June 2020 IBM Z Software Pricing Reference Guide © 2020 IBM Corporation IBM Z Software Pricing Overview IBM Z® software pricing methodologies are designed to offer: . Price-to-value . Flexibility to run software where it is most efficient . Capability to predict software charges . Help with cost of new applications . Flexibility to pay for software based on workload requirements For more information: ibm.com/systems/z/swprice Glossary MSUs – An MSU is defined as Millions of central processing unit Service Units per hour; the measure of capacity used to describe the computing power of the hardware processors on which IBM Z software runs. Processor MSU values are determined by the hardware vendor, IBM, or by Software Compatible Vendors. IBM Z and IBM zEnterprise System servers: Full Name Short Name Machine Type CMP Hardware Generation as of 23 September 2019 IBM z15™ model T02 z15 8562 N IBM z15 z15 8561 N IBM z14® model ZR1 z14 3907 N-1 IBM z14 z14 3906 N-1 IBM z13® z13 2964 N-2 IBM z13s™ z13s 2965 N-2 IBM zEnterprise® EC12 zEC12 2827 N-3 IBM zEnterprise BC12 zBC12 2828 N-3 IBM zEnterprise 196 z196 2817 N-4 IBM zEnterprise 114 z114 2818 N-4 IBM System z10, IBM System z9, IBM eServer zSeries and IBM System/390 (S/390) servers: IBM System z10® Enterprise Class z10 EC™ 2097 IBM System z10 Business Class™ z10 BC™ 2098 IBM System z9® Enterprise Class z9 EC 2094 IBM System z9 Business Class z9 BC 2096 IBM eServer™ zSeries® 990 z990 2084 IBM eServer zSeries 890 z890 2086 IBM eServer zSeries 900 z900 2064 IBM eServer zSeries 800 z800 2066 IBM S/390® Parallel Enterprise Class n/a 9672 IBM S/390 Multiprise® 3000 Enterprise MP3000 7060 Server IBM S390 Multiprise 2000 Server MP2000 2003 Operating Systems from IBM Operating Systems from other vendors z/OS® Linux® z/VM® Open Solaris zVSE® z/TPF 2 Monthly License Charge Pricing Metrics Monthly License Charge (MLC) metrics are those where a recurring charge applies each month. This charge includes the right to use the product, and also access to IBM product support during the support period. IBM offers a variety of MLC pricing metrics to meet the diverse needs of our mainframe customers. An IBM pricing metric establishes both the prices and the applicable terms and conditions for IBM software products. Select an MLC pricing metric, based on your goals and/or your environment (see the “Key MLC Metrics” table below). The selected metric will be used to price MLC products, such as z/OS, middleware, compilers and selected systems management tools and utilities. For more detailed information about all of these MLC pricing metrics visit: ibm.com/systems/z/swprice/mlc/ Table 1: Key MLC Metrics and Associated Contract Numbers z13 zEC12 z10EC z990 9672 z13s zBC12 z10 BC z890 z800 MP3000 z14 z196 z9EC z900 MP2000 z14 ZR1 z114 z9BC z15 z15 T02 Advanced Workload License Charges (AWLC) *+ x x x5 x5 Z125-8538 Country Multiplex License Charges (CMLC) * x x6 x x6 Z126-6965 Variable Workload License Charges (VWLC) *+ x1 x x x1 x2 x2 x2 Z125-6516 Flat Workload License Charges x x x x x5 x5 x2 x2 x2 (FWLC) ^ Advanced Entry Workload License Charges (AEWLC) * x x Z125-8755 Entry Workload License Charges (EWLC) * x x x Z125-6587 Tiered Workload License Charges (TWLC) x x x x Z125-3901 System z New Application License Charges (zNALC) *+ x x x x x x x x x Z125-7454 Parallel Sysplex License Charges (PSLC) + x x x x x x3 x3 x3 x3 x3 Z125-5205 Midrange Workload License Charges (MWLC) * x x x x Z125-7452 zSeries Entry License Charges (zELC) Z125-3901 x4 x4 x4 x4 x Growth Opportunity License Charges (GOLC) x Z125-3901 Table 1 notes: * Metric eligible for Sub-Capacity charges ® + Metric eligible for Aggregation in a qualified Parallel Sysplex ^ Metric available only in conjunction with AWLC, CMLC and VWLC 1 Customer may select VWLC pricing for a zEC12, zBC12, z196 or z114 machine only when it participates in a VWLC Sysplex under the AWLC Transition Charges for Sysplexes terms and conditions with at least one of the following machines: z10 EC, z10 BC, z9 EC, z9 BC. 2 VWLC and FWLC are only available on z10 BC, z9 BC, z890 or z800 when that machine is participating in a qualified Parallel Sysplex environment. 3 PSLC are only available on z15 T02, z14 ZR1, z13s, zBC12, z114, z10 BC, z9 BC, z890 or z800 when that machine is participating in a qualified Parallel Sysplex environment. 4 The z15 T02 model A01, z14 ZR1 model A01, z13s model A01, zBC12 model A01, z114 model A01, z10 BC model A01, z9 BC model A01, and the z890 model 110 are priced using zSeries Entry License Charges (zELC) 5 AWLC and FWLC are only available on a z15 T02, z14 ZR1, z13s, zBC12 or z114 when that machine is participating in in a qualified Parallel Sysplex environment. 