24% price increase for IBM software [updated]

Update on IBM price increase announcement

[12-12-2022] The notification on the IBM website about the price increase was taken down from the website. Now it’s back but with a change. A minor update has now been implemented for SaaS products.

All Passport Advantage Eligible SaaS Products will see the following adjustments:

• 5% decrease where IBM transacts in the Swiss Franc
• 7% increase where IBM transacts in the Indian Rupee, and South Korean Won
• 10% increase where IBM transacts in the Canadian dollar
• 15% increase where IBM transacts in the following currencies: British Pound, Euro, Danish Krone, Japanese Yen, Norwegian Krone, South African Rand, Swedish Krona

Note: IBM Cloud products are not included

From January 2023, IBM Distributed Software prices will rise by 24% in key currencies.

IBM announced on November 22, 2022, that “due to unique local market dynamics in select countries,” pricing for All Passport Advantage Eligible Perpetual, Subscription License, Monthly License, Fixed Term Licenses and Appliances transacted in the following currencies will increase by 24% beginning in January 2023: British Pound, Euro, Japanese Yen, South African Rand, Swedish Krona, Norwegian Krone & Danish Krone.

There will be a 19% pricing increase for transactions in Canadian dollars.

For a small number of products, price harmonization adjustments will deviate slightly from the assumptions above. In some cases there will be a higher price increase or a price reduction, but overall most of the price changes will not exceed plus or minus 5%.

This upcoming price rise is three times more than the 8% hike announced in September this year. And, certainly, the impending rise in price will replace that one of this year. This covers the United Kingdom, the Eurozone, and South Africa.

Summary:
September 2022: 8% price increase
January 2023: 24% price increase

What are your options?

Your contract may contain a clause that protects your rates. This condition ensures that annual price increases be less than, say, 24%. If you do not have this protection, you are not helpless. This might be an effective way for IBM to get customers to sign a lengthier term before the end of the year. Consult with an outside partner to strengthen your negotiating position.