Modification: IBM Power 595 server trade-in program

Announcement Letter Number 309-559
August 11, 2009

Effective August 11, 2009, the IBM® Power 595 trade-in program has been modified.

The following changes are being made with this announcement:

  • trade-in credits for all non-IBM replaced machines have been increased
  • maximum trade-in credits for the Replacement Machines have been reduced
  • trade-in credit for the IBM Replaced Machine p5 595 64-way has been reduced.

All other terms and conditions remain unchanged.

This announcement supersedes Announcement Letter 309-520, dated March 3, 2009.

The offer

If you acquire an eligible new IBM Power 595 (9119-FHA) server (Replacement Machine) and trade in one or more designated IBM and/or non-IBM systems (Replaced Machines), you can receive a trade-in credit for each Replaced Machine you trade in.

There is a maximum total trade-in credit amount per Replacement Machine that is dependent upon the configuration of the Replacement Machine.

The amount of the trade-in credit for each Replaced Machine represents a combination of the Fair Market Value (FMV) of the Replaced Machine and an additional incentive.

The number of Replaced Machines that can be traded in per eligible new Replacement Machine is limited by the maximum trade-in credit amount of the Replacement Machine. Once the maximum trade-in credit amount has been reached, additional machines will not be accepted for trade-in.

When the total trade-in credit amount of Replaced Machine(s) exceeds the maximum trade-in credit amount allowed by the acquisition of the Replacement Machine, the trade-in credit amount will be limited to the maximum trade-in credit amount of the Replacement Machine.

For a list of Replacement and Replaced Machines, and applicable trade-in credits, refer to the Qualifying/Eligible products section.

Start and/or end dates

In order to qualify, IBM records must show IBM Replaced Machine(s) (if applicable) as installed in a customer location within your Enterprise as of August 10, 2009.

The Date of Installation of the eligible new Replacement Machine, as defined in the IBM Customer Agreement, must occur on or after August 11, 2009.

Contracts required for the trade-in of the Replaced Machine(s) must be received by IBM on or before the Date of Installation of the eligible new Replacement Machine.

IBM must be contacted to schedule pickup of IBM Replaced Machine(s) no later than six (6) months following the Date of Installation of the eligible new Replacement Machine.

Bills of lading (proof of shipment) for non-IBM Replaced Machine(s) shipped to the company identified on the "IGF OEM trade-in return form" must be dated no later than six (6) months following the Date of Installation of the eligible new Replacement Machine.

Information about this program can be obtained through ibm.com® by visiting the following Web site:

http://www.ibm.com/products/us

Enter SPECOFFSP in the NavCode® window.

Where is it available?

This program is available only in the United States and its territories.

If you are a U.S. commercial, state and local government, or education customer, you can participate. If you are a U.S. federal government customer, call 800-333-6705 to determine eligibility.

Qualifying/Eligible products

Replacement Machine

                                                        Maximum
                 Machine           Feature   Feature    trade-in
Description      type      Model   number    quantity   credit
Power 595 server 9119 FHA 4754 (4.2 GHz 8 - 15 $ 25,000 8- to 64-way) 16 - 23 50,000 24 - 31 75,000 32 - 39 100,000 40 - 47 125,000 48 - 55 150,000 56 - 63 175,000 64 200,000
Power 595 server 9119 FHA 4755 (5.0 GHz 8 - 15 $ 30,000 8- to 64-way) 16 - 23 60,000 24 - 31 90,000 32 - 39 120,000 40 - 47 150,000 48 - 55 180,000 56 - 63 210,000 64 240,000

IBM Replaced Machine(s)

