100317 - ibm system z software pricing update_0

IBM Software Group

Copyright IBM 2010

IBM System z Software Pricing Guide Share Europe

March 17th 2010Marc Wesemael, IBM Belgium, System z SW

[email protected]://www.ibm.com/systems/z/resources/swprice/ Based upon a presentation from David Chase

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Trademarks

NOTES:Any performance data contained in this document was determined in a controlled environment. Actual results may vary significantly and are dependent on many factors including system hardware configuration and software design and configuration. Some measurements quoted in this document may have been made on development-level systems. There is no guarantee these measurements will be the same on generally-available systems. Users of this document should verify the applicable data for their specific environment.IBM hardware products are manufactured from new parts, or new and serviceable used parts. Regardless, our warranty terms apply.Information is provided AS IS without warranty of any kind.All customer examples cited or described in this presentation are presented as illustrations of the manner in which some customers have used IBM products and the results they may have achieved. Actual environmental costs and performance characteristics will vary depending on individual customer configurations and conditions.This publication was produced in the United States. IBM may not offer the products, services or features discussed in this document in other countries, and the information may be subject to change without notice. Consult your local IBM business contact for information on the product or services available in your area.All statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.Information about non-IBM products is obtained from the manufacturers of those products or their published announcements. IBM has not tested those products and cannot confirm the performance, compatibility, or any other claims related to non-IBM products. Questions on the capabilities of non-IBM products should be addressed to the suppliers of those products.Prices are suggested US list prices and are subject to change without notice. Starting price may not include a hard drive, operating system or other features. Contact your IBM representativeor Business Partner for the most current pricing in your geography.Any proposed use of claims in this presentation outside of the United States must be reviewed by local IBM country counsel prior to such use.The information could include technical inaccuracies or typographical errors. Changes are periodically made to the information herein; these changes will be incorporated in new editions of the publication. IBM may make improvements and/or changes in the product(s) and/or the program(s) described in this publication at any time without notice.Any references in this information to non-IBM Web sites are provided for convenience only and do not in any manner serve as an endorsement of those Web sites. Thematerials at those Web sites are not part of the materials for this IBM product and use of those Web sites is at your own risk.IBM makes no representation or warranty regarding third-party products or services including those designated as ServerProven, ClusterProven or BladeCenter Interoperability Program products. Support for these third-party (non-IBM) products is provided by non-IBM Manufacturers.IBM may have patents or pending patent applications covering subject matter in this document. The furnishing of this document does not give you any license to these patents. Send license inquires, in writing, to IBM Director of Licensing, IBM Corporation, New Castle Drive, Armonk, NY 10504-1785 USA.

The following are trademarks of the International Business Machines Corporation in the United States and/or other countries.

The following are trademarks or registered trademarks of other companies.

* Registered trademarks of IBM Corporation

* All other products may be trademarks or registered trademarks of their respective companies.

Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries

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Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation in the United States and other countries.

AIX*

BookManager*

CICS*

DB2*

DB2 Connect

DB2 Universal Database

DFSORT*

Domino

DRDA*

Encina*

FICON*

GDDM*

HiperSockets

IBM*

IBM eServer

IBM logo*

ImagePlus*

IMS

Intelligent Miner

Lotus*

Multiprise*

MQSeries

NetView*

OS/390*

Parallel Sysplex*

QMF

RACF*

S/390*

System z

System z9*

System z10*SystemPac*

Tivoli*

VisualAge*WebSphere*

VSE/ESA

z/Architecture

z/OS*

z/VM*

z/VSE

zSeries*

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Agenda

IBM Software Pricing Framework

MLC TopicsSub-Capacity Concepts

Workload License Charges

Optimizing for Sub-Capacity

Parallel Sysplex Aggregation

IPLA TopicsWhat is IPLA?

What is Value Unit Pricing?

IPLA Sub-Capacity

Other Price/Performance Topics

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Software Pricing at IBM

Sub-Capacity: April 2005Sub-Capacity: Aug 2004Sub-Capacity: Oct 2000

e.g., Products that run on Unix, Windows, and also middleware for Linux on System z !

Eg: WebSphere Application Server, DB2 UDB, DB2 Connect, TSM

e.g., WebSphere, Tivoli tools, DB2 tools, IMS tools,

CICS tools, AD tools,z/VM V5, V6

e.g., DB2, CICS, IMS, MQSeries, Compilers, Domino, z/OS, zVSE

Passport Advantage Relationship Discount

Enterprise aggregationSysplex aggregation

Perpetual license, S&S bundled in Y1, optional 12 mo S&S

Perpetual license, annual Subscription and Support (optional)

Monthly term license, includes maintenance

International Program License Agreement (IPLA) with Passport Advantage Amendments

International Program License Agreement (IPLA) with System z Amendments

IBM Customer Agreement (ICA) with System z Attachments

Distributed: IPLA(One Time Charges)

System z: IPLA(One Time Charges)

System z: Monthly License Charges

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z/OS Monthly License Charges Overview

Yes

Yes

Aggregation Capable?

