Dean Flanders:
> Thanks for the clarification. I have always heard the term "existing 
> customers" so originally I thought we were fine,
> but this is the first time I have seen the term "existing systems". However, 
> it seems what I said before is mostly correct,
> eventually all customers will be forced to capacity based licensing as they 
> life cycle hardware (even IBM customers).
> In addition it seems there is a diminishing number of OEMs that can sell SS 
> v5, which is what happened in our case when
> we wanted to go from v4 to v5 with existing hardware (in our case DDN). So I 
> strongly encourage organizations to be thinking
> of these issues in their long term planning.

Again, this isn’t quite correct, and I really want the archive of this thread 
to be completely correct when people review it in the future.

As an existing customer of DDN, the problem GridScaler customers in particular 
are facing is not Sockets vs. Capacity. It is simply that DDN is not an OEM 
licensee for Scale V5. So DDN cannot upgrade your GridScaler to V5, *neither on 
Sockets nor on Capacity*. Then if you go to another supplier for V5, you are a 
new customer to that supplier. (Some of you out there are, I know, 
multi-sourcing your Scale systems, so may be an “existing customer” of several 
Scale suppliers).

And again, it is not correct that eventually all customers will be forced to 
capacity licensing. Those of you on Scale Standard and Scale Advanced software, 
which are not tied to specific systems or hardware, can continue on those 
licenses. There is no plan to require those people to migrate. By contrast, OEM 
licenses (and ESS licenses) were always sold as part of a system and attached 
to that system -- one of the things that makes those licenses cheaper than 
software licenses that live forever and float from system to system.

It is also not true that there is a “diminishing number of OEMs” selling V5. 
Everybody that sold V4 has added V5 to their contract, as far as I am aware -- 
except DDN. And we have added a number of additional OEMs in the past couple of 
years (some of them quite invisibly as Scale is embedded deep in their solution 
and they want their own brand front and center) and a couple more big names are 
in development that I can’t mention until they are ready to announce 
themselves. We also have a more diverse OEM model: as well as storage vendors 
that include Scale in a storage solution, we have various embedded vertical 
solutions, backup solutions, and cloud-based service offerings using Scale. 
Even Dell is selling a Scale solution now via our OEM Arcastream.


Again, DDN and IBM are working together to find a path forward for GridScaler 
owners to get past this problem, and once again I ask for your patience as we 
get the details right.


Regards



Carl Zetie
Program Director
Offering Management
Spectrum Scale
----
(919) 473 3318 ][ Research Triangle Park
[email protected]

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