ADSM-L

Re: License Pricing

2003-03-21 16:27:24
Subject: Re: License Pricing
From: "Ochs, Duane" <Duane.Ochs AT QG DOT COM>
To: ADSM-L AT VM.MARIST DOT EDU
Date: Fri, 21 Mar 2003 15:24:38 -0600
One more opinion to add.

 We started migrating to TSM 3 years ago. 3 tsm servers, 202 clients, 25 TDP
for exchange and 3 jukebox licenses. When we made the move, it was a shock
to see the substantial increase in pricing from our OS specific backups to
an enterprise class solution. But we figured once we invest in the TSM
server licenses all should be smooth sailing, even if the licensing goes up
as we add systems to our infrastructure. That is not the case.

 We purchased 25 TDP for exchange licenses and 25 NT client license for
1032.00 and 93 dollars respectively. Total $28,125.00. Seemed high... seeing
how backup exec was doing the same thing for much less, but it was a license
to send our exchange data to a TSM server which enabling centralized
management, centralized jukebox  and centralized scheduling of our backups.
Most of these servers have been upgraded to 4 processor machines to handle
virus scanning, content scanning and all the other management tasks that go
on behind the scenes. The same licenses under the current licensing scheme
is $1200.00 a processor for the TDP and 391.00 per processor for the NT
client for a total of $159,100.00.

We didn't buy 4-way boxes to take advantage of untapped TSM potential. So
why is IBM even attempting to charge us per processor ? We buy IBM servers,
IBM OS's, IBM support and still have to take it in the rear on licensing.
What's next web client access licensing.

Poor customer service and less than adequate patch and maintenance releases.
Certainly that does not add up to a 600% increase in pricing. I am like the
rest of you, I like the product and what we can do with it, but I was using
something else before we migrated to TSM and by the looks of it I will be
using something different in the future.


Duane Ochs
Systems Administration
Quad/Graphics Inc.
414.566.2375

-----Original Message-----
From: Ted Byrne [mailto:tbyrne AT DSSCORP DOT COM]
Sent: Thursday, March 20, 2003 4:04 PM
To: ADSM-L AT VM.MARIST DOT EDU
Subject: Re: License Pricing


>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

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