© 2008 ibm corporation ibm license metric tool v7.1 customer briefing

© 2008 IBM Corporation

IBM License Metric Tool v7.1Customer Briefing

© 2008 IBM Corporation2

Agenda

Why Virtualization Capacity (Sub-capacity) Licensing is Important to You

What is IBM License Metric Tool

Software License Management Responsibilities

IBM Passport Advantage Virtualization Capacity (Sub-capacity) Requirements

IBM License Metric Tool Topology & Reports

IBM License Metric Tool & Tivoli License Compliance Manager

Additional Information

IBM Passport Advantage Virtualization Capacity (Sub-capacity) Licensing

IBM’s Comprehensive IBM & ISV Software Asset Management Solutions


Why Virtualization Capacity (Sub-capacity) Licensingis Important to You

Virtualization capacity (Sub-capacity) software licensing enables customers to license (and pay) for less than the full capacity of a server or group of servers

Supports diversified workload consolidation onto virtualized servers

Distributed system sub-capacity licensing compliments Processor Value Unit (PVU) licensing

PVUs provide a fair price for value received, and are based on the performance capacity of one processor core

Sub-capacity licensing lets customers license to a subset of the server capacity, down to one core, by leveraging eligible virtualization technologies

Note:Recognizing the use of the word “Virtualization” becoming commonplace in the industry, IBM is changing the name of it’s offering from “Sub-capacity” to “Virtualization Capacity”. You should expect these names to be used interchangeably for a period of time, after which “Sub-capacity will be phased out in favor of “Virtualization Capacity”.


What is IBM License Metric Tool?

IBM License Metric Tool v7.1 (ILMT) helps Passport Advantage clients determine their full and virtualization capacity (sub-capacity) Processor Value Units (PVU) licensing requirements.

ILMT is a no-charge offering for Passport Advantage customers– Part #: D561HLL ILMT Sub-capacity PVU License with S&S for 12 Months

– Part #: E027NLL ILMT Sub-capacity PVU S&S Annual Renewal

ILMT helps calculate the maximum processor core capacity in PVUs, including supported virtualized servers, that are available to installed Passport Advantage PVU-based software.

Passport Advantage PVU-based virtualization capacity (sub-capacity) offerings license terms require IBM License Metric Tool reports to be created, verified, adjusted, signed, and saved.

IBM License Metric Toolhttp://www-306.ibm.com/software/tivoli/products/license-metric-tool/

PCs

Servers


Software License Management Responsibilities

IBM Customer

– Responsible for ensuring compliance with a software product’s license terms

• Requires internal processes and controls to track compliance for all vendor software products across the enterprise

IBM

– Defines license scope, metrics and terms• IBM Passport Advantage software does not have ‘hard stop’ scope and use restrictions imbedded in products.• Customer operations requires flexibility to deploy software to meet acceptable service levels at any time.

– Provides IBM License Metric Tool at no-charge to assist customers with tracking deployed PVU-based licenses

– Offers Tivoli License Compliance Manager & Tivoli License Compliance Manager for z/OS to help customers optimize all their vendor licensed software. (IBM and ISV)• A complete Software Asset Management solution that helps customers proactively determine software over-

licensing (savings opportunity) and under-licensing (potential compliance risk)


No-Charge IBM License Metric Tool Benefits

Achieve and maintain complianceUse the reports to help determine if you have the appropriate number of Processor Value Unit (PVU) license entitlements for each Passport Advantage PVU-based product installed in your IT environment.

Support Distributed Server VirtualizationHelps manage diversified workload consolidations onto virtualized servers with partition specific PVU-based software inventory reports.

Lower liability risksReduce the risks of not meeting your Passport Advantage PVU-based contractual licensing conditions as well as the unplanned cost of license compliance payments.

Track IBM PVU-based software inventoryHelps maintain a continuously updated inventory of where IBM Passport Advantage PVU-based software assets are installed on your networks.


