Prices for the i5 520 Express models, which have geared down processors and run a mix of 5250 and non-5250 processing capacity, will apparently not change. IBM is also reportedly not changing prices for the i5 550, 570, or 595 servers.
At the same time, according to these sources, IBM is also considering dropping the discounts it gives on i5 520 servers by about 4 percent, from the upper 20% range to the mid-20% range. The exact percentage a reseller gets depends on many factors.
According to another rumor, IBM is pondering some changes to the discount structure it gives to resellers that will make them get certain certifications or value-adds to achieve the discounts on i5 hardware they enjoyed in 2004.
One reseller says that these moves, which could be put in place in the first quarter of 2005, are designed to make partners jump through more hoops, get less margin, and yield more money for IBM. While this may be a good strategy to bolster IBM’s numbers, taking back $1,000 on an entry i5 520 server is bound to make resellers grumpy, and may make it that much harder to sell the i5 against entry Wintel and Lintel boxes.