                                  Feature
                                  number
                Machine           (in any        Feature    Trade-in
Description     type      Model   combination)   quantity   credit
p650 server 7038 6M2 5122 and/or 1 or 2 $ 5,000 (2- or 4-way) 5208 and/or 7014 and/or 8050 and/or 8051
p650 server 7038 6M2 5122 and/or 3 or 4 10,000 (6- or 8-way) 5208 and/or 7014 and/or 8050 and/or 8051
p670 server 7040 671 5248 or 1 14,000 (8-way) 5256 or 7400 or 7401
p670 server 7040 671 5248 and/or 2 28,000 (16-way) 5256 and/or 7400 and/or 7401
p690 server 7040 681 5207 or 1 19,000 (8-way) 5241 or 5242 or 5243 or 5244 or 5245 or 5246 or 5252 or 5254 or 7401 or 7403 or 7404 or 7405 or 7406 or 7407 or 7408 or 7409 or 7431 or 8009 or 8010 or 8012
p690 server 7040 681 5207 and/or 2 38,000 (16-way) 5241 and/or 5242 and/or 5243 and/or 5244 and/or 5245 and/or 5246 and/or 5252 and/or 5254 and/or 7401 and/or 7403 and/or 7404 and/or 7405 and/or 7406 and/or 7407 and/or 7408 and/or 7409 and/or 7431 and/or 8009 and/or 8010 and/or 8012
p690 server 7040 681 5207 and/or 3 56,000 (24-way) 5241 and/or 5242 and/or 5243 and/or 5244 and/or 5245 and/or 5246 and/or 5252 and/or 5254 and/or 7401 and/or 7403 and/or 7404 and/or 7405 and/or 7406 and/or 7407 and/or 7408 and/or 7409 and/or 7431 and/or 8009 and/or 8010 and/or 8012
p690 server 7040 681 5207 and/or 4 76,000 (32-way) 5241 and/or 5242 and/or 5243 and/or 5244 and/or 5245 and/or 5246 and/or 5252 and/or 5254 and/or 7401 and/or 7403 and/or 7404 and/or 7405 and/or 7406 and/or 7407 and/or 7408 and/or 7409 and/or 7431 and/or 8009 and/or 8010 and/or 8012
p690 server 7040 681 5240 and/or 2 19,000 (8-way HPC) 5250
p690 server 7040 681 5240 and/or 4 38,000 (16-way HPC) 5250
p5 560 server 9116 561 7781 1 5,000 (4-way 1.5 GHz)
p5 560 server 9116 561 7781 2 9,000 (8-way 1.5 GHz)
p5 560 server 9116 561 7781 4 17,500 (16-way 1.5 GHz)
p5 560 server 9116 561 7295 1 8,000 (4-way 1.8 GHz)
p5 560 server 9116 561 7295 2 14,000 (8-way 1.8 GHz)
p5 560 server 9116 561 7295 4 28,000 (16-way 1.8 GHz)
p5 570 server 9117 570 7929 and/or 2 5,000 (2-way 8452 1.5 GHz)
p5 570 server 9117 570 7929 and/or 4 9,000 (4-way 8452 1.5 GHz)
p5 570 server 9117 570 7929 and/or 8 17,500 (8-way 8452 1.5 GHz)
p5 570 server 9117 570 7987 and/or 2-4 10,500 (2- to 4-way 8452 or 1.65/ 7898 and/or 1.9 GHz p5) 8454 or 7899 and/or 8455
p5 570 server 9117 570 7987 and/or 5-8 24,500 (5- to 8-way 8452 or 1.65/ 7898 and/or 1.9 GHz p5) 8454 or 7899 and/or 8455
p5 570 server 9117 570 7987 and/or 9-11 35,000 (9- to 11-way 8452 or 1.65/ 7898 and/or 1.9 GHz p5) 8454 or 7899 and/or 8455
p5 570 server 9117 570 7987 and/or 12-15 46,000 (12- to 15-way 8452 or 1.65/ 7898 and/or 1.9 GHz p5) 8454 or 7899 and/or 8455
p5 570 server 9117 570 7987 and/or 16 56,000 (16-way 8452 or 1.65/ 7898 and/or 1.9 GHz p5) 8454 or 7899 and/or 8455
p5 570 server 9117 570 7618 or 2-4 13,000 (2- to 4-way 7665 1.9/ 2.2 GHz p5+)
p5 570 server 9117 570 7618 or 5-8 31,000 (5- to 8-way 7665 1.9/ 2.2 GHz p5+)
p5 570 server 9117 570 7618 or 9-11 44,000 (9- to 11-way 7665 1.9/ 2.2 GHz p5+)
p5 570 server 9117 570 7618 or 12-15 57,000 (12- to 15-way 7665 1.9/ 2.2 GHz p5+)
p5 570 server 9117 570 7618 or 16 70,000 (16-way 7665
p5 Model 590 9119 590 7925 or (8- to 32-way) 7667 8 - 15 25,000 16 - 23 50,000 24 - 31 75,000 32 100,000
p5 Model 595 9119 595 7815 or (16- to 7990 or 64-way) 7668 or 7693 16 - 23 70,000 24 - 31 105,000 32 - 39 140,000 40 - 47 175,000 48 - 55 210,000 56 - 64 240,000