IBM License Metric Tool Capabilities Discover

IBM License Metric Tool scans your network to determine what PVU-based IBM distributed software (including Linux on System z) is installed on discovered servers and the quantities and types of activated processor cores available to them.

Analyze IBM License Metric Tool calculates the server's maximum processor core capacity including supported virtualized servers that is available to installed IBM software and determines the required number of PVU entitlements.

ReportAudit reports and delta comparisons presenting product offering and PVU data can be generated for

viewing and printing. Each signed audit report creates a certified record history for audit purposes.

IBM License Metric Tool information– Helps provide reported number of PVUs in your environment to compare with your license entitlement

records.

– Key activity to help ensure compliance with IBM Passport Advantage PVU-based licensing terms.


IBM Virtualization Capacity (Sub-capacity) Licensing ILMT Requirements

Passport Advantage PVU-based virtualization capacity (sub-capacity) software customers must implement IBM License Metric Tool v7.1 (ILMT) within 90 days from physical General Availability.

• Physical GA: August 1, 2008, 90 days later: October 31, 2008• Part #: D561HLL (ILMT Sub-capacity PVU License with S&S for 12 Months)

Passport Advantage PVU-based virtualization capacity (sub-capacity) software customers are responsible for maintaining ILMT audit reports for two years, with a maximum fiscal quarter interval between signed reports, and making these reports available during an audit.

Exceptions• Small Environments• Tivoli License Compliance Manager Customers

* A complete description is available at the IBM Passport Advantage Sub-Capacity Licensing Website: http://www-306.ibm.com/software/lotus/passportadvantage/subcaplicensing.html


IBM Virtualization Capacity (Sub-capacity) LicensingILMT Requirements: Exceptions Small Environments…

– ILMT does not support the customer's eligible virtualization technology. Once support for an eligible virtualization technology becomes available (via Fix Pack, new version, release, or modification), you will be required to install IBM License Metric Tool within 90 days of that availability date. In order to be notified when IBM License Metric Tool support for eligible virtualization technologies become available, you will need to subscribe to "My Notifications" via http://www.ibm.com/support/mynotifications (after July 21, 2008).

– ILMT will not be required for customers with less than 1,000 employees and contractors worldwide. This exception does not apply to Service Providers* and customers who have contracted with a Service Provider* to manage their sub-cap server environment. * Service Providers are any entity that provides IT Services for end user customers, either directly or through a reseller

– ILMT will not be required for customers with less than 1,000 PVUs total worldwide physical server capacity where PVU sub-capacity products are deployed.

For these exception customers, use of ILMT, is recommended, but not required for Sub-Capacity Licensing. In lieu of ILMT, customers are required to manually manage, track, and prepare Audit Reports documenting their virtualization capacity by product for their eligible environments during each calendar or fiscal quarter and maintaining this documentation for at least two years to demonstrate ongoing compliance.



IBM Virtualization Capacity (Sub-capacity) Licensing ILMT Requirements: Exceptions

Tivoli License Compliance Manager Customers

– IBM Tivoli License Compliance Manager customers (IBM’s Software Asset Management offering to help optimize IBM & ISV software licenses) will have 180 days from physical General Availability of IBM Tivoli License Compliance Manager V2.3 (D561CLL only) with the fix pack that brings ITLCM V2.3 up to date with current Passport Advantage Sub-Capacity Licensing requirements for eligible virtualization technologies to migrate. This fix pack is expected to be released by the end of 2008.

• Customers are responsible for maintaining Tivoli License Compliance Manager reports for two years, with a maximum fiscal quarter interval between signed reports, and making those reports available during an audit.

(All statements regarding future IBM direction and intent are subject to change or withdrawal without notice and represent goals and objectives only. All statements regarding IBM's plans, directions, and intent are subject to change or withdrawal without notice.)

