Modification: IBM Power 570, 770, and 780 server trade-in program

Announcement Letter Number 310-259

September 28, 2010

Effective September 28, 2010, the IBM® Power 570, 770, and 780 server trade-in program has been modified.

The following change is being made with this announcement:

  • additions have been made to the list of Replacement Machines.

All other terms and conditions remain unchanged.

This announcement supersedes Announcement Letter 310-225, dated July 27, 2010.

Brief Description of Announcement, Charges, and Availability

Value proposition

This offer can be used as an incentive to motivate a customer to replace old IBM or Competitive Server Technology with newer IBM servers.

The offer

If you acquire an eligible new IBM Power 570, Power 770, or Power 780 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.

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 September 27, 2010.

The Date of Installation of the eligible new Replacement Machine, as defined in the IBM Customer Agreement, must occur on or after September 28, 2010.

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 PRO1633 in the NavCode window.

Where is it available?

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

Marketing information

This program allows your customer to return more than one Replaced Machine when a single Replacement Machine is acquired. There is a maximum credit allowable for the Replacement Machine, and upon reaching that maximum, the customer cannot return additional machines.

You are responsible for ensuring that the maximum credit per Replacement Machine is not exceeded, and that only the Replaced Machines that your customer will return to IBM and/or Canvas Systems are listed on the ICA Attachment.

Questions pertaining to this program should be directed to Nick Vlamis at tie line 923-0360, 208-395-0360, or Nick Vlamis/Boise/IBM@IBMUS.

IBM representatives should become familiar with this program and give a copy of the customer portion of this announcement to each customer who participates in this program.

Offering type

End User

Customer Agreement

The following document must be completed on or before the Date of Installation of the Replacement Machine:

  • ICA Attachment for Machine(s) Trade-in Transaction (Z125-5459)

Ensure that the Replacement Machine and the IBM Replaced Machines are identified in the Attachment, including machine types, models, required features, quantity, serial numbers, to-be-installed-at Customer number, to-be-installed-at address (for Replacement Machine), installed-at Customer number, and installed-at address (for IBM Replaced machine(s)). Ensure that non-IBM Replaced Machines are identified in the Attachment, including Manufacturer names, system names, serial numbers, and number of processors.

You are responsible for ensuring the latest version of the Attachment is used for your customer's trade-in.

Marketing action required for IBM Replaced Machines

Ensure that the customer understands that the credit for each returned machine will not be issued until pickup of the IBM Replaced Machine has been verified.

Your customer must contact you and you must notify the customer support representative (CSR) to schedule pickup of the IBM Replaced Machine(s) no later than six (6) months following the Date of Installation of the Replacement Machine. IBM Replaced Machine(s) must be available for pickup when your customer contacts you.

When the customer is ready to return an IBM Replaced Machine, you should notify the CSR to perform the necessary AAS transactions to change the status of the Replaced Machine to 42 and to arrange for the pickup of the IBM Replaced Machine.

You should be prepared to provide the following information to the CSR for each IBM Replaced Machine:

  • Customer number
  • Customer name
  • Pickup address
  • Phone number
  • Machine type/models/serial numbers
  • Destination:
IBM Corporation
Asset Reclamation Center
850 37th Street NW
Bldg 681
Rochester, MN 55901
Attention: IBM Power 570, 770, and 780 server trade-in program

Marketing action required for non-IBM Replaced Machines

Ensure that the customer understands that the credit for each returned machine will not be issued until Canvas Systems receives the Replaced Machine, and their verification of the machine shows that it was shipped within the published time frame of the program, it is the machine identified on the ICA Attachment, its attributes agree with those listed on the Attachment, and it is in operable condition.

You must ensure that your customer knows the date by which they must ship their non-IBM Replaced Machine to Canvas Systems.

Prior to shipping their non-IBM Replaced Machine to Canvas Systems, when the customer is ready to return a non-IBM Replaced Machine, they must contact you to re-confirm their eligibility (that the date by which they must ship their non-IBM Replaced Machine has not passed).

