Re-engineer your mainframe applications to get a better deal on IBM zSeries charges

IBM mainframe users could make substantial savings on computing costs thanks to new a new pricing structure that comes into...

IBM mainframe users could make substantial savings on computing costs thanks to new a new pricing structure that comes into effect this month.

Organisations using IBM's Workload Licence Charges pricing structure should consider re-engineering their existing workloads to see if it is possible to get price breaks from IBM, according to Phil Payne, an analyst at Isham Research.

He said, "If you have done any business case analyses for a new IBM mainframe in the past year and a half, do it again because things may have changed."

Julie-Ann Williams, chairman of the large systems working group at Guide Share Europe, said users might not be fully aware of the potential benefits.

"IBM has not really gone out to publicise this leap forward," she said. "Now is probably the best time for users to talk to IBM to see what sort of deal they can cut. One of the reasons why the zSeries platform has not grown as quickly as it could have is down to pricing."

Mike Thompson, principal research analyst at Butler Group, agreed that mainframe users should speak to IBM. He said, "The end-user should be questioning IBM very closely about what the new pricing structure means."

Elements of the new pricing strategy, which was outlined in IBM's new mainframe charter in August, come into force tomorrow (1 October).

Doug Neilson, system consultant at IBM's server group, said users of entry-level IBM zSeries mainframes could save up to £480,000 over the next three years.

The savings apply to mainframes using IBM's Workload Licence Charges on the z/OS at a capacity below 315 MSUs (millions of service units). However, Neilson predicted that users of entry-level z900 and z990 machines could make the biggest savings. "We have made reductions on the price points, particularly for some of the smaller zSeries machines," he said.

Workload Licence Charges, which were first introduced in October 2000, allow users to pay based on the resources used by the software, rather than the size of the machine. Enhancements to the Workload Licence Charges structure were designed to significantly reduce the cost of the z/OS for low-end users.

IBM executives said the move would make its mainframes more attractive for on-demand e-business systems.

Savings offered to IBM users

  • Entry-level zSeries mainframe users could save up to £480,000 in software costs over three years with enhanced Workload Licence Charges
  • There is a price reduction of up to 80% on new-application licence charges for the z/OS
  • Users can take advantage of daily on/off capacity-on-demand software charges for z990s
  • Software pricing for z990s has been improved
  • Memory costs have been reduced from about £30,000 per gigabyte to £6,000 per gigabyte.

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