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Software Announcement 299-322
October 26, 1999
Changes to IBM Check Processing Software Terms and Conditions
 ENUS299-322.PDF (26KB)
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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withdrawn from marketing effective January 26, 2000.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Withdrawn License Charges
section will be withdrawn effective January 26, 2000.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
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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
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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.
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