IBM System z Software Pricing

International Program License Agreement (IPLA)

On/Off Capacity on Demand (CoD)

On/Off Capacity on Demand (CoD) from IBM allows customer to enable and disable hardware engines to meet temporary peak business needs. On the System z platform, this hardware offering has been made available exclusively on supported System z servers. Charges related to both hardware and software are tied to the duration of the temporary enablement and the capacity enabled.

Daily On/Off Capacity on Demand (CoD) Software Charges for IPLA Software

IBM offers daily software charges for select products to complement our On/Off CoD server offering. In a System z environment, the daily On/Off CoD charges may apply to eligible products running on the System z server where customers activate the On/Off CoD server offering to enable temporary capacity above the permanent model of their server.

Daily On/Off CoD software charges apply to select System z software products licensed under the International Product License Agreement (IPLA). IPLA software generally describes a category of IBM software products with a license fee at the time of purchase and an annual maintenance charge, known as Subscription & Support.

When ordering a System z server with On/Off CoD capability, customers sign the "Attachment for IBM System z On/Off Capacity on Demand" (Z125-7883) which requires customers to provide IBM with a list of the program numbers and descriptions of the IPLA programs (and their parent programs, if applicable) which are licensed on that server.

For On/Off CoD on System z, software charges are calculated based upon the amount of temporary capacity (e.g. MSUs) and the duration the temporary capacity is available (in days). Here is an example:

As of the 27 April 2006 announcement(PDF, 85KB), customers who signed the “Attachment for Customer Initiated Upgrade and IBM eServer On/Off Capacity on Demand” (Z125-6611) and sign the “Amendment for On/Off CoD Software Charges” (Z125-7391) may apply excess entitled license capacity for individual products towards On/Off CoD events, thus potentially avoiding daily On/Off CoD software charges on those products. Customers who have signed the "Attachment for IBM System z On/Off Capacity on Demand" (Z125-7883) are not required to also sign the “Amendment for On/Off CoD Software Charges” (Z125-7391).

Customers may choose to have their IBM Business Partner perform the invoicing of Daily On/Off CoD charges instead of being invoiced directly by IBM. If the IBM Business Partner agrees to perform this invoicing, the customer and the IBM Business Partner must notify IBM of this arrangement by the end of the month during which On/Off CoD was used by sending an email to the appropriate email contact address.

On/Off Capacity on Demand Impact on Sub-Capacity IPLA Software Charges

The On/Off CoD MSU-day charges for temporary use are only available for software use above the permanent server capacity. This offering does not alter the standard Sub-Capacity IPLA terms and conditions. Any software activity up to and including the permanent server capacity must be covered by standard Value Unit software licensing entitlement. The following example shows the software charges due for a sample OOCoD event in a sample Sub-Capacity IPLA scenario.

OOCoD event happens in May: 1 additional engine turned on for 1 Day Machine is elegible for Sub-Capacity IPLA licensing

OOCoD event happens in May: 1 additional engine turned on for 1 Day Machine is elegible for Sub-Capacity IPLA licensing

On/Off Capacity on Demand Impact on Monthly Software Charges

The On/Off CoD Offering only encompasses hardware and IPLA software. In other words, it provides a daily fee for items which a customer would otherwise have had to purchase permanently. The On/Off CoD Offering does not offer any special terms for monthly license charge (MLC) software. Hence, MLC under OOCoD is considered "business as usual".

Here's an examination of the On/Off CoD impacts on the MLC metrics:

On/Off CoD Software News

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