Container Pricing for IBM Z Scott P. Engleman z/os Offering Manager IBM Poughkeepsie, New York

Transcription

1 Container Pricing for IBM Z Scott P. Engleman z/os Offering Manager IBM Poughkeepsie, New York engleman@us.ibm.com IBM Z / October 2018 / 2018 IBM Corporation 1

2 Agenda Container Pricing Concepts Announcements in 4q 2017 Application Development and Test Solution deep dive New Application Solution Payments Pricing Solution Announcements in 4q 2018 Updates for Application Development and Test Solution New New Application Solution and SCLC (Solution Consumption License Charge) IBM Z / October 2018 / 2018 IBM Corporation 2

3 Container Pricing for IBM Z Container Pricing for IBM Z provides: Greatly simplified software pricing for qualified solutions Flexible deployment options that support best technical fit, not driven by pricing Competitive economics that are directly relevant to each solution Possibility of different pricing metrics in the same logical partition Container Pricing provides line-of-sight pricing for qualified solutions running on IBM z14, z13, and z13s servers IBM Z / October 2018 / 2018 IBM Corporation 3

4 The challenge As an ultra-highly virtualized environment, IBM Z is an exceptional platform for enterprise workloads. However, such a high level of virtualization can be a challenge when trying to isolate the price of specific individual workloads.

5 Container Pricing for IBM Z Container Pricing for IBM Z provides standalone workload pricing within the highly virtualized IBM Z environment. Solutions are priced based on their business value, with no direct impact to the cost of unrelated workloads.

6 Simplicity via Standardization Container Pricing can scale from collocated solutions within existing LPARs, to separate LPARs, to multiple LPAR and multiple machine solutions. Container Pricing does not directly impact the cost of unrelated workloads. Client has flexibility to determine where to deploy Based on technical requirements and preference - not driven by pricing. z/os enables solution-level metering and controls. The client is not responsible for monthly manual tagging and tracking. IBM Z / October 2018 / 2018 IBM Corporation 6

7 Key Concepts Container The pricing container is the method of measuring the scope of a workload for pricing. Containers provide the pricing and billing infrastructure, not the actual pricing metrics. There are no additional technical virtualisation layers that enable the container. Solutions It is the solution that runs inside the container that is priced. Price points differ between solutions, and prices are specific to those solutions. IBM announced Container Pricing will initially support 3 different solutions. The container is the infrastructure for the pricing and billing The solutions are the specific offerings that are sold and priced. IBM Z / October 2018 / 2018 IBM Corporation 7

8 The 4q2017 Announced Solutions Application Development and Test Solution Highly discounted DevTest New Application Solution Predictable costs at win prices Payments Pricing Solution Per-payment pricing AP AP Canada A EMEA ZP Japan JP LA LP US US AP AP Canada A EMEA ZP Japan JP LA LP US US AP AP Canada A EMEA ZP Japan JP LA LP US US

9 Container Pricing for IBM Z Application Development & Test Solution IBM Z / October 2018 / 2018 IBM Corporation 9

10 A healthy DevTest environment A healthy production environment requires a healthy application development and test (DevTest) environment. A heathy DevTest environment is challenging to achieve if DevTest workloads are artificially capped to control MLC costs.

11 Impacts of capping DevTest Capping DevTest workloads places a number of burdensome restrictions on DevTest activities: Reducing available capacity during production peaks, which can force DevTest to off-hour periods. Conducting DevTest activities in production LPARs, which can introduce security and availability risks. Limiting the environments in which key software programs operate, which can inhibit effective testing.

12 The healthy DevTest Solution The DevTest Solution enables you to increase your current z/osbased DevTest capacity, without increasing IBM MLC costs. This allows you to run substantially increased DevTest, without the need for capping - even during production peaks.

13 How the DevTest Solution works Highly discounted full-capacity pricing, for standalone DevTest workloads. Up to a 3x peak DevTest capacity, with no additional IBM MLC costs. IBM OTC DevTest licenses offered at uniquely discounted prices.

