IBM United States
Software Announcement 201-258
September 11, 2001

Availability of zSeries Software Charges at Less Than Machine Capacity

ENUS201-258.PDF (31KB)

At a Glance

zSeries software charges at less than full machine capacity can provide more flexibility and improved cost of computing as the customer manages the volatility and growth of e-business workloads.

Through the implementation of sub-capacity charges customers can:

Pay for VWLC products based on defined workload requirements and not necessarily the full capacity of the machine.
Pay for eligible AD and DM Tools based on z/OS product defined capacity which could be less than the full capacity of the machine.
Add hardware capacity for new workloads, and not have IBM software charges for VWLC products automatically increase for existing or stable workloads.
Add capacity for an existing workload and have WLC charges increase for only the VWLC products used within that workload.
Buy new hardware capacity for future growth with no immediate increase to their IBM software bill provided that WLC applies to the new hardware capacity and no additional software capacity is required at that time.
Manage e-business spikes.
Potentially benefit from improved price performance as workloads grow.

Overview

As was announced on October 3, 2000, Workload License Charges (WLC) at less than full machine capacity will be available on September 30, 2001, subject to applicable terms. IBM will provide a two step approach to implementing sub-capacity WLC: initially through a planned new Sub-Capacity Reporting Tool and in the future through a planned production-level version of IBM License Manager (ILM), a component of z/OS™.

IBM is announcing today that Value Unit Pricing at less than full machine capacity for eligible Application Development (AD) and Data Management (DM) Tools on IBM zSeries 900 running z/OS will also be available on September 30, 2001, subject to applicable terms.

With sub-capacity charges, the charge for a Variable Workload License Charge (VWLC) product is based on the product's defined capacity. Similarly, the charge for an eligible AD or DM Tool is based on the z/OS product defined capacity. Charges at less than full machine capacity apply when:

z/OS is licensed and running on an IBM zSeries 900 or equivalent plug compatible server.
z/OS is the only MVS™-based operating system licensed to that server.
The customer provides the required service data and all other information defined by IBM at the frequency set by IBM.

Sub-capacity charging is one approach to better address today's explosive growth of new workloads, driven largely by new e-business applications. It is designed to support the variability of e-business workloads and makes the zSeries platform a more affordable platform for growth.

IBM is now delivering on the value proposition of the WLC pricing model by supporting WLC at less than full machine capacity. Since its availability at full machine capacity on March 30, 2001, WLC has required an attachment to the IBM Customer Agreement (the Attachment for zSeries Workload License Charges (Z125-6323)). For now, and until the availability of a production level ILM, this attachment is superseded by a new attachment (the Attachment for zSeries Workload License Charges — Pre-ILM (Z125-6516)). The new attachment describes the information, methodology and frequency of reporting required during the interim period prior to the availability of a production level ILM.

Key Prerequisites

Prerequisites for zSeries software charges at less than full machine capacity include the following:

Installing a zSeries 900 or equivalent plug compatible server.
Licensing, installing and operating z/OS on the server described above in z/Architecture™ (64-bit) mode.
Licensing no additional MVS-based operating systems to that server.
Agreeing to provide the required information in accordance with the applicable terms.

Planned Availability Date

September 30, 2001

Description

Notes on Planned Availability

WLC at less than full machine capacity will be available on September 30, 2001, supported by the planned Sub-Capacity Reporting Tool. Customers can start to collect the system data required by the Sub-Capacity Reporting Tool after September 30, 2001.
The planned Sub-Capacity Reporting Tool is an interim solution to provide WLC at less than machine capacity until a production-level version of ILM is available.
Value Unit pricing at less than full machine capacity for eligible Tools will be available on September 30, 2001, according to the applicable terms and conditions.

Sub-Capacity Charges Terms and Conditions

zSeries software charges at less than full machine capacity for eligible VWLC products and for eligible Data Management and Application Development Tools apply when z/OS is running in z/Architecture (64 bit) mode on a zSeries 900, no other MVS-based operating system is licensed to that server and the required information is provided by the customer in accordance with the applicable terms.

