New S/390 Usage Pricing for S/390 Software Products
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1 Software Announcement September 29, 1998 New S/390 Usage Pricing for S/390 Software Products Overview IBM is taking the next evolutionary steps in usage-based pricing of its major subsystems with the introduction of S/390 Usage Pricing, surpassing the current Measured Usage License Charges (MULC) structure in key respects. For customers running OS/390, Version 2, S/390 Usage Pricing is designed to extend usage-based pricing to a wider range of customers circumstances. For customers where individual major subsystem usage characteristics are less than 25% of the standalone processor or Parallel Sysplex, S/390 Usage Pricing may provide a cost-effective alternative versus capacity licensing with Parallel Sysplex License Charges (PSLC). Customers may be able to competitively deploy new workloads such as e-business, ERP applications, Business Intelligence, or Server Consolidation on a S/390 without seeing their software bills increase for IBM major subsystems not required by these new workloads. S/390 Usage Pricing delivers improved entry level prices, enhanced granularity, and a price performance structure similar to existing PSLC, including the introduction of a Level C on the latest version of the major subsystems. Refer to Software Announcement dated September 29, 1998, for more information on PSLC Level C pricing. S/390 Usage Pricing provides enhanced product choices with the addition of four IBM products selectable with S/390 Usage Pricing terms and conditions. Additionally, with reports required only once a year, S/390 Usage Pricing makes budgeting more predictable and substantially reduces administrative tasks. S/390 Usage Pricing is robust and predictable, using four years of proven measurement technology. OS/390, Version 2 and recent versions and releases of IBM s major subsystems (IMS, DB2, CICS, and MQSeries ) have measurement technology integrated for easy access and use. Intended Customers S/390 Usage Pricing is intended for S/390 customers running OS/390 V2 on standalone processors and Parallel Sysplexes with one of the following subsystem products: Program Name Program Number CICS V CICS TS V IMS V MQ Series V DB2 OS/390 V DB2 S/390 Usage Pricing may offer attractive prices for customers using less than 25% of the MSUs in their standalone processor or Parallel Sysplex for any of the above major subsystems. In particular, customers with stable workloads on a growing system or Parallel Sysplex for other new workloads could see benefit from S/390 Usage Pricing. Planned Availability Date January 1, 1999 At a Glance IBM s S/390 Usage Pricing offers an attractive alternative to PSLC for those customers growing new workloads, or moving stable work to larger processors. It provides: In many cases, favorable, usage-based pricing when major subsystem usage is less than 25% of the processor or Parallel Sysplex capacity Reduced entry prices Improved granularity, through a PSLC-like pricing structure Easier budgeting and reduced administrative burden with annual reporting S/390 Usage Pricing on four additional associated IBM products Built on proven, advanced usage measurement technology EXTRA! EXTRA!... Subscribe to IBM isource, your electronic source for customized IBM information! Go to our web site at or send an to info@isource.ibm.com with the word SUBSCRIBE in the body. This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation
2 Description S/390 Usage Pricing represents the follow-on of IBM s Measured Usage License Charges (MULC) license structure for usage-based pricing of IBM s major subsystems and select associated products. S/390 Usage Pricing will replace MULC on the products listed below for customers running OS/390, Version 2. Pricing for these products will be based upon the measured usage of the product or the measured usage of the related IBM major subsystem. All S/390 Usage Pricing is based on the IBM S/390 Usage Report Program. DB2 Version 5 Performance Monitor is an example of a related product whose pricing can be based upon the usage of the DB2 Database Engine, and CICS Version 4 ONC/RPC is another example of a related product whose pricing is based upon the usage of CICS Version 4. Program Name Program Number CICS for MVS/ESA Version CICS for MVS/ESA Version 4 ONC/RPC CICS Trans Server (TS) Version MQSeries Version MQSeries Version 1.2 Client Attachment IMS Version 6 Database Manager IMS Version 6 Transaction Manager IMS Version 6 Extended Terminal Option (ETO) IMS Version 6 RSR-DLT IMS Version 6 RSR-RLT DB2 OS/390 Version 5 Database Engine DB2 OS/390 Version 5 Performance Monitor 5655-DB DB2 In addition, the following products that have not previously had a usage option will be added to S/390 Usage Pricing. These products will be priced, based upon the measured usage of their related subsystem: Program Program Name Number Priced Relative To DB2 Admin Tool DB2 V5 usage DataPropR Capture for 5655-A23 DB2 V5 usage MVS V5 DataPropR Apply for 5655-A22 DB2 V5 usage MVS V5 DataPropagator NR V IMS V6 database Selector DataPropagator NR V IMS V6 database Utility DataPropagator NR V IMS V6 database RCVR DataPropagator NR V