Yes

Yes

Sub-Cap Capable?

xzELC

xx

(plex only)

x

(plex only)

xPSLCallows NALC *allows ULC

x

(w/zELC)

x **

(w/TWLC)

EWLCallows zNALCallows SALC

x

(plex only)

x

(plex only)

xWLCallows zNALCallows SALC

9672and olderz800 *

z10 BC z9 BC *z890 *

z10 ECz9 ECz990 z900

WLC = Workload License Charges (VWLC & FWLC) EWLC = Entry Workload License Charges

PSLC = Parallel Sysplex License Charges TWLC = Tiered EWLC

zELC = zSeries Entry License Charges = Strategic Pricing Metric

MWLC = Midrange Workload License Charges: on z10, z9 EC, z9 BC when running z/VSE V4ULC = Usage License Charges = available only for MQSeries, DB2, CICS, IMS; used when product has low utilization

SALC = Select Application License Charges = available only for MQSeries; used when product has very low utilization

zNALC = System z New Application License Charges = available only for z/OS associated w/ new workload applications

* NALC is an old new workload metric being withdrawn September 2007 ** z9 BC A01 and z890-110 are priced zELC, not EWLC

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Sub-Capacity Concepts

MLC Topic

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Sub-Capacity Overview

LPAR 1 LPAR 2

75 MSU 50 MSU

100 MSU Rated Capacity

LPAR 3

10 MSU

80 MSU

55 MSU

90 MSU

85MSU

PL/I

DB2

IMS

z/OS

COBOL

CICS

IMS

z/OS

FileMan

CICS

DB2

z/OS

Full Capacity Pricing Charges based on Machine Capacity of

machines where product runs

Sub-Capacity Pricing Charges based on Hardware Utilization

of LPARs where product runs

Hourly intervals measured

Rolling 4-Hour Average calculated for

each combination of LPARs

Charges based on Monthly Peak R4HA

of appropriate LPAR combination

Not based on individual Product measurement

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Sub-Capacity Overview

LPAR 1 LPAR 2

75 MSU 50 MSU

100 MSU Rated Capacity

LPAR 3

10 MSU

80 MSU

55 MSU

90 MSU

85MSU

PL/I

DB2

IMS

z/OS

COBOL

CICS

IMS

z/OS

FileMan

CICS

DB2

z/OS

Full Capacity Pricing Charges based on Machine Capacity of

machines where product runs

Sub-Capacity Pricing Charges based on Hardware Utilization

of LPARs where product runs

Hourly intervals measured

Rolling 4-Hour Average calculated for

each combination of LPARs

Charges based on Monthly Peak R4HA

of appropriate LPAR combination

Not based on individual Product measurement

e.g. DB2 is charged 80 MSUs because LPARs 1&2 had a peak R4HA utilization

of 80 MSUs and DB2 ran in LPARs 1&2,

not because DB2 used 80 MSUs

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Sub-Capacity Example

0

20

40

60

80

100

120

140

One Month

M

S

U

s

SYSB actual utilization Rolling 4-Hour Avg SYSB

0

50

100

150

200

250

One Month

M

S

U

s

A&B&C actual utilization Rolling 4-Hour Avg A&B&C

219 MSUsz/OS

136 MSUsDB2

136 MSUsCOBOL

Sub-Cap MSUsProduct

SYSA SYSB SYSC

z/OS z/OS z/OS

COBOL

DB2

System z @ 240 MSUs

136 MSUs

219 MSUs

SCRT

Report:

Peak R4HA

Peak R4HA

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Sub-Capacity Eligible z/OS MLC ProgramsProduct ID Product Name Product ID Product Name

5694A01 z/OS V1 5655H32 Debug Tool for z/OS & OS/390

5655G52 z/OS.e V1 5655L24 Debug Tool for z/OS V4

5655147 CICS TS for OS/390 5655M18 Debug Tool for z/OS V5

5697E93 CICS TS V2 5655P14 Debug Tool for z/OS V6

5655M15 CICS TS V3 for z/OS

5655B22 Visual Age PL/I V2 for OS/390 5655S97 CICS TS V4

5655H31 Enterprise PL/I V35655DB2 DB2 for OS/390 V5

5645DB2 DB2 UDB for OS/390 V6 5697B82 Tivoli NetView for OS/390 5675DB2 DB2 UDB for OS/390 V7 5697ENV Tivoli NetView for z/OS

5635DB2 DB2 V9 for z/OS 5697MQZ WS MQ Extended Security Ed for z/OS V5

5655158 IMS V6 5697NQZ WS MQ Extended Security Ed for z/OS V6

5655B01 IMS V7

5655C56 IMS V8

5655J38 IMS V9

5635A02 IMS V11

5655B86 Lotus Domino for S/390 V5

5655K36 Lotus Domino for z/OS V6

5655A95 MQSeries V2 for OS/390

5655N14 Lotus Domino for z/OS V7

5655F10 WebSphere MQ V5 for z/OS

5655P97 z/OS Encryption Facility for z/OS V1

5655L82 WebSphere MQ V6 for z/OS

5706254 QMF MVS V3

5648A25 COBOL for OS/390 & VM V2

5695068 Airline Control System V2

5748T15 z/TPF V1

5748F15 z/TPFDF V1

5625DB2 DB2 UDB for z/OS V8

5655G53 Enterprise COBOL V3

5635A01 IMS V10

5655R44 Debug Tool for z/OS V7

5655S17 Debug Tool for z/OS V8

5655S71 Enterprise COBOL V4

5655R36 WebSphere MQ V7 for z/OS

Subcapacity also applied

to some of the earlier

versions of the listed SW.

