October 26, 1999
Changes to IBM Check Processing Software Terms and Conditions
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:
The current usage billing process (based on document processors) will be withdrawn from marketing effective January 26, 2000.
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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
Planned Availability Date
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to handle non-paper transactions, it is evident that a metric for usage which is based only on document processors is no longer applicable.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:
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
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.
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:
Terms and Conditions
The terms for CPCS, CPCS-I, and ESM licensed under the IBM Customer Agreement (ICA) are modified by this announcement.
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.
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:
Usage license charges are subject to a 12-month billing period.
Establishing Monthly Charges
Billing start date for monthly usage charges will be the first day of the calendar month in which the transaction counting and recording begins.
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.
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
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
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 ...
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.
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