IBM System z Software Pricing

Monthly License Charge (MLC) Metrics

Entry Workload License Charges

In support of an on demand operating environment, IBM offers Entry Workload License Charges (EWLC) for IBM System z10 Business Class (z10 BC), IBM System z9 Business Class (z9 BC), IBM eServer zSeries z890 and z800 customers. EWLC is not available on zEnterprise 114 (z114) servers. EWLC enables qualifying customers to pay for sub-capacity eligible IBM software based on the utilization of the LPAR or LPARs where that product executes. This sub-capacity pricing provides the potential to lower software charges on a standalone z10 BC, z9 BC, z890 or z800.

EWLC compared to WLC

EWLC and Workload License Charges (WLC) are two Sub-Capacity capable monthly license charge pricing metrics from IBM. EWLC is similar to Sub-Capacity WLC, in terms of implementation and mechanics. Both pricing metrics offer LPAR-based pricing for sub-capacity eligible software products, based on the highest rolling 4-hour average utilization of the LPAR or LPARs where the eligible product executes.

Both EWLC and WLC may also be implemented at full-capacity (based on the MSU rating of the machine), rather than sub-capacity. Sub-Capacity pricing, for either EWLC or WLC, requires the customers fully migrate all OS/390 to z/OS in 64-bit mode, discontinue their OS/390 licenses and to utilize the Sub-Capacity Reporting Tool to generate Sub-Capacity Reports. These Sub-Capacity Reports must be generated and sent via e-mail to IBM each month.

EWLC on z800 Standalone

z800 standalone customers may choose to adopt EWLC pricing. The other option for z800 standalone customers is zSeries Entry License Charges (zELC).If they choose to adopt the EWLC pricing metric, then all sub-capacity eligible products must be moved to the EWLC pricing metric. The remaining, non-sub-capacity eligible products will be priced using zSeries Entry License Charge (zELC) pricing. To qualify for EWLC, a z800 machine must have a z/OS license.

EWLC and TWLC on z10 BC, z9 BC and z890 Standalone

 

z10 BC, z9 BC and z890 standalone customers will have EWLC pricing. All sub-capacity eligible products will be priced using the EWLC pricing metric. The remaining, non-sub-capacity eligible products will be priced using the Tiered EWLC (TWLC) price structure. The TWLC price structure, for non-subcapacity products offers flat pricing based on z10 BC, z9 BC and z890 server capacity using a tiered structure. The TWLC price structure is exclusive to the z10 BC, z9 BC and z890 servers. Note: the smallest z10 BC and z9 BC, capacity setting A01, and the smallest z890, capacity setting 110, are priced using zELC.

z10 BC, z9 BC, z890 or z800 Servers in a Qualified Parallel Sysplex

Customers operating a z10 BC, z9 BC, z890 or a z800 in a qualified Parallel Sysplex may elect to have their server priced as a stand-alone machine (zELC, EWLC and TWLC) or may elect aggregated PSLC or aggregated WLC pricing, subject to applicable terms and conditions. If the customer selects aggregated pricing then zELC, EWLC and TWLC price structures do not apply. While EWLC is MSU-based, aggregation of MSUs is not permitted if EWLC is selected.

EWLC Structure (cumulative monthly pricing)
Level Range
Base EWLC 3 MSUs
Level 1 4 - 17 MSUs
Level 2 18 - 30 MSUs
Level 3 31 - 45 MSUs
Level 4 46 - 87 MSUs
Level 5 88 - 175 MSUs
Level 6 176 - 260 MSUs
Level 7 261+ MSUs

TWLC Structure (flat monthly pricing, not available on z800)
Tier Machine Capacity
Tier A 1 - 11 MSUs
Tier B 12 - 15 MSUs
Tier C 16 - 40 MSUs
Tier D 41 - 75 MSUs
Tier E 76 - 1500 MSUs
Tier F 1501+ MSUs

EWLC on z800 Example

This example shows a two LPAR z800 machine, model 004 with a rated capacity of 108 MSUs. The highest rolling 4-hour average for LPAR SYSA is shown as 55 MSUs, the highesr rolling 4-hour average for LPAR SYSB is shown as 50 MSUs and the highest rolling combined 4-hour average for LPARs SYSA and SYSB is 93 MSUs. Also, the software shown in each LPAR is indicated in the diagram, below:

z800

This example assumes that the customer has fully migrated to z/OS in 64-bit mode (there is no OS/390 or MVS on this machine) and all other EWLC Sub-Capacity terms and conditions are met. Therefore, the following are the pricing options available for this machine:

Product zELC Full-Capacity EWLC Sub-Capacity EWLC
IMS zELC Model 004 EWLC 108 MSUs EWLC 55 MSUs
CICS zELC Model 004 EWLC 108 MSUs EWLC 55 MSUs
DB2 zELC Model 004 EWLC 108 MSUs EWLC 55 MSUs
FORTRAN zELC Model 004 zELC Model 004 zELC Model 004
COBOL zELC Model 004 EWLC 108 MSUs EWLC 50 MSUs
z/OS zELC Model 004 EWLC 108 MSUs EWLC 93 MSUs

EWLC on z890 Example

This example shows a two LPAR z890 machine, capacity setting 270 with a rated capacity of 107 MSUs. The highest rolling 4-hour average for LPAR1 is shown as 50 MSUs, the highest rolling 4-hour average for LPAR2 is shown as 42 MSUs and the highest rolling combined 4-hour average for LPAR1 and LPAR2 is 84 MSUs. Also, the software shown in each LPAR is indicated in the diagram, below:

z890

This example assumes that the customer has fully migrated to z/OS in 64-bit mode (there is no OS/390 or MVS on this machine) and all other EWLC Sub-Capacity terms and conditions are met. Therefore, the following are the pricing options available for this machine:

Product Full-Capacity EWLC Sub-Capacity EWLC
CICS EWLC 107 MSUs EWLC 42 MSUs
DB2 EWLC 107 MSUs EWLC 84 MSUs
FORTRAN EWLC Tier E EWLC Tier E
Rexx EWLC Tier E EWLC Tier E
z/OS EWLC 107 MSUs EWLC 84 MSUs

EWLC News

On 27 April 2006, IBM announced (PDF, 85KB) software pricing terms and conditions for IBM System z9 Business Class. IBM is extending Entry Workload License Charge (EWLC) and Tiered Entry Workload License Charge (TWLC) pricing metrics to the IBM System z9 Business Class (z9 BC) servers.

On 07 April 2004, IBM announced (PDF, 319KB) pricing terms and conditions for the z890 server including the introduction of Entry Workload License Charges Tiered price structure.

On 09 September 2003, IBM announced (PDF, 124KB) Entry Workload License Charges, LPAR-based pricing for key monthly license charge software on the z800 platform.

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