More Power Systems Price Changes and Tweaks

June 8, 2009 Timothy Prickett Morgan

OK, IBM, this is getting to be a habit.

Last week, IBM once again tweaked the pricing on a bunch of upgrade features for its Power Systems lineup, once again cutting prices pretty dramatically. The price changes, which went into effect on June 2, are shown in the table below:

From		To			List Price		Price
Machine	Feature	Machine	Feature	Description	Old	New	Change
9119	7667	9119	4754	2.1 GHz Power5+ to 4.2 GHz Power6	$16,550	$16,500	-0.3%
9119	7667	9119	4755	2.1 GHz Power5+ to 5 GHz GHz Power6	$24,735	$19,485	-21.2%
9119	7925	9119	4754	p5 595 book to 4.2 GHz Power6 book	$16,800	$18,825	12.1%
9119	7925	9119	4755	p5 595 book to 4.2 GHz Power6 book	$17,000	$20,200	18.8%
9119	7990	9119	4754	p5 595 book to 4.2 GHz Power6 book	$17,950	$16,750	-6.7%
9119	7990	9119	4755	p5 595 book to 4.2 GHz Power6 book	$23,775	$16,875	-29.0%
9119	8471	9119	5680	1 GB DDR1 to 1 GB DDR2	$868	$400	-53.9%
9119	8472	9119	5681	256 GB DDR1 to 256 GB DDR2	$222,340	$102,400	-53.9%
9406	7280	9119	5681	2 GB DDR1 to 2 GB DDR2	$194,048	$89,600	-53.8%
9406	7668	9119	4754	i 595 book to 4.2 GHz Power6 book	$17,545	$14,295	-18.5%
9406	7668	9119	4755	i 595 book to 4.2 GHz Power6 book	$18,000	$16,750	-6.9%
9406	7669	9119	5680	1 GB DDR1 to 1 GB DDR2	$758	$350	-53.8%
9406	7799	9119	5681	256 GB DDR1 to 256 GB DDR2	$83,712	$38,400	-54.1%
9406	7815	9119	4754	i 595 book to 4.2 GHz Power6 book	$18,575	$13,675	-26.4%
9406	7815	9119	4755	i 595 book to 4.2 GHz Power6 book	$27,775	$15,850	-42.9%
9406	7925	9119	4754	i 595 book to 4.2 GHz Power6 book	$19,625	$16,750	-14.6%
9406	7925	9119	4755	i 595 book to 4.2 GHz Power6 book	$28,100	$16,875	-39.9%
9406	7970	9119	5680	Base 1 GB DDR1 to 1 GB DDR2	$327	$150	-54.1%
9406	8460	9119	5680	1 GB DDR1 to 1 GB DDR2	$778	$360	-53.7%

These price changes listed above are a companion set to a bunch of changes IBM made to reduce upgrade costs into the Power Systems line on May 19, which I told you about in the May 26 issue of The Four Hundred. That first batch of price cuts were for upgrading processor book, processor core, and memory on older System p machines using certain Power5+ processors to their Power6 equivalents in the Power 595. At the time, I said that System i customers upgrading to Power 595s should demand the same kind of deal, and lo and behold, as the table above shows, customers upgrading from System i 595 (9406) machines to Power 595s (9119) are also getting big discounts. And for some reason, IBM cut a little deep on the System p to Power Systems upgrades and in two cases actually raised the prices it cut several weeks ago.

One other tweak. A long-running competitive replacement trade-in deal that IBM has been using for its System p line to give rebates to customers moving from other Unix boxes was updated to allow upgrades into the Power Systems line from vintage AS/400 and iSeries boxes back in March, and then had the once-popular iSeries Model 250 added as a replaceable machine in April. Last week, the list of eligible products that can be acquired under this trade-in deal was expanded to include Power 520 machines using the 4.7 GHz Power6+ chips and Power 550 boxes using the 5 GHz Power6+ chips, machines that were launched on April 28.

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