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Sub-Capacity WLC/EWLC Implementation

MLC Topic

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Downloadable Tools for Sub-Capacity

Sub-Capacity Planning Tool for PLANNING for Sub-Capacity

http://ibm.com/systems/z/swprice/subcap/scpt

processes SMF70 records

analyzes data from any mainframe environment

Produces a planning report used for estimating

Sub-Capacity Reporting Tool for IMPLEMENTING Sub-Capacity

http://ibm.com/systems/z/swprice/subcap/scrt

processes SMF70 and SMF89 records

analyzes data from a System z server running z/OS in 64-bit

Produces a Sub-Capacity Report used for billing

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Sub-Capacity Planning Tool

If you had a product running in ALL LPARs, it would require 170 MSUs.

If you had a product only running in LPAR2 & LPAR3, it would require 135 MSUs.



If you had a product only running in LPAR3, it would require 3 MSUs.



174Capacity (MSUs)

4CP Processors

2096-W04Machine Description

S123456Serial Number

SYS1System Name

19/10/2008Release Date

=============== SUB-CAPACITY PLANNING TOOL ==============

SCPT only uses SMF 70

and does not know

anything about used SW in

the specific LPARs.

If having many LPAR this

list of combinations can

become very long ->

You can specify a

maximum size for the list.

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Sub-Capacity Machine Implementation Timeline

August September October November

Collect Aug DataRunAug

Report

SubmitAugReport

EffectiveDate for

Aug Report

EffectiveDate for

Sep Report

EffectiveDate for

Oct Report

Full-Cap Pricing

(Could be PSLC, zELC, WLC, EWLC)

Sub-Cap Pricing

(Could be WLC, EWLC, zNALC)

Aug Sub-Cap Report (Feb 2 Mar 1) must be submitted to IBM by March 9th - effective on Apr 1st

This is for a machine adopting sub-capacity for the first time.

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Sub-Capacity Reporting Tool (SCRT) Report=============== SUB-CAPACITY REPORT ==============

Customer Name ABC Corp

Customer Number 1111111

Machine Serial Number 51-12345

Machine Type and Model 2097-604 Machine Model change observed

Machine Rated Capacity (MSUs) 277

Purchase Order Number unknown

===================================================================

TOOL INFORMATION

Tool Release

Reporting Period 2 Jan, 2010 - 1 Feb, 2010

% Data Collected 99% for 31 days

===================================================================

PRODUCT SUMMARY INFORMATION

VWLC Product Name VWLC Product ID Tool MSUs

Customer

MSUs

Customer

Comments

z/OS V1 5694-A01 253

DB2 UDB V9 5635-DB2 253

CICS TS V3 5655-M15 132

MQSeries V6 5655-L82 132

IMS V10 5635-A01 142

Tivoli NetView for z/OS 5697-ENV 253 (optional) (condit.)

Enterprise Cobol V4 5655-S71 60 (optional) (condit.)

18.1.1

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Workload License Charges

MLC Topic

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Workload License Charges*

zSeries

z/OS 64-bit

for Sub-Capacity Eligible Products

Variable Workload License Charges (VWLC)

for non-Sub-Capacity Eligible Products

Flat Workload License Charges (FWLC)

per server

single charge

Flat WLC Structure

Variable WLC Price Structure

cumulative monthly pricing

flat monthly pricing

Level Range

Base 0 - 3 MSUs

Level 0 4 - 45 MSUs

Level 1 46 - 175 MSUs




Level 5 876 - 1315 MSUs

Level 6 1316 - 1975 MSUs

Level 7 1976+ MSUs *WLC are available on z10 EC, z9 EC, z990, z900, plex of z10 BC, z9 BC, z890 and z800

Full-Cap mode -use rated MSU

capacity

or

Sub-Cap mode -use MSU values

from Sub-Capacity

Reports

z/OS in 64-bit mode required. Remove all OS/390 for a CEC to qualify

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WLC Example

* All prices are estimates in Euro and subject to change

z9 BC Model Q04

@ 88 MSUs

LPAR1

60 MSUs

CICS

DB2

COBOL

Fortran

REXX

z/OS

z9 EC Model 506

@ 279 MSUs

LPAR2

60 MSUs

DB2

z/OS

LPAR3

175 MSUs

CICS

DB2

z/OS

230 MSUs

Product WLC Sub-Cap

WLC Full-Cap

PSLC

COBOL5655S71

3 27360 MSUs

3 63788 MSUs

3 18088 MSUs

Fortran5668805

787Flat WLC

787Flat WLC

61088 MSUs

REXX5695013

1 937Flat WLC

1 937Flat WLC

1 96288 MSUs

CICS TS5655M15

47 562235 MSUs

60 890367 MSUs

54 916367 MSUs

DB2 V95635DB2

49 932290 MSUs

56 844367 MSUs

53 400367 MSUs

z/OS5694A01

102 282290 MSUs

116 393367 MSUs

131 677367 MSUs

TOTAL 205 773 240 488 245 745

* With Model, SW model is meant -> capacity setting

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Entry Workload License Charges

