All JDE World customers and over half of those with EnterpriseOne still make some use of IBM Power servers with the i operating system (once know as OS/400). Introduction of the IBM i Solution Edition for JD Edwards is therefore very big news for nearly all of you – including many that have switched from IBM Power servers to commodity Intel servers over the years. IBM has finally decided to get serious about using price to gain market share.
For more than a decade price has been the main reason why so many of you either abandoned i or limited the workload put on it. Power servers running i are reliable, easy to operate, perform well, and use very little electricity and AC. For the longest time IBM managed to negate these huge competitive advantages by putting too high a price premium on them. IBM charged this premium because most customers would tolerate it in the short term. The result of this strategy was high margins but a steady loss of market share.
The turnaround for IBM is now complete. The cost is now less than commodity Intel servers for hardware. Savings grow when software is added in mainly because iOS has a built in DBMS and it is not necessary to pay extra for one. The biggest savings for many will come in maintenance, operation, support and utilities.
A white paper that IBM commissioned from ITG makes a clear and compelling case for at least considering Power servers the next time you need more JDE server capacity. IBM’s own white paper describing the IBM i Solution for JD Edwards is also a worthwhile read.
In times like these when every penny counts, it feels good to have vendors fighting with each other to save us money. The complete turnaround by IBM in its pricing strategy is thus a very welcome development. Every one of you involved in making JDE hardware buying decisions needs to at least kick the tires on this intriguing offering.