to the smallest i5 520 gets customers a $225 rebate, and an upgrade to the biggest i5 595 is worth a $21,000 rebate. IBM is also offering $500 on a System x366 and $2,500 on a System x460.

RELATED STORIES

IBM Offers Incentives on i5 iSCSI Links to BladeCenter Blade Boxes

A Closer Look at IBM's Current System i5 Deals

Big ERP Package Buyers Get Big System i5 Rebates

ServerProven Rebate Program Gets Some Tweaks