IBM hoists UK software prices by 24 per cent

IBM hoists UK software prices by 24 per cent

Timing of move questioned by software licensing experts, with the feeling that 'customers will feel blindsided'

Published on 15th December 2022

IBM is hoisting its UK software prices by nearly a quarter, in a move critics claims will drive customers into the arms of competitors.

In an announcement earlier this week, Big Blue confirmed it will be adjusting prices in select currencies in January 2023 for all Passport Advantage Perpetual, Subscription License, Monthly License, Fixed Term Licenses, Appliances, and SaaS Products.

Customers in the UK, as well as across the eurozone and several other countries, face rises of 24 per cent.

These increases supersede those announced in September (which CRN understands to have been eight per cent for the UK), IBM stressed.

'Budget-killing increase'

The move immediately drew stinging criticism from the software asset management community for causing chaos for IBM software customers planning their budgets for 2023 and beyond.

Rich Gibbons, ITAM services director at independent asset management analyst ITAM Review (pictured below), feared that the move could backfire for IBM by pushing customers to look at third-party support options or alternative products.

“I think customer organisations will feel blind-sided by this,” he said.

“It’s only a matter of weeks before 2023 arrives. Most organisations will have their budgets set for next year and if that includes buying IBM that’s a big change. We expect to see people looking at whether they can move from IBM to something else, or delay the project, because it’s not the kind of price increase you can grin and bear.”

Writing in a personal capacity in a LinkedIn post, Nial Eddery, IBM practice lead at software asset management consultancy Livingstone Group, branded the hikes “customer budget killing increase rates”.

“I cannot remember a credible vendor pushing a straight uncamouflaged price increase over 10 per cent in my time in licensing and SAM,” he said.

“If there’s one type of company this will benefit, it’s the growing number of third-party support organisations.”


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