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‘Customers will feel blindsided’: IBM’s 24% software price hike has been discussed by industry experts, including Bell Integration Sales Director, John Davenport.

IBM is hoisting its UK software prices by nearly a quarter, in a move critics claims will drive customers into the arms of competitors.

In an announcement earlier this week, Big Blue confirmed it will be adjusting prices in select currencies in January 2023 for all Passport Advantage Perpetual, Subscription License, Monthly License, Fixed Term Licenses, Appliances, and SaaS Products.

Customers in the UK, as well as across the eurozone and several other countries, face rises of 24 per cent.

These increases supersede those announced in September (which CRN understands to have been eight per cent for the UK), IBM stressed.

Partners caught in the middle

Big Blue advised its reseller partners to link to Passport Advantage Online to obtain Business Partner-specific information on the pricing changes.

John Davenport, sales director at Bell Integration, said IBM Business Partners such as Bell are “caught in the middle with little or no ability to influence change.”

“Our customers are being instructed to do more with less, yet the unheralded global financial and political un-stability is forcing price hikes across all levels of expenditure, from the electricity used to power IT through to the software that sits on top of it” Davenport told CRN.

The rises exceed those announced by Microsoft around its 365 offering earlier this year.

Besides the UK and EU, customers in Denmark, Japan, Norway, South Africa and Sweden are also facing 24 per cent increases, while Canada will be subject to a 19 per cent hike.

The adjustments may deviate slightly from the above percentages on a small number of products, it added.

IBM said it will not be providing any further comment.

The full CRN article can be found here.