Sub capacity pricing Are you STILL paying too much?

1. Sub capacity pricing Are you STILL paying too much?

2. AGENDA • Intro to zSeries pricing framework • General Terminology • Pricing models • vWLC • SubCapacity Report Tool (SCRT) • Sending your Invoice? • Understanding R4H • SCRT Section P5 • IBM SoftCapping • Defined Capacity = 0 • Defined Capacity = x • Group Capacity Limit (GCL) • Q&A

3. Quick Survey Who is running vWLC ? Who is running with Defined Capacity = 0 ? Who is running Group Capacity Limit (GCL) ? Who is manually controlling the Defined Capacity line? Who is running Industry Standard methods for controlling WLC ? Jacky Haufbour.

4. General Terminology • Technical terms and abbreviations used in this document. • MSU: (Million Service Units) : reference unit for Software billing. • IMSU (or ACTMSU): instantaneous MSU consumption • R4H : Rolling 4 Hours • CPC Capacity : z/Server full capacity • Soft-Capping / WLM • WLM, PR/SM and enforcement the Soft-Capping limit • Hardware Management Console (HMC) • DC : Defined Capacity

5. General Terminology Define Capacity (DC) System z10 Processor Resource/Systems Manger Planning Guide SB10-7153-03

6. A well-managed Datacenter • Significant growth of Datacenters • New jobs such as  Software Cost Planner (just like  Capacity Planner which emerged a few years ago)

7. How Many Pricing Models ?! • Monthly license Charge (MLC) Pricing • Software charges are determined by the capacity of the CPC in which the product runs • Examples are : Parallel Sysplex License Charges (PSLC) and zSeries Entry License Charges(zELC) • SubCapacity Pricing • Software charges are determined by utilization capacity of the LPARs in which the product runs • Examples are: Variable Workload License Charges(VWLC), Entry Workload License Charges(EWLC), Actual Workload Charges(AWLC) & Midrange Workload License Charges (MWLC) • And more and IPLA International Program License Agreement(IPLA), System z New Application License Charges(zNALC), Value Units, CBU’s , Select Application License Charges(SALC), Execution Based, Reference Base, z/OS based, AWLC for z196 • http://www-03.ibm.com/systems/z/resources/swprice/mlc/wlc.html

8. AWLC for z196 • Two Methods • Full Capacity, Monthly charges based on the total MSU capacity of the z196 • Sub Capacity, Just like vWLC plus a discount Percentage of AWLC-eligible full-capacity MSUs in an actively coupled Parallel Sysplex Reduction in monthly VWLC > 0 - 20% 0.5% 21 - 40% 1.5% 41 - 60% 3.0% 61 - 80% 4.0% 81 - < 100% 4.5% Example: Two machines in an actively coupled Parallel Sysplex. Machine 1 is a z196 model 710 server with 1191 MSUs and machine 2 is a System z9 EC model 607 server with 385 MSUs for a total of 1576 MSUs. Divide 1191 by 1576; the result is 0.755710, which is rounded up to 76%. The Parallel Sysplex will remain on VWLC pricing and receive a 4.0% reduction in VWLC billing. • IBM Systems z Advanced Workload License Charges (Z125-8538)

9. I want my vWLC !

10. I want my vWLC ! • Read Planning for Subcapacity Pricing (A22-7999-04) • Step by Step Guide • Form a team • Prerequisites • Timeline • Software inventory • Run a planning tool • Get a cost analysis from IBM • Create cost chart • Review T&C’s