Non-IBM Replaced Machine(s)

                             Minimum
                             number of      Trade-in
Description                  processors     credit

Sun Microsystems systems

 Sun Fire E3800/E4800/E4810   8             $ 10,000
 Sun Fire E4800              12               16,000
Sun Fire E6800 16 30,000 Sun Fire E6800 24 45,000
Sun Fire E6900 16 40,000 Sun Fire E6900 24 60,000
Sun V1280 and Netra 1280 8 11,000 Sun V1280 and Netra 1280 12 32,000
Sun Netra 1290 8 21,000 Sun Netra 1290 12 32,000
Sun Fire E2900/E4900 8 24,000 Sun Fire E2900/E4900 12 35,000
Sun Fire F12K/F15K 8 35,000 Sun Fire F12K/F15K 16 76,000 Sun Fire F12K/F15K 24 112,000 Sun Fire F12K/F15K 32 146,000 Sun Fire F12K/F15K 40 186,000 Sun Fire F12K/F15K 48 224,000 Sun Fire F15K greater 240,000 than 48
Sun Fire E20K/E25K/E6900 8 92,000 Sun Fire E20K/E25K/E6900 16 168,000 Sun Fire E20K/E25K/E6900 24 240,000
Sun Enterprise M5000 4 12,000 Sun Enterprise M5000 8 24,000 Sun Enterprise M5000 12 36,000 Sun Enterprise M5000 16 48,000
Sun Enterprise M8000 4 16,000 Sun Enterprise M8000 8 30,000 Sun Enterprise M8000 12 49,000 Sun Enterprise M8000 16 60,000 Sun Enterprise M8000 20 80,000 Sun Enterprise M8000 24 90,000 Sun Enterprise M8000 28 112,000 Sun Enterprise M8000 32 120,000
Sun Enterprise M9000 4 40,000 Sun Enterprise M9000 8 80,000 Sun Enterprise M9000 16 160,000 Sun Enterprise M9000 24 240,000

Fujitsu

 PRIMEPOWER 600/800/900       8               14,000
 PRIMEPOWER 800/900          12               12,000
 PRIMEPOWER 800/900          16               28,000
PRIMEPOWER 650/850 8 12,000 PRIMEPOWER 850 12 32,000 PRIMEPOWER 850 16 42,000
PRIMEPOWER 1000/2000 8 28,000 PRIMEPOWER 1000/2000 12 42,000 PRIMEPOWER 1000/2000 16 56,000 PRIMEPOWER 1000/2000 24 84,000 PRIMEPOWER 1000/2000 32 112,000 PRIMEPOWER 1000/2000 40 140,000 PRIMEPOWER 1000/2000 48 168,000 PRIMEPOWER 1000/2000 56 196,000 PRIMEPOWER 1000/2000 64 224,000 PRIMEPOWER 1000/2000 greater 240,000 than 64
PRIMEPOWER 1500/2500 8 36,000 PRIMEPOWER 1500/2500 12 56,000 PRIMEPOWER 1500/2500 16 74,000 PRIMEPOWER 1500/2500 24 112,000 PRIMEPOWER 1500/2500 32 148,000 PRIMEPOWER 1500/2500 40 186,000 PRIMEPOWER 1500/2500 48 224,000 PRIMEPOWER 1500/2500 greater 240,000 than 48

