IBM Revises Another Power Systems Trade-In Deal
April 15, 2013 Timothy Prickett Morgan
The IBM online announcement system likes to play a game of cat and mouse with all of us, and sometimes there is an announcement of a new product or a change in a deal with a certain date on it, but damned if I never saw it when I looked through the announcement summaries, which I do pretty religiously on Tuesday and then double-check again late Friday night as The Four Hundred goes to press.
But, once again, IBM snuck another one by me. In announcement letter 313-022, updating a deal trade-in rebate deal that was last changed in January.
As you might expect, and happened with a similar deal a week later that we already covered (because I saw that one), this Power Systems trade-in deal was tweaked to include rebates on the new Power7+ entry and midrange servers (that’s the Power 710+ through the Power 760+). The old Power7 machines in the same families have not been removed, and you can still buy these and get rebates. And the PS7XX blade servers, which have not been updated with Power7+ chips and which are not going to be updated with them, are also available under the deal.
The rebates are pretty modest on small machines, running from a low of $200 on a four-core Power 720+ but offer, paradoxically, $500 on a four-core Power 710+ in the same performance category but with a slightly lower price than with the Power 720+. (Can you tell that IBM wants to give better deals on the machines that are generally going to run AIX instead of IBM i?) The rebates on the new iron max out at $85,000 on a Power 760+ with 36 of its 48 cores activated. On bigger iron, the rebates can get quite large, with customers who buy a 256-core Power 795 (which only has Power7 chips and which will not get Power7+ chips) having a $240,000 rebate.
The way the deal works, if you have a vintage AIX or IBM i box, or a competitive system running proprietary or Unix operating systems, you can gang up the trade in-credits, which range from a low of $250 to a high of $110,000, until you reach the limits of the rebate cap for a particular shiny new machine you are buying from Big Blue.
There is no end date on this deal, and we can expect it to be updated again. No doubt.