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<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">Dean Flanders:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">></span><span style="font-size:11.0pt;font-family:"-webkit-standard",serif;color:black">
</span><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">Thanks for the clarification. I have always heard the term "existing customers" so originally I thought we were fine,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">> but this is the first time I have seen the term "existing systems". However, it seems what I said before is mostly correct,
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">> eventually all customers will be forced to capacity based licensing as they life cycle hardware (even IBM customers).
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">> In addition it seems there is a diminishing number of OEMs that can sell SS v5, which is what happened in our case when
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">> we wanted to go from v4 to v5 with existing hardware (in our case DDN). So I strongly encourage organizations to be thinking
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">> of these issues in their long term planning.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">Again, this isn’t quite correct, and I really want the archive of this thread to be completely correct when people review it in the future.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">As an existing customer of DDN, the problem GridScaler customers in particular are facing is not Sockets vs. Capacity. It is simply that DDN is not an OEM licensee for Scale
V5. So DDN cannot upgrade your GridScaler to V5, *neither on Sockets nor on Capacity*. Then if you go to another supplier for V5, you are a new customer to that supplier. (Some of you out there are, I know, multi-sourcing your Scale systems, so may be an “existing
customer” of several Scale suppliers).<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">And again, it is not correct that eventually all customers will be forced to capacity licensing. Those of you on Scale Standard and Scale Advanced software, which are not tied
to specific systems or hardware, can continue on those licenses. There is no plan to require those people to migrate. By contrast, OEM licenses (and ESS licenses) were always sold as part of a system and attached to that system -- one of the things that makes
those licenses cheaper than software licenses that live forever and float from system to system.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">It is also not true that there is a “diminishing number of OEMs” selling V5. Everybody that sold V4 has added V5 to their contract, as far as I am aware -- except DDN. And we
have added a number of additional OEMs in the past couple of years (some of them quite invisibly as Scale is embedded deep in their solution and they want their own brand front and center) and a couple more big names are in development that I can’t mention
until they are ready to announce themselves. We also have a more diverse OEM model: as well as storage vendors that include Scale in a storage solution, we have various embedded vertical solutions, backup solutions, and cloud-based service offerings using
Scale. Even Dell is selling a Scale solution now via our OEM Arcastream.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">Again, DDN and IBM are working together to find a path forward for GridScaler owners to get past this problem, and once again I ask for your patience as we get the details right.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif">Regards<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Carl Zetie<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Program Director<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Offering Management
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">Spectrum Scale<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">----<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">(919) 473 3318 ][ Research Triangle Park<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;font-family:"Verdana",sans-serif;color:black">carlz@us.ibm.com<o:p></o:p></span></p>
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