14 How the DevTest Solution works 12,000 10,000 8,000 6,000 4,000 2, Prod DevTest Note: Production peak is here. DevTest contribution during production peak is used to calculate cost of the DevTest solution. Note: Max DevTest usage is here. We call this the Base Capacity. This can be tripled.

15 Information for sizing DevTest Solutions 3 months of BAU SCRT reports (all LPARS from all environments) 3 months of Prod only SCRT reports (SCRT EXCLUDE all DevTest LPARS) 3 months of DevTest only SCRT reports (SCRT EXCLUDE all Production LPARS) With this information, your IBM representative can calculate: Your current DevTest costs (BAU costs minus Production-only costs) Your current peak DevTest usage (which can be increased to 3x)

16 A more detailed example Consider this typical 24- hour period. The total workload is capped at 9,000 MSUs. DevTest is capped in multiple hours. 12,000 10,000 8,000 6,000 4,000 2, Prod DevTest

17 A more detailed example Initial DevTest MLC costs are derived from the existing R4HA contribution. 12,000 10,000 8,000 MLC costs Base capacity DevTest base capacity is taken from the existing DevTest peak. 6,000 4,000 2, Prod DevTest

18 A more detailed example The base DevTest capacity can now be run at any time, without increasing MLC costs. 12,000 10,000 8,000 MLC Cost Additional DevTest capacity 6,000 4,000 2, Prod DevTest

19 A more detailed example Production workloads remain sub-capacity Production workloads can now be managed independently of DevTest. 12,000 10,000 8,000 6,000 4,000 Production only workloads 2, Prod

20 A more detailed example DevTest is now a separate, full capacity pricing environment. The container size can increase up to 3x with no extra MLC costs. Even above 3x, the MLC is charged at a highly reduced rate. 12,000 10,000 8,000 6,000 4,000 2,000 - DevTest only workloads DevTest 1x DevTest 3x 3x 1x

21 Detailed example summary The DevTest container offers substantially more capacity without increasing MLC costs. 12,000 10,000 8,000 6,000 Often, a 3x container 4,000 allows clients to match 2,000 production capacity in DevTest. - same DevTest cost up to 3x DevTest capacity B E F O R E A F T E R Prod DevTest

22 Rethinking your capping strategy Traditional capping strategy Group capping across DevTest and production is a common practice today With a DevTest Solution, this strategy makes less sense Consider how you want to treat DevTest workloads DevTest containers are full capacity solutions Consider if you still need to cap DevTest under this model If so, ensure you are evaluating separate capacity limits for DevTest Consider a new capping strategy for production workloads Consider if capacity limits make sense for your production environment If so, ensure you are evaluating separate capacity limits for production DevTest Production

23 DevTest Solution Summary DevTest Solution solves capping challenges Extremely popular price offering that delivers a low-cost, high-capacity DevTest environment. With a DevTest container, you can build modern, healthy DevTest environments, without worrying about MLC costs. DevTest Solution maximizes your ability to: Run whatever DevTest workloads you need Whenever and wherever you need to run them At prices you are happy to pay This new competitive pricing option was a game-changer for us and we are very happy with this cost-efficient offering. Walter Svoboda, CEO, Wu stenrot Datenservice GmbH

24 Conclusion Healthy production environments require healthy DevTest environments that fully support modern DevOps pipelines. With a DevTest container, you can build modern, healthy DevTest environments, without worrying about MLC costs.

25 Additional Resources IBM Z software pricing website Container Pricing documentation

26 Container Pricing for IBM Z New Application Solution IBM Z / October 2018 / 2018 IBM Corporation 26

27 About the New App Solution Client can add new z/os workloads, co-located with existing environments, and pay a highly-competitive stand-alone price: Does not impact IBM pricing of other workloads Client determines the size of the container Container size sets the billing for all capacity-priced IBM software For Reference-based software, licensing is only to the container size Intended to eventually replace the previous zcap offering Growth above initial container size managed through container process IBM Z / October 2018 / 2018 IBM Corporation 27

