System z Top Gun © 2008,2009 IBM Corporation 1 System z Software Pricing IBM System z z10 ECz10 BC Amy Tobenkin ([email protected]) Worldwide System z

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System z Top Gun

© 2008,2009 IBM Corporation

System z Software Pricing

IBM System z

z10 EC z10 BC

Amy Tobenkin ([email protected]) Worldwide System z SalesJanuary 2009

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System z Top Gun


Agenda Software Pricing Overview Parallel Sysplex® Aggregation Sub-Capacity Pricing z/VSE™ Sub-capacity pricing IBM System z™ Application Assist Processor (zAAP) and IBM System z9™

Integrated Information Processor (zIIP) System z New Application License Charge (zNALC) z/VM® and Linux® On/Off Capacity on Demand

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System z Top Gun


IBM System z Software Pricing System z: Monthly License Charges (MLC)

System z: One Time Charges (OTC)

Distributed: One Time Charges

IBM Customer Agreement (ICA)International Program License Agreement (IPLA)

International Program License Agreement (IPLA)

Monthly ‘term’ license‘Perpetual’ license, annual maintenance (optional)

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

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

License to a machine, sysplex aggregation

License to an enterprise, Enterprise aggregation

License to an enterprise, Relationship

Acronyms ending in ‘LC’ Value UnitsEngine-based, Passport Advantage® Program

e.g., DB2®, CICS®, IMS, MQSeries®, COBOL compilers, PL/1 compilers,

Domino™, z/OS®, z/VSE™

e.g., DB2®, CICS®, IMS, MQSeries®, COBOL compilers,

PL/1 compilers, Domino™, z/OS®, z/VSE™

e.g., Products that run on UNIX®, Microsoft® Windows®,

Linux® …including middleware for

Linux on zSeries!!!

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System z Top Gun


Financial Benefits of Sysplex AggregationSystem z machine@ 302 MSUs

Box 1

COBOLFortranREXXCICSDB2z/OS

System z machine@ 276 MSUs

Box 2

CICSDB2z/OS

Product Box 1 Licenses

Box 2 Licenses

WLCaggregate

WLCno aggre-

gation

COBOL5648A25

302MSUs

302 MSUs 302 MSUs

Fortran5668805

302MSUs

302 MSUs 302 MSUs

REXX5695013

302MSUs

302 MSUs 302 MSUs

CICS TS5655M15

302MSUs

276MSUs 578 MSUs

302 MSUs and

276 MSUs

DB2 V95635DB2

302MSUs

276MSUs 578 MSUs

302 MSUs and

276 MSUs

z/OS5694A01

302MSUs

276MSUs 578 MSUs

302 MSUs and

276 MSUsTOTAL $288,428/

month$394,616/

month Capacity (MSUs)

Mo

nth

ly L

icen

se C

har

ge

($/M

SU

)

INCREMENTAL MLC PRICE / SW LEVEL

Level 1

Level 0

Level 2Level 3

Level 4

Level 5

Level 6

Level 7

*All prices are estimates in USD and subject to change

Lower Cost of Incremental Growth

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System z Top Gun


IBM Parallel Sysplex® Aggregation Criteria:– Hardware requirements

Common Coupling Facility and Common Sysplex Timer® or Server Time Protocol (STP)

– Software requirements

Common Systems Enablement Function– Operational requirements

50% Workload Rule– Verification requirements

Sysplex Verification Package Applies to Parallel Sysplexes with:

– Workload License Charges (WLC)

– System z New Application License Charges (zNALC)

– Parallel Sysplex License Charges (PSLC)

See the Web: http://ibm.com/zseries/swprice/sysplex

Parallel Sysplex Aggregation

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System z Top Gun


What is Sub-Capacity?

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System z Top Gun


sub- (prefix)Below; under; beneath: subsoil. Subdivision: subregion. Less than completely or normally; nearly.

System z @ 100 MSUsFull-Capacity Pricing Metrics rely on the total rated capacity of the MACHINE where a product executes.

30 MSUs

DB2CICSz/OS

50 MSUs

IMSz/OS

ibm.com/zseries/library/swpriceinfo/hardware.html

G

What is Sub-Capacity?