MLC Topic

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Copyright IBM 2010

for Sub-Capacity Eligible Products

Entry Workload License Charges (EWLC)

for non-Sub-Capacity Eligible Products

EWLC Tiered Price Structure

Tier A 1 - 11 MSUs

Tier B 12 - 15 MSUs

Tier C 16 - 40 MSUs

Tier D 41 - 75 MSUs

Tier E 76 - 1500 MSUs

Tier F 1501+ MSUs

base 3 MSUs

Level 1 4 - 17 MSUs






Level 7 261+ MSUs

EWLC Price Structure

cumulative monthly pricing flat monthly pricing

Entry Workload License Charges for z10 BC, z9 BC and z890

Z10 BC, z9 BC setting A01 and z890 setting 110 are the exceptions to this rule, they are priced using zELC

Full-Cap mode -use rated MSU

capacity

or

Sub-Cap mode -use MSU values

from Sub-Capacity

Reports

Z10 BC

EWLC Tiered Price Structure

Excl. to z10 BC, z9 BC and z890

select the tier based on the MSU rating of your box

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Sub-Capacity Corner Website

http://www.ibm.com/systems/z/resources/swprice/subcap/index.html

Three primary information tabsTerms & Conditions

Procedures

Technology

Links to other informationMSU Ratings for mainframes

Sub-Cap eligible MLC software

Sub-Cap eligible IPLA software (including categories)

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Optimizing Sub-Capacity for Price/Performance

MLC Topic

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Sub-Capacity Optimization

Review Sub-Capacity Reports Monthly

Deploy Fewer Products per LPAR

Create Extra LPARs for Specialized Purposes / Products

Control LPAR Utilization

Use Traditional capping (PR/SM hardcap) Reduce Number of Logical Engines Implement Defined Capacity and/or Group Capacity Limits

Machine Consolidation

Potentially Reduces the number of Flat WLC licenses needed Allows you to Leverage Offset Peaks

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Customers MUST Review Sub-Cap Reports

Im so glad that my team looked over our Sub-Capacity

Reports this month. We checked for problems, noticed trends, considered possible

optimization activities!

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Copyright IBM 2010

Deploy Fewer Products per LPAR

Does IMS V10 really need to run in

LPAR FOUR? It is only running in

this LPAR for 7.6% of the reporting

period

PRODUCT GRID SNAPSHOT

Product Name Product ID ONE TWO THREE FOUR FIVE SIX

z/OS V1 5694-A01 100.00% 100.00% 100.00% 97.90% 100.00% 100.00%

DB2 UDB V9 5635-DB2 95.20% 99.80% 99.80% 97.70% 100.00% 100.00%

CICS TS V3 5655-M15 57.60% 99.80% 99.80% 97.10% 100.00% 71.50%

MQSeries V7 5655-R36 95.20% 99.80% 99.80% 79.80% 100.00% 99.80%

IMS V10 5635-A01 99.80% 99.80% 99.80% 7.60% 100.00%

Debug Tool V7 5655-R44 20.80%

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Defined Capacity

SCRT reports the lower of the R4HA or Defined Capacity

2094-506 rated

@ 279 MSUs

24 Ja

n 10 -00:00

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0

50

100

150

200

250

M

S

U

s

defined capacity set at 210 MSUs

(used for billing)

highest rolling 4-hour average

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Copyright IBM 2010

Defined Capacity

Defined Capacity has no effect if R4HA never reaches it

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M

S

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defined capacity set at 250 MSUs

highest rolling 4-hour average

(used for billing)

1

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F

e

b

0

8

-

0

7

:

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financial

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Copyright IBM 2010

Data from SCPT

A single day in February 2010

0

25

50

75

100

125

150

175

200

0

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Time

M

S

U

15 min Avg

4 Hour avg

Even without capping becoming activated, it can have a financial impact !

Without CAPPING defined: reported R4HA: 157 MSU.

With CAPPING defined at 150 MSU: reported R4HA: 150 MSU. (And only a few minutes real capping : around 14:30)

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SCRT details

If all LPARs would peak at

same moment:

50+54+16+103 = 223 MSU.

This can be avoided through

GROUP Capping.

This SCRT section

shows the number of

MSU that will be

charged.

