IBM Software Group

IBM System z Software Pricing Guide Share Europe

March 17th 2010 Marc Wesemael, IBM Belgium, System z SW
marc_wesemael@be.ibm.com http://www.ibm.com/systems/z/resources/swprice/
Based upon a presentation from David Chase

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Trademarks
The following are trademarks of the International Business Machines Corporation in the United States and/or other countries.
AIX* BookManager* CICS* DB2* DB2 Connect DB2 Universal Database DFSORT* Domino DRDA* Encina* FICON* * Registered trademarks of IBM Corporation 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*

VisualAge*
WebSphere* VSE/ESA z/Architecture z/OS* z/VM* z/VSE zSeries*

System z10*
SystemPac* Tivoli*

The following are trademarks or registered trademarks of other companies.

Java and all Java-related trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries Linux is a trademark of Linus Torvalds in the united States and other countries.. UNIX is a registered trademark of The Open Group in the United States and other countries. Microsoft, Windows and Windows NT are registered trademarks of Microsoft Corporation in the United States and other countries. * All other products may be trademarks or registered trademarks of their respective companies. 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 representative or 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. The materials 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.

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Agenda
IBM Software Pricing Framework MLC Topics Sub-Capacity Concepts Workload License Charges Optimizing for Sub-Capacity Parallel Sysplex Aggregation IPLA Topics What is IPLA? What is Value Unit Pricing? IPLA Sub-Capacity Other Price/Performance Topics
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Software Pricing at IBM

System z: Monthly License Charges
IBM Customer Agreement (ICA) with System z Attachments Monthly term license, includes maintenance Sysplex aggregation Sub-Capacity: Oct 2000 e.g., DB2, CICS, IMS, MQSeries, Compilers, Domino, z/OS, zVSE

4 Distributed: IPLA (One Time Charges)

International Program License Agreement (IPLA) with Passport Advantage Amendments Perpetual license, S&S bundled in Y1, optional 12 mo S&S Passport Advantage Relationship Discount Sub-Capacity: April 2005
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

System z: IPLA (One Time Charges)

International Program License Agreement (IPLA) with System z Amendments Perpetual license, annual Subscription and Support (optional) Enterprise aggregation Sub-Capacity: Aug 2004 e.g., WebSphere, Tivoli tools, DB2 tools, IMS tools, CICS tools, AD tools, z/VM V5, V6

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z/OS Monthly License Charges Overview

Aggregation Capable? WLC
allows zNALC allows SALC

Sub-Cap Capable? Yes

z10 EC z9 EC z990 z900 x

z10 BC z9 BC * z890 * x
(plex only)

z800 * x
(plex only)

9672 and older

Yes

EWLC
allows zNALC allows SALC

Yes

x **
(w/TWLC)

x
(w/zELC)

PSLC
allows NALC * allows ULC

Yes

x
(plex only)

x
(plex only)

zELC

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 V4
ULC = 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
100 MSU Rated Capacity

LPAR 1
75 MSU

LPAR 2
50 MSU 80 MSU

LPAR 3
10 MSU

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

55 MSU 85MSU 90 MSU

FileMan CICS DB2 z/OS

PL/I DB2 IMS z/OS

COBOL CICS IMS z/OS

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Sub-Capacity Overview
100 MSU Rated Capacity

LPAR 1
75 MSU

LPAR 2
50 MSU 80 MSU

LPAR 3
10 MSU

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

55 MSU 85MSU 90 MSU

FileMan CICS DB2 z/OS

PL/I DB2 IMS z/OS

COBOL CICS IMS z/OS

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
140

SYSB actual utilization

Peak R4HA

Rolling 4-Hour Avg SYSB

System z @ 240 MSUs

MSUs

120 100 80 60 40 20 0

SYSA

SYSB
136 MSUs

SYSC

219 MSUs COBOL DB2 z/OS

250 200

One Month
A&B&C actual utilization Rolling 4-Hour Avg A&B&C
Peak R4HA

z/OS

z/OS
MSUs

150 100 50 0 One Month

SCRT Report:

Product COBOL DB2 z/OS

Sub-Cap MSUs 136 MSUs 136 MSUs 219 MSUs

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Sub-Capacity Eligible z/OS MLC Programs