Sub-capacity charges for a VWLC product is based on the product's defined capacity. To obtain charges at less than full machine capacity for VWLC products the customer is required to:

Sign and abide by the terms of the Attachment for zSeries Workload License Charges — Pre-ILM (Z125-6516).
Obtain a copy of the Sub-Capacity Reporting Tool when available.
Install any VWLC product and IBM zSeries 900 Licensed Internal Code (LIC) service required for sub-capacity charging. Required service will be listed on the WLC Web site:
Collect SMF data as required by the planned Sub-Capacity Reporting Tool. Retain the collected SMF data for a period of not less than six months.
Use the IBM provided Sub-Capacity Reporting Tool when available to process the collected SMF data. The Sub-Capacity Report produced by the tool is used to determine product defined capacities for the VWLC products. "Product defined capacities" are the largest MSU value of a VWLC product running concurrently in all LPARs during the reporting period. IBM reserves the right to request the system data that supports these product defined capacity values for a period of up to six months after the data was collected.
Provide an initial Sub-Capacity Report to begin to receive the benefits of less than full machine capacity charges. Sub-capacity charging will follow submission of a Sub-Capacity Report. There will be no retroactive application of sub-capacity charges.
Submit Sub-Capacity Reports monthly if product defined capacities have changed and quarterly if product defined capacities have not changed.
Submit Sub-Capacity Reports for all VWLC products with complete data for the entire reporting period to the address, and by the date specified in the current Workload License Charge Exhibit (Z125-6324). Sub-Capacity Reports that reflect a changed product defined capacity will be considered to be orders placed by the customer without further action on the customer's part, and IBM is authorized to make any resulting billing increase or decrease. To place an order for a new license, or to discontinue licenses, move licenses between machines, report a hardware model upgrade, or enable or disable product features, the customer must contact IBM or their IBM Business Partner.
Configure machine to send weekly Transmit System Availability Data (TSAD) to IBM via the IBM zSeries 900 Remote Support Facility (RSF). If the machine cannot connect via the RSF, provide this TSAD via an alternate means documented in the z/OS publication Planning for Workload License Charges at:

Sub-capacity charges for an eligible AD or DM Tool is based on the z/OS product defined capacity. To obtain charges at less than full machine capacity for eligible AD and DM tools, the customer is required to:

Determine the MSUs needed for each machine on which the Tools will run. Only machines on which the customer has implemented sub-capacity WLC according to the above terms and conditions, are eligible for charges at less than full machine capacity for the Tools.
Use the product defined capacity for z/OS (as specified on the Sub-Capacity Reports submitted to IBM for sub-capacity WLC) as the sub-capacity (MSUs) for each Tool.
Submit any additional MSUs and/or Value Units required for each product along with the current entitlement in Value Units for each product.

Eligible Products

For background information on WLC and for a list of VWLC products refer to Software Announcement 200-354 , dated October 3, 2000. (IBM Announces Workload License Charges). Also refer to the following Web sites for additional information on WLC and a list of VWLC products:

http://www.ibm.com/zseries/wlc_lm

http://www.ibm.com/zseries/wlc_lm/products.html

The following AD and DM Tools which are priced according to the Value Unit pricing structure and are licensed under the IBM Program License Agreement (IPLA) terms qualify for sub-capacity pricing:

 
Program
Number            Description
 
AD TOOLS
 
5655-G74          IBM Fault Analyzer
5655-G75          IBM File Manager
5697-G58          IBM Breeze for SCLM
5655-G93          IBM Cloud 9 for SCLM
 
Program
Number            Description
 
DB2(R) TOOLS
 
5655-E64          DB2 Administration
5655-F54          DB2 Archive Log Compression Tool
5697-G63          DB2 Automation Tool
5655-D38          DB2 Bind Manager
5655-F55          DB2 Change Accumulation Tool
5655-E60          DB2 DataPropagator(TM)
5655-E62          DB2 Diagnostic and Recovery Utilities
5697-G52          DB2 Forms
5655-E69          DB2 High Performance Unload
5655-E66          DB2 Log Analysis Tool
5697-G64          DB2 Object Comparison Tool
5655-E72          DB2 Object Restore Tool
5655-E63          DB2 Operational Utilities
5655-E39          DB2 Path Checker
5655-E61          DB2 Performance Monitor
5655-E67          DB2 Query Monitor
5697-F56          DB2 Recovery Manager
5655-E65          DB2 Row Archive Manager
5697-F57          DB2 SQL Performance Analyzer
5697-G65          DB2 Table Editor
5697-E98          DB2 Utilities Suite
5655-E71          DB2 Web Query Tool
5655-E43          DB2 Bind Manager V2
5655-E46          DB2 Data Export Facility
5655-E54          DB2 Buffer Pool Analyzer
5655-E70          DB2 Administration Tool
5655-E72          DB2 Object Restore
 
