IBM Introduces Value Unit Pricing for Application Development Tools

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1 Software Announcement March 27, 2001 IBM Introduces Unit Pricing for Application Development Tools Overview Unit Pricing, a new pricing model, is replacing the existing Application Development Tools price model. Unit Pricing is designed to provide a price curve consistent with IBM s Parallel Sysplex License Charge (PSLC) price model, providing improved price performance as hardware capacity and workloads grow. With Unit Pricing, you can: Add capacity and workload with an incremental and improved price Achieve a more economic price when aggregating capacity Benefit from improved price performance as capacity grows Manage software costs better Effective March 27, 2001, IBM Program License Agreement (IPLA) MSU based One-Time Charge (OTC) and Subscription and Support License Charge are being withdrawn from marketing for Application Development Tools products. Effective March 27, 2001, these products can only be ordered with the Unit based charge option. The Application Development Tools products affected are listed below. Base Products Product Number Description 5697-F19 IBM Fault Analyzer 5697-F20 IBM File Manager 5697-G58 IBM Breeze for 5697-G57 IBM Cloud 9 for Subscription and Support Product Product Number Description 5697-G59 IBM Fault Analyzer 5697-G60 IBM File Manager 5655-F22 IBM Breeze for 5655-F23 IBM Cloud 9 for Availability Date Unit based license charges for Application Development Tools will be available March 27, MSU based license charges for Application Development Tools will be withdrawn effective March 27, For ordering, contact: Your IBM representative, an IBM Business Partner, or IBM Americas Call Centers at 800-IBM-CALL Reference: LE001 This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 Move from MSU Based Pricing to New Units With this announcement IBM is introducing Unit based pricing for the products referenced. Unit based pricing will help to align the prices of these products to the principle of the PSLC pricing curve which provides for a lower price per MSU for larger capacities. There will also be a price benefit when customers grow their capacity. Additional capacity will be based on the number of Units (MSUs) the customer has already installed. Additional capacity will not be priced starting at the base with a higher price per unit but on the capacity that is already installed. Proof of entitlements (PoEs) will be based on new Units. Units of a given product cannot be exchanged/interchanged/aggregated with Units of another product. IPLA and Subscription and Support Considerations IPLA licenses can be transferred from one machine to another within, but not limited to, an enterprise. The customer may aggregate the capacity for all the processors on which the product is operated to achieve a more economic price. This will result in a single PoE. It is the customer s responsibility to manage the distribution of Units within the limits of the Entitlement of the Product License. Subscription and Support must cover the same capacity as the Product License entitlement. Subscription and Support will be available in the country in which the agreement is made. the IBM System/370, System/390, and zseries Machine Exhibit (Z ). Units for zseries will be based upon full MSU capacity as defined in the Machine Exhibits. Units for non-msu-based S/390 Processors: MP3000 Models H30 = 6.00 Units H50 = 8.00 Units H70 = Units P/390, R/390, IBM 3006 = 2.00 Units There will be a tool available that provides support for transforming the MSU based capacities of S/390 Systems to new Units by calculating the applicable number of Units for a given number of MSUs. The person preparing for an order is required to use this tool to calculate the number of Units, based upon the number of MSU (processor capacity). The configurator CFSW expects Units as configuration input. Trademarks System/370 and zseries are trademarks of International Business Machines Corporation in the United States or other countries or both. Parallel Sysplex, OS/390, S/390, and System/390 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. Price Changes The impact of the changes to pricing in this announcement will vary by customer. Existing customer installations will be reviewed and customers will be notified if there is a change to their billing. The products in this announcement have one charge unit Units. Units for a specified MSU capacity are determined by the following table. The price of a Unit varies depending on the product selected. Translation from MSUs to Units MSUs Units/MSU Base Tier A Tier B Tier C Tier D The total number of Units is calculated according to the following example: If the customer has installed 1000 MSUs the applicable Units would be: 3 * * * * * 0.20 = 244 Units When calculating the total number of Units the sum is to be rounded up to the next integer. Units for IBM 9672 Processors will be based upon the full capacity of these systems. This is applicable to all S/390 based systems that are measured on MSU capacity. Information on MSU capacities can be found in