11. I’ve got my vWLC !

12. ==B5========= SCRT SUB-CAPACITY REPORT - IBM Corp ==================== Run Date/Time 05 Mar 2010 - 10:55 Name of Person Submitting Report: Joe Brockert E-Mail Address of Report Submitter: joe.brockert@softwareonz.com Phone Number of Report Submitter: 281 808-0270 Customer Name SOFTWAREONZ Customer Number 216 Machine Serial Number 99-026EE Machine Type and Model 2094-706 Machine Rated Capacity (MSUs) 422 Purchase Order Number (optional) Customer Comments (255 chars max) (optional) For recurring charge (MLC) products the data supplied in this report will be used to adjust the billable MSUs in inventory for all MLC Products listed under the MLC Product Name column on this report. In accordance with our agreement IBM will treat a change in product licensed capacity as an order. If the MSUs have changed since the last report software billing based on inventory MSUs will increase or decrease accordingly. For One Time Charge (IPLA) products the data supplied in this report will be used to bill those IPLA products listed under the IPLA Product Name column in this report which exceed your entitled capacity. In accordance with our agreement IBM will treat the use of a product in excess of its entitled capacity as an order and you will be billed for the amount in excess of your entitlement. Note: This report is expected to provide a "% data collected" > 95% and data reporting period beginning on the 2nd of the previous month and ending on the 1st of the current month. ==C5=============================================================== TOOL INFORMATION Tool Release 18.1.1 Reporting Period 2 Feb, 2010 - 1 Mar, 2010 inclusive (28 days) Justification for low data collection (255 chars max) % Data Collected for z/OS 100% ==E5=============================================================== PRODUCT SUMMARY INFORMATION MLC Product Name MLC Product ID Tool MSUs Customer MSUs Customer Comments (255 chars max) z/OS V1 5694-A01 322 DB2 UDB for z/OS V8 5625-DB2 322 CICS TS for z/OS V3 5655-M15 318 MQSeries for z/OS V6 5655-L82 322 IMS V10 5635-A01 318 IBM Enterprise Cobol for z/OS s/390 V3 5655-G53 101 (optional) (conditional) IPLA Product Name IPLA Product ID Tool MSUs Customer MSUs Customer Comments (255 chars max) Footnotes Fault Analyzer for z/OS V8 5655-S15 296 Fault Analyzer for z/OS V7 5655-R46 101 (optional) (conditional) Debug Tool Utilities Functions for z/OS V8 5655-S16 101 (optional) (conditional) Debug Tool Utilities Functions for z/OS V7 5655-R45 101 (optional) (conditional) IBM WebSphere Application Server for z/OS V6 5655-N01 24 (iv) IBM WebSphere Application Server for z/OS V5 5655-I35 106 Application Perf Analyzer for z/OS V8 5697-N63 101 (optional) (conditional) Application Perf Analyzer for z/OS V7 5697-N53 322 (optional) (conditional) Footnotes: (iv) Product's Tool MSUs are based on Getting Started Sub-capacity Pricing from one or more LPARs ==H5=============================================================== DETAIL DATA COLLECTION SYSID Input Data Start Input Data End Report Period % Data Customer Comments (255 chars max) LPARD MVSD 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 100.0% LPARP MVSP 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 100.0% LPARWP STGP 26 Jan 2010 - 00:00 05 Mar 2010 - 00:00 100.0% LPARX - - - 0.0% (required) CPC 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 100.0% ==L5=============================================================== DETAIL DATA SECTIONS - FOR CUSTOMER ANALYSIS PURPOSES ONLY ==M5=============================================================== SMF / SCRT89 INPUT DATA STATISTICS SYSID Input Data Start Input Data End LPARD MVSD 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 LPARP MVSP 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 LPARWP STGP 26 Jan 2010 - 00:00 05 Mar 2010 - 00:00 LPARX - - - CPC 25 Jan 2010 - 23:00 05 Mar 2010 - 00:00 ==N5=============================================================== DETAIL LPAR DATA SECTION Highest Hour Count Date/Time 2nd Highest Hour Count Date/Time LPARD 101 1 15 Feb 2010 - 10:00 96 2 15 Feb 2010 - 11:00 LPARP 294 1 27 Feb 2010 - 06:00 285 1 27 Feb 2010 - 07:00 LPARWP 26 1 28 Feb 2010 - 12:00 23 1 28 Feb 2010 - 13:00 CPC 322 1 27 Feb 2010 - 06:00 313 1 27 Feb 2010 - 07:00 ==P5=============================================================== PRODUCT MAX CONTRIBUTORS Product Name Product ID Highest Date/Time LPARD LPARP LPARWP z/OS V1 5694-A01 322 27 Feb 2010 - 06:00 24 294 4 DB2 UDB for z/OS V8 5625-DB2 322 27 Feb 2010 - 06:00 24 294 4 CICS TS for z/OS V3 5655-M15 318 27 Feb 2010 - 06:00 24 294 0 MQSeries for z/OS V6 5655-L82 322 27 Feb 2010 - 06:00 24 294 4 IMS V10 5635-A01 318 27 Feb 2010 - 06:00 24 294 0 IBM Enterprise Cobol for z/OS and OS/390 V3 5655-G53 101 15 Feb 2010 - 10:00 101 0 0 Fault Analyzer for z/OS V8 5655-S15 296 16 Feb 2010 - 12:00 96 200 0 Fault Analyzer for z/OS V7 5655-R46 101 15 Feb 2010 - 10:00 101 0 0 Debug Tool Utilities Functions for z/OS V8 5655-S16 101 15 Feb 2010 - 10:00 101 0 0 Debug Tool Utilities Functions for z/OS V7 5655-R45 101 15 Feb 2010 - 10:00 101 0 0 IBM WebSphere Application Server for z/OS V6 5655-N01 24 05 Feb 2010 - 21:00 24 0 0 IBM WebSphere Application Server for z/OS V5 5655-I35 106 15 Feb 2010 - 10:00 101 0 5 Application Perf Analyzer for z/OS V8 5697-N63 101 15 Feb 2010 - 10:00 101 0 0 Application Perf Analyzer for z/OS V7 5697-N53 322 27 Feb 2010 - 06:00 24 294 4 ==Q5=============================================================== PRODUCT GRID SNAPSHOT Product Name Product ID LPARD LPARP LPARWP z/OS V1 5694-A01 100.0% 100.0% 100.0% DB2 UDB for z/OS V8 5625-DB2 100.0% 100.0% 100.0% CICS TS for z/OS V3 5655-M15 100.0% 100.0% MQSeries for z/OS V6 5655-L82 100.0% 100.0% 100.0% IMS V10 5635-A01 98.9% 100.0% Fault Analyzer for z/OS V8 5655-S15 46.8% 37.6% IBM WebSphere Application Server for z/OS V6 5655-N01 98.5% 42.2% IBM WebSphere Application Server for z/OS V5 5655-I35 84.5% 74.8% ==S7=============================================================== GETTING STARTED SUB-CAPACITY PRICING ASSIGNED - HOURS LPAR LPAR LPAR Product Name Product ID LPARD LPARP LPARWP IBM WebSphere Application Server for z/OS V6 5655-N01 662 271 ==S8=============================================================== GETTING STARTED SUB-CAPACITY PRICING EQUAL TO TRADITIONAL SUB-CAPACITY - HOURS LPAR LPAR LPAR Product Name Product ID LPARD LPARP LPARWP IBM WebSphere Application Server for z/OS V6 5655-N01 13 ==W5=============================================================== This report is prepared by the IBM System z customer identified above ("Customer") or its authorized designee and such Customer is solely responsible for the completeness and accuracy of information and data used to create this report. Specifically IBM makes no representations or warranties regarding the contents or accuracy of this report. Any questions regarding the contents of this report should be directed to the Customer. A09295520E52034F50221H52772K50283 VWLC – IBM Sub Capacity Reporting Your Invoice Section P5 ==B5========= SCRT SUB-CAPACITY REPORT - IBM Corp ==================== Run Date/Time 05 Mar 2010 - 10:55 Name of Person Submitting Report: Joe Brockert E-Mail Address of Report Submitter: joe.brockert@softwareonz.com Phone Number of Report Submitter: 281 808-0270 Customer Name SOFTWAREONZ Customer Number 216 Machine Serial Number 99-026EE Machine Type and Model 2094-706 Machine Rated Capacity (MSUs) 422 Purchase Order Number (optional) Customer Comments (255 chars max) (optional) For recurring charge (MLC) products the data supplied in this report will be used to adjust the billable MSUs in inventory for all MLC Products listed under the MLC Product Name column on this report. In accordance with our agreement IBM will treat a change in product licensed capacity as an order. If the MSUs have changed since the last report software billing based on inventory MSUs will increase or decrease accordingly. For One Time Charge (IPLA) products the data supplied in this report will be used to bill those IPLA products listed under the IPLA Product Name column in this report which exceed your entitled capacity. In accordance with our agreement IBM will treat the use of a product in excess of its entitled capacity as an order and you will be billed for the amount in excess of your entitlement. Note: This report is expected to provide a "% data collected" > 95% and data reporting period beginning on the 2nd of the previous month and ending on the 1st of the current month. ==C5===============================================================