– Customers who deployed IBM Tivoli License Compliance Manager for IBM Software V2.X (IBM’s previous no-charge offering for sub-capacity reporting) have 180 days from physical General Availability to migrate to IBM License Metric Tool v7.1.

• Physical General Availability: August 1, 2008, 180 days later: January 31, 2009

• Customers are responsible for maintaining License Metric Tool reports for two years, with a maximum fiscal quarter interval between signed reports, and making those reports available during an audit.


IBM License Metric Tool Topology

Admin Server Historical repository

Administration

Inventory

Auditing

Reporting

WebSphere Application (eWAS)

ILMT includes a limited-use license for: DB2 Universal Database (9.1)

Web Browser Interface Integrated Solutions

Console Administration Reporting

DB2 Data Repository

Agents Data collection HTTP/HTTPS

communication with Admin Server


IBM License Metric Tool Main Menu


IBM License Metric Tool Reports


IBM License Metric Tool Flexibility

The License Metric Tool will report PVU-based software products where its agents are deployed.

The user has the ability to mark any product that should not to be taken into account in computing the total PVU license allocation for a product.

– IT environment

• Backup, Disaster recovery if not actively doing work (warm/cold)

• Product instance not compatible with the system (used in case of shared disks)

– Software license entitlement

• Evaluation, Trial etc. under terms of the ILAEP or similar IBM terms

• Early Support Program (ESP), Beta/Alpha, or similar IBM program

• Component of bundle, restricted-use License as part of a larger bundled offering

• Not licensed based on PVUs (i.e. user-based, development/non-production use, etc.)

– Other (additional free-text comment is required when selecting that option)


IBM Also Offers a Complete Software License Management Solution

IBM License Metric Tool provides simple inventory tracking for PVU-based products

For customers who want to optimize all their Software licenses, IBM offers Tivoli License Compliance Manager (TLCM)

– For both IBM and ISV software

– TLCM Helps customers proactively determine software over-licensing (savings opportunity) and under-licensing (potential compliance risk):

• Builds a comprehensive software inventory

• Measures software product use activity (invocations)

• Measures associated license use activity including complex license types

• Automatically links license entitlements

– Enables IT to optimize licenses across organizational units

For more information on Tivoli License Compliance Manager: http://www-306.ibm.com/software/tivoli/products/license-mgr/


IBM License Metric Tool (ILMT)Tivoli License Compliance Manager (TLCM)

ILMT 7.1 TLCM 2.3

IBM software PVU-based only Bundles ISV Software Software usage (invocations)

License management License models (price metrics) supported

Processor Value Unit Only

Install Instances (# of installs)Install IPLA (# of installed processors, full & sub-cap)Install IPLA Value Unit (# of PVUs, full & sub-cap) Usage IPLA ( # of used processors, full & sub-cap)Usage Concurrent Session (# of distinct sessions)Usage Concurrent Nodelock (# of systems)

Catalog management

# nodes (deployed agents) Up to 8K 100K+


No-Charge IBM License Metric Tool Benefits

Achieve and maintain complianceUse the reports to help determine if you have the appropriate number of Processor Value Unit (PVU) license entitlements for each Passport Advantage PVU-based product installed in your IT environment.

Supports Distributed Server VirtualizationHelps manage diversified workload consolidations onto virtualized servers with partition specific PVU-based software inventory reports.

Lower liability risksReduce the risks of not meeting your Passport Advantage PVU-based contractual licensing conditions as well as the unplanned cost of license compliance payments.

Track IBM PVU-based software inventoryHelps maintain a continuously updated inventory of where IBM Passport Advantage PVU-based software assets are installed on your networks.


