IBM Targets HP, Oracle with Competitive Migration, Deferred Payments

By Jessica Davis  |  Print this article Print

IBM is offering a competitive migration plan and deferred payments to customers who rip out HP and Oracle/Sun systems and replace them with IBM Power Systems.

IBM is turning up the heat on Oracle/Sun and HP, with a new financing program with special terms for customers who trade their Oracle/Sun and HP equipment to migrate to selected IBM equipment.

IBM says it is offering attractive lease terms and no payments until 2011 for credit-qualified U.S. customers that trade in Oracle/Sun and HP systems to migrate to IBM’s new Power family of servers.

"We’ve had 500 customers move from competitive systems to IBM Power systems in the first half of 2010," Dan Ransdell, general manager of IBM Global Financing, North America, tells Channel Insider. "The Power 7 product offers power and cooling savings and maintenance savings. It’s getting a lot of attention."

Ransdell says today’s announcement is the first time the company has combined the competitive migration with the deferred payment plan. It announced another competitive migration plan earlier this year.

"There’s a lot of uncertainty now on the future product plans with a lot of our competitors," Ransdell tells Channel Insider, citing the distracting battle between HP and Oracle/Sun over ex-HP CEO Mark Hurd, among other issues.  "We announced Power 7 for both the high end and low end. We are clear on our product direction and where we are headed with it."

The new IBM Global Financing program is designed to help customers easily and affordably acquire new midrange and high-end IBM Power Systems, according to IBM.

IBM will provide clients with trade-in credit for their old Oracle-Sun and HP equipment, which can be applied to the new Power Systems lease payments. Additionally, credit-qualified clients can benefit from interest-free payment deferral and avoid payments until 2011 on their new Power Systems.

That’s important today as purchase decisions have generally moved from the CIO to the CFO who is looking for an accounting of return on investment. Deferred payments and leases enable customers to pay as they gain the value of the equipment rather than put down all the money up front before they realize any value.

IBM says its new high-end Power systems are designed to manage the most demanding workloads and emerging applications.  The new systems – servers, software and IBM PowerVM virtualization capabilities – allow customers to better manage ever-increasing amounts of data and to conserve energy and floor space in burdened data centers, according to IBM.

Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com