Re: Model 170 for Personal Development -- MIDRANGE-L

Some clarifications are in order:

You can EITHER lease at 1.5% per month, OR you can purchase at 50% off list, IF 
you are a member of ParterWorld for Developers at the appropriate level (costs 
around $600+ per year fees to join at that level). 

So, you would be looking at a minimum of around $500 per month for a lease on 
the hardware with the basic i5/OS that comes "bundled" with the hardware.

Notice that this includes only the "base" i5/OS, without any compilers, 
development tools, etc.  So, you would have to add whatever other IBM Licensed 
Program Products you might need (e.g. 5722-WDS, 5722-QU1, 5722-ST1, etc.) and 
then add the cost for the software licenses fees for those products to the 
total, and then compute the lease amount based on that total... this can easily 
double your monthly payments, depending on what software you need.

Also, if you lease a box from IBM, you must keep the machine under a 
maintenance contract for the hardware and software, (SupportLine or whatever 
they call it now, combining hardware and software support), so add another 
$250+? per month or so for that... 

I think you are probably looking at about $1,250 per month for an i5 520 with a 
reasonable set of development tools software...

IMHO, for one person doing development, an i5 model 520 is far more CPU power 
than you would ever need; it has a CPW rating of 500... I know several 
consulting firms who run on a model 270 with a rating of  ~150 CPW (batch); 
they have 10 developers banging away, full-time! 

I am not "knocking" IBM's pricing here; I just want to try to give a more 
accurate picture, for anyone who is considering looking into such a lease for 
"personal" use.  

Remember, companies can "expense" lease costs different from how they must 
depreciate equipment purchases (say, over 5 years). The idea behind the 
PartnerWorld for Developers lease is that a BP leases it for 24 months, and 
then turns it in and lease a brand-new one. That way, the BPs always have the 
"latest and greatest" hardware and software, so they can support their (and 
IBM's) customers with all the latest stuff (at least, in theory).

I think it is terrific how IBM continues to improve the "price/performance" of 
these systems, year after year. They basically double the performance for the 
same price every two years! Phenomenal!

Hope that helps...

Regards,

Mark S. Waterbury

----- Original Message ----- 
> From: "Jones, John (US)" <John.Jones@xxxxxxxxxxxxxxxxxxxxxxx>
> To: "Midrange Systems Technical Discussion" <midrange-l@xxxxxxxxxxxx>
> Sent: Thursday, June 10, 2004 7:48 AM
> Subject: RE: Model 170 for Personal Development
>

> That would make an i5 520 Value Edition come in at under $6 grand.  Or
> under $180 a month for leasing. And that's for a box with 70GB disk,
> 512MB RAM, and 500 CPWs.  Nice.
> http://www-1.ibm.com/servers/eserver/iseries/hardware/smallmed/520/brows
> e.html
> 
> John A. Jones
> Americas Security Officer
> Jones Lang LaSalle, Inc.
> V: +1-630-455-2787 F: +1-312-601-1782
> John.Jones@xxxxxxxxxxxxxxxxxxxxxxx
> 
> -----Original Message-----
> From: Kurt Goolsbee [mailto:kurt.goolsbee@xxxxxxxxxxxxx] 
> Sent: Wednesday, June 09, 2004 5:57 PM
> To: 'Midrange Systems Technical Discussion'
> Subject: RE: Model 170 for Personal Development
> 
> I've purchased lots of used AS/400 systems.  Nothing like being on a
> budget.
> Starting with V4 systems, the reseller can sell you the hardware only or
> they can transfer the OS400 license along with it.  As far as I can tell
> the POE (piece of paper) is not worth much.  Once the system is sold,
> IBM tracks ownership on a mainframe somewhere.  When they say Base OS
> they mean OS400 and some other non-chargeable options like Java and the
> HTTP server.  Other licensed programs, even if they are non-chargeable
> must still be licensed to be legit.  Check with the reseller, sometimes
> they have POE's that they will sell for other licensed programs like a
> compiler or PDM.  
> 
> *** One key thing you must get your reseller to do, is to submit the
> paperwork to IBM to get the machine registered in your name.  Without
> the transfer you will not be able to get an upgrade or a license keys,
> should you need them, from IBM.  Without the resellers help you have a
> snowballs chance of getting the IBM to change owners in their system.
> This is without a doubt the biggest problem with buying used systems
> (even if you buy them used from IBM).
> 
> On the developer lease from IBM, the entry systems are at 1.5% of list
> per month for lease and 50% off for purchase.  
> 
> Kurt
> 
> 
> This email is for the use of the intended recipient(s) only.  If you have 
> received this email in error, please notify the sender immediately and then 
> delete it.  If you are not the intended recipient, you must not keep, use, 
> disclose, copy or distribute this email without the author's prior 
> permission.  We have taken precautions to minimize the risk of transmitting 
> software viruses, but we advise you to carry out your own virus checks on any 
> attachment to this message.  We cannot accept liability for any loss or 
> damage caused by software viruses.  The information contained in this 
> communication may be confidential and may be subject to the attorney-client 
> privilege. If you are the intended recipient and you do not wish to receive 
> similar electronic messages from us in future then please respond to the 
> sender to this effect.
> 
> --
> This is the Midrange Systems Technical Discussion (MIDRANGE-L) mailing list
> To post a message email: MIDRANGE-L@xxxxxxxxxxxx
> To subscribe, unsubscribe, or change list options,
> visit: http://lists.midrange.com/mailman/listinfo/midrange-l
> or email: MIDRANGE-L-request@xxxxxxxxxxxx
> Before posting, please take a moment to review the archives
> at http://archive.midrange.com/midrange-l.
>