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Software Announcement 299-322
October 26, 1999

Changes to IBM Check Processing Software Terms and Conditions

 ENUS299-322.PDF (26KB)


At a Glance

Changes to the terms and conditions for CPCS, CPCS-I, and ESM check processing products will provide an efficient way of measuring product usage. These changes include:

  • A new usage metric for billing that is based on the number of transactions processed rather than the number of document processors used.
  • A usage report mechanism that calculates the customer's average monthly transaction processing. Customers will be required to submit an annual report which outlines their average usage.
  • Licenses for CPCS, CPCS-I, and ESM will be CPU based rather than location/installation based.

The current usage billing process (based on document processors) will be withdrawn from marketing effective January 26, 2000.

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Overview

Effective October 26, 1999, IBM introduces new usage pricing for the IBM Check Processing Control System (CPCS), IBM Check Processing Control System International (CPCS-I), and IBM Check Processing Control System Enhanced System Manager (ESM) products. In the past, the measure of usage for these check processing programs was the number of document processors used. The measure of usage will now be based on the number of transactions processed regardless of how they are introduced into the system (that is, document processor, electronic items, etc.). This usage measurement change will utilize the OS/390® measurement usage reporting facility, which is available as part of the MVS/ESA™ and OS/390 operating systems. Customers will report their average monthly transaction usage annually via usage reports that are sent to IBM Financial Solutions in Charlotte, North Carolina.

In addition, licensing of these check processing programs will be changed from location/installation based to CPU based.

An IBM representative will be contacting current licensees to review the new pricing and assist in transitioning customers on or before October 26, 2000.

Withdrawal of Existing License Charges

The monthly license charge (MLC), primary license charge (PLC), and annual license charge (ALC) features listed in the Withdrawn License Charges section will be withdrawn effective January 26, 2000.

Key Prerequisites

  • CPCS and CPCS-I:
    • MVS/ESA 5.2.0 -or- OS/390 Version 1 or higher
  • For ESM:
    • MVS/ESA 5.2.0 -or- OS/390 Version 1 or higher, and
    • CPCS -or- CPCS-I

Planned Availability Date

October 29, 1999

Description

CPCS, CPCS-I, and ESM support a broad range of transactions both paper and non-paper based. These configurations are a reflection of today's financial institutions. To be competitive and cost effective, most financial institutions have consolidated their check processing geographic operations and assimilated operations as a result of mergers. As a result, the amount of work processed by CPCS, CPCS-I and ESM has notably increased, while the overall number of document processors used (and invariably the number of program licenses) has declined. As CPCS, CPCS-I, and ESM are being used to handle non-paper transactions, it is evident that a metric for usage which is based only on document processors is no longer applicable.

To best approach this change, IBM collected substantial data from existing customers that describes their check processing operations. Data such as the number of checks processed, reject rates, number of capture locations, and quantity and type of reader sorters used was taken into account when restructuring the change in license metric. We believe that this change in usage definition will accomplish the following goals:

  • Provide an equitable, objective means of measuring product usage that can be monitored and validated via the usage reporting mechanism
  • Allow IBM to earn the license charges necessary to continue enhancing and supporting CPCS, CPCS-I, and ESM to satisfy the needs of our customers

In conjunction with changing the metric for usage to transactions, IBM Financial Solutions has introduced the capability to report the transaction volume. CPCS, CPCS-I, and ESM utilize the OS/390 measurement usage reporting facility, which is available as part of the MVS/ESA and OS/390 operating system. Transaction counts will be captured from data stored in the operating systems' SMF records.

Withdrawn License Charges

The following MLC, PLC, and ALC features will be withdrawn:

                                 MLC
Program             Usage        Feature
Product             Tier         Number
 
CPCS                10           0610
 (5734-F11)         20           0611
                    30           0612
                    40           0613
                    50           0614
                    60           0615
                    70           0616
 
CPCS-I              10           0720
 (5799-FKT)         20           0721
                    30           0722
                    40           0723
                    50           0724
                    60           0725
                    70           0726
                                 PLC          ALC
Program             Usage        Feature      Feature
Product             Tier         Number       Number
 
CPCS ESM            10           0710         0810
 (5799-ESM)         20           0711         0811
                    30           0712         0812
                    40           0713         0813
                    50           0714         0814
                    60           0715         0815
                    70           0716         0816
                    80           0717         0817

The following new MLC features will replace those above effective October 29, 1999:

                                 MLC
Program             Usage        Feature
Product             Tier         Number
 
CPCS                1            0010
 (5734-F11)         2            0011
                    3            0012
                    4            0013
                    5            0014
                    6            0015
 
CPCS-I              1            4013
 (5799-FKT)         2            4014
                    3            4015
                    4            4016
                    5            4017
                    6            4018
 
CPCS ESM            1            1000
 (5799-ESM)         2            1001
                    3            1002
                    4            1003
                    5            1004
                    6            1005

Year 2000

This product is Year 2000 ready. When used in accordance with its associated documentation, it is capable of correctly processing, providing, and/or receiving date data within and between the twentieth and twenty-first centuries, provided that all products (for example, hardware, software, and firmware) used with the product properly exchange accurate date data with it.