IBM License Metric Toolhttp://www-306.ibm.com/software/tivoli/products/license-metric-tool/

IBM Passport Advantage Sub-Capacity Licensing Website:http://www-306.ibm.com/software/lotus/passportadvantage/subcaplicensing.html

Tivoli License Compliance Manager (distributed systems)http://www-306.ibm.com/software/tivoli/products/license-mgr/


IBM License Metric Tool v7.1Customer Briefing Backup

Technical Requirements

Sub-capacity Licensing Requirements: Detail


IBM License Metric Tool Topology

Admin Server

– Historical repository

– Administration

– Inventory

– Auditing

– Reporting

– WebSphere Application (eWAS)

ILMT includes a limited-use license for: DB2 Universal Database (9.1)

Web Browser Interface- Integrated Solutions

Console - Administration- Reporting

DB2 Data Repository

Agents Data collection HTTP/HTTPS

communication with Admin Server


Hardware Requirements

Machine for server:

–Windows and Linux on System x servers: Intel Pentium IV 1.5 GHz

–AIX and Linux on System p: Model 7044/270, two processor IBM RS/6000 375

–Solaris: Sunblade 2000 model 2 Ultrasparc III processors

–HP-UX: rp2470, 2 PA RISC 2.0 650 MHz processors

–Linux on System z: 1 dedicated processor

Machine for agent: no special requirements


Hardware Requirements

Memory–License Metric Tool server only: 1 GB RAM–License Metric Tool server and its database: 3 GB RAM

Disk space for server:–License Metric Tool server only: ~1.4 GB–License Metric Tool database: dependant on the amount of data

(i.e. 2 GB for 8000 agents, 30 productsper agent, 1 month of aggregation data)

Disk space for agent: ~135 MB


Software Prerequisites

Embedded Websphere Application Server (bundled with ILMT)

DB2 Universal Database (min. 8.1.7.912, 9.1 bundled with ILMT)

DB2 FP 9 (if running DB2 8.2 on Solaris 10)

For a detailed list of supported operating systems refer to ILMT 7.1 Planning, Installation, and Configuration Guide


Agent – supported platformsOperating system Version

IBM AIX 6.1 64 bit,

5.3 32 bit and 64 bit,

5.2 32 bit and 64 bit

i5/OS V5R4,

V5R3,

V5R2

HP-UX 11i v3 on PA-RISC and IA 64

11i v2 on PA-RISC 2.0 64 bit (in 32 bit compat. mode)

11i v2 on Itanium® 2 Integrity Server

Red Hat Enterprise Linux AS 5.0 for IBM iSeries/pSeries 64 bit,

AS 5.0 for IBM zSeries 32 bit and 64 bit,

AS 4.0 for IBM iSeries/pSeries 64 bit,

AS 4.0 for IBM zSeries 31 bit

SUSE Linux Enterprise Server 10 for IBM iSeries/pSeries/zSeries 64 bit,

9 for IBM iSeries/pSeries 64 bit,

9 for IBM zSeries 32 bit and 64 bit

Sun Solaris 10 for SPARC 64bit,

9 for SPARC 32 bit and 64 bit,

8 for SPARC 32 bit and 64 bit


Agent - supported partitioning technologies

Platform Operating System Partitioning technologies

HP HP-UX 11i on PA-RISC 3.0 and 2.0 nPAR, vPAR

HP-UX 11i v3 and v2 on Itanium 2 Integrity Server

HP Integrity VM, nPAR

IBM System i i5/OS V5R4, V5R4, V5R3 LPAR, Dedicated LPAR

RHEL AS 4.0 and 5.0

SLES 9 and 10

LPAR, Dedicated LPAR

IBM System p AIX 6.1, 5.3, and 5.2 LPAR, Dedicated LPAR

RHEL AS 4.0 and 5.0

SLES 9 and 10

LPAR, Dedicated LPAR

IBM System z RHEL AS 4.0 and 5.0

SLES 9 and 10

z/VM, LPAR

Sun Solaris 9 and 10 Dynamic System Domains,

Solaris Zones


IBM Passport Advantage Software Virtualization Capacity (Sub-capacity) Licensing


Notice

This presentation contains relative processor core performance estimates and includes technology upgrade examples which are based on relative processor core performance estimates. While these estimates are calculated by IBM using a blended average of industry standard performance benchmarks, actual performance may vary based on each customer’s unique server configuration and workload, among other factors.

