Entry Workload License Charges

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1 IBM ^ zseries Introduction September 2003 Entry Workload License Charges Frequently Asked Questions Worldwide EWLC PACKAGE

2 Table of Contents Pricing, Licensing, & Ordering... 3

3 Pricing, Licensing, & Ordering What is IBM announcing today for the IBM ~ zseries 800 (z800)? Today, IBM is announcing the details of Entry Workload License Charge (EWLC) for the z800. This pricing metric provides the capability for z800 customers running z/os or z/os.e to license select IBM software at less than full machine capacity. This allows customers to pay for EWLC eligible products at the utilization of the LPARs in which they run, based on a 4-hour rolling average, providing the potential to lower software charges. What products are eligible for EWLC pricing? A select set of IBM products are eligible for EWLC pricing. These products include select features of the z/os and z/os.e operating systems, select middleware such as DB2, CICS, IMS, MQSeries, Domino, System Automation, OPC and Tivoli Workload Scheduler, and others. A complete list of eligible EWLC products are available at the zseries Software Pricing Web site, ibm.com/zseries/library/swpriceinfo Will zseries Entry License Charge (zelc) remain as a zseries pricing metric? Yes. zelc is planned to remain available on z800. IBM s intent is to simplify its pricing structures for zseries. This action adopts the principles of Workload License Charges (WLC) that were announced for the IBM ~ zseries 900 (z900) and zseries 990 (z990) servers and makes them available to the z800. The EWLC pricing metric with its sub-capacity reporting capabilities is the strategic direction for zseries Monthly License Charge (MLC) software pricing. How are non-ewlc products priced? Non-EWLC products continue to be priced with zelc model based pricing.

4 Is EWLC pricing available to all z800 customers? Customers may elect EWLC when running z/os and/or z/os.e is licensed and running in z/architecture (64-bit) mode on an IBM z800 server (or equilvalent) and other EWLC terms and conditions are satisfied. Customers may qualify for sub-capacity EWLC pricing if use of OS/390 (and MVS) is stopped and the OS/390 (and MVS) license discontinued on the z800 server, among other conditions. If OS/390 is licensed on the z800 server with z/os or z/os.e, then full capacity EWLC may be selected. VM/ESA and VSE/ESA may also be licensed and in use, however, these products are not eligible for EWLC pricing. Customers must comply with all of the other terms and conditions detailed in the z800 Software License Charges attachment (Z ). How can I start taking advantage of EWLC sub-capacity pricing? Similar to WLC pricing, in order for customers to start taking advantage of sub-capacity pricing, they need to submit to IBM a monthly report using the Sub-capacity Reporting Tool. The details of this process are available on the Web at zseries Software Pricing Web site, ibm.com/zseries/swprice/scrt, and in the z800 Software License Charges attachment (Z or later). In addition, customers must collect and submit Call Home Data (TSAD) to IBM on a weekly basis, and comply with all the other tems detailed in the z800 Software License Charges attachment (Z ). If I have z/os.e installed, can I take advantage of sub-capacity EWLC pricing? Yes, z/os.e is eligible for EWLC pricing, either full capacity or sub-capacity. In addition, non-ewlc eligible products may still take advantage of the "divide-a-box" concept. If I have z/os.e installed today, can I remain on zelc pricing? Yes, customers with z/os.e installed may elect to remain on zelc pricing and continue their existing terms and conditions. However, if a customer elects EWLC pricing, all EWLC eligible products must be priced with EWLC pricing. How does EWLC compare to WLC? EWLC is similar to WLC as they both provide the capability for customers to pay for select software at the utilization of the LPARs in which they run rather than at full machine capacity. This gives customers the flexibility to better manage their software costs. However, customers will notice a few small differences in the implementation of EWLC pricing such as zelc pricing

5 for non-eligible EWLC products. These products, primarily Flat Charged products under WLC, were left out of the EWLC structure in order to deliver attractive entry pricing for this customer set. How do I determine whether EWLC is right for me? You should use the WLC Planning Tool (ibm.com/zseries/swprice/wlctool) to determine the rolling 4-hour average utilization of your existing LPARs. With this input, and your knowledge of which EWLC products run in each LPAR, your IBM representative or IBM Business Partner can assess the potential for savings with EWLC. How does the pricing for full capacity EWLC compare to zelc pricing? The pricing for EWLC at the full capacity of the machine approximates zelc pricing. In some cases it may be somewhat higher, and in other cases it may be somewhat lower. The real benefit of EWLC pricing is delivered when the customer elects sub-capacity EWLC pricing. If a customer has a Parallel Sysplex environment with z800 servers, can EWLC be aggregated? EWLC cannot be aggregated. For customers who run z800 servers in a qualified Parallel Sysplex environment, based on their operating environment, there are already two other pricing options available for aggregation, PSLC and WLC. Customers may also elect to have the z800 participate in a Parallel Sysplex but priced with standalone zelc or EWLC. When will the new EWLC pricing be effective? If customers elect EWLC, the pricing will be effective October 1, 2003 except for the following locations which have a November 1, 2003 availability: Slovenia, Romania, Tunisia, Ukraine, Russia, Kazakhstan, Pakistan, Egypt, Bulgaria, Croatia, Morocco, Bosnia, Macedonia, WT Middle East, Gulf States. Where can I go for more information on EWLC? More information on EWLC can be found in the announcement letter 'Workload License Charge (EWLC) Offers Additional Options and Price Advantages for Users of IBM ~ zseries 800 Servers' dated September 9, Announcement letter (US), A (Canada), ZA (EMEA and LA) and AA (AP). In addition, the Web site ibm.com/zseries/swprice has additional information regarding EWLC. IBM also encourages you to have further discussions with your IBM sales representative or your IBM Business Partner.

6 (C) Copyright IBM Corporation 2003 IBM Corporation Marketing Communications, Server Group Route 100 Somers, NY Printed in the United States of America, 09/03 All Rights Reserved 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 ubject s to change without notice. Consult your local IBM business contact for information on the products or services available in your are a. You can find additional information via IBM s World Wide Web server at ibm.com. IBM Hardware products are manufactured from new parts or new and serviceable used parts. Regardless, our warranty terms apply. Actual performance and environmental costs will vary depending on individual customer configurations and conditions. IBM, IBM ^/eserver, IBM logo, e-business logo, CICS, DB2, Domino, IMS, MQSeries, OS/390, Parallel Sysplex, Tivoli, VM/ESA, VSE/ESA, z/architecture, z/os, zseries, and zseries Entry License Charge are trademarks or registered trademarks of the International Business Machines Corporation in the United States and other countries. Java and all Java-based trademarks and logos are trademarks of Sun Microsystems, Inc., in the United States and other countries. Microsoft, Windows, Windows NT, Windows 2000, and the Windows logo are registered trademarks of the Microsoft Corporation. UNIX is a registered trademark in the United States and other countries licensed exclusively through X/Open Company Limited. All other registered trademarks and trademarks are the properties of their respective companies.

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