3 IBM US Announcement Supplemental Information March 27, 2001 Ordering Information Unit Based License Options Added Effective March 27, 2001, Application Development Tools can only be ordered with Unit based charge option. Basic License To order a basic license, specify the program number and feature number 9001 for asset registration, the appropriate charge feature numbers and quantities, and the feature number of the desired distribution medium. New Customers Specify the appropriate one-time charge (OTC) feature numbers with the desired quantity represented by the sum of Units of all the machines the program is running on. The CFSW configurator stand-alone path for all products in this announcement will be updated to support price proposals on April 3, For all products in this announcement, media is only shipped via Customized Offerings (SErverPac, SystemPac, and CBPDO). CFSW configuration and order entry capability will commence with CBPDO on April 3, For CBPDO orders, shipments will begin one week after general availability. Existing Customers When adding additional capacity to a previous order Units would be determined as an extension of the aggregate MSUs. Subscription and Support To receive voice technical support via telephone (voice support for defects during normal business hours) and future releases at no additional charge, Subscription and Support must be ordered. To order, specify the support program number and feature number 9001 for asset registration. Specify the annual support charge feature numbers with the desired quantity represented by the sum of Units corresponding to the Service Units in Millions (MSUs) ratings of the designated machines. Subscription and Support must cover the same capacity as the Product License entitlement. Once Subscription and Support is ordered, the charges will automatically renew unless cancelled by the customer. Basic Program Package OTC Program Feature Description Number Number IBM Fault Analyzer 5697-F19 1 Unit Units 0003 IBM File Manager 5697-F20 1 Unit Units 0003 IBM Breeze for 5697-G58 1 Unit Units 0008 IBM Cloud 9 for 5697-G57 1 Unit Units 0008 Subscription and Support Package Annual Charge Program Feature Description Number Number IBM Fault Analyzer 5697-G59 1 Unit Units 0002 IBM File Manager 5697-G60 1 Unit Units 0002 IBM Breeze for 5655-F22 1 Unit Units 0009 IBM Cloud 9 for 5655-F23 1 Unit Units 0009 Example 1: For any product, machines with 200 MSUs require 76 Units. Customers should order feature number 000X, quantity 76. See below. One Unit 000X 250 Units 000Y 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

4 Translation from MSUs to Units Base 3 * 1.00 = 3.00 Tier A 42 *.45 = Tier B 130 *.36 = Tier C 25 *.27 = 6.75 Tier D 0 *.20 =.00 Total (round to 76) Example 2: For any product, machines with 1100 MSUs require 264 Units. Customers should order feature number 000X, quantity 14 and feature number 000Y, quantity 1. Translation from MSUs to Units Base 3 * 1.00 = 3.00 Tier A 42 *.45 = Tier B 130 *.36 = Tier C 140 *.27 = Tier D 785 *.20 = Total (round to 264) Example 3: For any product, when adding additional capacity to a previous order, Units would be determined as an extension of the aggregate MSUs. In this example, adding 200 MSUs after the previous order in Example 2 (above) would require 40 additional Units. Customers should order feature number 000X, quantity 40. See below. Translation from MSUs to Units Base 0 * 1.00 = 0.00 Tier A 0 *.45 = 0.00 Tier B 0 *.36 = 0.00 Tier C 0 *.27 = 0.00 Tier D 200 *.20 = Total This additional capacity of 200 MSUs costs 40 Units, as opposed to Example 1 where the initial 200 MSUs would cost 76 Units. Basic Program Package Prices OTC Program Feature Description Number Number OTC IBM Fault Analyzer 5697-F19 1 Unit 0002 $ 2, Units ,250 IBM File Manager 5697-F20 1 Unit , Units ,250 IBM Breeze for 5697-G58 1 Unit Units ,000 IBM Cloud 9 for 5697-G57 1 Unit , Units ,000 Subscription and Support Package Annual Charge Program Feature Annual Description Number Number Charge IBM Fault Analyzer 5697-G59 1 Unit 0001 $ Units ,250 IBM File Manager 5697-G60 1 Unit Units ,500 IBM Breeze for 5655-F22 1 Unit Units ,250 IBM Cloud 9 for 5655-F23 1 Unit Units ,500 Terms and Conditions Terms and Conditions are unaffected by this announcement

5 Order Now Use Priority/Reference Code: LE001 Phone: Fax: Internet: Mail: 800-IBM-CALL 800-2IBM-FAX ibm IBM Atlanta Sales Center Dept. LE001 P.O. Box 2690 Atlanta, GA You can also contact your local IBM Business Partner or IBM representative. To identify them, call 800-IBM-4YOU. Note: Shipments will begin after the planned availability date. Trademarks OS/390 is a registered trademark 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