Any errors in the presentation are unintentional and will be corrected immediately upon being brought to IBM's attention. Should any such errors occur, this does not relieve customers from their responsibility to obtain licenses for, and to be in compliance with, the required level of authorized use for each product.


Name change to “Virtualization Capacity”

Recognizing the use of the word “Virtualization” becoming commonplace in the industry, IBM is changing the name of it’s offering from “Sub-capacity” to “Virtualization Capacity”

You should expect these names to be used interchangeably for a period of time, after which “Sub-capacity will be phased out in favor of “Virtualization Capacity”



Without virtualization capacity (cub-capacity) licensing, customers must license to the full capacity of the server or group of servers

Virtualization capacity (sub-capacity) licensing compliments Processor Value Unit (PVU) licensing

PVUs provide a fair price for value received, and are based on the performance capacity of one processor core

Virtualization capacity (sub-capacity) licensing lets customers license to a subset of the server capacity, down to one core, by leveraging eligible virtualization technologies

As x86 (Intel/AMD) multi-core chips add more cores per chip, customers can use Sub-capacity licensing to reduce the number of cores licensed

As RISC based servers continue to become more powerful, customers can leverage virtualization technologies to optimize their system design and improve their overall Total Cost of Ownership


Agenda

Processor Value Units (PVUs) licensing overview

Virtualization capacity (sub-capacity) licensing for virtualized environments overview

Virtualization (sub-capacity) licensing requirements and eligible technologies


Single-core

Processor Core

Chip

Socket

Dual-core

1 1 2

Multi-core chips have more than one processor core on the socket

Terminology

Microsoft requires one license per socket

IBM requires PVU licenses per Core

Oracle requires fractional licenses per Core

IBM continues to license based on the number of cores


Licensing is based on Processor Capacity Available

Processor capacity available(Number of cores X PVUs per core)

PriceLicensing Principles Price scales to value Balance precision with simplicity Price Competitively

Why not charge based on processor usage or utilization?A transition to processor usage or utilization would require prices to be reset

based on average system utilization Average system utilization is estimated @ 5-20%, but every customer is different Customers with higher than average utilization would pay more, and visa versa

IBM continues to license based on the number of cores


Why IBM changed from ‘per processor’ to PVUs

Changes in underlying hardware technology caused “per processor” to no longer be a “fair” licensing metric

– Multi-core chips:

• IBM POWER dual-core (2001)

• x86 dual-core (2005) / x86 quad-core (2006)

• Sun Niagara octi-core (2005)

– Diverging performance characteristics of processor cores (Core disparity)

• IBM POWER very fast

• x86 and Sun Niagara relatively slower

Unique software licensing requirements needed for differing technologies

– Virtualization technologies gaining wider adoption

– Sub-capacity licensing compliments PVU licensing granularity

More complex software licensing structures result

Co

re P

erfo

rman

ce

Time

One Processor Core

Increasing Capacity

Decreasing Capacity

CoreDisparity


Processor Value Units (PVUs)

Each middleware program has a unique price per PVU PVUs are transferable among systems, by product, within the enterprise Acquire the appropriate number of PVUs for each processor core

Processor TechnologyExample PVU entitlements

per processor core *

IBM Power6 cores 120

All Single-core and most RISC dual-core 100

x86 Dual or Quad-core 50

* See PVU website for complete list of PVUs by processor technology

Provides flexibility and granularity– Fair price per core for software value on multi-core technology– Continue to deliver software price performance improvements on new processors– License transferability across distributed systems– Enables virtualization capacity licensing at processor core

PVUs provide flexibility through granularity


POWER 5(2H04)

POWER 6(2H07)

System p PVU / CorePVU

LicensesRequired


LicensesRequired

Change%

32 cores 100 3,200 16 cores 120 1,920 -40%16 sockets 8 sockets

POWER 5+(2H05)