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Copyright IBM 2010

Group Capacity Limits

Group A Limit = 80

Group B Limit = 40

Machine Rating = 100

Highlights: Available with z/OS 1.8

Available for z10 EC, z9 EC & z10 BC, z9 BC only

DefCap = 60

Announced: April 18th 2007

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Defined Capacity vs. Group Capacity LimitsGoal: Limit Production to 80 MSUs & Test to 40 MSUs (Total = 120 MSUs)

Total Production = 80

DefCap=30


DefCap= 10

Total Test = 40

DefCap=30

DefCap=30

DefCap=20

Total Production = 80


Total Test = 40

DefCap=60

Defined Capacity Group Capacity Limits

Wt30

Wt30

Wt20

Wt10

Wt10

IBM Software Group

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Copyright IBM 2010

SCRT details

SCRT report also includes details about number of hours capping per LPAR / GROUP.

IBM Software Group

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Copyright IBM 2010

Offset Peaks through Server Consolidation

Time

0

20

40

60

80

100

M

S

U

s

A B A & B

Highest rolling 4-hour

average for CECA

Highest rolling 4-hour

average for CECB

Highest simultaneous rolling

4-hour average for A&B

Separate Machines: z/OS total charges equal ~125 MSUsz/OS charges on CECA would be ~73 MSUs

z/OS charges on CECB would be ~52 MSUs

Consolidated Machine (A&B): z/OS total charges equal ~98 MSUs

IBM Software Group

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Copyright IBM 2010


MLC Topic

IBM Software Group

35

Copyright IBM 2010


IBM Parallel Sysplex Aggregation Criteria:Hardware requirements

Software requirements

Operational requirements

Verification requirements

Applies to Parallel Sysplexes with Workload License Charges (WLC)

System z New Application License Charges (zNALC)

Parallel Sysplex License Charges (PSLC)

No-charge, Downloadable Tool for customers to determine whether their Parallel Sysplex is compliant with IBMs 50% rule

http://ibm.com/zseries/swprice/sysplex

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Copyright IBM 2010

Sysplex Calculator Example

SYSA

100

MSUs

PROD PLEX

SYSB

100

MSUs

PROD PLEX

SYSC

100

MSUs

DEV PLEX

MACHINE ONE - 400 MSUs

22 July 2009 @ 08:00

The z/OS images participating in the above systems enablement function(s), on the same sysplex, must

account for at least 50 percent of the total of the eligible operating system workload on each eligible

machine.

SYSX

155

MSUs

PROD PLEX

SYSY

45

MSUs

TEST

SYSZ

100

MSUs

DEV PLEX

MACHINE TWO - 300 MSUs

22 July 2009 @ 08:00

=============== SYSPLEX CALCULATOR ===============

Release Date 20/10/2008

Customer Name ABC Corporation

Machine Serial LPARs

CPC1 A1111 SYSA, SYSB, SYSC

CPC2 E2222 SYSX, SYSY, SYSZ

Based on IBM's Parallel Sysplex Aggregation criteria, Sysplex Calculator

determines that CPC1 is a member of PRODPLEX

determines that CPC2 is a member of PRODPLEX

Machine => CPC1 CPC1 CPC1 CPC2

LPAR => SYSA SYSB SYSC SYSX

Plex => PRODPLEXPRODPLEXDEVPLEX PRODPLEX

Interval

22 Jul 09 - 08:00 33% 33% 33% 52%

22 Jul 09 - 08:15

IBM Software Group

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Copyright IBM 2010

Financial Benefits of Sysplex Aggregation

*All prices are estimates in Euro and subject to change

Lower Cost of Incremental GrowthSystem z machine@ 298 MSUs

Box 1

COBOL

Fortran

REXX

CICS

DB2

z/OS

System z machine

@ 240 MSUs

Box 2

CICS

DB2

z/OS

Product Box 1 Licenses

Box 2Licenses

WLCaggregate

WLCno aggre-

gation

COBOL5655-S71

298MSUs 298 MSUs

298 MSUs

Fortran5668-805

298MSUs

298 MSUs 298 MSUs

REXX5695-013

298MSUs 298 MSUs

298 MSUs

CICS TS V35655-M15

298MSUs

240MSUs 578 MSUs

298 MSUsand

240 MSUs

DB2 V95635-DB2

298MSUs

240MSUs 538 MSUs

298 MSUsand

240 MSUs

z/OS5694-A01

298MSUs

240MSUs 538 MSUs

298 MSUsand

240 MSUs

TOTAL 295 640/ month

400 263/month Capacity (MSUs)

M

o

n

t

h

l

y

L

i

c

e

n

s

e

C

h

a

r

g

e

(

$

/

M

S

U

)

INCREMENTAL MLC PRICE / SW LEVEL

Level 1

Level 0

Level 2Level 3

Level 4

Level 5

Level 6

Level 7

IBM Software Group

38

Copyright IBM 2010

What is IPLA?