You will receive a copy of your customer's completed "IGF OEM trade-in return form," and must contact your customer if their non-IBM Replaced Machine fails to arrive at Canvas Systems by the estimated delivery date.

If the non-IBM Replaced Machine your customer sends to Canvas Systems does not meet the terms of this program, the IGF OEM trade-in desk will contact you. You will be responsible for contacting your customer to discuss the discrepancy, and request that they make immediate plans to have the machine picked up from Canvas Systems and delivered back to them.

Qualifying/Eligible products

Replacement Machine

                                                        Maximum
                 Machine           Feature   Feature    trade-in
                 type      Model   number    quantity   credit

Power 570 9117 MMA 5670 or 4 to 7 $ 5,000 POWER6® 7719 or (4- to 7-way) 7306 or 7700

Power 570 9117 MMA 5670 or 8 to 11 9,000 POWER6 7719 or (8- to 11-way) 7306 or 7700

Power 570 9117 MMA 5670 or 12 to 15 12,000 POWER6 7719 or (12- to 15-way) 7306 or 7700

Power 570 9117 MMA 5670 or 16 to 19 16,000 POWER6 7719 or (16- to 19-way) 7306 or 7700

Power 570 9117 MMA 7700 20 to 23 20,000 POWER6 (20- to 23-way)

Power 570 9117 MMA 7700 24 to 27 24,000 POWER6 (24- to 27-way)

Power 570 9117 MMA 7700 28 to 31 30,000 POWER6 (28- to 31-way)

Power 570 9117 MMA 7700 32 40,000 POWER6 (32-way)

Power 770 9117 MMB 5468 4 to 7 750 POWER7 (4- to 7-way)

Power 770 9117 MMB 5468 8 to 15 1,250 POWER7 (8- to 15-way)

Power 770 9117 MMB 5468 16 to 23 4,000 POWER7 (16- to 23-way)

Power 770 9117 MMB 5468 24 to 31 6,000 POWER7 (24- to 31-way)

Power 770 9117 MMB 5468 32 to 39 8,000 POWER7 (32- to 39-way)

Power 770 9117 MMB 5468 40 to 47 10,000 POWER7 (40- to 47-way)

Power 770 9117 MMB 5468 48 to 55 12,000 POWER7 (48- to 55-way)

Power 770 9117 MMB 5468 56 to 63 13,500 POWER7 (56- to 63-way)

Power 770 9117 MMB 5468 64 15,000 POWER7 (64-way)

Power 770 9117 MMB 5459 6 2,000 POWER7 (6-way)

Power 770 9117 MMB 5459 7 to 11 3,000 POWER7 (7- to 11-way)

Power 770 9117 MMB 5459 12 to 17 4,000 POWER7 (12- to 17-way)

Power 770 9117 MMB 5459 18 to 23 7,000 POWER7 (18- to 23-way)

Power 770 9117 MMB 5459 24 to 29 9,000 POWER7 (24- to 29 way)

Power 770 9117 MMB 5459 30 to 35 12,000 POWER7 (30- to 35-way)

Power 770 9117 MMB 5459 36 to 41 15,000 POWER7 (36- to 41-way)

Power 770 9117 MMB 5459 42 to 47 18,000 POWER7 (42- to 47-way)

Power 770 9117 MMB 5459 48 20,000 POWER7 (48-way)

Power 780 9179 MHB 5469 4 to 7 3,000 POWER7 (4- to 7-way)

Power 780 9179 MHB 5469 8 to 15 6,000 POWER7 (8- to 15-way)

Power 780 9179 MHB 5469 16 to 23 12,000 POWER7 (16- to 23-way)

Power 780 9179 MHB 5469 24 to 31 16,000 POWER7 (24- to 31-way)

Power 780 9179 MHB 5469 32 to 39 20,000 POWER7 (32- to 39-way)

Power 780 9179 MHB 5469 40 to 47 22,000 POWER7 (40- to 47-way)

Power 780 9179 MHB 5469 48 to 55 30,000 POWER7 (48- to 55-way)

