Michael Miller
Enterprise Architect, IBM Champion
We’ve all seen how quickly technology evolves—and the world of software licensing is no exception. One of the biggest trends in recent years is the move from traditional, perpetual licenses to subscription-based models. It’s happening across the software industry, and IBM is no different.
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Did you know that IBM began transitioning the IBM i platform to subscription licensing back in 2022. Since then, there’s been a steady shift toward simplifying the IBM i portfolio. Many products that once required separate (and sometimes costly) licenses are now included in the base IBM i offering—meaning no extra charges and fewer licensing headaches. Some examples of these now-included tools are JS1, PT1, QU1, ST1, and XW1. These tools were previously “keyed” or chargeable products, but today, they’re simply part of the IBM i experience. If you’re managing IBM i environments, it’s a good idea to stay up to date. IBM provides a helpful overview of this IBM i Portfolio Simplification, including which PTFs (Program Temporary Fixes) you may need to install to remove license checks for these now-included products. Click here to learn more and make sure you’re up to date with the latest changes.
For many organizations, upgrading to IBM Power10 or the newly announced IBM Power11 systems (announced July 8, 2025) will mark their first experience with subscription-based licensing. This shift, while significant, is part of IBM’s broader strategy to modernize and simplify how businesses access and manage IBM i software.
Say Hello to Subscription Licensing
On May 7, 2024, IBM announced that customers purchasing specific Power10-based P05 and P10 software tier machines must adopt subscription licensing. Now with the introduction of Power11, we’re seeing the final software tiers (P20 and P30) being added into the subscription model.
During the July 8th 2025 Power11 launch, IBM confirmed that all IBM i licenses for Power11 systems will be available only through subscription. This means that if you’re planning a move to either Power10 or Power11, whether for Scale-Out (P05, P10, P20 software tier) or Enterprise (P30 software tier) systems, any non-expiring (perpetual) IBM i software licenses will be converted to subscription term licenses.
There’s one notable exception: Customers upgrading from E1080 to E1180 can carry forward their perpetual licenses with a serial number upgrade. Yes, you heard correctly, IBM has brought back serial number upgrades for Power11 but only for the Enterprise E1180 migrating from E1080.
Decoding IBM i Software Tiers Across Power Platforms
Here is a quick framing of IBM i software tiers, also known as processor groups, and how they translate across Power9/10/11 hardware:
- P05 – based on number of cores and number of users
- Power11: S1112 (roadmap 2026)
- Power10: S1012 (9028-21B) 1-core or 4-core processor, S1014 (9105-41B) 4-core processor
- Power9: S914 (9009-41A and 9009-41G) 4-core processor, S922 (9009-22G) 1-core processor
- P10 – based on number of cores and number of users
- Power11: S1122 (9824-22A) 8-core processor, 20- 32- 48- 60-core processors (IBM i 4core max per LPAR)
- Power10: S1012 (9028-21B) 8-core processor, S1014 (9105-41B) 8-core processor, S1022 (9105-22A)
- Power9: S914 (9009-41A and 9009-41G) 6- and 8-core processors, S922 (9009-22A and 9009-22G)
- P20 – based on number of cores
- Power11: S1124(9824-42A) 16- and 32-core processors
- Power10: S1014 (9105-42A) 12- and 24-core processors
- Power9: S924 (9009-42A and 9009-42G)
- P30 – based on number of cores
- Power11: E1180(9080-HEU), S1124 (9824-42A) 48- and 60-core processors
- Power10: E1080 (9080-HEX), S1024 (9105-42A) 32- and 48-core processors
- Power9: E980 (9080-M9S)
Lowering the TCO with New Bundles
As part of the July 8, 2025 announcement, IBM introduced new bundled licensing options: IBM i P20 Standard Edition and IBM i P30 Enterprise Edition. These bundles will come with both core and comprehensive capabilities helping to lower the overall TCO for IBM i licensing. If your organization falls within the P20 or P30 software tiers, these new editions are well worth considering. Tools that were traditionally licensed à la carte—such as BRMS, PowerHA, PowerSC, and even advanced PowerHA features for IBM i like Full System FlashCopy (FSFC), Full System Replication (FSR), and the Safeguarded Copy Toolkit—are now included, offering a more cost-effective and comprehensive solution than traditional licensing models.
- IBM i P20 Standard Edition includes: BRMS, PowerHA SystemMirror for i, PowerSC, PowerHA Tools for IBM i1 (iASP Manager, Full System Flash Copy Manager, Full System Replication Manager, Smart Assist for PowerHA on IBM i, Safeguarded Copy Toolkit), Migrate While Active, iDoctor toolkit1. Additional products may be purchased such as DB2 Mirror, RDS, etc.
- IBM i P30 Enterprise Edition includes: BRMS, PowerHA SystemMirror for i, DB2 Mirror for i, PowerSC, PowerHA Tools for IBM i1 (iASP Manager, Full System Flash Copy Manager, Full System Replication Manager, Smart Assist for PowerHA on IBM i, Safeguarded Copy Toolkit), Red Hat Ansible Automation2, Migrate While Active, iDoctor toolkit1, Rational Development Studio (5 users per core), New IBM i Extensions for VS Code Enterprise Support.
Say Goodbye to Perpetual P20 and P30 Licenses
Another major development: IBM will withdraw perpetual P20 and P30 OS licenses effective January 1, 2026. This means even more customers will need to transition to a subscription model soon. The P05 and P10 perpetual OS licenses were withdrawn on May 7, 2024.
What IBM’s Licensing Changes Mean for Your Strategy
If you’re planning a hardware refresh or expansion, now is the time to evaluate how IBM’s licensing transition affects your infrastructure strategy. While this move may initially feel like a significant change, it offers opportunities for greater flexibility, predictable budgeting, and access to enhanced features right from the start.
Still operating under perpetual licenses? It’s important to understand your upgrade options and timelines to avoid unexpected disruptions.
Mainline’s team of IBM Power Systems and IBM i experts can help you assess your current position and recommend the best path forward. Reach out to your Pellera (formerly Mainline) Account Executive directly or contact us to start the conversation.
Notes:
1License for assets only (no professional services or maintenance)
2RedHat Ansible Automation includes 1 year support for 100 managed nodes with a minimum purchase of 10x P30 Enterprise Edition cores.
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