Sub-Capacity Pricing Metrics rely on the utilization of the LPAR(s) where a product executes.

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System z Top Gun


Generic Sub-Capacity Example

SYSA SYSB SYSC

219 MSUs

139 MSUs

z/OSDB2 z/OS z/OS

z9 EC ‘505’ @ 240 MSUs

0

30

60

90

120

150

180

210

240A & B & C utilization rolling avg A & B & C

0

20

40

60

80

100

120

140

160SYSB utilization rolling avg SYSB

DB2 = 139 MSUsz/OS = 219 MSUs

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System z Top Gun


Who is Eligible for Sub-Capacity?

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System z Top Gun


Workload License Charges*

for Sub-Capacity Eligible ProductsVariable Workload License Charges (VWLC)

for non-Sub-Capacity Eligible ProductsFlat Workload License Charges (FWLC)

per server

single charge

Flat WLC Structure

Variable WLC Price Structure

cumulative monthly pricing

flat monthly pricing

Level RangeBase 0 - 3 MSUsLevel 0 4 - 45 MSUsLevel 1 46 - 175 MSUsLevel 2 176 - 315 MSUsLevel 3 316 - 575 MSUsLevel 4 576 - 875 MSUsLevel 5 876 - 1315 MSUsLevel 6 1316 - 1975 MSUsLevel 7 1976+ MSUs

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

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

System z10z/OS 64-bit

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

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System z Top Gun


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

for Sub-Capacity Eligible ProductsEntry Workload License Charges (EWLC)

for non-Sub-Capacity Eligible ProductsEWLC Tiered Price STructure

EWLC Tiered Price Structure for z10 BC, z9 BC and z890

EWLC Price Structure

cumulative monthly pricing

flat monthly pricing

Select the tier based on the MSU rating of your box

Level Range

Base 3 MSUs

Level 1 4 - 17 MSUs

Level 2 18 - 30 MSUs

Level 3 31-45 MSUs


Level 5 88- 175 MSUs


Level 7 260+ MSUs

Level Range

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

z10 BC-A01, z9 BC- A01 and z890-110 are the exception to this rule, and are priced using zELC

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

System z10z/OS 64-bit

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

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System z Top Gun


Sub-Capacity Possible Benefits

Grow Hardware Capacity Independently of Software Capacity– Pay for software only based on the LPAR(s) where the software executes

– Grow software with 1 MSU level of granularity

– Spike into "spare" capacity without software charges

– Manage utilization without having to turn engines on and off Flexibility to Pay for What you Need each Month

– In the case of ELA, your monthly payments are fixed and your actual sub-capacity monthly software inventory value is compared against your MLC cap

Pay on Average Utilization, not Maximum Utilization– Highest observed rolling 4-hour average utilization across a month

– Sub-Capacity Reporting Tool manages measurement/reporting

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System z Top Gun


z/VSE V4:– z/Architecture (64-bit) mode only

z10 EC, z10 BC, z9 EC, z9 BC, z990, z890, z900, z800– Up to 8 GB real processor storage

z/VSE Price/Performance Through New Pricing Metric– Midrange Workload License Charges – MWLC

Low full capacity price pointsSub-capacity optionAvailable on System z10 and System z9 servers only (z10 BC, z10 EC,

z9 BC and z9 EC)

Additional Price/Performance Through Sub-Capacity– Some hardware footprint consolidations more attractive now

MWLC requires current servers (z10 BC, z10 EC / z9 EC / z9 BC) and z/VSE V4– Presence of z/VSE V3 or VSE/ESA forces full-capacity pricing

* z9 BC A01 is priced zELC, not MWLC

z/VSE V4 – New Pricing Metric & Sub-Capacity!

