IBM System z Software Pricing

IPLA Overview

IPLA programs have a one-time-charge (OTC) and an (optional) annual maintenance charge, called Subscription & Support. Subscription & Support has an annual charge that provides customers access to IBM technical support and enables you to obtain version upgrades at no charge.

On the mainframe, the following types of products are generally in the IPLA category: Data Management Tools, CICS Tools, Application Development Tools, WebSphere for System z products, System z Linux middleware products, and z/VM Version 4 and later.

The most common pricing metric for IPLA software on the mainframe is Value Unit pricing. Also found on the mainframe, primarily used for Linux for System z middleware products, is a per-engine charge known as Processor Value Unit pricing, under the Passport Advantage software licensing program.

You can view the base IPLA contract on the Software License Agreement website. Note: IBM distributed software is also governed by the IPLA contract.

Value Unit Pricing

Value Unit pricing for eligible System z IPLA programs enables a lower cost of incremental growth and enterprise aggregation. Each System z IPLA product with Value Unit pricing has a single price per Value Unit and a conversion matrix, called Value Unit Exhibit, for converting from some designated measurement to Value Units. Most commonly Millions of Service Units (MSUs) is the measurement designated by IBM to be converted to Value Units. Some other measurements are engines or messages. Since MSUs are the most common measurement, that measurement will be used for the remainder of this description.

Value Unit pricing offers price benefits for customers. For each System z IPLA program with Value Unit pricing, the quantity of that program needed to satisfy applicable IBM terms and conditions is referred to as the 'required license capacity'. Each of the various Value Unit Exhibits stipulate that the larger your required license capacity, the fewer Value Units per MSU you will need. Value Unit Exhibits are uniquely identified by a three digit code and referred to using the nomenclature VUExxx, where xxx is the three digit code.

Subsequent acquisistions of Value Unit priced programs offers additional price benefits for customers. The quantity of each System z IPLA program that you have acquired is referred to as 'entitled license capacity'. If you wish to grow your entitled license capacity for a System z IPLA program, the calculation to determine additional needed Value Units is based upon the the number of Value Units already acquired.

For each System z IPLA program with Value Unit Pricing, you should:

• Determine the required license capacity, in MSUs
• Aggregate the MSUs across the enterprise
• Convert the total MSUs to Value Units, using the applicable Value Unit Exhibit, and
• Multiply the price per Value Unit by the total number of Value Units to determine the total cost.

To simplify conversion from the designated measurement to VUs or vice-versa, use the Value Unit Converter Tool. For additional information or to obtain a copy of the Value Unit Converter Tool, visit the Value Unit Converter Tool Web site .

System z IPLA Applicable Terms

Sub-capacity eligible System z IPLA programs are grouped into one of three categories, Execution-Based, Reference-Based or z/OS-Based. Those which are not categorized belong to the default category called 'Full-Machine-Based'. The applicable type of terms per System z IPLA program is determined solely by IBM. Only one type of sub-capacity terms may apply per program.

For a complete listing of the sub-capacity eligible System z IPLA programs and their type of sub-capacity terms, visit the 'IPLA' section of the System z Exhibits Website .

Value Unit Pricing Terms and Conditions

For each System z IPLA program with Value Unit pricing, the quantity of that program needed to satisfy applicable IBM terms and conditions is referred to as the 'required license capacity'. Your required license capacity is based upon the following factors:

• the System z IPLA program you select
• the applicable Value Unit Exhibit
• whether your current mainframes are eligible for sub-capacity terms
• the applicable sub-capacity terms for that program

Full-Capacity Terms
In cases where full-capacity is applicable, the following terms apply:

• Execution-Based, z/OS-Based, Full-Machine-Based: The required license capacity of a System z IPLA program with these terms equals the MSU rated capacity of the machine(s) where the System z IPLA program executes.
  