IPLA Topic

IBM Software Group

39

Copyright IBM 2010

Software Pricing at IBM

Sub-Capacity: April 2005Sub-Capacity: Aug 2004Sub-Capacity: Oct 2000

e.g., Products that run on Unix, Windows, and also middleware for Linux on System z!!!

e.g., WebSphere, Tivoli tools, DB2 tools, IMS tools,

CICS tools, AD tools,z/VM V5, V6

e.g., DB2, CICS, IMS, MQSeries, Compilers, Domino, z/OS, OS/390,

z/OS.e, VSE

Passport Advantage Relationship Discount

Enterprise aggregationSysplex aggregation

Perpetual license, maintenance bundled in Y1, optional 12 mo maintenance

Perpetual license, annual maintenance (optional)

Monthly term license, includes maintenance

International Program License Agreement (IPLA)

International Program License Agreement (IPLA)

IBM Customer Agreement (ICA)

Distributed: IPLA(One Time Charges)

System z: IPLA(One Time Charges)

System z: Monthly License Charges

IBM Software Group

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Copyright IBM 2010

What is Value Unit Pricing ?

IPLA Topic

IBM Software Group

41

Copyright IBM 2010

Value Unit Pricing Key Benefits

Lower Cost of Incremental Growth

Enterprise Aggregation

License: One-Time-Charge granting the right to use the product

Maintenance: Optional, Recurring Charge for Subscription & Support (S&S)

S&S provides break/fix support

S&S provides version-to-version upgrades, at no additional OTC

S&S is an annual charge called Annual License Charge or ALC

S&S is optional but strongly encouraged (Resumption fee applies)

If purchased, S&S capacity MUST equal license capacity

S&S automatically renews each year

S&S may be cancelled (effective anniversary date) (Resumption fee applies)

For each System z IPLA Product

there is a unique product ID per version

there is a common S&S product ID

across all versions

Value Unit Pricing: Benefits/Terms

Product ID Product

5655-I18 Migration Utility V1

5697-I89 Migration Utility V2

5697-N44 Migration Utility V3

5655-I32 Migration Utility S&S

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Copyright IBM 2010

Value Unit Pricing: Mechanics

Value Unit Pricing Converts various measurements to Value Units For each Value Unit Priced program, there is a 'Value Unit Exhibit' (VUEXXX)

The 'Value Unit Exhibit' establishes the appropriate Value Unit conversion

Most common conversion is MSUs to Value Units

It is also possible to convert engines, messages and other measurements to Value Units

Value Unit Exhibit 007 (VUE007):

MSUs 1 - 3, need 1 VU per MSU

MSUs 4 - 45, need .45 VUs per MSU



MSUs 316+, need .20 VUs per MSU

**** cumulative ****

Value Unit Exhibit 001 (VUE001):

MSUs 1 - 3, need 5.25 VUs per MSU




MSUs 316+, need .20 VUs per MSU

**** cumulative ****

Migration Utility Examples:100 MSUs => 42 VUs

1000 MSUs => 244 VUs

Lower cost of Incremental Growth


Product ID Product Price per VU

5655-I18 Migration Utility V1 1,725 / VU

5697-I89 Migration Utility V2 1,587 / VU

5697-N44 Migration Utility V3 1,746 / VU

5655-I32 Migration Utility S&S 264 / VU

Other VUE Exhibits exist for eg z/VM, TWS, WBIFN,

IBM Software Group

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Copyright IBM 2010

IPLA Aggregation Applies to all IPLA Value Unit Bases (e.g., MSUs, Engines, Users)

Combines Value Unit Basis (e.g., MSUs) for all machines in customer enterprise before calculating # of VUs needed

(Aggregation does not require parallel sysplex)

Calculation of additional capacity uses Current Entitlement as starting point

2096-S0385 MSUs

Migration Util.(5697-N44)

Brussel

2097-705488 MSUs


Luik

2096-S0384 MSUs


Gent

Customer One:

Customer Two:

Deploying Migration Utility on 2096-S03

Convert total 85 MSUs to 37 Value Units

Total for 37 VUs @ 1746/VU = 64 602 OTC (and 9 768 S&S)

$64 602 / 85 MSUs = about 760 per MSU

Deploying Migration Utility on 2096-S03 and 2097-705

Convert total 572 MSUs to 159 Value Units

Total for 159 VUs @ 1746/VU = $277 614 OTC (and 41 976 S&S)

277 614 / 572 MSUs = about 485 per MSU


IBM Software Group

44

Copyright IBM 2010

10 August 2004 Sub-Capacity Announcement

IPLA Topic

IBM Software Group

45

Copyright IBM 2010

System z IPLA Categories (August 2004)

Most System z IPLA Programs with MSU-Oriented Value Unit Pricing

will fall into one of the following three categories

Execution-based

Where the

Product

executes

For example:

Fault Analyzer

Reference-based

Where the

Parent Product

executes

For example:

DB2 Utilities Suite

(parent is DB2)

z/OS-based

Where the

Product

executes

For example:

z/OS Session Manager

Note: uncategorized programs are usually licensed on the machine where the program executes

IBM Software Group

46

Copyright IBM 2010

Sub-Capacity Ts & Cs

Execution

-based

Terms

For Value

Unit

Programs

Required license

capacity equals the

capacity of the LPAR(s)where the IPLA program

executes

Reference

-based

Terms

For Value

Unit

Programs

Required license

capacity equals the

capacity of the parent

program across the environment

z/OS-

based

Terms

For Value

Unit

Programs

Required license

capacity equals the

z/OS capacity of the

machine(s) where the IPLA program executes

environment = a single/stand-alone machine

or a qualified Parallel Sysplex

Machines with Sub-Cap WLC or Sub-Cap EWLC

Required: IPLA Amendment for System z Platform Programs Sub-Capacity Pricing

Customer tracking required

IBM has right to audit, initiate billing

Note: Product Announcement for uncategorized products will outline sub-cap terms, if there are any.