Hewlett-Packard systems

 HP 9000 Superdome PA-8X00    8               36,000
 HP 9000 Superdome PA-8X00   16               74,000
 HP 9000 Superdome PA-8X00   24              112,000
 HP 9000 Superdome PA-8X00   32              148,000
 HP 9000 Superdome PA-8X00   40              186,000
 HP 9000 Superdome PA-8X00   48              224,000
 HP 9000 Superdome PA-8X00   greater         240,000
                             than 48
HP Integrity Superdome 8 56,000 Itanium HP Integrity Superdome 16 112,000 Itanium HP Integrity Superdome 24 168,000 Itanium HP Integrity Superdome 32 224,000 Itanium HP Integrity Superdome greater 240,000 Itanium than 32
HP Integrity SD Itanium® 2 8 56,000 90X0 HP Integrity SD Itanium 2 16 112,000 90X0 HP Integrity SD Itanium 2 24 168,000 90X0 HP Integrity SD Itanium 2 32 224,000 90X0 HP Integrity SD Itanium 2 greater 240,000 90X0 than 32
HP 9000 rp7400/rp7410/ 8 14,000 rp7420/rp7440 HP 9000 rp7420/rp7440 16 28,000
HP 9000 rp8400 4 10,000 HP 9000 rp8400 8 18,000 HP 9000 rp8400 12 26,000 HP 9000 rp8400 16 35,000
HP 9000 rp8420/rp8440 8 21,000 HP 9000 rp8420/rp8440 16 42,000 HP 9000 rp8420/rp8440 24 63,000 HP 9000 rp8420/rp8440 32 84,000
HP Integrity rx9610 8 18,000 HP Integrity rx9610 12 26,000 HP Integrity rx9610 16 35,000
HP Integrity rx7620 8 21,000 HP Integrity rx7620 12 32,000 HP Integrity rx7620 16 42,000
HP Integrity rx7640 8 21,000 HP Integrity rx7640 12 32,000 HP Integrity rx7640 16 42,000
HP Integrity rx8620 8 28,000 HP Integrity rx8620 16 56,000 HP Integrity rx8620 24 84,000 HP Integrity rx8620 32 112,000
HP Integrity rx8640 8 28,000 HP Integrity rx8640 16 56,000 HP Integrity rx8640 24 84,000 HP Integrity rx8640 32 112,000
HP AlphaServer GS80/GS160 4 14,000 HP AlphaServer GS80/GS160 8 28,000 HP AlphaServer GS160 12 42,000 HP AlphaServer GS160 16 56,000
HP AlphaServer ES80 8 28,000
HP AlphaServer GS320/GS1280 8 36,000 HP AlphaServer GS320/GS1280 16 76,000 HP AlphaServer GS320/GS1280 24 112,000 HP AlphaServer GS320/GS1280 32 148,000 HP AlphaServer GS1280 40 186,000 HP AlphaServer GS1280 48 224,000 HP AlphaServer GS1280 greater 240,000 than 48

Additional information/conditions

Upon shipment of the Replacement Machine, you will be billed the single unit purchase price less any applicable discounts or allowances for which you qualify. You will receive your trade-in credit(s) after each Replaced Machine has been returned to IBM and/or returned to the company identified on the "IGF OEM trade-in return form", and validated against the information included on the ICA Attachment for Machine(s) Trade-in Transaction (Z125-5459).

Participation in this trade-in program is in lieu of trade-in activity under any other trade-in program.

IBM reserves the right to modify or withdraw this program at any time.

This program is subject to the terms and conditions of any applicable Agreements.

FMV of a Replaced Machine

To determine the FMV of a Replaced Machine, contact your IBM Global Financing (IGF) representative with the configuration details of the Replaced Machine and request an IGF retail quote. You are not required to contact IGF in order to receive the trade-in credit(s) listed in this announcement, nor will the trade-in credits listed in this announcement change based upon any retail quote provided by IGF.

Trade-in of IBM Replaced Machines

Your responsibilities

Have the IBM Replaced Machine(s) installed in a qualifying location within your Enterprise as of August 10, 2009.

Install the Replacement Machine in the same Enterprise where the Replaced Machines were installed within the United States and its territories.

Have clear title to the Replaced Machines, free of any encumbrances, at the time they are picked up by IBM's designated carrier.

The lessee of IBM Replaced Machines financed by IBM Global Financing must purchase the Replaced Machines and pay all related charges before returning them to IBM.

IBM Replaced Machines currently under an Installation Payment Agreement (IPA) or an Installment Payment Master Agreement (IPMA) must be paid for in full before returning them to IBM.

Contact your IBM representative to schedule pickup of IBM Replaced Machines no later than six (6) months following the Date of Installation of the Replacement Machine. IBM Replaced Machines must be available for pickup by IBM's carrier when you contact your IBM representative.

IBM will not pay for shipping costs if any other means of return is used.