Trademarks

 
MVS/ESA is a trademark of International Business Machines Corporation in the United States or other countries or both.
 
OS/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.

Customer Financing

IBM Global Financing offers attractive financing to credit-qualified commercial and government customers and Business Partners in more than 40 countries around the world. IBM Global Financing is provided by the IBM Credit Corporation in the United States. Offerings, rates, terms and availability may vary by country. Contact your local IBM Global Financing organization. Country organizations are listed on the Web at:

Schedule

The new check item based usage tiering will be available October 26, 1999.

Technical Information

To activate reporting via SMF 89 records and provide usage reports, customers must install PTF UQ35066 for the IBM 3890/XP™ MVS™ Support product.

Terms and Conditions

The terms for CPCS, CPCS-I, and ESM licensed under the IBM Customer Agreement (ICA) are modified by this announcement.

General

  • CPCS, CPCS-I, and ESM utilize Licensed Use Management. Usage is managed by the customer with annual requests for reports by IBM for usage compliance.
  • CPCS, CPCS-I, and ESM are measured on an individual CPU basis. A usage report is produced for each individual CPU. (In the case of a Parallel Sysplex® environment, usage and reporting is done on a per- Parallel Sysplex level).
  • New licensees of CPCS, CPCS-I, and ESM will be asked to provide and estimated average monthly transaction count. The procedure for establishing monthly charges for the initial and subsequent billing periods is described below.
  • If usage measurement reports are not completed within the specified period, monthly charges will be reset to the highest usage charge.

Unit of Measurement

CPCS, CPCS-I, and ESM will be measured by the number of transactions processed per month. A transaction is defined as any data that is placed on the Mass Data Set by any means.

Measurement Recording

Collecting and recording of transactions for the purpose of determining usage license charges will require the activation of the product measurement and reporting functions in the OS/390® or MVS/ESA™ operating system. Following CPCS, CPCS-I, or ESM installation and/or activation of the measurement function, transactions must be collected and recorded for a period of 12 months. Transaction counts are determined as follows:

  • The measurement function registers the first time a transaction is introduced into the system, that is, the first time a transaction is placed on the Mass Data Set by any means.
  • An average of monthly volume will be used to determine the usage tier for the next 12 months.

Billing Period

Usage license charges are subject to a 12-month billing period.

Establishing Monthly Charges

  • Initial Billing Period

    New licensees will be asked to provide their estimated monthly transaction count. Usage Tiers will be assigned based on this estimate. This usage tier will remain in effect for the initial period.

  • Second and Subsequent Billing Periods

    Charges for the second and subsequent billing periods will be based upon the last 12 months average of monthly usage for the most recent reporting period. Recorded monthly usage measurements from the prior billing period must be supplied to IBM Financial Solutions, Charlotte, NC within the first ten business days of the final month of the prior billing period so that charges for the subsequent billing period can be established. If usage measurement reports are not completed within the specified period, monthly charges will be reset to the highest usage charge.

Billing start date for monthly usage charges will be the first day of the calendar month in which the transaction counting and recording begins.

Location License Applies: No

CPU License Applies: Yes

Testing Period: None

Service Currency: Customers must be at the following PTF service levels on/by December 31, 2001:

  • CPCS Release 11: PTFs UQ34786, UQ34787 or greater
  • CPCS-I: PTF UW61571 or greater
  • ESM: PTF UQ27460 or greater

Any PTF service level prior to those stated will be supported until December 31, 2001.

Ordering Information

Current Licensees

Current licensees of CPCS, CPCS-I, and ESM must order the appropriate usage features that correspond to their current usage tier. Customers will have until October 29, 2000, to migrate to the new tier structure.

New Licensees

Orders for new licenses of CPCS, CPCS-I and ESM should specify the appropriate type model (program number) and correct usage tiers which correspond to the customer's estimated monthly transaction count.

New customers should specify:

         Type           Model
 
         5734           F11 for CPCS
         5799           FKT for CPCS-I
         5799           ESM for ESM

Basic License

To order a basic license, specify the program number and feature number 9001 for asset registration.

Charges for CPCS, CPCS-I, and ESM are usage based on the number of transactions processed. When ordering, specify the feature numbers that correspond to the usage tiers.

Usage tiers are cumulative. For example, if ordering tier 3, order incrementally by specifying the features for tier 1, tier 2, and tier 3 as many times as appropriate.

