IBM Canada Jacks Up Maintenance Prices
April 2, 2012 Timothy Prickett Morgan
Raising maintenance on older equipment is the time-tested way to help encourage customers to shell out some dough on new gear and at the same time compensate IT equipment and software makers for the increased costs of servicing hardware or applications. Last week, IBM‘s Canada unit raised maintenance on thousands of pieces of equipment.
In announcement letter 312-040, IBM said that it was raising both monthly and annual maintenance fees in the Great White North on specialized banking gear, all kinds of Power-based systems (both with the i and the p labels), xSeries and System x machinery, and various storage gear. On the 900 different AS/400, iSeries, and System i boxes in the list of machines with jacked maintenance prices, the price hikes ranged from a low of 3.6 percent to a high of 6.5 percent and averaged 5 percent. These price hikes will take effect on July 1, giving you plenty of time to upgrade your machines and get off this old iron and thereby suck the higher fees.
Back on March 21, IBM’s United States operations similarly raised maintenance prices by between 3 and 5.4 percent, averaging around 3.4 percent across the gear that runs OS/400, i5/OS, and IBM i operating systems. IBM had previously raised maintenance fees on i-related gear in March 2008, averaging around 5 percent across lots of gear. IBM had much higher price hikes in 2006, when it raised maintenance fees on selected iSeries gear by 17 to 19 percent and on vintage AS/400 gear by 9 percent.