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Home > Updates > August 2003 Update (this page)

Friday, August 22nd, IBM introduced their Mainframe Charter on the internet. From the IBM website, the charter provides “a framework for planned future investment and to highlight specific ways in which IBM intends to deliver ongoing value to zSeries customers.” There have not yet been any new announcements but they are expected soon. (Click here for the September announcement update.) Four areas are covered in this update as they are of special interest for their impact on software pricing, sub-capacity pricing, and WLC:

  1. MSUs Lowered for z990 Servers, But Not the Performance. This will lower your Variable WLC software charges and perhaps your MSU based licenses from other vendors.
  2. z/OS Charges Lowered for Variable WLC Below 315 MSUs. Provides lower monthly charges for smaller installations.
  3. When z/OS is used with a NALC (“New Application License Charge”) the z/OS Charges have been lowered to z/OS.e levels
  4. Links to Additional Information

Previous Updates are available online.

With LPAR Capacity and Software Usage Analysis (LCS) you can do your own analysis of sub-capacity pricing and these changes to determine what WLC can provide in your site.

What Size is a z990?

IBM has changed the Announced MSU Sizes of the z990 servers without changing the actual performance. The MSUs sizes are now approximately 10% smaller.
Model Previously Announced MSUs August 2003 Announced MSUs Percent Change
z990-301 77 70 -9.0%
z990-305 337 302 -10.4%
z990-310 601 538 -10.4%
z990-316 844 761 -9.8%
z990-324 1192 1076 -9.7%
z990-332 1512 1365 -9.7%

To implement this change IBM will upgrade the microcode on all z990s to reflect the new Announced MSU Values. The micrcode updates should be available in September.

Additional 17Sep2003: Once the microcode is updated the MSU related information in the RMF70 data will change from the original Hardware MSUs to Software Pricing MSUs (SWPMSUs). This will change the reported capacity (SMF70CPA), the 4-hour rolling average (SMF70LAC), image capacity (SMF70WLA) and the defined capacity (SMF70MSU).

The z/OS Workload Manager and software from other vendors queries the hardware about the size and capabilities of an LPAR. The new size is available for sites using pricing metrics of full-capacity WLC, sub-capacity WLC or PSLC pricing. This new size may also apply to the license agreements you have with other software vendors, lowering your software cost-of-ownership for the same performance.

What This Means to Your Site

This will certainly impact your capacity planning and reporting. I've been telling clients to report capacity in terms of MSUs, but this announcement will change that strategy. For example if you were planning an upgrade to a z990-310 with 601 MSUs then you were also planning the software budget impact based on 601 MSUs. Now the maximum software charges will be based on 538 MSUs. You'll still need to acquire the z990-310 if you need 601 MSUs of hardware capacity. The z990-310's SRM Constant will remain 17003.1881 as the performance is unchanged.

Carefully review your chargeback procedures, particularly if you have changed them to use MSUs as chargeback metric. When you have multiple machines jobs that normally run on a z900 will use less MSUs when those jobs run on a z990. The Service Units and CPU time will be similar as that is controlled by the SRM Constant. If MSUs is your metric then customer invoices will decrease on the z990. If CPU Time is your metric then customer invoices will not change (except for the usual variability based on workload and other parameters).

If you have been using a formula for conversion from MIPS to MSUs, that will change on the z990s.

MSUs, the SRM Constant and the z/OS Workload Manager

The z/OS Workload Manager (WLM) uses the SRM Constant to convert CPU Service Units into CPU time. The SRM Constant for the z990s is not changing, so CPU times will not change. What is changing is the announced MSU value for the z990s and the required microcode update is needed so WLM can compute MSUs for 4-hour rolling averages, and other MSU capacity related information. (Recall that APAR Number OW50998 was needed so that RMF reports and SMF data would correctly reflect the announced MSU values. Befoer OW50998 the image capacity on RMF Partition Data Reports and the 4-hour rolling averages were not correct.)

WLM will use the changed MSU values when calculating 4-hour rolling averages and image capacities. These values will also be reported on RMF Partition Data Reports, RMF LPAR Cluster Reports, RMF III CPC command output, and various other reports and displays. This should also be used by your systems monitors. When software products query the LPAR and hardware configuration the changed MSU values will be returned to the calling program. The changed MSU sizes will be reflected in SMF70CPA (labeled as the “physical CPU adjustment factor”).

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z/OS Charges Lowered

IBM lowered the price of z/OS and some features for sub-capacity sizes smaller than 315 MSUs on any zSeries server. Of course you must be using Variable WLC. Earlier this year IBM lowered the entry point to 3 MSUs. This change results in a further cost reduction. This price change is effective October 1, 2003. The Lowered MSUs discussed above also apply. If you are have a z990-305 it previously had an announced capacity of 337 MSUs. Now it's capacity is 302 MSUs, and it falls within the range of the lower z/OS prices also.

There are many installed machines that will benefit from this change. Five z990 models, and twenty-five z900 models and all the z800s are smaller than 315 MSUs. You should note this is a change for z/OS only and not for the other Variable-WLC products. The actually prices have not been announced yet, only the fact that they will be changed soon.

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z/OS “New Application License Charge”

Additionally, IBM has also lowered z/OS charges when you have a new workload that qualifies for IBM's “New Application License Charge”. for new workloads, that qualify for NALC pricing, to the level of z/OS.e. This change is also planned for G5, G6, and z900. To qualify for NALC pricing you must be implementing a new workload such as SAP, Domino, PeopleSoft, WebSphere

, plus a few others. Generally a new machine must be acquired for the workload, but you may be able to implement the new workload in an LPAR.

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Links to More Information

There is more information on other changes that are part of IBM's Mainframe Charter including changes in IFLs, and memory. I've focused on those specifically related to Workload License Charges and there are additional Mainframe Charter Pricing Initiatives. Other recent updates include:

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Last Updated: Wednesday, 17 September, 2003

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