What does an IBM i migration cost?
An IBM i cloud migration is mostly hosting, project labor, and licensing checks, not application rework. Plan by component and on a three-year total cost of ownership.
Because IBM i lifts and shifts onto cloud Power largely as-is, the cost of an IBM i migration is dominated by IBM i cloud hosting options (or capacity), the migration project itself, and software licensing, not by rewriting applications. As with any migration, budget by component and on a three-year TCO rather than the project alone.
Cost components
| Category | Cloud Power (PowerVS) | Hosted / managed Power |
|---|---|---|
| Platform / hosting | $80k–$600k+/yr | Bundled in service fee |
| Migration labor | $50k–$250k | $40k–$200k |
| IBM i + ISV licensing | Portability check | Portability check |
| Backup / DR | Add-on | Often bundled |
Ranges are illustrative and for planning orientation only, your actual numbers depend on core counts, capacity, data volumes, and contract terms. We size them precisely in an assessment.
Hidden costs to budget for
- IBM i and ISV (5250, third-party) license portability checks
- Data replication and transfer for large IBM i libraries
- Network and private-connectivity into the cloud Power region
- HA and DR reconfiguration on the new platform
- Specialist IBM i contractor augmentation for scarce skills
Frequently asked questions
What drives the cost of an IBM i migration?
Mostly hosting or capacity, the migration project labor, and license portability, not application rework, because IBM i lifts and shifts onto cloud Power largely as-is.
Should I budget on the project cost or the ongoing cost?
Both, on a three-year total cost of ownership. The one-time migration project is only part of it; the hosting or consumption cost over time usually dominates the picture.
Are there hidden costs in an IBM i migration?
Yes, the usual ones are IBM i and ISV license portability checks, data replication for large libraries, private connectivity, HA/DR reconfiguration, and contractor augmentation for scarce IBM i skills.
Is PowerVS or managed Power cheaper for IBM i?
PowerVS bills by consumption while you staff operations; managed Power bundles operations into a fee. Which is cheaper depends on your team and utilization, so it's worth modeling both before deciding.
What the numbers tend to look like
Real figures depend on your estate, but the shape repeats. Two representative cost pictures.
Situation. A single Power9 IBM i system, modest growth, and an internal admin retiring.
Approach. Managed Power cloud, bundling hosting, operations, and DR into one monthly figure.
Outcome. Capex for a refresh avoided; three-year TCO landed close to managed hosting once the retiring-admin labor was counted.
Situation. IBM i production plus a DR mandate that on-prem couldn't meet affordably.
Approach. PowerVS for production with cloud Power DR, sized to defined RTO/RPO.
Outcome. A higher run-rate than hardware alone, but lower three-year TCO once a second site and its staffing were priced in.
Representative scenarios reflect common IBM Power migration patterns and typical ranges, not specific named client engagements.
What to gather before you budget
A credible IBM i migration number starts with your own inputs. Pull these together and any estimate, ours or a provider's, gets sharper.
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