Here we go again. :-( I'll start by correcting the subject line.

Fact: IBM already announced *exactly the same* price changes per Value Unit
for all IBM Passport Advantage software products for Windows, Linux, UNIX,
etc.

So let's spend 3 seconds thinking about this, shall we? Since there's a
price increase (in some countries) *per value unit*, and since it's exactly
the same percentage increase for licenses on every platform, what platform
does that increase favor? (Hint: The most highly virtualized and
consolidated one.)

And obviously the original poster didn't point out that value units (IBM's
software licensing metric) are deflating even faster -- that is, every year
you get more "oomph" for the same or fewer value units. Which, again,
progressively skews in favor of the most highly virtualized platforms.
Every price has a denominator!

Suppose Proctor & Gamble introduces a new laundry detergent that requires
25% less to wash the same number of loads of laundry. But it costs a bit
more to make: P&G also announces a 3% price increase per gram in Canada and
a 5% price increase in the United States. Would you buy that new detergent?
Of course you would -- it's a better deal. You need fewer grams (value
units) to do the same work. Sure, you'd prefer zero price change or even a
price decrease per gram -- who wouldn't? -- but the fact is it's still a
better deal. Prices have denominators, and you always have to consider
what's happening to them.

--------------------------------------------------------------------------------------------------------
Timothy Sipples
Consulting Enterprise IT Architect (Based in Singapore)
E-Mail: [email protected]
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