IMS(TM) Tools
 
5655-E04          IMS Library Management Utilities
5655-E52          IMS DataPropagtor 3.1
5655-E05          IMS Advanced ACBGEN
5655-E10          IMS Image Copy Extensions
5655-E11          IMS Sequential Randomizer Generator
5655-E06          IMS High Performance Unload
5655-E07          IMS High Performance Load
5655-E08          IMS High Performance Prefix Resolution
5655-E09          IMS High Performance Pointer Checker
5655-E03          IMS Data Base repair
5655-E02          IMS HD Compression-Extended
5655-E12          IMS ETO Support
5655-E14          IMS Program Restart Facility
5655-E15          IMS Performance Analyzer
5655-E16          IMS Recovery Saver
5655-E24          IMS Index Builder
5655-E51          IMS Connect
5697-E99          IMS Queue Control Facility
5655-E30          IMS Fast Path Basic Tools
5655-F76          IMS Database Control Suite
5655-E41          IMS Network Compression Facility
5655-F59          IMS HP Change Accumulation Utility
5655-E50          IMS Online Recovery Services
5655-E31          IMS Fast Path Online Tools
5655-E32          IMS DEDB Fast Recovery
5655-F78          IMS Fast Path Online Tools V2
5697-F61          IMS Data Base Integrity Control Facility
5655-F74          IMS Parallel Reorganization
5655-F43          IMS High Performance Sysgen
5655-F40          IMS Command Control Facility
5655-F45          IMS MFS Reversal Utilities

Sub-Capacity Charges for VWLC Products

Sub-capacity charges for VWLC products are based on product defined capacities. The product defined capacity for a given VWLC product is the largest number of MSUs allocated to the LPARs in which a VWLC product runs concurrently during a reporting period. The number of MSUs can be defined explicitly by specifying the LPAR defined capacity on the Hardware Management Console, or implicitly by the MSU-equivalent capacity of the LPAR. If a product is running in a z/OS image running under z/VM™, the number of MSUs assigned to the z/VM LPAR is used. If applicable, this value must be manually added to the product defined capacity generated by the Sub-Capacity Reporting Tool.

LPAR Resource Management

Through a combination of technologies provided in the z/OS Workload Manager and the zSeries 900, customers will have the flexibility to configure their system at less than full machine capacity to:

Match their workload requirements.
Be charged for the VWLC products used by these workloads at less than full machine capacity.

If specified, z/OS manages workloads to LPAR defined capacities, based on a four-hour rolling average. A workload can use more than an LPAR's defined capacity should a workload spike occur, as long as the average workload during the four-hour period does not exceed the LPAR's defined capacity. The workload can continue to spike above that defined capacity and VWLC software charges will not be affected.

Only when a customer changes an LPAR's defined capacity (for example, to address capping that occurs when the average workload in a four-hour period exceeds the LPAR's defined capacity) or when a VWLC product is used in additional LPARs would a customer see a change in their sub-capacity software charges.

Sub-Capacity Charges for AD and DM Tools

To be eligible for sub-capacity charges for AD and DM Tools, the machine on which the AD and DM Tools are running must be eligible for WLC sub-capacity charges terms and conditions. The customer must have signed the Attachment for zSeries Workload License Charges-Pre-ILM (Z125-6516), and submitted at least one Sub-Capacity Report to IBM as defined in the attachment.

With sub-capacity charges, the charge for an eligible AD or DM Tool is based on the z/OS product defined capacity. To obtain charges at less than full machine capacity for each eligible AD and DM Tool for each machine, the customer should:

Determine the MSUs needed for the machine on which the Tools will run. In a data sharing environment, determine the aggregate MSUs needed on the machines where the tools run. Use the product defined capacity (MSUs) for z/OS (as specified on the Sub-Capacity Reports submitted to IBM for sub-capacity WLC) as the sub-capacity (MSUs) for each Tool.
Submit any additional MSUs and/or Value Units required for each product along with the current entitlement in Value Units for each product.
If the use of sub-capacity pricing terms for AD and DM Tools results in a reduced requirement for Value Units, thus "freeing up" entitlements, customers can reallocate the entitlement difference by distributing the Value Units across a larger or different set of systems, or reserve them for future growth. There will be no refunds for these "freed up" Value Units. Subscription and Support volumes and entitlements for existing contracts will continue to be at the same levels as the acquired licenses.