IMS V6 database Synch S/390 Usage Pricing s enhancements over the previous MULC offering include: Annual reporting of usage versus 6 month reporting under MULC Improved attractiveness versus PSLC for usage under 25% of processor or Parallel Sysplex capacity Improved pricing of entry levels of usage Simplification of structure similar to a PSLC While the previous MULC offering categorized usage into 10 usage bands up to 14 MSUs with an incremental price per MSU above 14, the new S/390 Usage Pricing structure will look very similar to PSLC. S/390 Usage Pricing will essentially carry six feature numbers (seven including a N/C registration feature number) as described below: Feature Number 1: 0 to 0.25 MSU charge Feature Number 2: 0.26 to 0.5 MSU charge Feature Number 3: 0.51 to 1.0 MSU charge Feature Number 4: 2 to 11 MSU Level A Charge/MSU Feature Number 5: 12 to 44 MSU Level B Charge/MSU Feature Number 6: Above 44 MSU Level C Charge/MSU While usage reported is accurate to three decimal places, during the pricing phases usage levels between the thresholds of features 1, 2, or 3, will be rounded up to the next MSU level. Above 1.0 MSU, usage will be rounded to the nearest whole MSU. For example, 2.4 MSUs would round to 2.0 MSUs for pricing, and 2.5 MSUs would round to 3.0 MSUs for pricing. The customer pricing will be determined similar to PSLC by selecting either: Feature 1 (if usage is below 0.25 MSU) Feature 2 (if usage is between 0.26 and 0.50) Feature 3 (if usage is between 0.51 and 1.0) Feature 3+ (# MSUs from 2-11 times the charge associated with feature number 4) + (# MSUs from times the charge associated with feature number 5) + (# MSUs above 44 times the charge associated with feature number 6 if applicable) IMS ETO is priced based upon IMS Transaction Manager reported usage. IMS RSR (DLT and RLT) is typically priced against IMS Transaction Manager, if running, otherwise it can be based upon the IMS Database. Statement of Direction IBM intends to deliver simplification enhancements for customer usage of S/390 Usage Pricing. These simplification enhancements will ease the customer administrative burden of configuration setup and changes, usage record data analysis, and S/390 usage report processing in both a standalone processor configuration and a Parallel Sysplex. In the area of configuration setup and change management, S/390 Usage Pricing auto-configuration enhancements are intended to address customer s processor upgrades within a processor family and configuration changes within a qualified Parallel Sysplex while continuing to get the cost benefits of S/390 Usage Pricing. These enhancements are in addition to the basic changes necessary to support the improved terms and conditions of S/390 Usage Pricing. This statement represents IBM s current intent and is subject to change or withdrawal without notice. Year 2000 This product is Year 2000 ready. When used in accordance with its associated documentation, it is capable of correctly processing, providing, and/or receiving date data within and between the 20th and 21st centuries, provided all other products (for example, software, hardware, and firmware) used with the product properly exchange accurate date data with it. All products running on a Year 2000 dedicated test processor are not licensable under S/390 Usage Pricing. Products licensed on a processor that are running in an LPAR partition used for Year 2000 testing are also not licensable under S/390 Usage Pricing
3 Reference Information Refer to Software Withdrawal Announcement , dated September 29, Trademarks IMS, MQ, MVS/ESA, MVS, and DataPropagator are trademarks of International Business Machines Corporation in the United States or other countries or both. S/390, OS/390, Parallel Sysplex, CICS, DB2, and MQSeries are registered trademarks of International Business Machines Corporation in the United States or other countries or both. Other company, product, and service names may be trademarks or service marks of others
4 IBM US Announcement Supplemental Information September 29, 1998 Ordering Information Charges will be based upon the Peak MSUs (described in the Terms and Conditions section). Usage reported between thresholds of features 1, 2, or 3, will be rounded up to the next MSU level. Above 1.0 MSU, usage will be rounded to the nearest whole MSU. For example, 2.4 MSUs would round to 2.0 MSUs for pricing, and 2.5 MSUs would round to 3.0 MSUs for pricing. The customer pricing will be determined similar to PSLC by selecting either: Feature 1 (if usage is below 0.25 MSU) Feature 2 (if usage is between 0.26 and 0.50) Feature 3 (if usage is between 0.51 and 1.0) Feature 3 + (# MSUs from 2-11 times the charge associated with feature number 4) + (# MSUs from times the charge associated with feature number 5) + (# MSUs above 44 times the charge associated with feature number 6 if applicable) CICS V4 CICS TS MQSeries CICS V4 ONC/RPC V1.2 V1.2 Description to 0.25 MSU Base to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature IMS V6 IMS V6 IMS V6 IMS V6 DB Mgr Trans Mgr ETO RSR-DLT Description to 0.25 MSU Base to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature IMS V6 DB2 V5 DB2 V5 DB2 Admin RSR-RLT DB Engine Perf Mon Tool Description DB DB to 0.25 MSU Base to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature This announcement is provided for your information only. For additional information, contact your IBM representative, call 800-IBM-4YOU, or visit the IBM home page at: IBM United States IBM is a registered trademark of International Business Machines Corporation
