IBM is announcing changes and clarifications for recurring charge
software on S/390® and zSeries platforms to help transform our
business to a globally consistent and e-business compatible model. These
changes will reduce the volume of invoices and retroactive billing
adjustments, improve accuracy of invoices, and thus reduce the associated
costs for invoice reconciliation.
Contact your IBM representative if you require more detailed information
or have questions about how this announcement applies to you.
Changes to Software Recurring Charge Billing
The expense required to reconcile recurring charges will be significantly
reduced when the following changes, already announced and established in
some geographies, are implemented as a worldwide standard:
Recurring charges (for example, MLC, ALC, S&S) will be calculated in full
calendar month increments.
New installations and product alterations (other than discontinuances) on
the first of a month that result in changes to charges will begin
charging for the change immediately in that month.
New installations and product alterations after the first day of the
month that result in changes to charges will begin charging for the
change beginning the first day of the month after installation.
Products discontinued in a month will be charged through to the end of
Annual license charges (ALCs) and annual Subscription and Support charges
(S&S) may be aligned to the first day of any calendar month requested by
For new products, if an alignment month is not chosen, the charges for a
period of one year will be invoiced the first day of the month following
product installation. If the product is installed on the first of a
month, the charge will be invoiced that same day.
For new and existing products, when an alignment results in a change in a
product anniversary date, a pro-rata adjustment charge will be invoiced
to align ALC licenses or S&S to the chosen date. For existing products,
the pro-rata charge will be calculated from the day of the previous
anniversary to the new anniversary date which falls on the first of a
The no charge test period will be withdrawn for existing programs, and
will not be available for future programs. Customers who have started a
test period before the effective date can complete the test period
without charge. When the test period ends, the license becomes
chargeable and reflected in billing the following month.
Calendar Quarterly Invoicing for monthly charges will occur in the first
month of the calendar quarter. If there are changes to charges during
the first or second month of the quarter, an interim billing for those
changes will be issued the next month covering the period from the change
to the end of the quarter.
Other MLC Changes and Clarifications Recently Established
The change from LPAR Defined Capacity to Product LPAR utilization,
effective July 1, 2002 (refer to Software Announcement
, dated April 30, 2002), provides a more granular measurement of the
actual product utilization MSUs. As this increases the likelihood of
capacity changes, starting June 1, 2003, SCRT reports must be
submitted monthly (due no later than the ninth of the following month) to
qualify for Sub-Capacity pricing on zSeries or equivalent processors.
Failure to submit a machine's Sub-Capacity Report will result in programs
on that machine being charged on a Full-Capacity MSU basis for that
month. The Attachment for Workload License Charges PreILM
(Z125-6516) is being updated to reflect this change.
Eligibility for SVC and Calculation of Charges
Consistent with the SVC announcement on
September 13, 1994, the following SVC rules apply:
SVC allows a customer to pay only for the more current version of
selected programs when both versions of a program are running on the same
CPU while the customer is in the process of migrating from a previous
version to a new version. SVC is offered for a period not to exceed 12
months from the date of the SVC fee waiver. To take advantage of the SVC
offering, customers must request it when ordering any new version of
software that will be replacing a previous version of the same product on
the same CPU. The customer's SVC request should include the product
names and numbers of the old and new software involved, and the model and
serial number of the CPU that both programs will be running on. The SVC
offering is valid only while both the predecessor product and the
replacement product are:
Both running on the same CPU
Licensed under the same IBM customer number
In the process of being migrated from the older product to the newer one
by the customer
Clarifications to SVC under Aggregation and Changes to SVC when Operating
In the case where a machine is part of a sysplex, if the customer is
actively migrating from a program to a designated replacement program on
the one machine, all machines upon which the program runs in the sysplex
may also have the replacement program licensed. These machines will be
deemed as actively migrating for SVC purposes.
Previously, eligibility was restricted to those licenses where the MSU
utilization for the replacement program was equal to or exceeded that of
the replacement program. That restriction has been removed. Licenses
where the MSU utilization of the replacement program is less than the MSU
utilization of the replaced program can now qualify.
When the replaced program and the designated replacement program are
eligible for Sub-Capacity pricing, the new MSU valuation for the
replacement program is now based on a combination of MSU values. The
final replacement program charge is based on the lower of (1) the sum of
MSU values for both programs and (2) a predetermined maximum value. The
predetermined maximum values vary based on different configurations:
For versions of z/OS, use the full machine MSU capacity.
For programs other than versions of z/OS:
Where z/OS.e is not running on the machine, use the z/OS MSU value
Where z/OS.e is running on the machine, use the sum of the z/OS MSU value
and the MSU capacity of the engine(s) where z/OS.e is running
When Full-Machine Capacity charges apply, charges for the replacement
program are based on the MSU value at Full-Machine Capacity. For
software programs in a sysplex where aggregation charges apply, the MSU
value for each license is calculated as above per machine before totaling
to calculate the aggregated MSU value. Standard aggregation rules apply.
The e-business logo, zSeries, and z/OS are trademarks of International
Business Machines Corporation in the United States or other countries or
S/390 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.