The IBM i Installed Base: Larger Than You Think
IBM's own estimates suggest over 150,000 IBM i installations globally, running on POWER hardware across every major industry vertical. The platform's longevity is a direct result of its technical architecture: integrated database (Db2 for i), integrated security, object-based operating system, and a level of backward compatibility that allows RPG and COBOL applications written in the 1980s to run unmodified on current POWER10 hardware.
This backward compatibility is simultaneously IBM i's greatest commercial strength and the foundation of IBM's support pricing power. Customers who have 30+ years of application logic encoded in RPG programmes have no simple migration path. The "replace it with SAP or Oracle" conversation that IBM's account teams periodically initiate is, for most IBM i customers, not a serious option — not because their IBM i platform is technically inferior, but because the migration cost and business risk are prohibitive.
IBM understands this dependency precisely. Passport Advantage pricing for IBM i is set accordingly. Annual software maintenance fees of 18–22% of licence value, combined with hardware maintenance contracts that are deeply bundled with software entitlements, create a support cost structure that grows independently of whether the platform is delivering any new functionality.
The IBM i customer dynamic: You cannot easily leave IBM i. IBM knows this. Third-party support is not a threat to the platform — it is a pressure valve on the support pricing that IBM's dependency model creates. We support your IBM i environment at the same level IBM does, at 50–65% of the cost, with full hardware and software coverage.
IBM i Version Matrix and Support Status
IBM i releases follow a cadence tied to POWER hardware generations. The platform uses a versioning scheme that moved from V5R4 through 7.x in the modern era. The table below shows current support status and TPS coverage across the IBM i version landscape:
| IBM i Version | Release Year | IBM End of Support | POWER Hardware | TPS Coverage | TPS Saving (vs. PA) |
|---|---|---|---|---|---|
| IBM i 7.1 | 2010 | Apr 2015 | POWER6–POWER7 | Full Coverage | 75–85% |
| IBM i 7.2 | 2014 | Apr 2019 | POWER7–POWER8 | Full Coverage | 70–80% |
| IBM i 7.3 | 2016 | Sep 2023 | POWER8–POWER9 | Full Coverage | 65–75% |
| IBM i 7.4 | 2019 | Sep 2026 | POWER9–POWER10 | Full Coverage | 55–65% |
| IBM i 7.5 | 2022 | Sep 2028+ | POWER10 | Full Coverage | 50–60% |
The IBM i 7.3 end-of-support date (September 2023) is particularly significant. A substantial proportion of the IBM i installed base — particularly customers who standardised on 7.3 during the POWER8 generation — is now running on a version that IBM no longer supports. Third-party support provides the security patch management, PTF (Program Temporary Fix) management, and break-fix capability for these customers without requiring a disruptive version upgrade.
What TPS Covers for IBM i
Third-party support for IBM i is comprehensive across the software stack. The coverage model is designed to match IBM's Passport Advantage scope for the IBM i software tier:
IBM i Operating System
Full OS support including PTF management, security advisory, cumulative PTF packages for covered versions, and break-fix for OS-level issues. Technology Refresh (TR) updates managed within TPS scope.
Db2 for i (Integrated Database)
Db2 for i performance support, query optimisation advisory, SQL and native I/O coverage, journal management, and database security hardening. The integrated database is treated as an OS component — no separate licence required.
Licensed Program Products
LPPs bundled with IBM i — including Communications Server, Host Access Transformation Services (HATS), WebSphere Application Server for i, and IBM Toolbox for Java — are covered within the standard TPS scope.
Hardware Maintenance (Optional TPS Extension)
IBM i runs exclusively on IBM POWER hardware. Hardware maintenance — including field engineer visits, spare parts provisioning, firmware updates, and PowerVM hypervisor support — can be included in TPS scope as an extension to the software coverage. Hardware TPS is available for POWER7 through POWER10 systems and provides equivalent coverage to IBM's hardware maintenance contracts at 40–60% of IBM's pricing.
The bundling trap: IBM frequently bundles IBM i software maintenance and POWER hardware maintenance into a single contract number, making it difficult to separately evaluate or replace either component. GoVendorFree unbundles these contracts as part of the TPS transition — you decide which components to move to TPS and which (if any) to retain with IBM.
IBM i TPS Cost Comparison
The following table illustrates representative annual support costs for IBM i environments of different scales, comparing IBM Passport Advantage against GoVendorFree TPS:
| Environment Scale | IBM i Licences (Proc Groups) | Annual IBM PA Support | Annual GoVendorFree TPS | Annual Saving | 5-Year Saving |
|---|---|---|---|---|---|
| Small (P10/P20) | 1–2 processor groups | £85,000 | £34,000 | £51,000 (60%) | £255,000 |
| Mid-market (P30) | 3–5 processor groups | £220,000 | £86,000 | £134,000 (61%) | £670,000 |
| Large enterprise (P40) | 6–12 processor groups | £580,000 | £217,000 | £363,000 (63%) | £1.82M |
| Very large (P50/P60) | 13+ processor groups | £1.4M+ | £490,000 | £910,000+ (65%) | £4.55M+ |
These figures represent software-only TPS. For organisations also moving hardware maintenance to TPS, the total saving increases by a further 15–20%, as POWER hardware maintenance contracts carry similar margins to software maintenance.
