New Software Pricing for IBM z13

Every new mainframe causes IBM to rethink its pricing. This makes sense because mainframe software licensing is complex. The z13 enables different workloads and combinations of uses that merit reexamining the software licensing. But overall, IBM is continuing its strategy to enhance software price/performance with each generation of hardware. This has been the case for as long as DancingDinosaur has been covering the mainframe. (click graphic below to enlarge)

 IBM z13 technology update pricing

DancingDinsosaur along with other mainframe analysts recently listened to Ray Jones, IBM Vice President, z Systems Sales go through the new z13 software pricing. In short, expect major new structural enhancements coming in the first half of 2015. Of particular interest will be two changes IBM is instituting:

  1. IBM Collocated Application Pricing (ICAP), which lets you run your systems the way that make sense in your organization
  2. Country Multiplex Pricing, an evolution of Sysplex pricing that allows for greater flexibility and simplicity which treats all your mainframes in one country as a single sysplex.

Overall, organizations running the z under AWLC should see a 5% discount on average.

But first let’s take a moment to review AWLC (Advanced Workload License Charge). This monthly program from the start has been intended to allow you to grow hardware capacity without necessarily increasing software charges. Most organizations under AWLC can grow hardware capacity without necessarily increasing software charges. In general you’ll experience a low cost of incremental growth and you can manage software cost by managing workload utilization and deployment across LPARs and peak hours.

A brief word about MSU. DancingDinosaur thinks of MSU as mainframe service unit. It is the measurement of the amount of processing or capacity of your mainframe. IBM determines the MSU rating of a particular mainframe configuration by some arcane process invisible to most of us. The table above starts with MSU; just use the number IBM has assigned your z configuration.

OK, now we’re ready to look at ICAP pricing. IBM describes ICAP as the next evolution of z Systems sub-capacity software pricing. ICAP allows workloads to be priced as if in a dedicated environment although technically you have integrated them with other workloads. In short, you can run your systems and deploy your ICAP workloads the way you want to run them. For example, you might want to run a new anti-fraud app or a new instance of MQ and do it on the same LPAR you’re running some other workload.

ICAP is for new workloads you’re bringing onto the z. You have to define the workloads and are responsible for collecting and reporting the CPU time. It can be as simple as creating a text file to report it. However, don’t rush to do this; IBM suggested an ICAP enhancement to the MWRT sub-capacity reporting tool will be coming.

In terms of ICAP impact on pricing, IBM reports no effect on the reported MSUs for other sub-capacity middleware programs (adjusts MSUs like an offload engine, similar to Mobile Workload Pricing for z/OS). z/OS shops could see 50% of the ICAP-defining program MSUs will be removed, which can result in real savings. IBM reports that ICAP provides a price benefit similar to zNALC for z/OS, but without the requirement for a separate LPAR. Remember, with ICAP you can deploy your workloads where you see fit.

For Country Multiplex Pricing a country multiplex to IBM is the collection of all zEnterprise and later machines in a country, and they are measured like one machine for sub-capacity reporting (applicable to all z196, z114, zEC12, zBC12, and z13 machines). It amounts to a new way of measuring and pricing MSUs, as opposed to aggregating under current rules. The result should be flexibility to move and run work anywhere, the elimination of Sysplex pricing rules, and the elimination of duplicate peaks when workloads move between machines.

In the end, the cost of growth is reduced with one price per product based on growth anywhere in the country. Hardware and software migrations also become greatly simplified because Single Version Charging (SVC) and Cross Systems Waivers (CSW) will no longer be relevant.  And as with ICAP, a new Multiplex sub-capacity reporting tool is coming.

Other savings also remain in play, especially the z/OS mobile pricing discounts, which significantly reduces the level at which mobile activity is calculated for peak load pricing. With the expectation that mobile activity will only grow substantially going forward, these savings could become quite large.

DancingDinosaur is Alan Radding, a veteran mainframe and IT writer and analyst. Follow DancingDinosaur on Twitter, @mainframeblog. See more of my writing at and here.

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One Response to “New Software Pricing for IBM z13”

  1. GTH Says:

    While the Country Multiplex Pricing sounds really great (and long overdue I might add), I hear that customers will be “permanently” locked into their current MLC and MSU baseline per software product, so that costs cannot decline. If indeed so, I can see major complications coming with monthly cost calculations. It’s going to be interesting…

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