Product ID Product Name 5694A01 5655G52 5655147 5697E93 5655M15 5655S97 5655DB2 5645DB2 5675DB2 5625DB2 5635DB2 5655158 5655B01 5655C56 5655J38 5635A01 5635A02 5655A95 5655F10 5655L82 5655R36 5648A25 5655G53 5655S71 z/OS V1 z/OS.e V1 CICS TS for OS/390 CICS TS V2 CICS TS V3 for z/OS CICS TS V4 DB2 for OS/390 V5 DB2 UDB for OS/390 V6 DB2 UDB for OS/390 V7 DB2 UDB for z/OS V8 DB2 V9 for z/OS IMS V6 IMS V7 IMS V8 IMS V9 IMS V10 IMS V11 MQSeries V2 for OS/390 WebSphere MQ V5 for z/OS WebSphere MQ V6 for z/OS WebSphere MQ V7 for z/OS COBOL for OS/390 & VM V2 Enterprise COBOL V3 Enterprise COBOL V4 Product ID Product Name 5655H32 5655L24 5655M18 5655P14 5655R44 5655S17 5655B22 5655H31 5697B82 5697ENV 5697MQZ 5697NQZ 5655B86 5655K36 5655N14 5655P97 5706254 5695068 5748T15 5748F15 Debug Tool for z/OS & OS/390 Debug Tool for z/OS V4 Debug Tool for z/OS V5 Debug Tool for z/OS V6 Debug Tool for z/OS V7 Debug Tool for z/OS V8 Visual Age PL/I V2 for OS/390 Enterprise PL/I V3 Tivoli NetView for OS/390 Tivoli NetView for z/OS WS MQ Extended Security Ed for z/OS V5 WS MQ Extended Security Ed for z/OS V6 Lotus Domino for S/390 V5 Lotus Domino for z/OS V6 Lotus Domino for z/OS V7 z/OS Encryption Facility for z/OS V1 QMF MVS V3 Airline Control System V2 z/TPF V1 z/TPFDF V1

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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

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

Release Date

19/10/2008 SCPT only uses SMF 70 and does not know anything about used SW in the specific LPARs. 4 174

System Name Serial Number Machine Description CP Processors Capacity (MSUs)

SYS1 S123456 2096-W04

If you had a product only running in LPAR1, it would require 46 MSUs. If you had a product only running in LPAR2, it would require 133 MSUs. If you had a product only running in LPAR3, it would require 3 MSUs. If you had a product only running in LPAR1 & LPAR2, it would require 168 MSUs. If you had a product only running in LPAR1 & LPAR3, it would require 49 MSUs. If you had a product only running in LPAR2 & LPAR3, it would require 135 MSUs. If you had a product running in ALL LPARs, it would require 170 MSUs. 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

This is for a machine adopting sub-capacity for the first time.
Aug Sub-Cap Report (Feb 2 Mar 1) must be submitted to IBM by March 9th - effective on Apr 1st

August
Collect Aug Data

September
Run Submit Aug Aug Report Report Effective Date for Aug Report

October
Effective Date for Sep Report

November
Effective Date for Oct Report

Full-Cap Pricing (Could be PSLC, zELC, WLC, EWLC)

Sub-Cap Pricing (Could be WLC, EWLC, zNALC)

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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 18.1.1 Reporting Period 2 Jan, 2010 - 1 Feb, 2010 % Data Collected 99% for 31 days =================================================================== PRODUCT SUMMARY INFORMATION Customer Customer VWLC Product Name VWLC Product ID Tool MSUs MSUs 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.)
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Workload License Charges

MLC Topic
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Workload License Charges*

for Sub-Capacity Eligible Products Variable Workload License Charges (VWLC) for non-Sub-Capacity Eligible Products Flat Workload License Charges (FWLC)
Variable WLC Price Structure
Level Base Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 Range 0 - 3 MSUs 4 - 45 MSUs 46 - 175 MSUs 176 - 315 MSUs 316 - 575 MSUs 576 - 875 MSUs 876 - 1315 MSUs 1316 - 1975 MSUs 1976+ MSUs

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

Flat WLC Structure

per server single charge

flat monthly pricing

cumulative monthly pricing

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*WLC are available on z10 EC, z9 EC, z990, z900, plex of z10 BC, z9 BC, z890 and z800

zSeries z/OS 64-bit

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WLC Example
Product COBOL 5655S71 Fortran 5668805 REXX 5695013 CICS TS 5655M15 DB2 V9 5635DB2 z/OS 5694A01 TOTAL WLC Sub-Cap 3 273 60 MSUs 787 Flat WLC 1 937 Flat WLC WLC Full-Cap 3 637 88 MSUs 787 Flat WLC 1 937 Flat WLC PSLC 3 180 88 MSUs 610 88 MSUs 1 962 88 MSUs
z9 BC Model Q04 @ 88 MSUs z9 EC Model 506 @ 279 MSUs

