Software prices: IBM & Co. hit hard
Over the past ten years, the cost of IBM software has risen significantly faster than inflation. Such price increases are a burden on the German economy.
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Between 2015 and 2025, prices for IBM software rose by almost 80 percent. This is the result of a survey by IBM partner company BĂĽcker. According to the survey, the US company has seen particularly strong growth in the past three years. In 2023, there was an increase of 24 percent, in 2024 and 2025 the figures were both six percent.
By way of comparison, the general inflation rate in Germany over the three years in question was between a good two and just under six percent. Based on prices in 2014, the cost of IBM software rose by 50.8 percent after 2022. In contrast, the increase in the general price level is only 12.3 percent – a discrepancy of over 38 percentage points.
High profits despite decline in sales
In addition, the company cut margins for sales partners in the area of maintenance contracts by a third last year, increasing the financial pressure on the IT channel and partners. This approach is paying off for IBM: The share price, for example, rose by almost 70 percent to 250 US dollars within ten years. Despite declining sales and high investments in AI software, the Group's profits remain comparatively high at six billion US dollars. However, the competition is pursuing a similar pricing policy. Microsoft, for example, recently raised the price of its Office subscription by 30 percent. Adobe and Oracle have also raised their prices.
According to the analysis, this development is a considerable problem for the German economy. Application companies and partners have to reckon with higher IT costs. This leads either to rising prices for end users or to falling profits for companies. Switching to other providers is usually not an option, as it is generally associated with high migration costs.
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From a macroeconomic perspective, a disproportionate increase in software prices leads to imported inflation. As a result, billions flow out of Germany to the USA every year. So while the profits of US companies increase, local companies have to deal with ever higher operating expenses and thus dwindling competitiveness. The German federal administration also supported this development and recently spent more money on Microsoft licenses.
(mack)