Management of the Value Unit entitlements continues to be a customer responsibility. If one of the following occur on a machine to which AD or DM Tools are licensed, the customer must determine if additional Value Units and Subscription and Support need to be ordered for those Tools to cover the increase:

The z/OS defined capacity is increased.
The requirements for WLC sub-capacity charges are no longer met.

For information on Value Unit Pricing and the related terms and conditions refer to Software Announcement 201-057 , dated March 6, 2001.

Sub-Capacity Reporting Tool

The Sub-Capacity Reporting Tool is planned to be available for download starting on September 30, 2001, from the WLC Web site:

http://www.ibm.com/zseries/wlc_lm

The Sub-Capacity Reporting Tool uses SMF type 70 and 89 records as input to generate product defined capacity values in MSUs for VWLC products for the period of time covered by the SMF data. The product defined capacity values are recorded on a Sub-Capacity Report, generated by the tool. Collection of SMF 70 records requires the presence of RMF™ or an equivalent product. Data must be collected from the second day of the month to the first day of the following month to qualify for sub-capacity charges for the following month. Some VWLC products do not generate SMF type 89 records, therefore the tool cannot generate corresponding product defined capacities. For these products, LPAR and workload data must be used to calculate the correct product defined capacities to be entered directly onto the Sub-Capacity Report. For guidance on how to calculate these values refer to the following documents at:

http://www.ibm.com/zseries/wlc_lm

The z/OS publication Planning for Workload License Charges
Sub-Capacity Reporting Tool User's Guide

The Sub-Capacity Reporting Tool will report the product defined capacity which is the largest MSU value of a VWLC product running concurrently in all LPARs during a reporting period. Once the Sub-Capacity Report has been generated, the customer can record an alternate product defined capacity for individual VWLC products, along with an explanation for the difference. The alternate values override the tool generated values and enable the customer to account for any special circumstances (for example, emergency or disaster recovery conditions) that may have occurred during that month. The Sub-Capacity Report must then be forwarded to IBM. Customers are required to provide updated Sub-Capacity Reports as their LPAR and VWLC product use within those LPARS change. IBM will adjust VWLC product charges including z/OS charges, based on the capacity specified.

An initial Sub-Capacity Report must be provided to initiate sub-capacity charging on an eligible machine. Reports are also required for any subsequent month in which there is a change in the product defined capacity of any VWLC product. Additionally, if a Sub-Capacity Report was not submitted for either of the first two reporting periods that began in a calendar quarter then a Sub-Capacity Report must be submitted for the third reporting period, even if there have been no changes to the configuration (LPARs or product defined capacities) during the quarter. SMF data must be collected, and the tool run against the data, each month to determine if any changes have occurred.

Effective Dates and Timing Considerations

Adjustments to VWLC product charges will be effective the first of the month following the period during which a change was indicated on an updated Sub-Capacity Report. Changes made between the second day of a month through the first day of the following month are effective the first of that following month (for example, changes made from May 2 and including June 1 will be effective June 1). Late submission of Sub-Capacity Reports may result in retroactive upwards adjustments. Failure to send updated data sheets may result in charges at full machine capacity.

Transmit System Availability Data

For a machine to be eligible for zSeries sub-capacity charges, the machine must be configured to send weekly TSAD to IBM via the zSeries 900 RSF. If the machine does not perform a weekly "call home" via the RSF, an alternate means to collect and transmit the data is documented in the z/OS publication Planning for Workload License Charges at:

http://www.ibm.com/zseries/wlc_lm

A small subset of the data already being transmitted via RSF today will enable IBM to verify that capacity allocation data submitted to IBM on Sub-Capacity Reports is consistent with the actual machine configuration. Failure to send weekly TSAD to IBM may result in charges at full machine capacity.

IBM License Manager (ILM) Implementation

Once IBM makes production-level ILM available and after a transitional period to be defined by IBM has expired, customers must use ILM to obtain sub-capacity charges.

Termination of Sub-Capacity Charges By the Customer

Customers are required to notify IBM in writing when they want to discontinue sub-capacity charges. Termination will result in a return to charges at full capacity.

Trademarks

: zSeries is a trademark of International Business Machines Corporation.
: z/OS, z/Architecture, MVS, DataPropagator, IMS, z/VM, RMF, and the e-business logo are trademarks of International Business Machines Corporation in the United States or other countries or both.
: DB2 is a registered trademark of International Business Machines Corporation in the United States or other countries or both.
: Other company, product, and service names may be trademarks or service marks of others.