6 Only applicable for existing CMP environments with Machines that were Currently Eligible when added to multiplex. 3 International Program License Agreement Pricing Metrics International Program License Agreement (IPLA) metrics are those where customers pay an up-front charge for an entitlement to use the product. A separate, optional annual charge called Subscription and Support (S&S) provides customers with future releases and versions at no additional charge and access to IBM product support during the support period. IPLA software exists across all IBM servers but the references in this document refer exclusively to IPLA software on IBM Z servers. There are three pricing metrics that generally apply to IBM Z IPLA products: . Value Unit pricing applies to most IPLA products that run on z/OS. Value Unit pricing is typically based upon a number of MSUs and allows for lower cost of incremental growth. z/VM V5, V6, V7 and certain z/VM middleware have pricing based on the number of engines. Engine based . Value Unit pricing allows for a lower cost of incremental growth with additional engine-based licenses purchased. Most Linux middleware is also priced based on the number of engines. The number of engines is converted into Processor Value Units under the Passport Advantage® terms and conditions. For more information visit: ibm.com/systems/z/swprice/zipla/ Table 2: IBM Z IPLA Metrics IMS™ Tool, Application WebSphere® z/VM and Linux CICS® Development Product Suite related Middleware Tools & Db2® Tools Middleware Tools MSU- Based X X X Value Unit Pricing Engine- Based X Value Unit Pricing Engine- Based Processor Value Unit X Pricing 4 IBM Z Sub-Capacity Pricing Traditionally, software licenses in the mainframe Sub-Capacity Benefits environment have been based upon the full mainframe Sub-Capacity pricing can allow for many benefits, such as the capacity, meaning that the MSU-based software on the ability to: mainframe would be priced at the Full -Capacity MSUs of . Pay for select IBM software with LPAR-level that machine. Sub-Capacity pricing provides a granularity mechanism to license and pay for select IBM software . Vary charges each month, based on monthly products at a level less than the Full-Capacity of the variations in LPAR utilizations mainframe. Increase installed hardware capacity without Mechanics of Sub-Capacity necessarily increasing software charges Sub-Capacity pricing allows select IBM software . Manage software costs by managing workload products to be licensed based upon the capacity of the utilizations Logical Partitions (LPAR) or LPARs where a product . Pay for software based on the highest 4-hour rolling average executes. To support the on demand needs of today’s utilization (a benefit when compared with the measured marketplace, LPAR capacity is determined each month peak utilization) by measuring the highest rolling 4-hour average utilization of the LPAR each month in MSUs. For more information visit: By establishing a link between LPAR utilization and ibm.com/systems/z/swprice/subcap/ software charges, monthly variations in LPAR utilization may result in changes in software billing. Sub-Capacity Eligible Products Select IBM products are eligible for Sub-Capacity pricing. IBM offers both MLC products and IPLA For example, in the illustration below, LPAR A’s highest products with Sub-Capacity eligibility. For MLC rolling four-hour average during the month is 65 MSUs. products, licensed capacity may increase or decrease each Products running in a given month solely in partition A month. However, for IPLA products, the licensed capacity would have Sub-Capacity charges based on that 65 MSU cannot decrease once the license has been purchased. The value. Similarly, LPAR B’s highest rolling four-hour following are some examples of Sub- Capacity eligible average is 60 MSUs. Products running in a given MLC/IPLA products: month solely in partition B would have Sub-Capacity charges based on that 60 MSU value. Lastly, products ® ™ ® . Monthly License Charge - z/OS, Db2 , IMS , CICS , running in both LPARs at the same time in a given month WebSphere® MQ®, NetView®, Lotus® Domino® and more. For would be charged based on the highest simultaneous a complete list, visit: rolling four-hour average utilization of both LPARs, ibm.com/systems/z/swprice/reference/exhibits/mlc.html which is shown at 94 MSUs. IPLA - The majority of IPLA programs now qualify for Sub-Capacity pricing. Execution-based IPLA programs, such as IBM Fault Analyzer, may be charged based upon the utilization of the LPAR(s) where they execute. Reference-based IPLA programs, such as Db2 Tools, CICS Tools and IMS Tools, may be charged based upon the sub-capacity MSUs of their parent program (Db2, CICS or IMS) across the environment.