5 DataPropR DataPropR DataProp DataProp Capture Apply Non Rel V2 Non Rel V2 MVS V5 MVS V5 Selector Utility Description 5655-A A to 0.25 MSU Base to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature DataProp DataProp MQSeries Non Rel Non Rel V1.2 Client RCVR SYNC Attachment Description to 0.25 MSU Base to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature Examples for ordering: 1. A customer with a measured usage (from the IBM Measured Usage report) of 0.3 MSU would: Order quantity 1 of the 0.26 to 0.5 MSU base feature 2. A customer with 6.6 MSUs (from the IBM Usage report) would: Be rounded up to 7.0 MSUs Order quantity 1 of the 0.51 to 1.0 MSU base feature Order quantity 6 of the Level A 1 MSU feature 3. A customer with 15 MSUs (from the IBM Usage report) would: Order quantity 1 of the 0.51 to 1.0 MSU base feature Order quantity 10 of the Level A 1 MSU feature Order quantity 4 of the Level B 1 MSU feature 4. A customer with 50 MSUs (from the IBM Usage report) would: Order quantity 1 of the 0.51 to 1.0 MSU base feature Order quantity 10 of the Level A 1 MSU feature Order quantity 33 of the Level B 1 MSU feature Order quantity 6 of the Level C 1 MSU feature
6 Terms and Conditions Eligible Products The following products are eligible for S/390 Usage Pricing: Program Name Program Number CICS for MVS/ESA Version CICS for MVS/ESA Version 4 ONC/RPC Feature CICS for MVS/ESA TS Version MQSeries Version MQSeries Version 1.2 Client Attachment IMS Version 6 Database Manager IMS Version 6 Transaction Manager Feature IMS Version 6 Ext. Terminal Option Feature IMS Version 6 RSR-DLT Feature IMS Version 6 RSR-RLT Feature DB2 OS/390 Version 5 Database Engine DB2 OS/390 Version 5 Perf. Monit. Feature 5655-DB DB2 DB2 Admin Tool DataProp R Capture for MVS Version A23 DataProp R Apply for MVS Version A22 DataProp NR Version 2 Selector DataProp NR Version 2 Utility DataProp NR Version 2 RCVR DataProp NR Version 2 Synch Required Operating System To qualify for S/390 Usage Pricing, the eligible products listed above must be running on a standalone processor or in a qualified Parallel Sysplex where OS/390 Version 2 is running in at least one LPAR partition on a processor. Non-IBM Processors Eligible products running under a required IBM operating system on a non-ibm processor may qualify for S/390 Usage Pricing provided that IBM has agreed to that processor s CPU Service Unit (SU) factor as supplied by the processor s manufacturer. Measurement Recording Collection and recording of usage statistics for the purpose of S/390 Usage Pricing will use the IBM supplied Usage Report Program. All products running on a Year 2000 dedicated test processor are not licensable under S/390 Usage Pricing. Products licensed on a processor and only running in an LPAR partition or VM system used for Year 2000 testing are also not licensable under S/390 Usage Pricing. The usage statistics for products on a processor or Parallel Sysplex that are used in both normal operation and Year 2000, will typically not include the measured usage of the Year 2000 testing due to its frequent date changes. Processors or Parallel Sysplexes running OS/390 Auto UNIX do not qualify for S/390 Usage Pricing as OS/390 Auto UNIX is a pre-configured UNIX only system without the ability to activate the usage measurement tool. Configuration Requirements and Changes All processors that participate in a qualified Parallel Sysplex must be defined via the measurement tool as participating in that Parallel Sysplex. Usage statistics will then be correctly aggregated across all participating processors as will be shown on the S/390 Usage Report. This aggregated usage will be used to license the supported product via S/390 Usage Pricing. Processor upgrades within a processor family or to a different processor family such that the serial number changes need to both be identified to the measurement tool. Such changes do not require an adjustment to the billing for the current 12 month billing period, but will be used by the ongoing record of usage statistics to determine the S/390 Usage Pricing for the next 12 month s billing period. Billing Period S/390 Usage Pricing will be based upon a 12 month billing period. Current MULC customers will be eligible to migrate to S/390 Usage Pricing at the time of their renewal for eligible products if they are running OS/390, Version 2. Establishing Monthly Charges for Initial Billing Period Using the IBM provided measurement tool, usage data must be collected for a period of 2 months. The measurement tool will record usage statistics on an hourly basis for each eligible product. During the entire period, the measurement tool must be activated to record: For aggregation of usage statistics in a qualified Parallel Sysplex, (refer to the Configuration Requirements section above), all participating processors must be defined