28 Key Requirements For New App 1) Brand new stand-alone business application, not previously run on platform. For example, a new ISV application, a newly written client application, or an application moved from distributed or a public cloud 2) The qualifying application must, at minimum, be an isolated set of new address spaces. For example, applications that execute in a run-time environment such as CICS, IMS TM, WebSphere Application Server. Note: if co-located, the client can use an existing Db2 or MQ instance. databases, data sharing resources do not qualify on their own. IBM Z / October 2018 / 2018 IBM Corporation 28

29 Software Pricing the New App 1) The New Application Solution delivers z/os capacity at a savings of 50% off the current MzNALC MLC price points, which was previously the best available new workload pricing metric for z/os. MzNALC price points are only being used as a reference for z/os pricing in the New Application Solution. The previously announced znalc terms and conditions (such as annual recertification) do not apply with this solution. 2) Other software in the New Application container is offered on a one-time charge (OTC) basis, at prices that are competitive with and can be compared against public cloud and onpremises x86 environments. Note: As with public cloud environments, software must be licensed with reference to the size of the container. IBM Z / October 2018 / 2018 IBM Corporation 29

30 New App Example CICS / Db2 on z/os from Oracle Tuxedo (x86) LPAR1 (z/os peak contribution at 500 MSU) CICS Regions (Existing) New App Container Anticipate ~ 30 MSU CICS Regions (New app isolated via Tenant CICS Region Res. Group) (New app isolated) Db2 (existing) * High percentage of new app Db2 use captured in CICS region address space. IBM Z / October 2018 / 2018 IBM Corporation 30

31 Container Pricing for IBM Z Payments Pricing Solution IBM Z / October 2018 / 2018 IBM Corporation 31

32 About the Payments Solution New "Per Payment" price metric On Premise, Payments-as-a-Service, on z/os Both SW and SW+HW variants available Up front licensing of IBM Financial Transaction Manager (FTM) software Remainder of Payments SW stack charged as MLC with a low-priced Per Payment business metric with IBM Payments Pricing Solution for z/os Includes z/os, MQ, Db2, Operational Decision Management (ODM) Provides predictable & consistent pricing regardless of peaks, no impact to pricing of other workloads on machine No charge for development payments Pricing based on business volume IBM Z / October 2018 / 2018 IBM Corporation 32

33 Container Pricing: Technical Enhancements New Tenant Resource Group capability within z/os Workload Manager (WLM) Allows the metering and optional capping of workloads Ability to map workloads directly to Container Pricing Enhancements to SCRT to capture eligible Container Pricing workloads Allows for billing of solutions independently of traditional Sub-Capacity pricing Container Pricing requires SCRT V25 R2 or later Additional enhancements to SMF, z/osmf, RMF, SDSF General support for Tenant Resource Group monitoring and tracking New FIXCAT for Container Pricing: IBM.Function.PricingInfrastructure Enabled in z/os 2.2 and 2.3 Client determines where to deploy: z/os and SCRT do the rest! IBM Z / October 2018 / 2018 IBM Corporation 33

34 Container Pricing: Summary IBM introduced Container Pricing for IBM Z, providing: Greatly simplified software pricing for qualified solutions - New Applications - Application Development and Test - Payments Flexible deployment options that support best technical fit, not driven by pricing Competitive economics that are directly relevant to each solution Line of sight pricing Does not impact pricing of unrelated workloads Containers makes it easier to add qualified solutions to IBM Z IBM Z / October 2018 / 2018 IBM Corporation 34

35 What Changed on Oct 2 nd, 2018? Updates Announced to the App Development and Test Solution Updates Announced to the New Application Solution IBM Z / October 2018 / 2018 IBM Corporation 35

36 What s New with the DevTest Solution? DevTest Sizing Calculator Automated, online DevTest Solution sizings Upload SCRT reports, see potential benefits online Formal guidance for DevTest classification DevTest formally defined as pre-production Definition of production and pre-production announced Limited Use Licenses (LULs) Announced Reduced price licenses for select OTC programs Limited to execution only within the DevTest container Available, Nov 23 rd 2018

