System z Top Gun System z Software Pricing Amy Tobenkin (altoben@us.ibm.com) Worldwide System z Sales January 2009 IBM System z z10 EC 1 z10 BC © 2008,2009 IBM Corporation 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 2 © 2008,2009 IBM Corporation 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 Units Engine-based, Passport Advantage® Program e.g., DB2®, CICS®, IMS, MQSeries®, COBOL compilers, PL/1 compilers, Domino™, z/OS®, z/VSE™ 3 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!!! © 2008,2009 IBM Corporation System z Top Gun Financial Benefits of Sysplex Aggregation Lower Cost of Incremental Growth Box 1 Licenses Box 2 Licenses WLC aggregate WLC no aggregation COBOL 5648A25 302 MSUs 302 MSUs 302 MSUs Fortran 5668805 302 MSUs 302 MSUs 302 MSUs REXX 5695013 302 MSUs 302 MSUs 302 MSUs CICS TS 5655M15 302 MSUs 276 MSUs DB2 V9 5635DB2 302 MSUs 276 MSUs z/OS 5694A01 302 MSUs 276 MSUs TOTAL 578 MSUs 578 MSUs 578 MSUs $288,428/ month 302 MSUs and 276 MSUs 302 MSUs and 276 MSUs 302 MSUs and 276 MSUs $394,616/ month Box 1 Box 2 COBOL Fortran REXX CICS DB2 z/OS CICS DB2 z/OS INCRE ME NTAL MLC P RICE / S W LE V E L Monthly License Charge ($/MSU) Product System z machine @ 276 MSUs System z machine @ 302 MSUs Level 0 Level 1 Level 2 Level 3 Level 5 Level 4 Level 7 Level 6 Capacity (MSUs) *All prices are estimates in USD and subject to change 4 © 2008,2009 IBM Corporation System z Top Gun Parallel Sysplex Aggregation See the Web: http://ibm.com/zseries/swprice/sysplex 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) 5 © 2008,2009 IBM Corporation System z Top Gun What is Sub-Capacity? 6 © 2008,2009 IBM Corporation System z Top Gun What is Sub-Capacity? sub- (prefix) Below; under; beneath: subsoil. Subdivision: subregion. Less than completely or normally; nearly. System z @ 100 MSUs 30 MSUs DB2 CICS z/OS 50 MSUs IMS z/OS Full-Capacity Pricing Metrics rely on the total rated capacity of the MACHINE where a product executes. Sub-Capacity Pricing Metrics rely on the utilization of the LPAR(s) where a product executes. ibm.com/zseries/library/swpriceinfo/hardware.html G 7 © 2008,2009 IBM Corporation System z Top Gun Generic Sub-Capacity Example 160 SYSB utilization rolling avg SYSB 140 120 SYSA SYSB SYSC 100 80 60 139 MSUs 40 20 z9 EC ‘505’ @ 240 MSUs 0 240 A & B & C utilization rolling avg A & B & C 210 180 219 MSUs 150 120 90 60 z/OS DB2 z/OS 30 z/OS 0 DB2 = 139 MSUs z/OS = 219 MSUs 8 © 2008,2009 IBM Corporation System z Top Gun Who is Eligible for Sub-Capacity? 9 © 2008,2009 IBM Corporation System z Top Gun Workload License Charges* for Sub-Capacity Eligible Products Variable Workload License Charges (VWLC) Full-Capacity mode - use rated MSU capacity or Sub-Capacity mode - use MSU values from SubCapacity Reports 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 cumulative monthly pricing 10 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 System z10 z/OS 64-bit *WLC are available on System z10, z9 EC, z990, z900, z9 BC (plex), z890 (plex) and z800 (plex) © 2008,2009 IBM Corporation System z Top Gun 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 Level Range Base 3 MSUs Level 1 4 - 17 MSUs Level 2 18 - 30 MSUs Level 3 31-45 MSUs Level 4 Level 5 46 - 87 MSUs 88- 175 MSUs Level 6 176 - 260 MSUs Level 7 260+ MSUs Full-Capacity mode - use rated MSU capacity or Sub-Capacity mode - use MSU values from SubCapacity Reports z/OS in 64-bit mode required. Remove all OS/390 for a CEC to qualify… EWLC Tiered Price Structure for z10 BC, z9 BC and z890 Level Tier A Tier B Tier C Tier D Tier E Tier F Range 1-11 MSUs 12-15 MSUs 16 - 40 MSUs 41 - 75 MSUs 76 - 1500 MSUs 1501+ MSUs flat monthly pricing cumulative monthly pricing Select the tier based on the MSU rating of your box System z10 z/OS 64-bit z10 BC-A01, z9 BC- A01 and z890-110 are the exception to this rule, and are priced using zELC 11 © 2008,2009 IBM Corporation 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 12 © 2008,2009 IBM Corporation System z Top Gun z/VSE V4 – New Pricing Metric & Sub-Capacity! 