IBM Announce Price Rise for Domino Server and Clients up to 32%

Wednesday 7th October, 2009
Hi Folks,

Yesterday news regarding the new straitened out IBM Lotus Licenses looked really great at the first sight, I mean, free Designer, how cool is this?! (We'll speak in a minute, what free is really mean in a context)
No more all this dazzling license options: inotes or notes client, for or with collaboration, limited or full use, no one really understood them anyway. Thanks for straitening this out. Really!

But now for the sad part: this new easiness comes with its price. Or better, with a price rise.
See for yourself:
Price in EUR
Price from 01.01.2010
Notes Client
Notes Messaging
Inotes Messaging
Enterprise Server Value Unit
Messaging Server
Value Unit

As you see, free Designer is not really free, but just 81% cheaper, but fair enough. But nearly everything else will get more expensive. Sure, you will be able to do more with it. But if you are just a web browser user, than you are facing a 32% rise for a questionable advantage that now you are allowed to use the Notes Client.

The price adjustments are effective as of 01.01.2010, so there is still time to act, if you are up to stock up on Domino Servers. Call your local Lotus Business Parter (yep, even me), to get a quote.

  1. 1) Flemming Riis Said: (7.10.09 1:21:05 PM GMT) Gravatar Image
    didnt they stack the license

    so that the standard cal included both domino and inotes and then ending up as a saving or did i misunderstand it.

  2. 2) Ed Brill Said: (7.10.09 1:22:31 PM GMT) Gravatar Image
    Several comments

    Designer will absolutely be free -- but as we said yesterday, to connect it to a server requires a CAL. This may seem like a subtle difference, but the point is that the license is written, and the download will be set up, for anyone to freely get/learn/use Designer. When you want support, or to put it into production, or access to back-level versions, you need the Enterprise CAL That user likely has an Enterprise CAL already, because they need to connect to Domino and Domino applications. So the savings are there.

    All Notes Collaboration and iNotes Collaboration users will be entitled to the Notes client, to use Domino Designer, and to Lotus Mobile Connect clients. So there is more value.

    Last, I'm not sure where anyone in the market today needs to "stock up" on Domino servers. In most cases, through virtualization, consolidation, use of DAOS/Config Tuner/compression etc., companies are decreasing their quantity of Domino PVUs. The server price increase adjusts for these trends.

    For most customers, these changes will work out to be a much narrower set of changes -- from an overall savings to an increase of a few percent ON THEIR TOTAL bill. Remember that someone who has been renewing Designer at over 200Eur/user is now dropping down to the Enterprise CAL renewal price. And customers using fewer Domino PVUs are likely to save overall as well.

    I suggest doing a few examples -- we did this for our sales organization -- to see that the changes are much less dramatic than your headline on a total basis.

  3. 3) Ed Brill Said: (7.10.09 1:52:30 PM GMT) Gravatar Image
    Also, these are Euro prices

    Depending on currency, these percentages will differ. For example in US$, the increase on the Notes client as it becomes the Enterprise CAL is 2½%. In some cases, it will be flat or even a decrease depending on the currency.

  4. 4) Oliver Regelmann Said: (8.10.09 12:26:47 AM GMT) Gravatar Image

    Ed, as you know everyone's mileage varies. I've yet to see one of my (SMB) customers to consolidate servers just because of 20-30% disk usage improvement with Domino 8.x. Usually they're happy to have more free disk space. And that's just an improvement for the moment. Over time disk space requirements will still increase, probably a little bit flatter now.

    And with dual core CPUs being unavailable (at least from IBM), higher PVU prices for Nehalem CPUs and now this 15% increase Domino installations are getting more and more expensive just because servers get replaced after the end of their life or leasing period.

    Add to this that 30% increase from iNotes to Notes CALs and the fact that there are usually zero Designer clients in these environments and you'll hear a lot of pro MS or pro Google comments in the future. At least from this market.

  5. 5) Greg Said: (8.10.09 2:30:15 AM GMT) Gravatar Image


    Have you looked at Lotus Foundations?

  6. 6) Ed Brill Said: (8.10.09 3:07:01 AM GMT) Gravatar Image
    Or Express?

    No changes to the Domino Collab or Domino Messaging Express offerings, which are priced per-user and not affected by CPU/PVUs or Designer one way or another.

  7. 7) Oliver Regelmann Said: (8.10.09 9:33:21 AM GMT) Gravatar Image
    Foundations & Express

    @5: Yes, we have. And the experience hasn't been positive.

    @6: Express is an alternative for some, correct. But doesn't allow clustering.

Discussion for this entry is now closed.