"2. EOM and EOS are important, but IMHO prices are more important. In
many cases it is cheaper to replace machine than to buy service contract
for existing (old) one. And it is rather cheaper to buy newer model even
if new and new-1 are available."

The purchase  of hardware is CAPEX. The purchase of a service contract is
OPEX. OPEX is an expense and affects income, therefore you do not  have to
pay income tax on it. CAPEX affects fixed assets and there are taxes to be
paid on it.

There is a point where it is less expensive to replace, say a model with
one that is newer (maybe a z13 with  a z16). But in general, it is less
expensive to maintain an existing piece of equipment  than to buy a new one
 (depreciation and all).

Joe

On Mon, Jan 18, 2021 at 4:46 AM R.S. <[email protected]> wrote:

> W dniu 18.01.2021 o 10:55, Peter pisze:
> > Hello All,
> >
> > Just curious to understand what is the minimum duration for the z
> hardware
> > to be from withdrawn from marketing ?
> >
> > Are there any specific factor IBM follows ?
>
> There is excellent paper describing all the dates (GA, EOM, EOS).
> I found the link:
>
> https://www.ibm.com/support/pages/system/files/inline-files/IBM_Mainframe_Life_Cycle_History_V2.6_-_Oct_13_2020.pdf
>
> Few remarks
> 1. There is no looooong term comitment saying, let's say z16 will be
> available for minimum 5 years. Everytime this is decision of IBM.
> 2. EOM and EOS are important, but IMHO prices are more important. In
> many cases it is cheaper to replace machine than to buy service contract
> for existing (old) one. And it is rather cheaper to buy newer model even
> if new and new-1 are available.
> 3. There are other issues, like upgrade availability. Usually IBM first
> close "physical" upgrades, that means new hardware elements (cards,
> DRAWERs, etc.) Later IBM close microcode upgrades - this is reasonable,
> since they do not deliver anything physically.
> 4. There are independent service providers.
>
> --
> Radoslaw Skorupka
> Lodz, Poland
>
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