Doesn't the new licensing scheme result in 1) higher prices for =
clients, but 2) lower prices for the server.

...

So if you plan to back up a just a small number of clients, you may =
actually come out cheaper?
Can anyone confirm this (possibly erroneous) opinion?
Tivoli certainly doesn't make it easy to understand.

Wanda,

Your opinion is correct.  For a small installation, TSM can actually be
less expensive to purchase than it used to be.

Speaking from the standpoint of someone working for a reseller, this can be
a good thing.

However, in my opinion, the "tipping point" where a TSM solution starts
costing more than it would have before is *way* too low.  I have not
done  an exacting analysis on where that point actually is, but for some
customers, what was once 40-50K software purchase would now be in the
hundreds of thousands of dollars.

The fact that it licensing is now CPU-based rather than "box-based"
introduces a very ugly multiplier effect at customers where the typical
Wintel server is 2-way or 4-way.  What used to be a $217 client (for a
4-way Wintel machine) is now anywhere from $1400 to $2500 list (depending
on the size of the library being used) in quantities of 1.  Quantity
discounts are, of course, available...

The figures I quote are from the IBM Tivoli Price Estimator tool.  "Prices
are suggested prices only and are subject to change in IBM's sole discretion."

Even if you're not adding clients, the licensing change introduces a very
stiff increase in maintenance costs, as well.

My opinion only...
(But I have shared it with folks from IBM/Tivoli when I've had the chance.)

Ted