For decades, IBM iSeries (AS400) hardware has powered mission-critical workloads for enterprises worldwide. But as the cloud era accelerates, clinging to aging infrastructure is a strategic bottleneck. This blog explores why saying goodbye to on-premise AS400/iSeries hardware is not only inevitable but advantageous. From cost and scalability to disaster recovery and modernization, we outline the key drivers behind AS400 cloud migration, and how a lift-and-shift approach can deliver rapid ROI with minimal disruption. If you’re evaluating your legacy landscape, this is your roadmap to smarter infrastructure decisions.
A Brief Look Back – The Evolution of IBM Midrange Systems
IBM’s midrange computing journey began in 1978 with System/38, evolving into:
- System/36 (1983)
- AS/400 (1988)
- iSeries (2000)
- System i (2006)
- IBM Power Systems (2008 – present)
These systems have powered enterprise backbones for decades. But in the era of cloud-first architectures, holding on to aging hardware is not just expensive, it’s strategically limiting.
Why Sticking with AS400/iSeries Hardware is No Longer Sustainable
Modern enterprises need agility, cost efficiency, and innovation — areas where on-premise AS400 hardware increasingly underperforms.
1. Expensive Hardware and OS Upgrade Cycles
Upgrading IBM i OS to a newer version (e.g., 7.5) often requires buying a new Power9 server, as Power8 servers are not compatible.
A low-end IBM S914 Power System costs ~$14,000, excluding:
- Installation & data migration (~$5,000+)
- Recurring upgrade cycles every few years
2. Software Licensing & Renewal Costs
IBM charges a one-time license fee for OS installs and additional charges for critical upgrades. Over a decade, this adds up to substantial recurring costs.
3. High Infrastructure Overhead
Running on-prem servers requires:
- HVAC systems to prevent overheating
- 24/7 hardware monitoring staff
- UPS and power redundancy systems
The total cost of ownership (TCO) goes far beyond the sticker price of the hardware.
4. Ongoing Maintenance Risks
Whether it's a fried motherboard or failing disk arrays, hardware failures lead to:
- Extended downtime
- Costly repairs or part replacements
- Compromised service delivery
5. Manual Resource Monitoring
IBM iSeries hardware lacks native, intuitive dashboards. Monitoring CPU, memory, and storage utilization still requires manual interventions or third-party tools.
6. Complex and Costly Disaster Recovery
You’ll need:
- Separate DR hardware
- Technical staff to build & test DR strategy
- Regular validation protocols
This isn’t just resource-intensive — it’s high risk in today’s fast-paced business environment.
Why Cloud Trumps Legacy AS400 Hardware for Modern Workloads
Shifting your IBM i workloads to the cloud eliminates hardware dependencies while unlocking agility, scale, and cost savings.
1. No Upgrade or Maintenance Costs
With AWS, Azure, GCP, or IBM Cloud:
- You never pay for hardware upgrades
- OS and hardware maintenance is handled by the vendor
- You benefit from ‘pay-as-you-go’ scalability
2. Infrastructure and Cooling? Not Your Problem
HVAC, failover systems, and redundancy are built into your cloud subscription. That means predictable monthly costs and zero CapEx.
3. Built-in Monitoring Tools
Each cloud platform provides:
- Real-time dashboards
- Alerts for usage thresholds
- Auto-scaling based on demand
This makes cost optimization and performance tuning easy — without additional tools or headcount.
4. Cloud-Based Disaster Recovery
Leading cloud providers offer:
- Automated failover and failback
- Backup replication across multiple zones
- DR compliance aligned with HIPAA, SOC2, and ISO standards
This ensures resilience and continuity — minus the complexity.
Also read: What iSeries Applications to move to cloud
Why the “Lift-and-Shift” Approach to AS400 Cloud Migration Just Works
For many organizations, re-architecting AS400 applications isn't viable in the short term. Here's where Lift-and-Shift becomes a game changer.
1. Quick and Non-Disruptive
You rehost your AS400 apps without rewriting code. This significantly:
- Reduces project timelines
- Minimizes downtime
- Accelerates ROI
2. Minimal Risk
Unlike full app reengineering:
- Code changes are minimal
- Business logic remains intact
- Risk of breaking critical workflows is near zero
3. Budget-Friendly Migration
Cloud provides on-demand scale, so:
- You don’t pay upfront for beefy servers
- You expand capacity only as needed
- Your total spend aligns with actual usage
Want to know more?
Choosing the Right Cloud Platform for Your AS400 Migration
All major cloud vendors offer IBM i support in some form, but differences in pricing, features, and performance make provider selection critical.
Google Cloud Platform (GCP): Power9-Based AS400 Cloud Hosting
- Power9-based cloud instances purpose-built for IBM i workloads
- Superior container support (unlike AWS or Azure)
- Advanced AI/ML integration (e.g., TensorFlow)
- Global Fiber Network for ultra-low latency
- Competitive pricing on both small and large instances
✔ Best for: Modernization-focused enterprises looking to containerize or scale rapidly.
Amazon Web Services (AWS): The Original Cloud Giant
- 218+ edge locations (highest among all)
- 200+ cloud services
- Longest market presence (since 2006)
- Best-in-class DevOps and automation tools
✔ Best for: Global enterprises seeking maturity and service breadth.
Microsoft Azure: The Hybrid Cloud Leader
- Tight integration with MS Office, Outlook, and SharePoint
- 60+ global regions (widest availability)
- Powerful Hybrid Cloud options (e.g., VPNs, ExpressRoute)
✔ Best for: Microsoft-heavy organizations or hybrid cloud adopters.
IBM Cloud: Built for IBM i
- 10 TB object storage (vs 5 TB limit on others)
- Native toolsets for iSeries monitoring and management
- Deep compatibility with existing AS400 configurations
✔ Best for: Enterprises deeply invested in IBM ecosystems.
The Final Word – Is AS400 Hardware Still Worth It?
For enterprises still running on AS400/iSeries hardware:
- Cost of ownership is rising
- Infrastructure limitations are growing
- Cloud alternatives are more reliable, agile, and cost-efficient
Migrating to the cloud — especially with a lift-and-shift strategy — ensures:
- Lower risk
- Faster time to value
- No disruption to core business logic
Ready to Modernize? Let’s Map Your AS400 Cloud Journey
At Nalashaa, we help enterprises:
- Assess current AS400/iSeries workloads
- Define modernization and migration roadmaps
- Execute seamless cloud transitions with minimal downtime
Want a tailored AS400 cloud migration strategy?
Fill out the form or contact us at info@nalashaa.com — our AS400 specialists will reach out within 24 hours.