Power 780 9179 MHB 5469 56 to 63 34,000 POWER7 (56- to 63-way)

Power 780 9179 MHB 5469 64 40,000 POWER7 (64-way)

IBM Replaced Machine(s)

                                  Feature
                                  number
                Machine           (in any        Feature    Trade-in
                type      Model   combination)   quantity   credit

p650 server 7038 6M2 5122, and/or 1 or 2 $ 2,500 (2- or 4-way) 5208, and/or 7014, and/or 8050, and/or 8051

p650 server 7038 6M2 5122, and/or 3 or 4 5,000 (6- or 8-way) 5208, and/or 7014, and/or 8050, and/or 8051

p670 server 7040 671 5248 or 1 7,000 (8-way) 5256 or 7400 or 7401

p670 server 7040 671 5248 and/or 2 14,000 (16-way) 5256 and/or 7400 and/or 7401

p690 server 7040 681 5207 or 1 9,500 (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 19,000 (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 28,000 (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 38,000 (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 9,500 (8-way HPC) 5250

p690 server 7040 681 5240 and/or 4 19,000 (16-way HPC) 5250

p5 560Q server 9116 561 7781 1 3,000 (4-way 1.5 GHz)

p5 560Q server 9116 561 7781 2 5,500 (8-way 1.5 GHz)

p5 560Q server 9116 561 7781 4 11,000 (16-way 1.5 GHz)

p5 560Q server 9116 561 7295 1 4,000 (4-way 1.8 GHz)

p5 560Q server 9116 561 7295 2 7,000 (8-way 1.8 GHz)

p5 560Q server 9116 561 7295 4 14,000 (16-way 1.8 GHz)

p5 570 server 9117 570 7929 and/or 2 3,000 (2-way 8452 1.5 GHz)

p5 570 server 9117 570 7929 and/or 4 5,000 (4-way 8452 1.5 GHz)

p5 570 server 9117 570 7929 and/or 8 10,000 (8-way 8452 1.5 GHz)

p5 570 server 9117 570 7897 and/or 2-4 5,500 (2- to 4-way) 8452 or 7898 and/or 8454 or 7899 and/or 8455

p5 570 server 9117 570 7897 and/or 5-8 13,000 (5- to 8-way) 8452 or 7898 and/or 8454 or 7899 and/or 8455

p5 570 server 9117 570 7897 and/or 9-11 18,000 (9- to 11-way) 8452 or 7898 and/or 8454 or 7899 and/or 8455

p5 570 server 9117 570 7897 and/or 12-15 23,000 (12- to 15-way) 8452 or 7898 and/or 8454 or 7899 and/or 8455

p5 570 server 9117 570 7897 and/or 16 28,000 (16-way) 8452 or 7898 and/or 8454 or 7899 and/or 8455

Non-IBM Replaced Machine(s)

                                Minimum 
                                number of      Trade-in
Description                     processors     credit

Sun Microsystems systems

  Sun Fire V480                 2             $ 2,000
  Sun Fire V480                 4               4,000

Sun Fire V880 4 6,000 Sun Fire V880 8 10,000

Sun Fire E3800 8 10,000

Sun Fire E4800/E4810/E4900 4 7,000 Sun Fire E4800/E4810/E4900 8 10,000 Sun Fire E4800/E4810/E4900 12 13,000

Sun Fire V440 2 2,000 Sun Fire V440 4 4,000

Sun Fire V490/V890 2 6,000 Sun Fire V490/V890 4 9,000 Sun Fire V890 8 12,000

Sun V1280 and Netra 1280 4 6,000 Sun V1280 and Netra 1280 8 9,000 Sun V1280 and Netra 1280 12 12,000

Sun Netra 1290 4 7,000 Sun Netra 1290 8 9,000 Sun Netra 1290 12 13,000

Sun Fire E2900 4 7,000 Sun Fire E2900 8 9,000 Sun Fire E2900 12 13,000

Sun Fire E6800 16 9,500 Sun Fire E6800 24 14,000

Sun Fire E6900 16 12,000 Sun Fire E6900 24 18,000

Sun Enterprise M5000 2 4,000 Sun Enterprise M5000 4 8,000 Sun Enterprise M5000 6 12,000 Sun Enterprise M5000 8 16,000

