IBM System i Life Cycle Report, November 2006

This IDC study provides residual value forecasts for IBM's System i and AS/400 servers. The study explains the current market conditions that are affecting the value of used hardware on the secondary market and what future technological changes will further impact these values. We explore the factors impacting the server market and the price/performance increases expected over the next several years. This information helps those who invest in hardware assess their risk and provides guidance on the amount of residual value that is expected to be realized at the end of lease term.

"System i revenue and shipments are expected to decline over the forecast period, but I recommend this platform to an investor because of the way this installed base transcends the norm in equipment longevity. Users in the installed base are not easily lured away to other platforms; they cling to the System i." ? Jennifer Koppy, research manager, IDC's Technology Valuation Service