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System z Top Gun


z/VSE: MWLC High End Price/Performance

Before MWLC After MWLC

z9 ECModel 506279 MSUs

z/OSStack

(239 MSUs)WLC

Sub-Cap

9672Model R4535 MSUs

VSEStack

$176K/mo $20K/mo

z9 ECModel 507317 MSUs

z/OS Stack

(239 MSUs)WLC

Sub-Cap

VSEStack

(25 MSUs)MWLC

Sub-Cap

TOTAL$196K/mo

TOTAL$182K/mo

$176K/mo $6K/mo

*Prices subject to change without notice; all prices shown in USD

*Sample software stack includes: VSE CF V8, HLASM, VTAM, DITTO, COBOL

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System z Top Gun


Price/Performance

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System z Top Gun


Generation to Generation IBM Software Savings Possible

* Sample Software Stack Includes: z/OS Base plus features, DB2 v9, CICS v3, IMS v9, MQ v6 All Prices are estimates in USD and are subject to change

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

z990

z9 EC

~10% MSU reduction compared to z9 EC

z10 EC

Example

Software MSUs for similar HW capacity

.

Sample 3 Year Savings for z10 EC SW *

Compared to:

SW MSU Examples

100 90 81

521 469 422

916 824 742

1828 1648 1481

~19% MSU reduction compared to z990

0

500

1,000

1,500

2,000

2,500

z10 EC 100MSUs

z10 EC 500MSUs

z10 EC 1000MSUs

Do

llars

(T

ho

usa

nd

s)

z9 EC z990

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System z Top Gun


zAAP/zIIP

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System z Top Gun


System z Application Assist Processor (zAAP)

zAAP – New processor type dedicated exclusively for Java language based workloads under z/OS – e.g. WebSphere

Enabled by zSeries 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 help lower cost of computing for Java technology-based

application servers

– Attractively priced on z10 EC, z10 BC, z9 EC, z9 BC, z990, and z890.

– No IBM software charges on zAAPs Required Elements

– z/OS 1.8* or higher

– zAAP hardware feature

– Java SDK 1.4.1

* Originally supported with z/OS1.6 which is no longer a supported release

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System z Top Gun


Specialty engine for the System z9 and System z10 server designed to help:– Customers integrate data across the enterprise

– Improve resource optimization and lower the cost of ownership for eligible data serving workloads

z/OS manages and directs work between the general purpose processor and the zIIP– Number of zIIPs per server not to exceed number of standard processors

– No changes anticipated to DB2 for z/OS V8 applications

DB2 for z/OS V8 was the first IBM exploiter of the zIIP with– z10 EC, z9 EC and z9 BC

– z/OS 1.8 or later (Available with z/OS 1.6 which is no longer a supported release)

– DB2 for z/OS V8 or later

– Additional zIIP function with XML

IBM System z Integrated Information Processor (IBM zIIP)

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System z Top Gun


High utilization

For illustrative purposes only

Actual workload redirects may vary

Reduced utilization

Portions of eligible DB2 enclave SRB workload executed on zIIP

DB2/DRDA

DB2/Batch

Ent App DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/Batch

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

DB2/DRDA

TCP/IP(via Network or HiperSockets)

CP CP zIIP

Enterprise Applications that access DB2 for z/OS V8 via DRDA over a TCP/IP connection will have portions of these SQL requests directed to the zIIP

Example: Enterprise Applications with zIIPs

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System z Top Gun


Adds zAAP instead of upgrading to 706 or 707Java workload runs on zAAP engine

Full Capacity WLC charges remain at 488 MSUs

BEFORE:2097-705 @ 488 MSUsfive CPs

SYSA SYSB

J

JJ

J

J

1 2 3 1 2 3

AFTER:2097-705 @ 488 MSUsfive CPs + one zAAP

SYSA SYSB

J

JJ

J

J

1 2 3 1 2 3zLogical View

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

sysahighlyutilized

sysaless

utilized

For illustrative purposes onlyActual workload redirects may varyz/OS V1.6 or higherz10 EC, z9 EC, z9 BC, z990, z890 only

zAAP Example One, Full Capacity WLC

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System z Top Gun


Adds zAAP instead of upgrading to 706 or 707Java™ workload runs on zAAP engine

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

BEFORE:2097-705 @ 488 MSUsfive CPs

SYSA SYSB

J

JJ

J

J

1 2 3 1 2 3

AFTER:2097-705 @ 488 MSUsfive CPs + one zAAP

SYSA SYSB

J

JJ

J

J

1 2 3 1 2 3zLogical View

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

sysahighlyutilized

sysaless

utilized

r4hr avg=100 r4hr avg=75

For illustrative purposes onlyActual workload redirects may varyz/OS V1.6 or higherz10 EC, z10 BC, z9 EC, z9 BC, z990, z890 only

zAAP Example Two, Sub-Capacity WLC

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System z Top Gun


zNALC

Formerly NALC & z/OS.e

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System z Top Gun


zNALC – a great value!

