IBM i Software Economics Hub
What Does IBM i Software
Actually Cost?
Structured, cited data on IBM i license tier pricing, perpetual vs subscription economics, HA/DR and backup costs, implementation and modernization benchmarks, and competitive TCO -- organized as datasets first, readable prose second.
Every Layer of IBM i Software Cost
Structured, cited economics for the decisions that drive an IBM i software budget.
IBM i Tier Economics
Real P05-P30 dollar figures across perpetual, SWMA, and subscription pricing.
Perpetual vs Subscription
The decision framework, crossover points, and SWMA reinstatement penalty.
HA/DR Cost Comparison
PowerHA, Maxava, Rocket iCluster, and warm vs hot standby economics.
Full Stack Software TCO
Cost per user, cost per core, and value retention across the whole stack.
Implementation Cost
Real project cost ranges and what drives them from PowerHA to full ERP.
Modernization Cost
RPG/COBOL modernization vs ERP replacement cost models.
Competitive Software TCO
IBM i vs SAP, Oracle, and cloud ERP -- where each wins on total cost.
Software Value Index
A normalized scoring model for cost per user, cost per core, and value retention.
Common Questions
What are the IBM i software tiers (P05 through P50)?
IBM i software is licensed by per-core performance tier: P05 (entry), P10 (small business), P20 Standard Edition, P30 Enterprise Edition, P40 (retired), and P50 (enterprise, priced the same as P30). The tier -- not raw core count -- is what drives IBM i software pricing. See our full IBM i Tier Economics breakdown for real dollar figures at each tier.
Is IBM i software subscription-only now, or can I still buy a perpetual license?
P05 and P10 have been subscription-only for new purchases and license transfers since May 7, 2024 -- no new perpetual licenses are sold at those tiers. P20 and P30 are offered as bundled subscription editions (Standard and Enterprise), though perpetual OTC pricing for those tiers is still referenced in IBM's announcement letters. Existing perpetual licenses at any tier remain valid under SWMA.
What happens if I let my IBM i SWMA lapse?
You lose current-release entitlement and technical support. To reinstate coverage, IBM charges an After License Fee (ALF) that runs roughly 2 to 3 times the annual SWMA rate -- not prorated for how long the lapse lasted. A lapsed P10 SWMA contract, for example, can cost roughly $10,500 to reinstate. Letting SWMA lapse to save money almost never pays off once reinstatement is priced in.
How much does PowerHA SystemMirror for i cost?
IBM does not publish a full price list. The most concrete public data points: a base license starting around $4,495, SMB implementation typically $5,000-$20,000, and enterprise implementations $50,000 or more depending on customization, data migration, and training. Metered cloud capacity runs $0.336-$0.528 per instance-hour for burst or temporary DR use.
What are the alternatives to PowerHA for IBM i high availability?
The main third-party logical replication vendors are Maxava (Maxava HA / Maxava Cloud), Rocket iCluster, and the legacy iTera/Vision Solutions/MIMIX lineage. None of these publish list pricing -- Maxava, for example, licenses by the source machine's software tier (P-group) rather than a fixed rate. Budget for a quote against your specific configuration rather than assuming a published number.
How much does IBM i application modernization cost?
Published enterprise IBM i RPG/COBOL modernization benchmarks range from roughly $5 million to $20 million or more over 12-24 months for large scopes, with smaller cross-industry modernization efforts reported in the $2.2-4 million range with a 12-24 month breakeven. Scoping to the roughly 70% of the codebase that actually delivers business value, rather than rewriting everything, is the single biggest cost lever.
Glossary
- 5250 Enterprise Enablement — The IBM i entitlement that unlocks unrestricted 5250 green-screen interactive workload, bundled into the P20 and P30 subscription editions.
- ALF — After License Fee, the reinstatement penalty IBM charges when a lapsed SWMA contract is brought current again.
- DR — Disaster Recovery, the plan and infrastructure for restoring operations at a different site after a major outage.
- HA — High Availability, keeping a second system continuously synchronized so it can take over production workload within seconds to minutes of a failure.
- IBM i Software Tier — IBM's per-core software licensing classification for IBM i (P05, P10, P20, P30, P40, P50), tied to processor performance and determining OS and middleware pricing.
- ISV — Independent Software Vendor, a third-party publisher of IBM i software such as HA/DR, backup, security, or ERP add-on products.
- LPAR — Logical Partition, a virtual, independently licensed IBM i instance running on a shared physical Power server.
- OTC — One-Time Charge, the upfront purchase price of a perpetual software license before any annual SWMA is added.