POWER 6(2H07)


LicensesRequired


LicensesRequired

Change%


Customer Technology Upgrade Examples*: IBM POWER6

Decreasing # of PVU Licenses for equivalent workload:

Significant SW Price Performance improvements as customers migrate to new technology

Assuming Equivalent Software Workload:

*Based on Externally Published Industry Benchmarks


POWER 5(2H04)

POWER 6(2H07)


LicensesRequired


LicensesRequired

Change%


POWER 5+(2H05)

POWER 6(2H07)


LicensesRequired


LicensesRequired

Change%

28 cores 100 2,800 24 cores 120 2,880 +3%14 sockets 12 sockets

Customer Technology Upgrade Examples*: IBM POWER6

Significant SW Price Performance improvements as customers migrate to new technology

Assuming Workload Grows by 50%:

*Based on Externally Published Industry Benchmarks


Benefits Of The Processor Value Unit Structure

Provides flexibility and granularity

– Fair price for software value on multi-core technology

• Continue to deliver software price performance improvements

– Easy transition from per processor licensing

• Maintain license transferability across distributed systems

– Enables virtualization capacity (sub-capacity) licensing at processor core

Licensing which can adapt to virtualization

– Necessary granularity for technology trends


Virtualization Capacity (Sub-Capacity)Licensing Overview

Full capacity licensing

– Customers acquire licenses for all the physical processor cores

Virtualization Capacity (Sub-capacity) licensing

– Customers acquire licenses for the lower of Virtualization Capacity or Full Capacity of the server, or group of servers

– Virtualization Capacity License Counting Rules differ by Virtualization Technology, see specific rules for your Virtualization Technology Environment:

Virtualization Capacity License Counting Rules

Example Licensing Scenarios Follow

IBM Passport Advantage Software – Sub-capacity Licensing


Full Capacity: Physical Cores on Server

Server 1

MQ

Physical Cores

Software Products

1 Server 8 Physical Cores

Cores to License

MQ software

WAS software

8

WAS

Customers must acquire licenses for all of the processor cores in the server available to the software products:

Server 1

8

8



Virtualization Capacity Example (x86 or RISC)

PAR 1

MQ

Virtual Cores

Software Products

Cores to License

MQ software

WAS software

4

WAS

License for the lower of Virtualization Capacity (using LPARs, Partitions, Virtual Machines) or Full Capacity available in the Server.

PAR 1 PAR 2 Virtualization Capacity

4 4 8

4 - 4

1 Server 8 Virtual Cores 8 Physical Cores

PAR 2

MQ

4

PAR (or VM) = Partition Eligible Virtualization

Technologies can be used to create ‘Partitions’ or ‘Virtual Machines’ (VMs) which restrict processor capacity (ie. virtualization capacity) available to a sub-set of the server or group of servers

Server 1

Physical Cores 8

Full Capacity

8

8



Virtualization Capacity Example: PowerVM Shared Pool (this example is applicable for IBM PowerVM Virtualization Technology only)

PAR 1

MQ

Virtual Cores in Shared Pool

Software Products

Cores to License

MQ software

WAS software

4

WAS

License for the lower of the Virtualization Capacity based on number of virtual cores, the Virtualization Capacity of the Shared Pool, or the Full Capacity of the Server

PAR 1 PAR 2 PAR 3 Sum of PARs 1-3

4 4 4 12

4 - - 4

1 Server 16 Virtual Cores 8 Physical Cores

PAR 2

4

Shared Processor Pool License rule: the lower of

the sum of each partition or the virtualization capacity of the shared pool

License rule: the lower of the sum of each shared pool or the virtualization capacity of the Server