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Get your free IBM i assessment →IBM's Migration Pressure Playbook
IBM's account management strategy for the IBM i installed base follows a pattern that has intensified since IBM's 2023 reorganisation of its infrastructure division. Understanding these tactics allows customers to engage from a position of strength:
"IBM i 7.3 is out of support — you must upgrade"
IBM's end-of-support messaging is accurate from IBM's perspective: IBM will no longer produce new PTFs for IBM i 7.3 post-September 2023. It does not mean your IBM i 7.3 environment will stop working, become instantly insecure, or require immediate hardware replacement. Third-party support provides ongoing security advisory and emergency patch capability for IBM i 7.3, allowing organisations to remain on 7.3 while they plan a managed version upgrade on their own timeline.
"You need to move to IBM Cloud / IBM Power Virtual Server"
IBM Power Virtual Server (PowerVS) is IBM's cloud-hosted POWER infrastructure. It is a legitimate migration target for some IBM i workloads — particularly development, test, and disaster recovery environments. It is not a mandatory destination for production IBM i workloads. IBM's account teams frequently present PowerVS migration as the only path to continued "modern" IBM i support. This is a commercial position, not a technical requirement.
"Your POWER7/POWER8 hardware is at end of life"
POWER7 hardware is genuinely at end of hardware support from IBM. POWER8 extended support ended in 2022. However, hardware that is physically sound and running IBM i workloads stably does not require IBM hardware support to continue operating. Third-party hardware maintenance for POWER7 and POWER8 systems provides equivalent field maintenance, parts, and firmware support at 40–55% below IBM's rates.
Industry-Specific IBM i Considerations
Financial Services and Banking
IBM i is the dominant platform for core banking systems in the tier-2 and regional bank segment. The combination of integrated security, transaction isolation, and 40-year reliability track record makes IBM i the most audited and most trusted platform in financial services IT. TPS for IBM i financial services environments includes awareness of PRA/FCA operational resilience requirements (PS21/3), PCI DSS compliance scope, and DORA obligations. GoVendorFree maintains specialised IBM i financial services expertise across banking, insurance, and payments processing environments.
Retail and Distribution
IBM i runs inventory management, POS back-end, and distribution systems for many of the UK's largest retail chains. These environments are characterised by extremely high transaction volumes, low-latency requirements, and tight integration with third-party EDI and supply chain systems. TPS coverage for retail IBM i environments includes JDA/Blue Yonder integration support, EDI middleware coverage, and IBM Communications Server for i.
Manufacturing
Manufacturing IBM i estates frequently run BPCS (SSA), System21, or in-house RPG ERP applications that have no viable migration path. These environments are ideal TPS customers: stable, deeply customised, and delivering reliable production value with no planned modernisation. TPS provides indefinite support for these environments at 60–65% below IBM PA rates.
IBM Software Licensing Guide
Our complete IBM licensing guide covers Passport Advantage cost reduction, Sub-Capacity licence optimisation, and the IBM i TPS transition methodology. Free download for enterprise IBM customers.
Download free →The IBM i TPS Transition Process
Transitioning IBM i support to GoVendorFree follows a structured 4-week process designed to align with your Passport Advantage renewal date:
- Week 1 — Inventory and scoping: Complete IBM i environment documentation — OS version, LPP inventory, hardware model and serial numbers, critical application list, existing PTF level, and current PA contract details. This forms the TPS coverage baseline.
- Week 1–2 — Contract and SLA agreement: TPS scope confirmed, SLA tiers agreed (P1 critical: 15-minute response; P2 degraded: 2-hour; P3 advisory: 4-hour), and engagement model established (dedicated engineer vs. pooled specialist — based on environment complexity).
- Week 2–3 — Parallel preparation: TPS team gains environment familiarity. Any outstanding PTFs applied or documented. Critical application behaviour baselines recorded.
- Week 3–4 — Transition: PA contract expires or is formally terminated. GoVendorFree TPS contract activates. All monitoring and alerting redirected to GoVendorFree support channels.
For very large or highly customised IBM i environments, a 6–8 week transition timeline is recommended. GoVendorFree has completed IBM i TPS transitions for environments ranging from single P10 systems to complex multi-LPAR P50 configurations with 12+ LPARs and 40+ LPPs.
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