LPAR1
60 MSUs

LPAR2
60 MSUs

LPAR3
175 MSUs

47 562 60 890 54 916 235 MSUs 367 MSUs 367 MSUs 49 932 56 844 53 400 290 MSUs 367 MSUs 367 MSUs 102 282 116 393 131 677 290 MSUs 367 MSUs 367 MSUs 205 773 240 488 245 745

CICS DB2 COBOL Fortran REXX z/OS

230 MSUs CICS DB2 z/OS

DB2 z/OS

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

* All prices are estimates in Euro and subject to change

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Entry Workload License Charges

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

for Sub-Capacity Eligible Products Entry Workload License Charges (EWLC) for non-Sub-Capacity Eligible Products EWLC Tiered Price Structure EWLC Price Structure
base Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7 3 MSUs 4 - 17 MSUs 18 - 30 MSUs 31 - 45 MSUs 46 - 87 MSUs 88 - 175 MSUs 176 - 260 MSUs 261+ MSUs

Full-Cap mode use rated MSU capacity or Sub-Cap mode use MSU values from Sub-Capacity Reports

EWLC Tiered Price Structure Excl. to z10 BC, z9 BC and z890

Tier A Tier B Tier C Tier D Tier E Tier F 1 - 11 MSUs 12 - 15 MSUs 16 - 40 MSUs 41 - 75 MSUs 76 - 1500 MSUs 1501+ MSUs Z10 BC

cumulative monthly pricing

flat monthly pricing

select the tier based on the MSU rating of your box

Z10 BC, z9 BC setting A01 and z890 setting 110 are the exceptions to this rule, they are priced using zELC
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Sub-Capacity Corner Website

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

Three primary information tabs Terms & Conditions Procedures Technology Links to other information MSU 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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Deploy Fewer Products per LPAR

PRODUCT GRID SNAPSHOT Product Name z/OS V1 DB2 UDB V9 CICS TS V3 MQSeries V7 IMS V10 Debug Tool V7 Product ID ONE TWO 100.00% 99.80% 99.80% 99.80% 99.80% THREE 100.00% 99.80% 99.80% 99.80% 99.80% FOUR 97.90% 97.70% 97.10% 79.80% 7.60% FIVE 100.00% 100.00% 100.00% 100.00% 100.00% 20.80% SIX 100.00% 100.00% 71.50% 99.80%

5694-A01 100.00% 5635-DB2 95.20% 5655-M15 57.60% 5655-R36 95.20% 5635-A01 99.80% 5655-R44

Does IMS V10 really need to run in LPAR FOUR? It is only running in this LPAR for 7.6% of the reporting period

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Defined Capacity 2094-506

rated @ 279 MSUs

defined capacity set at 210 MSUs (used for billing)

250 200 150

MSUs highest rolling 4-hour average

100 50 0 24 Jan 10 - 05:15 24 Jan 10 - 12:15 24 Jan 10 - 01:45 24 Jan 10 - 08:45 24 Jan 10 - 15:45 24 Jan 10 - 19:15 24 Jan 10 - 22:45 24 Jan 10 - 03:30 24 Jan 10 - 00:00 24 Jan 10 - 07:00 24 Jan 10 - 10:30 24 Jan 10 - 14:00 24 Jan 10 - 17:30 24 Jan 10 - 21:00

SCRT reports the lower of the R4HA or Defined Capacity

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defined capacity set at 250 MSUs

MSUs 150 200 250

highest rolling 100 4-hour average (used for billing) 50

300

0
21 Jan 08 - 07:45 22 Jan 08 - 07:45 23 Jan 08 - 07:45 24 Jan 08 - 07:45 25 Jan 08 - 07:30 26 Jan 08 - 07:30 27 Jan 08 - 07:30 28 Jan 08 - 07:30 29 Jan 08 - 07:30 30 Jan 08 - 07:30 31 Jan 08 - 07:30 01 Feb 08 - 07:15 02 Feb 08 - 07:15 03 Feb 08 - 07:15 04 Feb 03 - 07:15 05 Feb 08 - 07:15 06 Feb 08 - 07:15 07 Feb 08 - 07:30 08 Feb 08 - 07:30 09 Feb 08 - 07:30 10 Feb 08 - 07:45 11 Feb 08 - 07:45 12 Feb 08 - 07:45 13 Feb 08 - 07:45 14 Feb 08 - 07:00 15 Feb 08 - 07:00 16 Feb 08 - 07:00 17 Feb 08 - 07:00