Server 1

Physical Cores 8

Virtual Cores in Partitions

PAR 3 PAR 4

MQ MQ

4

6 4

PAR 4 hide

4

-

Full Capacity

8

8

Virtualization Capacity

10

4

Shared Pool Capacity

6

6

MQ



Virtualization Capacity Example: VMware Server Cluster (this example is applicable for VMware Virtualization Technology only)

VM 1

MQ

Virtual Cores

VM 2

Non-IBM

Server 1

Software Product

3 Servers 12 Virtual Cores 12 Physical Cores

MQ software VM1 VM2 VM3 VM4 VM5 VM6 Virtualization Capacity

Virtual Cores 2 2 2 2 - - 8

2 2

VM 3

2

VM 4

MQ

2

VM 5

MQ

2

VM 6

MQ

2

4 cores

Server 2

4 cores

Server 3

4 cores

Non-IBM

Physical Cores

Virtual Machines

12

12

License for the Virtualization Capacity (vCPU quantity in VMs) or Full Capacity available in a group of servers (Cluster)

Full Capacity

12

Virtual Environment Physical Environment


Summary of Virtualization Capacity Licensing Requirements

Customers must: Agree to the terms of the Sub-capacity Attachment, and follow Virtualization

Capacity License Counting Rules for the Eligible Virtualization Environment(s) Use Eligible Sub-capacity Products, with sub-capacity part numbers Use Eligible Virtualization Technologies Use Eligible Processor Technologies Use the IBM License Metric Tool (ILMT) and maintain report documentation

Certain ILMT use exceptions may apply

Detail information for each of the above requirements can be obtained at this link:Passport Advantage Sub-capacity Licensing


Eligible Virtualization Technologies

A high level summary list of Eligible Virtualization Technologies: IBM Power Systems, System p, System i PowerVM (with AIX and iOS)

LPAR, DLPAR, Shared Processor Pools, Micro-Partitioning IBM System z (with Linux): LPAR, zVM Sun Micro and Fujitsu servers (with Solaris)

Dynamic System Domains, Containers/Zones inside Dynamic System Domains and node OS

HP Integrity and 9000 Servers (with HPUX): nPar& vPar x86 (Intel / AMD) based servers, using the following virtualization technology:

VMware Single server, Server Cluster, and VMotion

A detail listing of Eligible Virtualization Technologies is published at this link (see table at bottom of this webpage): Passport Advantage Sub-capacity Licensing



Virtualization capacity (sub-capacity) licensing compliments Processor Value Unit (PVU) licensing

PVUs provide a fair price for value received

Virtualization capacity (sub-capacity) licensing lets customers license to as little as one core

As the number of cores per chip increases on x86, customers can reduce the number of cores licensed

Customers can use virtualization to optimize their larger systems and improve their overall total cost of ownership


Summary of links in this presentation:

IBM PVU Website

Virtualization Capacity License Counting Rules

Passport Advantage Sub-capacity Licensing

48


Passport Advantage Sub-capacity Licensing Chronology

Date Announcement

April 19, 2005 Formal sub-capacity offering announced

April 25, 2006 Sub-capacity offering enhanced with x86 support

April, 2007 Suspension of 3 sub-capacity terms

November 6, 2007 Elimination of 2 sub-capacity terms that were previously suspended

Enhanced support for x86 to the processor core

Intent to support new STG virtualization technologies

July 1, 2008 New license metric tool and simplified sub-capacity offering



Tivoli Software Asset Management Offerings


Visibility: IBM and ISV Software Assets Tivoli License Compliance Manager Products

Challenge:

Obtaining a clear view of software license entitlements linked to what is actually deployed and used across all significant platforms.