System z New Application License Charges (zNALC) for z/OSAttractive pricing for z/OS operating system for qualified new workloads on the

System z platform Customers looking to add new applications to System z as well as existing NALC

and z/OS.e customers will be interested in zNALC.

zNALC provides: Single Qualified New Workload pricing metric 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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System z Top Gun


zNALC expands the definition of ‘qualified new workload’ zNALC can provide more choice of qualifying applications* zNALC provides a definition of Qualified Applications:

– Qualifies a range of commercially available UNIX and Microsoft Windows applications

– Qualifies a range of enterprise application data serving workloads

– Qualifies a range of Java™ language business applications running under WebSphere Application Server

– See the zNALC announcement letter for terms, conditions, and details

NALC was applicable only to a short list of select applications z/OS.e disables or disallows certain products, applications, and

workloads

* zNALC is available only on LPARs dedicated to a qualified new workload application. In general, qualified applications are those that IBM considers 'new workload', such as Java language business applications running under WebSphere Application Server, Lotus® Domino™, SAP, PeopleSoft, and Siebel among others.

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System z Top Gun


z/VM and Linux

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System z Top Gun


Integrated Facility for Linux (IFL)

2094-111 @ 690 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 "distributed" middleware converted to Processor Value Units

License Linux on System z middleware based on number of IFL engines

traditional portion

linux portion

690 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

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.

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System z Top Gun


z/VM V5 Pricing z/VM V5, with Improved Engine-based pricing

– Provides a lower entry point of $22.5K (Base feature)

– Lower Cost of incremental growth versus z/VM V4

– Enterprise-Wide Aggregation Value Unit Pricing, Convert engines to Value Units (VUE021)

– z/VM V5 Base License is $2,250 per Value Unit

– z/VM V5 Base S&S is $563 per Value Unit

z/VM V4 compared with z/VM V5

0

0.5

1

1.5

2$

= M

illi

on

sz/VM V5 z/VM V4

Value Unit Exhibit 021 (VUE021):engines 1 - 3, need 10 VU per engineengines 4 - 6, need 9 VUs per engineengines 7 - 9, need 8 VUs per engineengines 10- 12, need 7 VUs per engineengines 13 – 16, need 6 VUs per engineengines 17 – 20, need 5 VUs per engineengines 21 – 25, need 4 VUs per engineengines 26 – +, need 3 VUs per engine

***** cumulative *****

EXAMPLES:1 engine = 10 VUs

2 engines = 20 VUs 3 engines = 30 VUs 4 engines = 39 VUs 5 engines = 48 VUs 6 engines = 57 VUs 7 engines = 65 VUs 8 engines = 73 VUs 9 engines = 81 VUs

10 engines = 88 VUs 11 engines = 95 VUs 12 engines = 102 VUs 13 engines = 108 VUs 14 engines = 114 VUs 15 engines = 120 VUs

*All prices are estimates in USD and subject to change

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System z Top Gun


Linux for System z: Example

* Select IPLA products eligible for sub-capacity pricing

**All prices are estimates in USD and subject to change

2094-711 @ 690 MSUs

IFL IFL

Quantity of Integrated Facility for Linux (IFL) features indicates the number of specialized Linux engines

z/VMWAS BaseDB2 Ent Ed

690 MSUs

Product License License Price **

z/VM V5 20ValueUnits

$45,000 lic$11,260 S&S

DB2 Ent EdD51NALL

200 Value Units *

$66,250Passport Advantage

SRP(LIC+12)

WAS BaseD51HNLL

200 Value Units *

$20,000Passport Advantage

SRP(LIC+12)

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System z Top Gun


PVU Web Site:www-306.ibm.com/software/lotus/passportadvantage/pvu_licensing_for_customers.html

For current generally available processors only, as of publish date.