IBM Software Group

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Copyright IBM 2010

SCRT details

WebSphere Application Server: GSSP pricing

SCRT report only includes the Execution based System z IPLA SW.

GSSP eligible SW: reported MSU figure function of product usage instead of LPAR size.

IBM Software Group

48

Copyright IBM 2010

SCRT details

z/OS programs eligible for Getting Started Sub-capacity Pricing WebSphere Application Server for z/OS V6.1 (5655-N01) Service level 16*

WebSphere Application Server for z/OS V7.0 (5655-N02)

WebSphere Extended Deployment on z/OS V6.1 (5655-P28)

WebSphere Extended Deployment for z/OS V6.1 by individual components (5655-S33)

Websphere Process Server for z/OS V6.1 (5655-N53)

WebSphere Enterprise Service Bus for z/OS V6.1 (5655-R15)

WebSphere Service Registry and Repository for z/OS V6.1 (5655-R41)

WebSphere Business Services Fabric for z/OS V6.1 (5655-S30)

WebSphere Message Broker for z/OS V6.1 (5655-M74) Service level 2*

WebSphere Portal Enable for z/OS V6 (5655-R17)

WebSphere Transformation Extender for z/OS V8.2 (5655-R95)* Service level 2 (eligible with Command Server and with Launcher)

Report above shows that

WAS was running all the

time in eg LPAR PROD2,

having R4HA of 83 MSU

but only 12 MSU reported

because of GSSP.

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Copyright IBM 2010

System z IPLA Programs Website

http://www-03.ibm.com/systems/z/resources/swprice/zipla/index.html

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Copyright IBM 2010

Value Unit Example

324 MSUs

109 VUs

281K

95 MSUs

40 VUs

103K

WebSphere App Server Execution-Based category

(LPARs 1, 2)

279 MSUs

97 VUs

281K

60 MSUs

28 VUs

81K

Fault Analyzer Execution-Based category

(LPAR 2)

279 MSUs

97 VUs

277K

230 MSUs

84 VUs

240K

z/OS Session Manager z/OS-Based category

(z9 EC)

324 MSUs

109 VUs

102K

210 MSUs

79 VUs

74K

CICS Performance Analyzer Reference-Based category

(CICS, sysplex)

324 MSUs

135 VUs

96K

265 MSUs

120 VUs

86K

DB2 Utilities Suite Reference-based category

(DB2, sysplex)

Full-Cap VUs

Sub-Cap VUs

Program


z9 BC Model M04

@ 45 MSUs

LPAR1

35 MSUs

CICS

DB2

COBOL

Fortran

REXX

z/OS

z9 EC Model 506

@ 279 MSUs

LPAR2

60 MSUs

DB2

z/OS

LPAR3

175 MSUs

CICS

DB2

z/OS

230 MSUs

IBM Software Group

52

Copyright IBM 2010

Generation to Generation IBM Software Savings Possible

* Sample Software Stack Includes: z/OS Base plus features, DB2 v9, CICS v3, IMS v10, MQ v7

The announced MSUs for SW pricing purposes on z10 EC and z9 EC servers are designed to offer

improved software price/performance.

z990

Example

Software MSUs for similar HW capacity

* Prices are estimates in Euro and subject to change.

Sample 3 Year Savings for z10 EC SW *

SW MSU Examples

~37 % higher MSU on z900 !

~10% MSU reduction compared to z9 EC

z10 EC

z9 EC

z900

1000111112341371

7298109001000

250278309343

738190100

Compared with :

0

10 0 0

2 0 0 0

3 0 0 0

4 0 0 0

50 0 0

100 500 1.000

z 10 MSUs

K

E

u

r

o

s

z9 EC z990 z900

IBM Software Group

53

Copyright IBM 2010

zNALC New Pricing for New Workloads!

System z New Application License Charges (zNALC)

Attractive pricing for z/OS operating system to drive qualified new workloads to the System z platform

Significantly reduced compared to standard price

Announce: 9 January 2007

Available: 16 March 2007

Satisfies the SoD Announced with z/OS 1.7 (July 2005) IBM plans to announce a version of New Application License Charges (NALC) intended to help improve the price performance of z/OS incertain new workload environments by delivering subcapacity pricing. .