37 DevTest Sizing Calculator Helps clients more quickly and easily understand the potential benefits of moving to the DevTest Solution: Upload existing DevTest usage details to the License Management Support (LMS) website and receive an automatically calculated DevTest Solution sizing in minutes. View a set of data points regarding your current utilization alongside an estimate of the benefits that you could achieve by moving to the DevTest Solution. Note: supports standard sub-capacity reports and Country Multiplex reports for DevTest workloads that can be isolated entirely at an LPAR level. IBM Z / October 2018 / 2018 IBM Corporation 37

38 The DevTest Sizing Calculator Interface ( IBM Z / October 2018 / 2018 IBM Corporation 38

39 Interface to Upload data and View Proposals First, clients upload their SCRT data via the interface IBM Z / October 2018 / 2018 IBM Corporation 39

40 Drag and Drop (or browse) interface to upload all required SCRT reports 3 months of: Business as usual (BAU) reports, which include all LPARS from all environments DevTest-only reports, using an SCRT EXCLUDE statement to exclude all production LPARS from all environments Production-only reports, using an SCRT EXCLUDE statement to exclude all DevTest LPARS from all environments Note: we recommend that clients use the most recent 3 months. 40 IBM Z / October 2018 / 2018 IBM Corporation

41 Interface to Upload data and View Proposals After data is uploaded, clients are able to view the results of their proposal IBM Z / October 2018 / 2018 IBM Corporation 41

42 Interface to View Results Clients are then able to choose from multiple proposals to view information generated from their SCRT data, including: Ability to choose a proposal to view, to see benefits such as: BAU MSUs used Production MSUs used DevTest Max MSUs used (Base Capacity) DevTest MSUs at production peak (used for determining cost of DevTest Solution) DevText 3X value (based on 3X Base Capacity) Numerous other data points of interest IBM Z / October 2018 / 2018 IBM Corporation 42

43 Key Prerequisites Classification of all existing workloads into pre-production and production categories IBM z13, IBM z13s, IBM z14, IBM z14 ZR1, or later models with IBM sub-capacity pricing implemented For the separate LPAR solution, z/os V2.1, or later operating system For the colocated solution, z/os V2.2 or V2.3, or later operating system, with the PTFs applied for APARs: OA52312 for Workload Manager (WLM) OA52694 for Resource Management Facility (RMF) OA53033 for System Management Facilities (SMF) PI82528 for System Display and Search Facility (SDSF) These and any other related PTFs are associated with fix category: IBM.Function.PricingInfrastructure Sub-Capacity Reporting Tool (SCRT) V26.1.0, or later according to the requirements and guidelines in the SCRT Users Guide SCRT, to be run for each sub-capacity reporting period and the resulting report to be submitted to IBM monthly A unique solution ID that is provided through the IBM License Management Support (LMS) website Note: SCRT V will be available for download on October 10, 2018, from the IBM Z software pricing website or with the PTF for APAR OA56092 on z/os V2.3. IBM Z / October 2018 / 2018 IBM Corporation 43

44 What s New with the New App? Introduces consumption-based pricing for the New App Solution New pricing metric: Solution Consumption License Charges (SCLC) Pay-as-you-go pricing for actual consumption, no minimum commit 20% discount off of pay-as-you-go pricing with low minimum commit SCLC applies to most z/os-based Monthly License Charge (MLC) sub-capacity software programs IBM Z / October 2018 / 2018 IBM Corporation 44

45 Lets take a look at cloud pricing 10+ size options + + Source: Published AWS Aurora RDS Pricing and Discounting Structure IBM Z / October 2018 / 2018 IBM Corporation 45

46 SCLC is better than cloud pricing Economically better, with transparent $ prices Conceptually better, with true consumption charging Technically better, with minimal ongoing technical management IBM Z / October 2018 / 2018 IBM Corporation 46

47 SCLC is a true MSU consumption metric An MSU is an amount of processing a computer can perform in one hour. Solution Consumption License Charges (SCLC) simply adds up the MSUs consumed in each hour. Therefore, an MSU is already an inherently hourly metric. IBM Z / October 2018 / 2018 IBM Corporation 47

