Written by Heather L. Cole and Mike Bernaiche, October 21st 2022
Inflation is everywhere! Have you seen the price of eggs lately? Well, I am sure you will not be surprised that inflation is impacting the technology industry too. Software costs, support renewal costs and consulting are all rising. IBM Cognos and Planning Analytics price increase is coming in January 2023. Unlike the price of eggs that increases every trip to the store IBM has held their prices all year. But that’s about to change!
(Want to learn more about what’s causing this inflation, check out this NY Times article.)
IBM Price Increase
IBM has announced that effective January 1, 2023, that most of their products worldwide will increase 8% with a few countries increasing at a different rate. See IBM’s recent announcement for your specific country.
For many of us 8% seems outrageous, but is it? The Consumer Price Index is around 8.2%. Pricing all around us from gas, to food, to well everything is increasing. Even the government is recognizing inflation by increasing social security payments in 2023 by 8.7%. So, thank you IBM. An 8% increase by IBM is not that bad.
Take Action Now!
Budget and Save Money
My goal is to make sure every IBM Cognos and IBM Planning Analytics client knows the 8% price increase is coming. This should allow you to plan accordingly and make sure your budget for 2023 reflects this increase because your annual software support renewal will reflect the 8% increase. For some IBM Cognos and Planning Analytics clients that have not reviewed their licensing with an IBM licensing expert recently, there may be ways to reduce your support costs. At Lodestar Solutions we have helped hundreds of clients save on support by ensuring they are in the correct licensing mix. Think of it this way, licensing is like a cell phone plan, IBM comes out with new bundles and licensing models periodically. But, if you don’t ask if you are on the right licensing plan, you might end up paying more than you need to. (See our blog How to Save Money on Cognos Analytics and Planning Analytics)
If you would like a licensing review with one of our IBM Licensing experts, email Services@lodestarsolutions.com.
Buy Software Now to Save
The second reason I want to sing this from the roof tops is that there is an opportunity!! If you believe you will need additional licenses of IBM Cognos, IBM Planning Analytics, SPSS or any other IBM products in 2023 you might want to act now! Many clients Lodestar Solutions’ works with are in acquisition and merger mode. If this is you, you may need more licenses with your acquisition. Or maybe you are rolling out new dashboards or planning models and need to add users.
It’s important to know that December is IBM’s end of year, which is always the best time to buy software and the pricing is still at 2022 rates.
NOW IS THE TIME TO BUY SOFTWARE!
Buy Future Year's Support to Save
But let me tell you a little trick! Often when a client makes a significant purchase, they miss an opportunity to lock in their future year’s support. How can you lock in support? If you prepay for 2 years with your purchase, you will reduce the annual uplift and save money.
Now, I know you are thinking “we don’t want to spend our cash.” So, consider leveraging IBM Global Financing to purchase your licenses and 2 more years of support. At Lodestar Solutions, we can help you do the analysis to see what rates you qualify for with IBM Global financing and see if the numbers work to save you money. (Learn more about IBM Global Financing)
Consulting Rates Increasing Too
I would be remised if I did not also announce that Lodestar Solutions, and most consulting firms are increasing their rates too.
Over the past year we have done our best to keep prices for our services at the same rates we have had for the last 5+ years. As we mentioned above, costs are rising and as such we will be increasing the price for services approximately 8.5% in 2023. This cost increase will be reflected on Statements of Work created starting Jan 1, 2023. We hate to do this but to retain our top talent we need to compensate them fairly.
Lodestar Solutions offers many services including:
- Technical Support – This includes upgrades, installation of new IBM Analytics software, database work, security and much more.
- Planning Analytics and Cognos Analytics Consulting Including - architecture, modeling, model redesign, end user reporting and dashboard creation.
- Power BI Consulting – data, creating reports, and visualizations.
- Training – Cognos Analytics and Planning Analytics training for both the novice and experienced. Including both modeler and end user training.
This is our first consulting price increase in many years, and we strive to show value far above the cost.
Lodestar Value Add -
This is our first consulting price increase in many years, and we strive to show value far above the cost. One of the benefits that add a ton of value to our clients is our Lodestar Solutions’ Client Only, Quarterly Virtual User Groups. These are live interactive events that allow our clients to network and learn from our other clients. We record all content and offer our clients access to our library of prior users group sessions. This allows Lodestar clients to reference our content at any time. If you are a current Lodestar client and have not accessed your library, please reach out to us at services@lodestarsolutions.com and we will help you get access.
Our next user group is scheduled for Nov 15, 2022 (Cognos Analytics) and Nov 17, 2022 (Planning Analytics) at 11am – 2pm est. If you are an active Lodestar client and want to attend but have not received an invitation, please reach out to us at services@lodestarsolutions.com and we will ensure you are on the right list.
In Summary
Unfortunately, a lot of things must happen to slow inflation. IBM Cognos and Planning Analytics Price Increase is Coming. We can’t stop that. But we all can plan and take action NOW to SAVE MONEY! If you would like to discuss your unique situation, email us at sales@lodestarsolutions.com.