Some examples of approved Qualified Applications: DB2 for z/OS in support of SAP from SAP AG

DB2 for z/OS in support of PeopleSoft from Oracle

DB2 for z/OS in support of Siebel from Oracle

Lotus Domino for z/OS

IBM Software Group

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Copyright IBM 2010

zNALC a great value!zNALC provides:

Single Qualified New Workload pricing across System z product line

LPAR-Level Granularity Sub-capacity announced and supported no need for full machine

dedicated to new workload

zNALC Qualified New Workload Criteria replaces NALC Fixed Application List A wider choice of workloads

Improved z/OS pricing Incremental Price/Performance improvements

including Parallel Sysplex Aggregation

No separate z/OS product or product number

IBM Software Group

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Copyright IBM 2010

Linux for System z General Concepts

Linux for System z Middleware is considered distributed software, engine-based pricing under Passport Advantage

Sub-Capacity Licensing for distributed SW Linux for System z Middleware can run on

General purpose System z engines

Specialized Linux System z engines, called Integrated Facility for

Linux (IFL) engines

To achieve maximum value from Linux on System z, leverage z/VM for virtualization and run hundreds or possibly even thousands of Linux instances on a single System z server

Linux on System z is great for:

server consolidation

web-enabling legacy data (the data is on DB2 on the host, right?)

IBM Software Group

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Copyright IBM 2010

Integrated Facility for Linux (IFL)

If an engine-based zSW IPLA product runs on

any CPs it must be licensed on all the CPs.

If an engine-based zSW IPLA product runs on

any IFLs it must be licensed on all the IFLs.

2097-704 @ 401 MSUs IFL IFL

Quantity of Integrated Facility for Linux (IFL) features indicates the number of specialized Linux engines for pricing of IPLA engine-based products like z/VM v5 (and also "distributed" middleware)

License Linux on zSeriesmiddleware based on number of IFL engines

traditional portion

linuxportion

401 MSUs

Model of zSeries processor indicates the MSU rating (and number of CP engines) for pricing of traditional software licenses like z/OS and its middleware

IBM Software Group

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Copyright IBM 2010

Passport Advantage

https://www.ibm.com/software/howtobuy/passportadvantage/valueunitcalculator/vucalc.wss

Above website shows number of PVU for multiple platforms.

As a reference: POWER6 (550,560,570, 575, 595): 120 PVU per core.

IBM Software Group

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Copyright IBM 2010

System z Application Assist Processor (zAAP)

zAAP Special processor type dedicated exclusively for Java workloads under z/OS e.g. WebSphere

Enabled by System z innovative PR/SM virtualizationCPs and zAAPs in the same z/OS LPAR

Java work ONLY directed to zAAPs by z/OS 1.6+

Can lower cost of computing for Java technology-based application serversz10, z9, z990 and z890 only

Attractively priced

No IBM software charges on zAAPs

Required Elementsz/OS 1.6 or later

Java SDK 1.4.1 or later

zAAP hardware feature

IBM Software Group

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Copyright IBM 2010

zAAP Example, Sub-Capacity WLC

adds zAAP instead of upgrading to 606 or 607Java workload runs on zAAP engine

Sub-Capacity charges for Products in SYSA reduced from 100 to 75 MSUs

BEFORE:2097-605 @ 292 MSUsfive CPs

SYSA SYSB

J

J

J

J

J

1 2 3 1 2 3

AFTER:2097-605 @ 292 MSUsfive CPs + one zAAP

SYSA SYSB

J

J

J

J

J

1 2 3 1 2 3zLogical View

Physical View1 2 3 4 5 1 2 3 4 5 z

sysaneeds

resource

sysagets

resource

r4hr avg=100 r4hr avg=75

IBM Software Group

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Copyright IBM 2010

System z10, z9 Integrated Information Processor (zIIP)

zIIP Special processor type dedicated exclusively for certain DB2 workloads under z/OS

Enabled by System z innovative PR/SM virtualizationCPs and zIIPs in the same z/OS LPAR

DB2 work ONLY directed to zIIPs by z/OS 1.6+

Can lower cost of ownership for some eligible DB2 data serving workloadsSystem z9 and z10 only

Attractively priced

No IBM software charges on zIIPs

Required Elementsz/OS 1.6 or later

DB2 V8 for z/OS

zIIP hardware feature

zIIP: can also run zAAP eligible workload (z/OS 1.11)

IBM Software Group

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Copyright IBM 2010

Specialty Engine Special Advantages

Customers do not need to re-purchase their specialty engines as they upgrade hardware from one generation to the nextA generational upgrade gives them free capacity growth e.g.

a zAAP on a z10 EC is faster than a zAAP on a z9 or z990

Specialty engines always run at full speedOn servers such as the z10 EC/BC, z9 EC/BC and z890

customers can choose to have their standard engines run at less

than the maximum speed e.g. a 2097-401 versus 2097-701

IFLs, zAAPs and zIIPs all run at the maximum engine speed

Hipersocket connections between z/OS and IFL LPARs MUCH less effort is spent moving data between z/OS and Linux

LPARs compared to having external servers communicate with

DB2 running on z/OS

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Copyright IBM 2010

Visit the System z Software Pricing Website

http://www.ibm.com/systems/z/resources/swprice/index.html

100317 - ibm system z software pricing update_0

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