Transactions for CPCS, CPCS-I, and ESM are counted in increments of ten million. Each tier allows for one or more increments of ten million. Each tier specifies the range of millions of transactions supported by that tier. Each ten million increment within a tier is represented by one iteration of the feature number assigned to that tier. When ordering, specify the correct number of iterations for a given feature number for the appropriate ten million count. Refer to examples for ordering.

CPCS:
 
                                                     Number
       Number of Transactions Processed              of      MLC
Tier    (in millions (M))                            10 M's  Feature
 
1        0 -- 10 million (up to 10M)                 1       0010
2       10 -- 30 million (up to 20,30M)              2       0011
3       30 -- 50 million (up to 40,50M)              2       0012
4       50 -- 100 million (up to 60,70,80,90,100M)   5       0013
5      100 -- 180 million (up to 110,120,...180M)    8       0014
6      180+ million (each additional 10M)            *       0015
 
CPCS-I
 
1        0 -- 10 million (up to 10M)                 1       4013
2       10 -- 30 million (up to 20,30M)              2       4014
3       30 -- 50 million (up to 40,50M)              2       4015
4       50 -- 100 million (up to 60,70,80,90,100M)   5       4016
5      100 -- 180 million (up to 110,120,...180M)    8       4017
6      180+ million (each additional 10M)            *       4018
 
ESM
 
1        0 -- 10 million (up to 10M)                 1       1000
2       10 -- 30 million (up to 20,30M)              2       1001
3       30 -- 50 million (up to 40,50M)              2       1002
4       50 -- 100 million (up to 60,70,80,90,100M)   5       1003
5      100 -- 180 million (up to 110,120,...180M)    8       1004
6      180+ million (each additional 10M)            *       1005

*
Unlimited

In each of the tables above, the column labeled "# of 10 M's" represents the number of groups of ten million transactions in that tier. This number also represents the number of times the MLC feature number for that tier can be ordered based on the cumulative (10 M) transaction count. The chart below also illustrates the tier representation:

                    Cumulative
       M            Total
       Transactions Number of 10M's                     Transactions
 
Tier 1   0 -- 10    10M                                 10M
Tier 2  10 -- 30    10M 10M                             30M
Tier 3  30 -- 50    10M 10M                             50M
Tier 4  50 -- 100   10M 10M 10M 10M 10M                 100M
Tier 5 100 -- 180   10M 10M 10M 10M 10M 10M 10M 10M     180M
Tier 6 180+         10M 10M 10M 10M 10M 10M 10M 10M ...

Ordering Examples

For CPCS: Customers having a total accumulated transaction count of 40 million transactions, order feature number 0010, feature number 0011 (quantity of two), and feature number 0012 to arrive at 40 million. CPCS customers having a total accumulated transaction count of 140 million transactions, order feature number 0010, feature number 0011 (quantity of two), feature number 0012 (quantity of two), feature number 0013 (quantity of five), and feature number 0014 (quantity of four) to arrive at 140 million.

Charges

The charges provided in this announcement are suggested retail prices for the U.S. only and are provided for your information only. Dealer prices may vary, and prices may also vary by country. Prices are subject to change without notice. For additional information and current prices, contact your local IBM representative.

CPCS
 
                                                             Monthly
                                                             License
                                                             Charge
Program  Tier Ranges Based on number of                      (Per 10M
Number   Transactions (in millions (M))                      Unit)
 
5734-F11 Tier 1 (  0 -- 10 million) up to 10M                $5,125
         Tier 2 ( 10 -- 30 million) up to 20,30M              1,035
         Tier 3 ( 30 -- 50 million) up to 40,50M              1,275
         Tier 4 ( 50 -- 100 million) up to 60,70,... 100M       270
         Tier 5 (100 -- 180 million) up to 110,... 180M         265
         Tier 6 (180+ million) each additional 10M              260
 
CPCS-I
 
5799-FKT Tier 1 (  0 -- 10 million) up to 10M                 7,120
         Tier 2 ( 10 -- 30 million) up to 20,30M              1,330
         Tier 3 ( 30 -- 50 million) up to 40,50M              1,770
         Tier 4 ( 50 -- 100 million) up to 60,70,... 100M       355
         Tier 5 (100 -- 180 million) up to 110,...  180M        290
         Tier 6 (180+ million) each additional 10M              285
 
ESM
 
5799-ESM Tier 1 (  0 -- 10 million) up to 10M                 1,605
         Tier 2 ( 10 -- 30 million) up to 20,30M                155
         Tier 3 ( 30 -- 50 million) up to 40,50M                240
         Tier 4 ( 50 -- 100 million) up to 60,70,... 100M       190
         Tier 5 (100 -- 180 million) up to 110,...  180M         70
         Tier 6 (180+ million) each additional 10M               60

Trademarks

 
MVS, 3890/XP, and MVS/ESA are trademarks of International Business Machines Corporation in the United States or other countries or both.
 
Parallel Sysplex and OS/390 are registered trademarks 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.