13. VWLC - the R4H The R4H represents the average consumption (in MSU) of the LPAR during the last 4 hours= Average of the last 48 IMSU metrics. R4H 250 R4H 120 LPAR 1

14. VWLC – IBM Sub Capacity Reporting Tool • SCRT (Sub Capacity Reporting Tool) is a tool used by IBM for z/OS billing. • It uses the following SMF records : SMF 70-1 and SMF 89-1 / 89-2 • The SCRT is computed on a monthly basis : • During the month (from the second day of the month at 0h00 to the first day at 24h00 of the following month) • R4H averages are calculated for each MLC product, each hour, for each LPAR, for the month.

15. SCRT feature – Invoicing (Example) • the IMS bill reports 318 MSU at the same date and time with only LPARD & LPARP • The COBOL bill reports 91 MSU with only LPARD and at different date and time: February, 15th at 10:00

16. I’ve got my vWLC ! but where are the savings ? IBM Soft-Capping feature But I hear that impacts performance !

17. IBM Soft-Capping feature • IBM Soft-Capping is a feature which allows the control of z/OS bill. • This limit is called Defined Capacity (DC) • The Soft-Capping rule: • When Rolling 4 Hours (R4H) becomes greater than or equal to DC then the LPAR is capped. That means that the IMSU consumption will not be able to exceed DC anymore until the R4H becomes lower than the DC.

18. Where is the SoftCap set? Hardware Management Console (HMC)

19. IBM Soft-Capping feature • Example of an LPAR which is capped:

20. An example of how you control your costs with Soft-Capping Defined Capacity = 0

21. You don’t !

22. An example of how you control your costs with Soft-Capping Defined Capacity = x

23. Soft-Capping feature – Invoicing Example Without Soft-Capping With Soft-Capping

24. Soft-Capping feature Defined Capacity being used 100 • Here, Cobol runs only on SYVA. SCRT displays 100 MSU because it retained the DC of 100 since the R4H was higher. 100

25. An example with Soft-Capping when using Group Capacity Limit

26. Group Capacity Limit • Group Capacity Limit is an extension of Defined Capacity • It’s setup for a group not individual LPARs • It allows an installation to define a “softcap” for multiple logical partitions on the same CPC • The group limit is a defined capacity for all partitions defined in the group • A “CPCMAX” for group of LPARs to share • Created on the HMC • Can help reduce “softcapping” • Creates it’s own issues

27. Group Capacity Limit

28. Warning… MVS Planning: Workload Management SA22-7602-14

29. Conclusion

30. 10:00 Peak of consumption AM 17:00 Peak of consumption PM 12:00 – 14:00 Lunch time 8:00 Beginning of OLTP 21:00 Beginning of Batch VWLC with Soft-Capping: LPAR view • IMSU : Instantaneous consumption of MSU for the LPAR

31. VWLC with Soft-Capping: LPAR view • IMSU : Instantaneous consumption of MSU for the LPAR • R4H : Average of IMSU in 4 consecutive hours. • DC : Defined Capacity, billing limit that you do not want to exceed … and that you can fix at any level you want

32. VWLC with Soft-Capping: LPAR view • IMSU : Instantaneous consumption of MSU for the LPAR • R4H : Average of IMSU in 4 consecutive hours. • DC : Defined Capacity, billing limit that you don’t want to exceed … and that you can fix at any level you want • But performance can be affected (capping  IMSU is brought back to the DC) !

33. vWLC – IBM Sub Capacity Reporting Tool SCRT = MAX ( SUM( Average R4Hs )) 1 month LPARs per LPAR SCRT = MAX (SUM( min ( Average R4Hs or DC ) ) ) • With Soft-Capping it takes into account either the peak of R4H or the DC.

34. VWLC with IBM Soft-Capping: Pros & Cons • VWLC with IBM Soft-Capping: • IBM Soft-Capping is easy to setup on the machine • It allows you to control the bill at a chosen level (by fixing DCs) • VWLC with IBM Soft-Capping: + / -

35. Q&A

36. Group Capacity Limit

37. Group Capacity Limit • Group Capacity Limit (GCL) introduced in 2008 • ShareW% This is the %SHARE calculated from the WEIGHT of the LPAR • ShareW_GCL% This is the %SHARE calculated from the WEIGHT in the GCL of the LPAR • ShareD% %HARE calculated from the DEFINDED CAPACITY of the LPAR • Target MSU from Weight: ShareW% translated in MSU • Target MSU from GCL Weight: ShareWGCL% translated in MSU

38. Soft-Capping feature Group Capping limit • For z/OS, the CPC peak is 993 MSU on January, the 5th at 12H and GCL overrides this value by 910 on January, the 4th at 12H : why? Because it is the first time (15) in the month GCL has been activated

39. VWLC – IBM Sub Capacity Reporting Tool SCRT = MAX ( SUM( Average R4Hs )) 1 month LPARs per LPAR