If you are returning more than one IBM Replaced Machine, the machines do not need to be returned to IBM at the same time, as long as they are available for pickup and IBM is contacted to schedule pickup within six (6) months of the Date of Installation of the Replacement Machine.

Return the IBM Replaced Machines, in the same configuration (machine type, model, and all features) as installed as of August 10, 2009.

Remove any alterations, non-IBM attachments, and data from IBM Replaced Machines. Any IBM service charges incurred in this process or in preparing the machines for pickup are your responsibility.

Disconnect the IBM Replaced Machines before pickup. All associated items such as cables, logic manuals, kickplates, terminators, and power cords should be packed with the Replaced Machines. It is not necessary for IBM Service to pack the machines for shipment. If you request that IBM prepare the machines for shipment, you will be billed for this service.

Ensure that "IBM Power 595 server trade-in program" appears on both the return shipping label and the trucking company's bill of lading. If "IBM Power 595 server trade-in program" does not appear on the shipping label and the bill of lading, you may be charged for the return and disposal of IBM Replaced Machines.

Request that maintenance coverage, if any, and software licenses installed on the IBM Replaced Machines be discontinued or transferred, as appropriate.

Ensure that IBM Replaced Machines are in working order on the day they are picked up.

IBM's responsibilities

Make arrangements to remove the IBM Replaced Machines upon receiving your request.

All shipping and storage costs associated with the return of IBM Replaced Machines to IBM, exclusive of any charges for special handling required to remove the IBM Replaced Machines. Special handling includes, but is not limited to:

  • Special Buy
  • Sat/Sun Pickup/Delivery
  • Expedite Service
  • Exclusive Use Charge
  • Labor Charge
  • Stairs / Elevator Carry
  • Special Equipment Charge
  • Detention with Power
  • Detention without Power
  • Advance Charges
  • Appointment
  • Auxiliary Service
  • Liftgate/Forklift

Credit you the trade-in credit amount specified for IBM Replaced Machines after receiving verification that IBM Replaced Machines have been picked up.

Trade-in of non-IBM Replaced Machines

Your responsibilities

Upon receipt of an Attachment that includes non-IBM Replaced Machines, IBM Customer Support Operations will send you an "IGF OEM trade-in return form" via e-mail. Complete the "IGF OEM trade-in return form" for all non-IBM Replaced Machines.

Completed forms must be sent, upon shipment of non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", to:

  • your IBM Customer Support Representative
  • your IBM Sales Representative
  • the IGF OEM trade-in desk

(E-mail addresses of the individuals listed above are provided on the "IGF OEM trade-in return form.")

Have clear title to the non-IBM Replaced Machines, free of any encumbrances, at the time they are shipped to the company identified on the "IGF OEM trade-in return form".

Prior to shipping your non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", contact your IBM representative to re-confirm the eligibility of the Replaced Machine (bills of lading for machines shipped to the company identified on the "IGF OEM trade-in return form" must be dated no later than six (6) months following the Date of Installation of the Replacement Machine).

If you are returning more than one non-IBM Replaced Machine, the machines do not need to be sent to the company identified on the "IGF OEM trade-in return form" at the same time, as long as they are sent within six (6) months of the Date of Installation of the Replacement Machine.

Remove any data from non-IBM Replaced Machines.

All associated items such as cables, logic manuals, kickplates, terminators, and power cords should be packed with the non-IBM Replaced Machines.

Ensure that "IBM Power 595 server trade-in program" appears on both the return shipping label and the trucking company's bill of lading.

You must keep the bill of lading as proof of timely shipment in case the estimated date of delivery is missed.

You are responsible for all costs incurred in shipping non-IBM Replaced Machines to the company identified on the "IGF OEM trade-in return form", as well as preparing non-IBM Replaced Machines for shipment. If you request that IBM prepare the machines for shipment, you will be billed for this service.

Ensure that non-IBM Replaced Machines are in working order on the day they are shipped to the company identified on the "IGF OEM trade-in return form".

IBM's responsibilities

Credit you for the non-IBM Replaced Machine after receiving verification that the non-IBM Replaced Machine received by the company identified on the "IGF OEM trade-in return form" was shipped within the published time frame of the program, is the machine identified on the ICA Attachment, its attributes agree with those listed on the Attachment, and it is in operable condition.

Business Partner information

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