Defined Capacity

IBM Software Group

Defined Capacity has no

financial

effect if R4HA never reaches it

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Data from SCPT

A single day in February 2010
200 175 150 125

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M SU

100 75 50 25 0

15 min Avg 4 Hour avg

0 0 :0 0 0 1 :0 0 0 2 :0 0 0 3 :0 0 0 4 :0 0 0 5 :0 0 0 6 :0 0 0 7 :0 0 0 8 :0 0 0 9 :0 0 1 0 :0 0 1 1 :0 0 1 2 :0 0 1 3 :0 0 1 4 :0 0 1 5 :0 0 1 6 :0 0 1 7 :0 0 1 8 :0 0 1 9 :0 0 2 0 :0 0 2 1 :0 0 2 2 :0 0 2 3 :0 0

Time

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
This SCRT section shows the number of MSU that will be charged.

If all LPARs would peak at same moment: 50+54+16+103 = 223 MSU. This can be avoided through GROUP Capping.

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Group Capacity Limits

Announced: April 18th 2007 Highlights: Available with z/OS 1.8 Available for z10 EC, z9 EC & z10 BC, z9 BC only
Machine Rating = 100 Group A Limit = 80
Def Cap = 60

Group B Limit = 40

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Defined Capacity vs. Group Capacity Limits

Goal: Limit Production to 80 MSUs & Test to 40 MSUs (Total = 120 MSUs) Defined Capacity
Total Production = 80

Group Capacity Limits

Total Production = 80

DefCap =60

Total Test = 40 DefCap =30 DefCap =30 DefCap =20 DefCap = 10 Wt 30 Wt 30 Wt 20 DefCap =30

Total Test = 40

Wt 10

Wt 10

Machine Rating = 200

Machine Rating = 200

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SCRT details

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

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Offset Peaks through Server Consolidation

Separate Machines: z/OS total charges equal ~125 MSUs z/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

100 A 80 MSUs 60 40 20 0 B A&B

Time
Highest rolling 4-hour average for CECA Highest rolling 4-hour average for CECB Highest simultaneous rolling 4-hour average for A&B

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Parallel Sysplex Aggregation

MLC Topic
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Parallel Sysplex Aggregation

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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Sysplex Calculator Example

MACHINE ONE - 400 MSUs 22 July 2009 @ 08:00
SYSA 100 MSUs SYSB 100 MSUs SYSC 100 MSUs

=============== SYSPLEX CALCULATOR =============== Release Date Customer Name Machine CPC1 CPC2 20/10/2008 ABC Corporation Serial A1111 E2222 LPARs SYSA, SYSB, SYSC SYSX, SYSY, SYSZ

PROD PLEX

PROD PLEX

DEV PLEX

MACHINE TWO - 300 MSUs 22 July 2009 @ 08:00

SYSX 155 MSUs SYSY 45 MSUs SYSZ 100 MSUs

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 => LPAR => Plex => CPC1 CPC1 CPC1 CPC2 SYSA SYSB SYSC SYSX PRODPLEXPRODPLEXDEVPLEX PRODPLEX

PROD PLEX

TEST

DEV PLEX

Interval 22 Jul 09 - 08:00 22 Jul 09 - 08:15

33%

33%

33%

52%

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.

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Financial Benefits of Sysplex Aggregation

Lower Cost of Incremental Growth
Product Box 1 Licenses 298 MSUs 298 MSUs 298 MSUs 298 MSUs 298 MSUs 298 MSUs 240 MSUs 240 MSUs 240 MSUs Box 2 Licenses WLC
aggregate

System z machine @ 298 MSUs

System z machine @ 240 MSUs

WLC no aggregation 298 MSUs

Box 1 COBOL Fortran REXX CICS DB2 z/OS

Monthly License Charge ($/MSU)

Box 2

COBOL 5655-S71 Fortran 5668-805 REXX 5695-013 CICS TS V3 5655-M15 DB2 V9 5635-DB2 z/OS 5694-A01 TOTAL

298 MSUs 298 MSUs

298 MSUs

CICS DB2 z/OS

298 MSUs

298 MSUs
INCREMENTAL MLC PRICE / SW LEVEL Level 0

298 MSUs and 578 MSUs 240 MSUs 298 MSUs and 538 MSUs 240 MSUs 298 MSUs and 538 MSUs 240 MSUs 295 640/ 400 263/ month month

Level 1 Level 2 Level 3 Level 5 Level 4 Level 7 Level 6

Capacity (MSUs)

*All prices are estimates in Euro and subject to change

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What is IPLA?