Sun Enterprise M8000 2 6,000 Sun Enterprise M8000 4 12,000 Sun Enterprise M8000 6 18,000 Sun Enterprise M8000 8 24,000 Sun Enterprise M8000 10 30,000 Sun Enterprise M8000 12 36,000 Sun Enterprise M8000 14 40,000 Sun Enterprise M8000 16 40,000

Fujitsu

 PRIMEPOWER 400®                 2               2,000
 PRIMEPOWER 400                 4               3,000

PRIMEPOWER 450 2 3,000 PRIMEPOWER 450 4 4,000

PRIMEPOWER 600/800/900 4 6,000 PRIMEPOWER 600/800/900 8 8,000 PRIMEPOWER 800/900 12 10,000

PRIMEPOWER 650/850 4 7,000 PRIMEPOWER 650/850 8 9,000 PRIMEPOWER 850 12 12,000

PRIMEPOWER 1000/2000 8 12,000 PRIMEPOWER 1000/2000 12 16,000

PRIMEPOWER 1500 4 9,000 PRIMEPOWER 1500/2500 8 13,000 PRIMEPOWER 1500/2500 12 16,000

Hewlett-Packard systems

  HP Server rp5470              3               4,000

HP Server rp4440 4 5,000 HP Server rp4440 8 8,000

HP Server rp7410 4 6,000 HP Server rp7410 8 10,000

HP Server rp8400 4 8,000 HP Server rp8400 8 12,000 HP Server rp8400 12 16,000 HP Server rp8400 16 20,000

HP 9000 rp8420/rp8440 8 10,000 HP 9000 rp8420/rp8440 16 20,000 HP 9000 rp8420/rp8440 24 26,000 HP 9000 rp8420/rp8440 32 33,000

HP 9000 rp3440/rp4410/ 2 2,000 rp54XX HP 9000 rp3440/rp4410/ 4 4,000 rp54XX HP 9000 rp7400/10/20/40 4 6,000 HP 9000 rp7400/10/20/40 8 10,000 HP 9000 rp7420/rp7440 12 14,000 HP 9000 rp7420/40 16 18,000

HP rx7620/rx7640/rx8620 4 8,000 HP rx7620/rx7640/rx8620 8 12,000 HP rx8620 12 18,000 HP rx8620 16 24,000 HP Integrity rx8620 24 30,000 HP Integrity rx8620 32 36,000

HP Integrity rx8640 4 9,000 HP Integrity rx8640 8 20,000 HP Integrity rx8640 12 28,000 HP Integrity rx8640 32 36,000

HP AlphaServer ES40 2 3,000 HP AlphaServer ES40 4 6,000

HP AlphaServer 2 4,000 ES45/ES47/ES80 HP AlphaServer 4 5,000 ES45/ES47/ES80 HP AlphaServer ES80 6 7,000 HP AlphaServer ES80 8 10,000

HP AlphaServer GS80/GS160 4 6,000 HP AlphaServer GS80/GS160 8 9,000 HP AlphaServer GS160 12 12,000 HP AlphaServer GS160 16 16,000

HP AlphaServer GS320/GS1280 8 7,000 HP AlphaServer GS320/GS1280 16 11,000 HP AlphaServer GS320/GS1280 24 17,000 HP AlphaServer GS320/GS1280 32 22,000 HP AlphaServer GS1280 40 28,000 HP AlphaServer GS1280 48 34,000 HP AlphaServer GS1280 56 39,000 HP AlphaServer GS1280 64 40,000

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 September 27, 2010.

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 September 27, 2010.

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 570, 770, and 780 server trade-in program" appears on both the return shipping label and the trucking company's bill of lading. If "IBM Power 570, 770, and 780 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 570, 770, and 780 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.

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