Solution: Automated software license optimization

Tivoli’s unique Software Asset Management capability helps determine software over-licensing (savings opportunity) and under-licensing (potential compliance risk) by linking license entitlement information to software inventory and usage

Visualize your software license entitlements linked to software deployment and usage

License UseLicense Use

Software UseSoftware Use

System zPCs Servers


Software Asset Management – Business BenefitsCompliance Risk Reduction

– Software vendor license compliance audits

– World Wide impact of Sarbanes-Oxley Act Section 404

– US Office of Management and Budget Circular A-123

Software Cost Management

– Identification and reduction of no and low use software

– Efficient server consolidations

– Optimize software and hardware capacity upgrades

– Strong vendor contract negotiation leverage

– Reduced software fees through competitive replacement

– Improve operational performance and reduce maintenance costs

– Invoice validation

– Effective charge-back

– Disaster recovery and business continuation

Opportunity Creation

– Software dollars can be redeployed to fund new software acquisitions and projects


Tivoli IT Asset Management Portfolio

IT Asset Lifecycle Management

Software License Management

IT Asset Inventory

IBM Tivoli Asset Management for IT

Tivoli License Compliance

Manager


Manager for z/OS

What do we own?Have we over-purchased? Savings opportunity?Have we under-purchased?Is this a compliance risk?How do we manage complex license types?What about virtualized environments?

What did we purchase versus what is deployed?Should we buy or lease?How do I manage vendor contracts and volume purchase agreements?How do I validate invoices and enable accurate reporting?

How do I optimize my inventory?

What hardware and software is deployed?What is the software use?What is the license use?Who has it?Where is it located?How do we keep this up to date?

IBM License Metric Tool

(IBM PVU Only)


IT Asset Inventory & Software License ManagementReduce risk and optimize expenses

Discover what is installed and reconcile this with what you purchased

Complex license types are driving discovery to be more robust

Know what software assets are in use and how these are used; map the information to license entitlements

Key IBM Differentiators

Support for wide range of complex license types and virtualization

• Driven by multi core processors and virtualization technologies on distributed

Only vendor to offer software license management on both distributed and mainframe

“… the rise of virtual machines also makes it harder for corporate I.T. managers to track everything the machines are doing. The risks run from security lapses to not even knowing what programs are running, which can expose companies to licensing liabilities and knock them out of compliance with some federal rules.”

The New York Times, Closing the Doors That Virtual Sprawl Leaves Open, Dan Fost, April 9, 2008

Inventory

License Use

Software Use

LicenseOptimizatio

n

Contracts &Financials

Determine if you are over-licensed (potential savings) or under-licensed (compliance risk)


A unified solution on a common platform for asset and service management

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Tivoli Process Automation Platform


Manager for z/OS


Manager

Tivoli Process Automation Platform

Enables customers to manage all asset classes on a single platform combined with service request, change and configuration management.

A core suite of solutions representing the full integration of data, processes, tooling, workflow automation and people.

Single UI, common data layer, workflow engine, applications and reporting.

When installed together, functions are literally a tab or pull-down menu away providing industry-leading integration.

IBM License Metric Tool


VisibilityVisibility

See See your your

businessbusiness

ControlControl

Govern Govern your your

assetsassets

AutomationAutomation

Build Build agility into agility into OperationsOperations

IBM provides Asset & Service Management solutions that help clients realize their business goals through:

See what you have, where it is, who is using it and what it costs

Role based views

Optimize software licenses, reduce over/under buying

Reduce TCO of all strategic assets throughout their lifecycle

Mitigate, regulatory, environmental and safety compliance risk

Increase production and labor efficiency and spare parts optimization

Reduce outages and failures with proactive asset management practices

Automate workflow to enhance operational efficiencies

Help IT and Operations make strategic purchasing decisions with reliable inventory data

Control Cost, Mitigate Compliance Risk, Improve Service Levels


Tivoli License Compliance Manager (distributed systems)http://www-306.ibm.com/software/tivoli/products/license-mgr/

Tivoli License Compliance Manager for z/OShttp://www-306.ibm.com/software/tivoli/products/license-compliance-mgr/

Tivoli Asset Management for IThttp://www-306.ibm.com/software/tivoli/products/asset-management-it/

© 2008 ibm corporation ibm license metric tool v7.1 customer briefing

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