IPLA Topic
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Software Pricing at IBM

System z: Monthly License Charges
IBM Customer Agreement (ICA) Monthly term license, includes maintenance Sysplex aggregation Sub-Capacity: Oct 2000 e.g., DB2, CICS, IMS, MQSeries, Compilers, Domino, z/OS, OS/390, z/OS.e, VSE

39 Distributed: IPLA (One Time Charges)

International Program License Agreement (IPLA) Perpetual license, maintenance bundled in Y1, optional 12 mo maintenance Passport Advantage Relationship Discount Sub-Capacity: April 2005 e.g., Products that run on Unix, Windows, and also middleware for Linux on System z!!!

System z: IPLA (One Time Charges)

International Program License Agreement (IPLA) Perpetual license, annual maintenance (optional) Enterprise aggregation Sub-Capacity: Aug 2004 e.g., WebSphere, Tivoli tools, DB2 tools, IMS tools, CICS tools, AD tools, z/VM V5, V6

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What is Value Unit Pricing ?

IPLA Topic
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Value Unit Pricing: Benefits/Terms

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 Product ID Product there is a unique product ID per version 5655-I18 Migration Utility V1 there is a common S&S product ID 5697-I89 Migration Utility V2 across all versions 5697-N44 Migration Utility V3
5655-I32 Migration Utility S&S

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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 46 - 175, need .36 VUs per MSU MSUs 176 - 315, need .27 VUs per MSU MSUs 316+, need .20 VUs per MSU **** cumulative ****
Product ID 5655-I18 5697-I89 5697-N44 5655-I32 Product Migration Utility V1 Migration Utility V2 Migration Utility V3 Migration Utility S&S Price per VU 1,725 / VU 1,587 / VU 1,746 / VU 264 / VU

Value Unit Exhibit 001 (VUE001): MSUs 1 - 3, need 5.25 VUs per MSU MSUs 4 - 45, need .83 VUs per MSU MSUs 46 - 175, need .35 VUs per MSU MSUs 176 - 315, need .26 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

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

*All prices are estimates in Euro and subject to change

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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)

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Calculation of additional capacity uses Current Entitlement as starting point

Brussel 2096-S03 85 MSUs Migration Util. (5697-N44)

Customer One:
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

Customer Two:
Gent 2096-S03 84 MSUs Migration Util. (5697-N44) Luik 2097-705 488 MSUs Migration Util. (5697-N44) 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

*All prices are estimates in Euro and subject to change

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10 August 2004 Sub-Capacity Announcement

IPLA Topic
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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

z/OS-based Where the Product executes

For example: z/OS Session Manager

Reference-based Where the Parent Product executes

For example: DB2 Utilities Suite (parent is DB2)

Note: uncategorized programs are usually licensed on the machine where the program executes
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Sub-Capacity Ts & Cs
Execution -based Terms For Value Unit Programs

Required: IPLA Amendment for System z Platform Programs Sub-Capacity Pricing Customer tracking required IBM has right to audit, initiate billing

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Machines with Sub-Cap WLC or Sub-Cap EWLC

z/OSbased Terms For Value Unit Programs

Reference -based Terms For Value Unit Programs

environment = a single/stand-alone machine or a qualified Parallel Sysplex

Required license capacity equals the capacity of the LPAR(s) where the IPLA program executes
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Required license capacity equals the z/OS capacity of the machine(s) where the IPLA program executes

Required license capacity equals the capacity of the parent program across the environment

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

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SCRT details

SCRT report only includes the Execution based System z IPLA SW. WebSphere Application Server: GSSP pricing GSSP eligible SW: reported MSU figure function of product usage instead of LPAR size.