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 points Sub-capacity option Available 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 13 © 2008,2009 IBM Corporation System z Top Gun z/VSE: MWLC High End Price/Performance Before MWLC z9 EC Model 506 279 MSUs z/OS Stack (239 MSUs) WLC Sub-Cap $176K/mo After MWLC z9 EC Model 507 317 MSUs 9672 Model R45 35 MSUs VSE Stack $20K/mo TOTAL $196K/mo z/OS Stack (239 MSUs) WLC Sub-Cap VSE Stack (25 MSUs) MWLC Sub-Cap $176K/mo $6K/mo TOTAL $182K/mo *Sample software stack includes: VSE CF V8, HLASM, VTAM, DITTO, COBOL *Prices subject to change without notice; all prices shown in USD 14 © 2008,2009 IBM Corporation System z Top Gun Price/Performance 15 © 2008,2009 IBM Corporation System z Top Gun 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 Sample 3 Year Savings for z10 EC SW * Software MSUs for similar HW capacity Compared to: z990 z990 z10 EC ~10% MSU reduction compared to z9 EC SW MSU Examples 100 90 81 521 469 422 916 824 742 1828 1648 1481 ~19% MSU reduction compared to z990 Dollars (Thousands) 2,500 z9 EC 16 z9 EC 2,000 1,500 1,000 500 0 z10 EC 100 MSUs z10 EC 500 MSUs z10 EC 1000 MSUs * 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 © 2008,2009 IBM Corporation . System z Top Gun 17 © 2008,2009 IBM Corporation 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 18 © 2008,2009 IBM Corporation System z Top Gun IBM System z Integrated Information Processor (IBM zIIP) 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 19 © 2008,2009 IBM Corporation System z Top Gun Example: Enterprise Applications with zIIPs 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 CP CP zIIP High utilization DB2/DRDA Portions of eligible DB2 enclave SRB workload executed on zIIP DB2/DRDA DB2/DRDA Ent App TCP/IP (via Network or HiperSockets) Reduced utilization DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/DRDA DB2/Batch DB2/Batch DB2/DRDA For illustrative purposes only Actual workload redirects may vary 20 © 2008,2009 IBM Corporation System z Top Gun zAAP Example One, Full Capacity WLC BEFORE: 2097-705 @ 488 MSUs five CPs SYSA J AFTER: 2097-705 @ 488 MSUs five CPs + one zAAP SYSB SYSA J J sysa highly utilized J J J 2 3 1 2 J J 3 1 2 4 5 3 For illustrative purposes only Actual workload redirects may vary z/OS V1.6 or higher z10 EC, z9 EC, z9 BC, z990, z890 only 21 sysa less utilized J J 1 SYSB Logical View Physical View 1 2 1 3 2 z 3 1 4 2 5 3 z Adds zAAP instead of upgrading to 706 or 707 Java workload runs on zAAP engine Full Capacity WLC charges remain at 488 MSUs © 2008,2009 IBM Corporation System z Top Gun zAAP Example Two, Sub-Capacity WLC BEFORE: 2097-705 @ 488 MSUs five CPs SYSA SYSB AFTER: 2097-705 @ 488 MSUs five CPs + one zAAP SYSA SYSB r4hr avg=100 r4hr avg=75 J J J sysa highly utilized J J J J J 1 2 3 1 2 sysa less utilized J J 3 1 2 4 5 3 Logical View Physical View 1 2 1 3 2 z 3 1 4 2 5 3 z Adds zAAP instead of upgrading to 706 or 707 For illustrative purposes only Java™ workload runs on zAAP engine Actual workload redirects may vary Sub-Capacity charges for Products in SYSA reduced from 100 to 75 z/OS V1.6 or higher z10 EC, z10 BC, z9 EC, z9 BC, z990, z890 MSUs only © 2008,2009 IBM Corporation 22 System z Top Gun zNALC Formerly NALC & z/OS.e 23 © 2008,2009 IBM Corporation System z Top Gun zNALC – a great value! System z New Application License Charges (zNALC) for z/OS Attractive 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 24 © 2008,2009 IBM Corporation 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. 25 © 2008,2009 IBM Corporation System z Top Gun z/VM and Linux 26 © 2008,2009 IBM Corporation System z Top Gun Integrated Facility for Linux (IFL) 690 MSUs traditional portion 2094-111 @ 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. 