Posts Tagged ‘container pricing’

New Software Pricing for IBM Z

July 27, 2017

One of the often overlooked benefits of the introduction of a new mainframe like the Z is cost savings. Even though the machine may cost more, the cost of the performance and capabilities it delivers typically cost less on a per unit basis. In the case of the new Z, it’s not just a modest drop in price/performance. With the new Z, IBM announced, three new Container Pricing models for IBM Z, providing greatly simplified software pricing that promises flexible deployment with competitive economics vs. public clouds and on-premises x86 environments.

Working on the new IBM Z

Here are the three biggest software pricing changes:

  • Predictable and Transparent Container Pricing—providing organizations greatly simplified software pricing that combines flexible deployment with competitive economics vs. public clouds and on-premises x86 environments. To IBM, a container can be any address space, however large and small. You can have any number of containers. “Container Pricing provides collocated workloads with line-of-sight pricing to a solution,” explained Ray Jones, VP, IBM Z Software and Hybrid Cloud. With container pricing, Jones continued, “the client determines where to deploy using WLM, z/OS and SCRT do the rest.”
  • Application dev and test—highly competitive stand-alone pricing for z/OS based development and test workloads. Organizations can increase their DevTest capacity up to 3 times at no additional MLC cost. This will be based on the organization’s existing DevTest workload size. Or a company can choose the multiplier it wants and set the reference point for both MLC and OTC software.
  • Payment systems pricing are based on the business metric of payments volume a bank processes, not the available capacity. This gives organizations much greater flexibility to innovate affordably in a competitive environment, particularly in the fast-growing Instant Payment segment. To use the new per payment pricing, Jones added, up front licensing of IBM Financial Transaction Manager (FTM) software is required.

The Container Pricing options are designed to give clients the predictability and transparency they require for their business. The pricing models are scalable both within and across logical partitions (LPARs) and deliver greatly enhanced metering, capping and billing capabilities. Container Pricing for IBM Z is planned to be available by year-end 2017 and enabled in z/OS V2.2 and z/OS V2.3

Jones introduced the software discounts by reiterating that this was focused on software container pricing for IBM z and promised that there will be a technology software benefit with z14 as there was with the z13. IBM, he added, will offer a way to migrate to the new pricing, “This is a beginning of a new beginning. Clearly as we go forward we want to expand what’s applicable to container pricing.” His clear implication: IBM is intent on expanding the discounting it started when, several years ago, it introduced discounts for mobile transactions running on the z, which was driving up monthly software cost averages as mobile transaction volume began to skyrocket.

To understand the latest changes you need to appreciate what IBM means by container. This is not just about Docker containers. A container to IBM simply is an address space.  An organization can have multiple containers in a logical partition and have as many containers as it wants and change the size of containers as needed.

The fundamental advantage of IBM’s container pricing is that it enables co-location of workloads to get improved performance and remove latency, thus IBM’s repeated references to line-of-sight pricing. In short, this is about MLC (4hr) pricing. The new pricing eliminates what goes on in container from consideration. The price of container is just that; the price of the container. It won’t impact the 4hr rolling average, resulting in very predictable pricing.

The benefits are straightforward: simplified pricing for qualified solutions and allowance to deploy in the best way. And IBM can price competitively to the customer’s solution; in effect solution-specific pricing. When combined with the new price metric-payments pricing IBM trying to put together a competitive cost/price story. Of course, it is all predicated on the actual prices IBM finally publishes.  Let’s hope they are as competitive as IBM implies.

DancingDinosaur never passes up an opportunity to flog IBM for overpricing its systems and services. From discussions with Jones and other IBM during the pre-launch briefings managers the company may finally understand the need to make the mainframe or z or Z or whatever IBM calls it price-competitive on an operational level today. Low TCO or low cost of IOPS or low cost of QoS is not the same.

This is especially important now. Managers everywhere appear to be waking up to the need transform their mainframe-based businesses, at least in part, by becoming competitive digital businesses. DancingDinosaur never imagined that he would post something referencing the mainframe as a cost-competitive system able to rival x86 systems not just on quality of service but on cost. With the IBM Z the company is talking about competing with an aggressive cost strategy. It’s up to you, paying customers, to force them to deliver.

DancingDinosaur is Alan Radding, a veteran information technology analyst, writer, and ghost-writer. Please follow DancingDinosaur on Twitter, @mainframeblog. See more of his IT writing at and here.


IBM’s z13 Redefines Mainframe Performance, Economics, and Versatility

January 14, 2015

With the introduction of the new IBM z13, the latest rev of the 50-year old mainframe product line introduced today, it will be hard for IT people to persist in the mistaken belief that the mainframe can’t handle today’s workloads or that it is too expensive. Built around an 8 core, 22nm processor, the IBM z13’s 141 configurable cores (any mix of CP, IFL, zIIP, ICF, SAP) delivers a 40% total capacity improvement over the zEC12.

