CUoD Processor Activation Prices Cut In Half for Big Power7 Iron
October 24, 2011 Timothy Prickett Morgan
As we report elsewhere in this issue of The Four Hundred, the high-end of the new Power7-based Power Systems line did particularly well on the growth front in the third quarter (albeit against some easy compares), and IBM wants more in the fourth quarter.
Late last week, in announcement number 311-155, Big Blue snuck out a Power7 Capacity Upgrade on Demand (CUoD) discount promotion that offers customers with Power 770, 780, and 795 machines that were installed as of October 1. Under the deal, IBM is cutting the price of activating cores on certain processor cards used in the machines in half. In the Power 770, the discount covers the 3.1 GHz and 3.5 GHz processors in the original machines announced in 2010 as well as the 3.86 GHz (4.14 GHz TurboCore) processors used in the original Power 780 machines, also from last year. The discount also applies to core activations on the 3.7 GHz and 4 GHz motors used in the big bad Power 795.
On the Power 770, the 3.1 GHz core costs $2,498 and the 3.5 GHz core costs $5,708 each to activate at list price before the deal; the 3.86 GHz cores on the Power 780 cost $8,375 to activate. The 3.7 GHz coreson the Power 795 cost $7,550 each at current list price before the discount, and the 4 GHz cores cost $10,950.
The discount does not apply to the new engines announced on October 12 for the new Power 770 and 780 machines, which I told you about here in last week’s issue of the newsletter. This discount does not cover the cost of the base processor system board, but just the core activations. If it covered both, it would be a better deal, and if it covered IBM i licenses on the cores, it would be outrageously generous by IBM standards. But nonetheless, it is still a pretty good deal.
To get the processor activations for half off, you have to buy them from IBM by December 23.