Maintenance Fees Lowered on S40, 620 Base Configs

IBM re-organized the minimum monthly maintenance charges for the AS/400 Models S40 and 620, giving users of the base processors of both models a price break.

Minimum monthly maintenance charges will go down for the S40 and 620 (machine types 9402, 9404 and 9406) as of Oct. 1. Charges for the S40 drop from $1,450 to $950 while charges for the 620 drop from $265 to $235. Those reductions will be offset by corresponding increases in the monthly maintenance fees for most processor configurations. However, the maintenance charges for the 2256 configuration on the S40 and the 2175 configuration on the 620 -- base configurations for both machines -- remain zero, giving customers who use those machines reductions of $500 and $30 respectively in their monthly maintenance charges.

These base configurations for the S40 and 620 were released earlier this year. An IBM AS/400 Division spokeswoman says the maintenance charge schedule was reworked to accommodate lower maintenance fees for the new configurations.

"We've reset the scale so that the pricing is fairer for the customers," says the spokeswoman. "If a customer gets a new processor that's not as powerful as the existing ones, it's not right that they should pay a price for maintenance that's at or above what it is for the existing machines."

All maintenance charges are suggested retail prices for the United States and Puerto Rico only. Actual charges may vary from dealer to dealer.

IBM has also modified the AS/400 Trade-in Program, adding the Model S20 with processor feature 2170 as an eligible replacement machine. All other terms and conditions of the program remain unchanged. Customers who trade in a designated installed AS/400, DEC or Compaq system receive a credit towards the purchase of an eligible replacement AS/400e 9406 Model 170, S10, S20, S30, S40, 600, 620, 640 or 650.

The program is available only in the United States and Puerto Rico. Federal government customers should call (800) 333-6705 to determine eligibility.