Position Your IT Requirements for 4th Quarter

by Mark Waldrep
President
Datatrend Technologies

Periodically throughout the year, IBM issues promotions that provide opportunities to reduce cost.  However, moving into the 4th quarter of each year, the rebates and additional discount offerings grow in number and frequency of issuance. This coupled with brand rate buydown action with IBM Global Financing (IGF) can yield significant cost reduction advantages.

For clients moving workload from HP or Sun to IBM pSeries, deep discounts via special bid can be extended. Some of these 4th quarter promos will survive the special bid phase, providing the greatest level of savings. I suggest a periodical review of the Datatrend website’s Promotional section to stay informed of such opportunities.

Likewise, IBM Storage is also offering rebates to customers moving workload from EMC and HDS. Some offerings survive special bidding and others do not.  Furthermore, let’s not forget about xSeries (Intel severs) and Software.  Many rebate programs and special discounts are available to help you make your technology/solution acquisitions much more cost effective.

Clients typically paying cash are finding that the product brands within IBM are buying the money rates down to below cost of funds. To be clear, it is a fact that during these time windows, a company can have a lower cost of money using IGF. Datatrend can issue IGF quotations upon request.

Today, IGF seems to be more competitive than ever before. The advantage is accentuated when the various brands within IBM, pSeries as one example, participate in funding the lease or finance arrangement. I say "finance arrangement" in that there are "bank-like" financing structures available where the customer owns the hardware at the end of the specified term but at very low cost of money facilitation.

The deepest discounts are associated with moving workload from non-IBM based platforms to IBM solutions. Generally, the next step in attractive discounts involves migrating from older IBM models to new generation systems. On a case by case basis, IBM will offer "pull ahead" bids to create incentives to purchase in the 4th quarter those items that are not needed until January and beyond.

Now is the time to review the pending requirements that are able to be forecasted and to take advantage of the many money-saving programs available to you.  No time is better than 4th quarter in saving money! If we may assist you, your Datatrend representative can review your precise situation and find the promotions that work best for your company paradigm.