IBM Mainframe Pricing Models
Note to archeologists and readers: this was written a long time ago and is maintained simply for historical reasons.
The pricing model for owning and operating an IBM mainframe is quite stunning. It’s probably the most lopsided pricing scheme that anybody has ever managed to sell… ever.
Buyer: “Hi, I need a Ford Escort. Please sell me one”
Seller : “Sure, I hear your need. Since you’re an On Demand business that must respond quickly to customer needs, here’s what we’ll do. We’ll sell you a Hummer. You buy the Hummer from us at three times the normal market price. Since you only need a Ford Escort right now, just avoid using the rear 2/3 of this vehicle, only drive it in second gear and never go over 30 miles per hour. You pay for gas, maintenance, repairs and other modifications. And if you ever need the extra capacity that this bad boy offers, you can just call us up and we’ll figure out how to charge you for that as well. Sound good?”
Buyer: “Well… sounds a bit…”
Seller : “Oh, and you have to pay us for every mile you drive in it.”
Buyer: “I’m sold!”