IBM System z Software Pricing

Workload License Charges

Workload License Charges (WLC) is a monthly license pricing metric designed to support today's on demand business requirements. WLC may be applied to IBM System z servers running z/OS or z/TPF in z/Architecture (64-bit) mode.

System z10 EC, System z9 EC, eServer zSeries 990, and eServer zSeries 900 servers may have WLC when in a Parallel Sysplex or when stand-alone. System z10 BC, System z9 BC, eServer zSeries 890, and eServer zSeries 800 servers may have WLC only when in a fully qualified Parallel Sysplex. zEnterprise EC12, zEnterprise 196, and zEnterprise 114 servers may have WLC only when under the terms of AWLC Transition Charges for Sysplexes in a fully qualified Parallel Sysplex with at least one other server which is not a zEnterprise server. More information on AWLC is available on the web.

WLC enables customers to:

• Grow hardware capacity without necessarily increasing your software charges
• Pay for key software, such as DB2, CICS, IMS, WebSphere MQ and z/OS with LPAR-level granularity
• Experience a low cost of incremental growth
• Manage software cost by managing workload utilization

Once a customer chooses to adopt WLC, then neither PSLC nor Usage License Charges (ULC) will apply. WLC is broken into two types of charges: Variable WLC (VWLC) and Flat WLC (FWLC). VWLC apply to products such as z/OS, DB2, IMS, CICS, WebSphere MQ, and Lotus Domino. FWLC apply to legacy products such as less current compilers and older MVS/VM/VSE utilities. VWLC vary based upon server size and/or utilization, while FWLC are a flat charge per server. Once WLC is adopted, applicable VWLC and FWLC charges are applied.

Variable Workload License Charges Structure
(cumulative monthly pricing)

Customers may choose to implement WLC in one of two ways:

• Full-Capacity WLC - charges are based on the full System z server capacity where each VWLC product executes
• Sub-Capacity WLC - charges are based on the utilization of the LPAR or LPARs where a VWLC product executes

Mechanics of Sub-Capacity WLC

The graph below shows a zSeries 2064-1C3 rated at 119 MSUs with Sub-Capacity WLC. The machine is configured with two LPARs, LPAR A and LPAR B. The customer sees a highest observed rolling 4-hour average for LPAR A at 73 MSUs. Accordingly, software running only in LPAR A would be charged at 73 MSUs. Likewise, LPAR B has a highest observed rolling 4-hour average of 52 MSUs. Accordingly, software running only in LPAR B would be charged at 52 MSUs. They do not have set a defined capacity or any LPAR cap for either LPAR A or LPAR B.

WLC News

Effective 1 July 2003, IBM is making the base charges for Variable Workload License Charges more granular, by reducing the base from 45 MSUs to 3 MSUs. Since the base charge is reduced to 3 MSUs, a Level 0 has also been introduced to cover the MSUs between 4 MSUs and 45 MSUs. The more granular base provides customers with a lower cost of entry for VWLC products, requiring a minimum of 3 MSUs rather than a minimum of 45 MSUs. Customers with workloads smaller than 45 MSUs may license as little as 3 MSUs of VWLC software.

Effective 1 Oct 2002, IBM is introducing two new pricing slopes, Level 6 and Level 7, that deliver continued price performance improvements for z/OS under Workload License Charges. The new price points established for Level 6 and Level 7 apply to the z/OS base operating system and z/OS priced features only. Level 6 begins above 1,315 MSUs and will be priced 25% below Level 5. Level 7 begins above 1,975 MSUs and will be priced 20% below Level 6.

Effective 1 July 2002, IBM introduced a new Level 5 Slope for Workload License Charges, above 875 MSUs. This new slope applies to all Variable WLC products. For z/OS and the priced features of z/OS, the Level 5 price points will be approximately 30% lower than the current Level 4 z/OS price points. IBM is also reducing the current price points on the Level 4 Slope, above 575 MSUs by approximately 25%, compared to the current level 4 price points. For these middleware products, the Level 5 price points will be equal to the reduced Level 4 price points.

Effective 1 May 2002, customers may select Parallel Sysplex License Charges (PSLC) for WLC-eligible machines. This new flexibility allows the customer to determine when to adopt WLC.

Effective 1 July 2002, WLC is being transformed into an LPAR Utilization Model. Product capacity will now be based on the highest observed rolling 4-hour average utilization of an LPAR or LPARs where that product is executing.