48 SCLC in action 150 MSUs Peaks and workload patterns vary dramatically in these graphs However, the total MSUs consumed in each period is exactly 1,200 If each MSU cost $0.50 USD under SCLC, then each workload would cost $600 IBM Z / October 2018 / 2018 IBM Corporation 48

49 Translating to business value For example, 1 MSU of CICS TS can typically process ~50k business transactions. So if an MSU cost under SCLC is $0.50 USD each, then the per transaction cost is $ Could that business transaction be processed on any other platform, with the same qualities of service, for the same price? (probably not!) IBM Z / October 2018 / 2018 IBM Corporation 49

50 How does SCLC work for New App? SCLC is a new MLC metric that meters each hours MSU utilization for the New Application Solution and simply sums them up for all hours in the month. Specifics: Each eligible MLC program is priced at a per-msu price point This per-msu metric delivers unprecedented levels of price transparency When peaks occur, only the MSUs consumed during the peak are billed out, as opposed to having a peak impact the full monthly bill a true pay-as-you-go model for MLC The 1 st option allows for no minimum financial commitment, and simply pay for whatever MSUs are consumed. The 2 nd option allows for a 20% discount based on a commitment of at least 25,000 MSUs/month. IBM Z / October 2018 / 2018 IBM Corporation 50

51 SCLC Eligible Software SCLC pricing is available within a New Application Solution for the majority of z/os-based, MLC sub-capacity programs, including: IBM CICS Transaction Server for z/os IBM Db2 for z/os IBM IMS for z/os IBM MQ for z/os IBM z/os Note: the full product list is included in the announcement letter IBM Z / October 2018 / 2018 IBM Corporation 51

52 Examples of SCLC New Application with no commit option: Solution consumes 15,000 MSUs in the month New App SCLC cost is 15,000 * Price/MSU for each eligible program New Application with min commit option: Solution consumes 25,500 MSUs in the month New App SCLC cost is 25,500 * 80% * Price/MSU for each eligible program New Application with min commit option: Solution consumes 23,500 MSUs in the month New App SCLC cost is 25,000 * 80% * Price/MSU for each eligible program IBM Z / October 2018 / 2018 IBM Corporation 52

53 Key Prerequisites Deployment of a new z/os application that is not currently running on any IBM Z server. Growth in existing applications or re-architecting of existing applications does not qualify. IBM must approve that the app qualifies. IBM z13, IBM z13s, IBM z14, IBM z14 ZR1, or later models with IBM sub-capacity pricing implemented For the separate LPAR solution, z/os V2.1, or later operating system For the colocated solution, z/os V2.2 or V2.3, or later operating system, with the PTFs applied for APARs: OA52312 for Workload Manager (WLM) OA52694 for Resource Management Facility (RMF) OA53033 for System Management Facilities (SMF) PI82528 for System Display and Search Facility (SDSF) These and any other related PTFs are associated with fix category: IBM.Function.PricingInfrastructure Sub-Capacity Reporting Tool (SCRT) V26.1.0, or later according to the requirements and guidelines in the SCRT Users Guide SCRT, to be run for each sub-capacity reporting period and the resulting report to be submitted to IBM monthly RMF Monitor I gatherer option VMGUEST to be specified, where the New Application Solution is deployed to a z/os system that runs as a z/vm guest A unique solution ID that is provided through the IBM License Management Support (LMS) website Note: SCRT V will be available for download on October 10, 2018, from the IBM Z software pricing website or with the PTF for APAR OA56092 on z/os V2.3. IBM Z / October 2018 / 2018 IBM Corporation 53

54 October 2, 2018 Announced Updates Updated: Application Development and Test Solution Updated: New Application Solution AP AP Canada A EMEA ZP Japan JP LA LP US AP AP Canada A EMEA ZP Japan JP LA LP US IBM Z / October 2018 / 2018 IBM Corporation 54

55 Questions? IBM Z / October 2018 / 2018 IBM Corporation 55