27 License Linux on System z middleware based on number of IFL engines IFL linux portion 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 If an engine-based zSW IPLA product runs on any IFLs it must be licensed on all the IFLs. © 2008,2009 IBM Corporation 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 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 $ = Millions Value Unit Exhibit 021 (VUE021): engines 1 - 3, need 10 VU per engine z/VM V4 compared with z/VM V5 2 engines 4 - 6, need 9 VUs per engine z/VM V5 z/VM V4 engines 7 - 9, need 8 VUs per engine 1.5 engines 10- 12, need 7 VUs per engine engines 13 – 16, need 6 VUs per engine 1 engines 17 – 20, need 5 VUs per engine 0.5 engines 21 – 25, need 4 VUs per engine engines 26 – +, need 3 VUs per engine 0 *All prices are estimates in USD and subject to change ***** cumulative ***** 28 © 2008,2009 IBM Corporation System z Top Gun Linux for System z: Example 2094-711 @ 690 MSUs IFL IFL Product License z/VM V5 20 Value Units License Price ** $45,000 lic $11,260 S&S 690 MSUs z/VM WAS Base DB2 Ent Ed DB2 Ent Ed 200 Value D51NALL Units * WAS Base D51HNLL 200 Value Units * $66,250 Passport Advantage SRP (LIC+12) $20,000 Passport Advantage SRP (LIC+12) Quantity of Integrated Facility for Linux (IFL) features indicates the number of specialized Linux engines * Select IPLA products eligible for sub-capacity pricing **All prices are estimates in USD and subject to change 29 © 2008,2009 IBM Corporation System z Top Gun PVU Table 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 Web Site: www306.ibm.com/software/lotus/passportadvantage/pvu_licens ing_for_customers.html 30 © 2008,2009 IBM Corporation System z Top Gun On/Off Capacity on Demand 31 © 2008,2009 IBM Corporation System z Top Gun z990 OOCoD Example activate 15 Sept., 1pm z990 2084-305 (302 MSUs) unused engines Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) 1 2 3 4 z990 2084-307 (402 MSUs) 5 Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) deactivate 17 Sept., 3pm 6 7 8 1 2 3 4 5 6 7 8 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 MSUs IPLA Software Charges = 3 Days * 100 MSUs = 300 MSU-Days 32 © 2008,2009 IBM Corporation System z Top Gun Sub-Cap MLC Software with OOCoD activate 15 Sept., 1pm z990 2084-305 (302 MSUs) unused engines Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) 1 2 3 4 z990 2084-307 (402 MSUs) 5 Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) deactivate 17 Sept., 3pm 6 7 8 1 2 3 4 5 6 7 8 November MLC Bill (based on September Sub-Cap Report) Highest observed rolling 4-hour average (max 402 MSUs) 33 © 2008,2009 IBM Corporation System z Top Gun Full-Cap MLC Software with OOCoD activate 15 Sept., 1pm z990 2084-305 (302 MSUs) unused engines Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) 1 2 3 4 5 Data Prop. (5655-E52) IMS High Perf. Load (5655-E07) DB2 Utilities Suite (5697-E98) deactivate 17 Sept., 3pm 6 7 8 1 September MLC Bill Special OOCoD Bill (sent to customer at the end of Aug) (sent to customer after OOCoD event) All MLC software at 302 MSUs 34 z990 2084-307 (402 MSUs) + MLC SW @ 402 MSUs Minus MLC SW @ 302 MSUs 2 = 3 4 5 6 7 8 Due to month of OOCoD, customer pays software @ 402 MSUs © 2008,2009 IBM Corporation System z Top Gun Please Visit the System z Software Pricing Web site ibm.com/zseries/swprice 35 © 2008,2009 IBM Corporation 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 36 © 2008,2009 IBM Corporation System z Top Gun Learning Points - System z Software Pricing 37 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. 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. zNALC replaces z/OSe and NALC for reduced z/OS pricing for qualified workloads across all System z Servers.. Parallel Sysplex License Charges (PSLC) applies to qualified Parallel Sysplexes and significantly lowers software prices by aggregating capacity across the entire qualified Parallel Sysplex. 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. © 2008,2009 IBM Corporation