ISV Corner — Sub-Capacity Licenses Charges and ISVs

Workload License Charges (WLC) is a key component of IBM's attempt to control their portion of a site's software charges. Each ISV needs to determine if they should provide sub-capacity pricing options for their products.

The pressure from sites on the ISVs is increasing as more sites move to IBM's WLC. Now in 2011 a significant majority of z/OS sites are using WLC metrics. IBM continues to evolve the Workload License Charges Ts&Cs removing various obstacles so that more sites can take advantage of WLC.

It seems a daunting task: change your licensing options to allow a site to reduce their software charges and at the same time protect your revenue stream. If you do not provide sub-capacity pricing, or business metric based pricing you'll find more and more sites replacing your products with your competitor's products.

When your customers feel you are working with them and that your Ts&Cs are fair they share their experience with others. The same is true if they believe your license terms are not fair and are not supporting the continued growth of the mainframe. Do you want you customers complaining about you, or telling other sites you are reasonable to work with?

Al can answer the questions of independent software vendors related to Sub-Capacity Pricing and Workload License Charges (WLC). Al has already worked with a number of ISVs both onsite and via teleconferences to help them understand the keys issues of WLC:

• What is Sub-Capacity/LPAR-Based Pricing?
• What is driving Customers to demand Sub-Capacity Pricing?
• What is the SCRT and how is it used by Customers, by IBM and by ISVs?
• What are WLC, VWLC, AWLC, EWLC, TWLC, ZELC, IPLA, PSLC and ULC?
• What are the new "WebSphere" brand pricing metrics: GSSP and IWP?
• What has changed with the zEnterprise?
• How can I offer Sub-Capacity pricing and still meet my business/revenue targets?

What You Should Do

Set up a free initial teleconference to discuss sub-capacity pricing with Al Sherkow. He has been studying Workload License Charges since March 2000. His background in capacity planning, performance management, and configuration of LPARs provided a good technical background to build WLC expertise upon.

Free initial telephone consultation, customized offerings available upon demand or take advantage of my packaged ISV offering!

What Other ISVs are Saying

"Sherkow's training provided very helpful information to our immediate objectives of understanding sub-capacity pricing. With Al we were able to outline a strategy for our products related to sub-capacity pricing. We built upon the training so that our staff with direct customer contact can field sub-capacity related questions. Our sales force can now comfortable discuss our traditional pricing and sub-capacity pricing with customers. The feedback from our customers that have chosen sub-capacity pricing is that we have a good understanding, fair terms, and good documentation. Customers continue to rankle and resist, but no more than is expected in any vendor/customer relationship."
           — ISV Executive, November 2004

Last Updated: Saturday, 26 March, 2011