  For more information on mainframe MSU rated capacities, see 'The IBM System z Machines Exhibit (Z125-3901)' or visit the 'Mainframes' section of the System z Exhibits Web site
  
  
• Reference-Based: The required license capacity of a System z IPLA program with these terms equals the MSU rated capacity of the machine(s) where the applicable Parent Program executes. See the “Additional Information for Products with Reference-Based Terms” section below.

Sub-Capacity Terms
In cases where sub-capacity is applicable, the following terms apply:

• Execution-Based: The required license capacity of a System z IPLA sub-capacity program with these terms equals the capacity of the LPAR(s) where the System z IPLA program executes.
  
  
• z/OS-Based: The required license capacity of a System z IPLA program with these terms equals the license capacity of z/OS (and z/OS.e) on the machine(s) where the System z IPLA program executes.
  
  
• Reference-Based: The required license capacity of a System z IPLA program with these terms equals the license capacity of the applicable Parent Program. See the “Additional Information for Products with Reference-Based Terms” section below.
  
  
• Full Machine-Based: The required license capacity of a System z IPLA program with full machine-based terms equals the MSU rated capacity of the machine(s) where the System z IPLA program executes.
  
  For more information on mainframe MSU rated capacities, see 'The IBM System z Machines Exhibit (Z125-3901)' or visit the 'Mainframes' section of the System z Exhibits Web site

Additional Information for Products with Reference-Based Terms
System z IPLA sub-capacity programs with reference-based terms add value to the Parent Program across the environment, regardless of where in the environment the System z IPLA program itself executes.

An environment is defined as either a single/stand-alone machine or a qualified Parallel Sysplex. Customers may have one or more different environments across their enterprise. To determine the required license capacity for each System z IPLA program with referenced-based terms, each environment should be assessed separately.

When a System z IPLA program with reference-based terms is used in a qualified Parallel Sysplex environment the required license capacity of the System z IPLA program must equal the MSU capacity as described above across the Parallel Sysplex. Qualified Parallel Sysplex refers to one:

1. That meets the criteria defined announcement letter 198-001, Clarification of Parallel Sysplex Pricing Terms (PDF, 12.6KB)
2. Where MLC pricing is aggregated across the Sysplex

Additional Information for Getting Started Sub-Capacity Pricing Products

Certain System z IPLA sub-capacity programs with Execution-based terms are eligible for Getting Started Sub-Capacity Pricing for z/OS IPLA Software (GSSP). If the eligible GSSP product's utilization within an LPAR is less than an announced threshold, then the MSUs included in the SCRT report for that LPAR will be a proportional fraction of the LPAR utilization. If the product's utilization within an LPAR exceeds the threshold, the traditional LPAR utilization will be used.

The utilization comparison to the threshold will be done on an LPAR by LPAR basis. The MSU value on the SCRT report for an eligible Getting Started product on a machine could be a combination of sub-LPAR Getting Started measurements from some LPARs and traditional LPAR utilization measurements from other LPARs.

IPLA News

• On 28 April 2009, IBM announced (PDF, 89KB) enhancements to 'Getting Started Sub-capacity Pricing for z/OS IPLA software' for customers with low usage on select IBM WebSphere programs.
• On 22 April 2008, IBM announced (PDF, 86KB) 'Getting Started Sub-capacity Pricing for z/OS IPLA software' which offers entry pricing for customers with low usage on select IBM WebSphere programs.
• On 10 August 2004, IBM announced (PDF, 50KB) sub-capacity pricing for select IBM System z IPLA programs.
• On 12 August 2003, IBM announced (PDF, 70KB) Value Unit Pricing for select host-based Tivoli programs.
• On 08 April 2003, IBM announced (PDF, 50KB) Value Unit Pricing for select host-based WebSphere programs.
• On 27 March 2001, IBM announced (PDF, 24KB) Value Unit Pricing for host-based Application Development Tools.
• On 06 March 2001, IBM announced (PDF, 40KB) Value Unit Pricing for host-based Data Management Tools.

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