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SCRT details

z/OS programs eligible for Getting Started Sub-capacity Pricing Report above shows that WebSphere Application Server for z/OS V6.1 (5655-N01) Service level 16* WAS was running all the WebSphere Application Server for z/OS V7.0 (5655-N02) time in eg LPAR PROD2, WebSphere Extended Deployment on z/OS V6.1 (5655-P28) having R4HA of 83 MSU WebSphere Extended Deployment for z/OS V6.1 by individual components (5655-S33) but only 12 MSU reported Websphere Process Server for z/OS V6.1 (5655-N53) because of GSSP. 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)
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System z IPLA Programs Website

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

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Value Unit Example

Program

SubCap VUs
265 MSUs 120 VUs 86K

Full-Cap VUs
324 MSUs 135 VUs 96K 324 MSUs 109 VUs 102K 279 MSUs 97 VUs 277K 279 MSUs 97 VUs 281K 324 MSUs 109 VUs 281K z9 BC Model M04 @ 45 MSUs z9 EC Model 506 @ 279 MSUs

DB2 Utilities Suite

Reference-based category (DB2, sysplex)

LPAR1
35 MSUs

LPAR2
60 MSUs

LPAR3
175 MSUs

CICS Performance Analyzer

Reference-Based category (CICS, sysplex)

210 MSUs 79 VUs 74K 230 MSUs 84 VUs 240K

z/OS Session Manager

z/OS-Based category (z9 EC)

Fault Analyzer
Execution-Based category (LPAR 2)

60 MSUs 28 VUs 81K

CICS DB2 COBOL Fortran REXX z/OS

230 MSUs CICS DB2 z/OS

DB2 z/OS

WebSphere App Server

Execution-Based category (LPARs 1, 2)

95 MSUs 40 VUs 103K

*All prices are estimates in Euro and subject to change

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Price / Performance

General
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Generation to Generation IBM Software Savings Possible

The announced MSUs for SW pricing purposes on z10 EC and z9 EC servers are designed to offer improved software price/performance.

Example
Software MSUs for similar HW capacity Sample 3 Year Savings for z10 EC SW *

z900 z990 z9 EC
K Euros

Compared with :
50 0 0 4000 3000 2000 10 0 0 0
100

z9 EC

z990

z900

z10 EC
SW MSU Examples 100 90 81 343 1000 1371 309 900 1234 278 810 1111

~10% MSU reduction compared to z9 EC

73 250 729 1000

500 z 10 M SU s

1.000

~37 % higher MSU on z900 ! * Sample Software Stack Includes: z/OS Base plus features, DB2 v9, CICS v3, IMS v10, MQ v7 * Prices are estimates in Euro and subject to change.

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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 in certain 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

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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

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Linux on System z

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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?)

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Integrated Facility for Linux (IFL)

401 MSUs

traditional portion

License Linux on zSeries middleware based on number of IFL engines

linux portion

2097-704 @ 401 MSUs

IFL

IFL

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
If an engine-based zSW IPLA product runs on any CPs it must be licensed on all the CPs.
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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)
If an engine-based zSW IPLA product runs on any IFLs it must be licensed on all the IFLs.

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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.

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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 virtualization CPs 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 technologybased application servers z10, z9, z990 and z890 only Attractively priced No IBM software charges on zAAPs Required Elements z/OS 1.6 or later Java SDK 1.4.1 or later zAAP hardware feature

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zAAP Example, Sub-Capacity WLC

BEFORE: 2097-605 @ 292 MSUs five CPs
r4hr avg=100

AFTER: 2097-605 @ 292 MSUs five CPs + one zAAP

r4hr avg=75

SYSA J J J

SYSB

SYSA J J J

SYSB

J
sysa needs resource

sysa gets resource

J
1 2 1 3 2 3 1 4 2 5 3

J
Logical View Physical View
1 2 1 3 2 z 3 1 4 2 5 3 z

adds zAAP instead of upgrading to 606 or 607 Java workload runs on zAAP engine Sub-Capacity charges for Products in SYSA reduced from 100 to 75 MSUs
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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 virtualization CPs 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 workloads System z9 and z10 only Attractively priced No IBM software charges on zIIPs Required Elements z/OS 1.6 or later DB2 V8 for z/OS zIIP hardware feature
zIIP: can also run zAAP eligible workload (z/OS 1.11)

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Specialty Engine Special Advantages

Customers do not need to re-purchase their specialty engines as they upgrade hardware from one generation to the next A 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 speed On 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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Visit the System z Software Pricing Website

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

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The End

Thank You
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