to the measurement tool. Usage statistics for eligible products running in all OS/390 Version 2, OS/390 Version 1, and MVS/ESA LPARs or system under VM on a participating processor or Parallel Sysplex Usage statistics for all copies of each eligible product and all its predecessor versions including non-production LPARs or VM systems. As an example, to receive S/390 Usage Pricing on CICS Version 4, usage statistics must be collected for CICS Version 4 usage as well as any usage of older versions such as CICS Version 3 on that processor or qualified Parallel Sysplex. To receive S/390 Usage Pricing on a supported subsystem version, that product s usage for the month will be the accumulation of usage across all operating versions of the product. A product set s S/390 Usage Pricing will be based on monthly usage measurements determined as follows: The measurement function registers 24 hourly usage measurements each day, accumulating usage for all operating versions of a supported product. The product set s highest hourly usage measurement is reported as the usage measurement for that day. The usage measurement for the month upon which charges will be based is the fourth highest of the daily usage measurements recorded in that month
7 The higher of the two month s usage measurement will be used in calculating the monthly S/390 Usage Pricing. The billing start date for monthly S/390 Usage Pricing will be the first day of the month in which usage measurements and recording was completed, provided that data supporting the measurement from the IBM measurement tool is received by IBM no later than ten business days after the end of the measurement period. Ongoing continuous operation of the appropriate measurement tool is required throughout the billing period. These measurements will be used for subsequent billing periods. Subsequent Billing Periods Charges for the subsequent billing period will be based upon the highest monthly usage measurement (defined above) for the prior billing period. (Measurements recorded during applicable test allowance period will be disregarded.) Recorded monthly usage measurements from the prior billing period must be supplied to IBM within the first 10 business days of the final month of the prior billing period so that charges for the subsequent billing period can be established. Monthly charges for the subsequent billing period will be based upon the highest monthly usage measurement (defined above) recorded in the prior 12 month period. Upgrading a Product to a New Version During a Billing Period At the expiration of the test allowance period for the new version, S/390 Usage Pricing charges will apply at the new version rate based upon the usage level already established for that period. Charges CICS V4 CICS V4 ONC/RPC Description Charge Charge 0 to 0.25 MSU Base 0405 $1, $ to 0.5 MSU Base , to 1.0 MSU Base , Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 0411 NC 0418 NC CICS TS MQSeries V1.2 V1.2 Description Charge Charge 0 to 0.25 MSU Base 0001 $1, $1, to 0.5 MSU Base , , to 1.0 MSU Base , ,770 Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 0007 NC 0043 NC IMS V6 IMS V6 DB Mgr Trans Mgr Description Charge Charge 0 to 0.25 MSU Base 1000 $1, $1, to 0.5 MSU Base , , to 1.0 MSU Base , ,795 Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1006 NC 1013 NC
8 IMS V6 IMS V6 ETO RSR-DLT Description Charge Charge 0 to 0.25 MSU Base 1014 $ $1, to 0.5 MSU Base , to 1.0 MSU Base ,035 Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1020 NC 1027 NC IMS V6 DB2 V5 RSR-RLT DB Engine Description Charge 5655-DB2 Charge 0 to 0.25 MSU Base 1028 $ $1, to 0.5 MSU Base , to 1.0 MSU Base ,295 Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1034 NC 1006 NC DB2 V5 DB2 Admin Perf Mon Tool Description 5655-DB2 Charge Charge 0 to 0.25 MSU Base 1007 $ $ to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1013 NC 0306 NC DataPropR DataPropR Capture Apply MVS V5 MVS V5 Description 5655-A23 Charge 5655-A22 Charge 0 to 0.25 MSU Base 0001 $ $ to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 0007 NC 0206 NC DataProp DataProp Non Rel V2 Non Rel V2 Selector Utility Description Charge Charge 0 to 0.25 MSU Base 1000 $ $ to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1006 NC 1013 NC
9 DataProp DataProp Non Rel Non Rel RCVR SYNC Description Charge Charge 0 to 0.25 MSU Base 1014 $ $ to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 1020 NC 1073 NC MQSeries V1.2 Client Attachment Description Charge 0 to 0.25 MSU Base 2001 $ to 0.5 MSU Base to 1.0 MSU Base Level A Chg/MSU (2 to Level B Chg/MSU (12 to Level C Chg/MSU (above N/C ID Feature 2007 NC Trademarks IMS, MVS, and MVS/ESA are trademarks of International Business Machines Corporation in the United States or other countries or both. CICS, MQSeries, DB2, S/390, OS/390, and Parallel Sysplex are registered trademarks of International Business Machines Corporation in the United States or other countries or both. UNIX is a registered trademark in the United States and other countries exclusively through X/Open Company Limited. Other company, product, and service names may be trademarks or service marks of others
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