PVU requirements for future processor technologies may differ.

For PVU requirements for any processors not listed above, please contact IBM.

IBM SW defines "Processor" as a Core.

Each IFL or CP engine is equivalent to 1 processor core.

Passport Advantage Software licensed based on Processor Value Units. This includes middleware for Linux on System z.

e.g. WebSphere for Linux on System z, DB2 for Linux on System z

PVU Table

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System z Top Gun


On/Off Capacity on Demand

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System z Top Gun


z990 OOCoD Example

3 days 15 Sept 1pm - 16 Sept 1pm (one day)16 Sept 1pm - 17 Sept 1pm (one day)17 Sept 1pm - 17 Sept 3pm (one day)

Hardware View: 2 Engines Hardware Charges = 3 Days * 2 Engines = 6 Processor-Days

IPLA Software View: 2084-305 to 2084-307 = 302 MSUs to 402 MSUs = 100 MSUsIPLA Software Charges = 3 Days * 100 MSUs = 300 MSU-Days

z9902084-305

(302 MSUs)

1 5432 6 87

unused engines

Data Prop. (5655-E52)IMS High Perf. Load (5655-E07)DB2 Utilities Suite (5697-E98)

z9902084-307

(402 MSUs)

1 5432 8


76

activate

deactivate

15 Sept., 1pm

17 Sept., 3pm

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System z Top Gun


Sub-Cap MLC Software with OOCoD

November MLC BillNovember MLC Bill

(based on September Sub-Cap Report)

Highest observed rolling 4-hour average (max 402 MSUs)

z9902084-305

(302 MSUs)

1 5432 6 87

unused engines


z9902084-307

(402 MSUs)

1 5432 8


76

activate

deactivate

15 Sept., 1pm

17 Sept., 3pm

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System z Top Gun


Full-Cap MLC Software with OOCoD

September MLC BillSeptember MLC Bill

(sent to customer at the end of Aug)

All MLC software at 302 MSUs

Special OOCoD BillSpecial OOCoD Bill

(sent to customer after OOCoD event)

MLC SW @ 402 MSUsMinus

MLC SW @ 302 MSUs

+ =

z9902084-305

(302 MSUs)

1 5432 6 87

unused engines


z9902084-307

(402 MSUs)

1 5432 8


76

activate

deactivate

15 Sept., 1pm

17 Sept., 3pm

Due to month of OOCoD, customer

pays software @ 402 MSUs

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System z Top Gun


Please Visit the System z Software Pricing Web site

ibm.com/zseries/swprice

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System z Top Gun


Reference Information System z Software pricing Web site

– ibm.com/zseries/swprice Parallel Sysplex Aggregation

– ibm.com/zseries/swprice/sysplex zNALC web site

– ibm.com/zseries/swprice/znalc.html Announcement Letters

– System z New Application License Charges– US: 207-006 EMEA/LA: ZA07-0102– AP: AP07-0006 Canada: A07-0035

SCRT page– ibm.com/zseries/swprice/scrt/

Sub-capacity Corner web site– ibm.com/zseries/swprice/subcap

NALC– ibm.com/zseries/swprice/znalc.html

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System z Top Gun


Learning Points - System z Software Pricing

1. System z Monthly License Charges (MLC) pricing is typically used for DB2, CICS, IMS, MQSeries, COBOL compilers, PL/1 compilers, Domino, z/OS, z/VSE.

2. z/OS.e disables or disallows certain products, applications, and workloads (such as IMS, CICS) and supports z800/z890/z9 BC/z10 BC servers only.

3. zNALC replaces z/OSe and NALC for reduced z/OS pricing for qualified workloads across all System z Servers..

4. Parallel Sysplex License Charges (PSLC) applies to qualified Parallel Sysplexes and significantly lowers software prices by aggregating capacity across the entire qualified Parallel Sysplex.

5. WLC Sub-Capacity Software pricing is determined by the processor capacity used during the peak rolling four hour average for the LPAR(s) in which the software is running.

Documents

System z Top Gun © 2008,2009 IBM Corporation 1 System z Software Pricing IBM System z z10 ECz10 BC Amy Tobenkin ([email protected]) Worldwide System z