IBM z Systems Software Pricing

Sub-Capacity Corner

Sub-Capacity Corner

The Sub-Capacity Corner is the place to learn more about the licensing and pricing rules concerning z Systems Sub-Capacity charges. In addition to an explanation of the contractual terms and conditions there are also different procedures to follow for certain circumstances (such as machine upgrades) and some information about the technology which forms the basis for the Sub-Capacity licensing rules.

Sub-Capacity Single Version Charging (SVC) Rules

Sub-Capacity Operating System Single Version Charging (SVC) (10 October 2011)

When a machine has Sub-Capacity pricing, and a version to version Operating System migration is taking place, and if IBM has determined that the migration is eligible for SVC for a certain migration period (up to a maximum of 12 months), then as long as the machine remains eligible for SVC the charges for the previous version are waived. The new Operating System version is charged at the combined concurrent peak MSUs for all versions of that Operating System, reported on the customer's Sub-Capacity Report for that month.

Migration Pricing Option (MPO) (12 April 2016)

For z/OS V1 customers migrating to z/OS V2, IBM introduced a new option called the Migration Pricing Option (MPO) which replaces Single Version Charging (SVC). The MPO provides an up to 24 month migration period where Sub-Capacity customers pay for z/OS V2 at the combined concurrent peak MSU value of z/OS V1 and z/OS V2. Full capacity customers pay for z/OS V2 only. All customers are eligible from the day they license z/OS V2 for up to 24 months MPO while actively migrating.

For z/VSE V4 or V5 customers migrating to z/VSE V6, IBM introduced a new option called the Migration Pricing Option (MPO) which replaces Single Version Charging (SVC). The MPO provides an up to 18 month migration period where Sub-Capacity customers pay for z/VSE V6 at the combined concurrent peak MSU value of z/VSE V4, V5, and V6. Full capacity customers pay for z/VSE V6 only. All customers are eligible from the day they license z/VSE V6 for up to 18 months MPO while actively migrating.

The same 18 month MPO terms also replace SVC for customers migrating to CICS TS for z/VSE V2 (5655-VSE) and IBM TCP/IP for z/VSE V2 (5686-CS1). For more information about MPO for z/VSE see the z/VSE MPO web page.

When the MPO period expires, if the older version is still in use (i.e. has not been discontinued), then each version will be billed separately at the MSU value reported on the Sub-Capacity report for that program version.

Sub-Capacity Single Version Charging (SVC) Special Case 1 (29 March 2005)

In the case where Sub-Capacity SVC applies but the new version MSUs are not yet available on the Sub-Capacity Report, then charges for the previous version will be waived and the new version will be charged at the reported previous version MSUs.

Sub-Capacity Middleware Single Version Charging (SVC) (29 March 2005)

When a machine has Sub-Capacity pricing, and a version to version Middleware migration is taking place, and if IBM has determined that the migration is eligible for SVC for a certain migration period (up to a maximum of 12 months), then as long as the machine remains eligible for SVC the charges for the previous version are waived. The new Middleware version is charged at the higher of:

  • The new version MSUs, reported on the customer's Sub-Capacity Report for the reporting period
  • The previous version MSUs, reported on the customer's Sub-Capacity Report for the reporting period

Sub-Capacity Middleware Single Version Charging (SVC) Special Case 2 (16 Dec. 2005)

In the case where Sub-Capacity SVC applies but the previous product version does not have a variable pricing metric (for example FWLC or TWLC), charges for the previous version will be waived and the new product MSUs charged on that machine are set at the same level as the Operating System MSUs (plus the zNALC or z/OS.e MSUs if applicable) until such time as the new version appears on the Sub-Capacity Report.

Getting Help

For help with the Sub-Capacity Reporting Tool (SCRT) or questions related to Sub-Capacity pricing, please see the z Systems Software Pricing Help page.






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