 IBM z113

The z13 looks like the zEC12 but under the hood it’s far more powerful

The IBM z13 will handle up to 8,000 virtual enterprise-grade Linux servers per system, more than 50 per core.  Remember when Nationwide Insurance consolidated 3000 x86 servers mainly running Linux on a System z and saved $15 million over three years, a figure later revised considerably higher. They got a lot of press out of that, including from DancingDinosaur as recently as last May. With the IBM z13 Nationwide could consolidate more than twice the number of Linux servers at a lower cost and the resulting saving would be higher still.

If you consider Linux VMs synonymous with cloud services, the new machine will enable superior Cloud services at up to 32% lower cost than an x86-based cloud. It also will cost up to 60% less than Public Cloud over three years. In almost every metric, the IBM z13 delivers more capacity or performance at lower cost.

IBM delivered an almost constant stream of innovations that work to optimize performance and reduce cost. For example, it boosted single thread capacity by 10% over the zEC12. It also delivers 3x more memory to help both z/OS and Linux workloads. The more memory combined with a new cache design, improved I/O bandwidth, and compression will boost analytics on the machine. In fact, with the z13 you can do in-memory analytics if you want it.

The one thing it doesn’t do is boast the fastest commercial processor in terms of sheer speed. The zEC12 processor still is the fastest but with all the optimizations and enhancements IBM has built in the z13 should beat the z12 in handling the workloads organizations most want to run. For instance, the z13 performs 2X faster than the most common server processors, 300 percent more memory, 100 percent more bandwidth and delivers vector processing analytics to speed mobile transactions. As a result, the z13 transaction engine is capable of analyzing transactions in real time.

Similarly, simultaneous multi-threading delivers more throughput for Linux and zIIP-eligible workloads while larger caches optimize data serving. It also improved on-chip hardware compression, which saves disk space and cuts data transfer time.  Also, there is new workload container pricing and new multiplex pricing, both of which again will save money.

In addition, IBM optimized this machine for both mobile and analytics, as well as for cloud. This is the new versatility of this redefined mainframe. Last year, IBM discounted the cost of mobile transactions on the z. The new machine continues to optimize for mobile with consolidated REST APIs for all z/OS transactions through z/OS Connect while seamlessly channeling z/OS transactions to mobile devices with the MobileFirst Platform. It also ensures end-to-end security from mobile device to mainframe with z/OS, RACF, and MobileFirst products.

For analytics, IBM continues to optimize Hadoop and expand the analytics portfolio on the z13. Specifically, the massive memory capability, up to 10TB, opens new opportunities for in-memory computing. The ability to perform analytics by combining data from different data sources and do it in-memory and in real-time within the platform drives more efficiencies, such as eliminating the need for ETL and the need to move data between platforms, as had previously often been the case. Now, just use Hadoop on z to explore data there within the secure zone of the mainframe. This opens a wide variety of analytics workloads, anything from fraud prevention to customer retention.

In addition to improved price/performance overall, IBM announced Technology Update Pricing for z13, including AWLC price reductions for z13 that deliver 5% price/performance on average in addition to performance gains in software exploitation of z13. DancingDinosaur will dig deeper into the new z13 software pricing in a subsequent post.

And the list of new and improved capabilities with the z13 just keeps going on and on.  With security IBM has accelerated the speed of encryption up to 2x over the zEC12 to help protect the privacy of data throughout its life cycle.  It also extended enhanced public key support for constrained digital environments using Elliptic Curve Cryptography (ECC), which helps applications like Chrome, Firefox, and Apple’s iMessage. In addition, the z13 sports a few I/O enhancements, like the first system to use a standards based approach for enabling Forward Error Correction for a complete end-to-end solution.

Finally, IBM has not abandoned hybrid computing, where you can mix a variety of blades, including x86 Windows blades and others in the zBX extension cabinet. With the z13 IBM introduced the new Mod 004 zBX cabinet, an upgrade from the previous Mod 002 and 003.

DancingDinosaur expects the introduction of the z13 along with structural organization changes, will drive System z quarterly financial performance back into the black as soon as deliveries roll. And if IBM stays consistent with past behavior within a year or so you can expect a scaled down, lower cost business class version of the z13 although it may be not be called business class. Stay tuned; it should be an exciting year.

DancingDinosaur is Alan Radding, a long-time IT analyst and writer. You can follow him on Twitter, @mainframeblog, or check out more of his writing and analysis at or here.

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