1. ©2010 SoftwareOnZ Sub capacity pricing Are you STILL paying too much?

2. ©2010 SoftwareOnZ 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. ©2010 SoftwareOnZ Quick Survey Who is running vWLC ? Who is running with Defined Capacity = 0 ? Who is running Group Capacity Limit (GCL) ? Who is running Industry Standard methods for controlling WLC ? Who is manually controlling the Defined Capacity line?

4. ©2010 SoftwareOnZ 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. ©2010 SoftwareOnZ General Terminology Define Capacity (DC) System z10 Processor Resource/Systems Manger Planning Guide SB10-7153-03

6. ©2010 SoftwareOnZ A well-managed Datacenter Elaboration of a long-term z/Capacity Planning, reviewed and updated quarterly, with the goal of optimizing both the performance and the associated z/OS software costs. Controlling the z/OS Monthly License Charge. Managing and Optimizing the z/Resource sharing. Automation: to eradicate the manual constraint.  Significant growth of Datacenters  New jobs such as Software Cost Planner (just like Capacity Planner which emerged a few years ago)

7. ©2010 SoftwareOnZ 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: Workload License Charges(WLC), Entry Workload License Charges(EWLC) and Midrange Workload License Charges (MWLC) And more and IPLA International Program License Agreement(IPLA), System z New Application License Charges(zNACL), Value Units, CBU’s, Select Application License Charges(SALC), Execution Based, Reference Base, z/OS based….. – http://www-03.ibm.com/systems/z/resources/swprice/mlc/wlc.html

8. ©2010 SoftwareOnZ I want my vWLC !

9. ©2010 SoftwareOnZ 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

10. ©2010 SoftwareOnZ I’ve got vWLC ! But where are the savings ?

11. ©2010 SoftwareOnZ VWLC – IBM Sub Capacity Reporting Your Invoice ==B5========= SCRT SUB-CAPACITY REPORT - IBM Corp ==================== Run Date/Time05 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 NameSOFTWAREONZ Customer Number216 Machine Serial Number99-026EE Machine Type and Model2094-706 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 Release18.1.1 Reporting Period2 Feb, 2010 - 1 Mar, 2010 inclusive (28 days) Justification for low data collection (255 chars max) % Data Collected for z/OS100% ==E5=============================================================== PRODUCT SUMMARY INFORMATION MLC Product Name MLC Product IDTool MSUsCustomer MSUsCustomer Comments (255 chars max) z/OS V15694-A01322 DB2 UDB for z/OS V85625-DB2322 CICS TS for z/OS V35655-M15318 MQSeries for z/OS V65655-L82322 IMS V105635-A01 318 IBM Enterprise Cobol for z/OS s/390 V35655-G53101(optional) (conditional) IPLA Product NameIPLA Product IDTool MSUsCustomer MSUsCustomer Comments (255 chars max)Footnotes Fault Analyzer for z/OS V85655-S15296 Fault Analyzer for z/OS V75655-R46101 (optional)(conditional) Debug Tool Utilities Functions for z/OS V85655-S16101(optional) (conditional) Debug Tool Utilities Functions for z/OS V75655-R45101(optional) (conditional) IBM WebSphere Application Server for z/OS V65655-N0124 (iv) IBM WebSphere Application Server for z/OS V55655-I35106 Application Perf Analyzer for z/OS V85697-N63101(optional) (conditional) Application Perf Analyzer for z/OS V75697-N53322(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 SYSIDInput Data StartInput Data End Report Period % DataCustomer Comments (255 chars max) LPARDMVSD25 Jan 2010 - 23:0005 Mar 2010 - 00:00 100.0% LPARPMVSP25 Jan 2010 - 23:0005 Mar 2010 - 00:00 100.0% LPARWPSTGP26 Jan 2010 - 00:0005 Mar 2010 - 00:00 100.0% LPARX--- 0.0%(required) CPC25 Jan 2010 - 23:0005 Mar 2010 - 00:00 100.0% ==L5=============================================================== DETAIL DATA SECTIONS - FOR CUSTOMER ANALYSIS PURPOSES ONLY ==M5=============================================================== SMF / SCRT89 INPUT DATA STATISTICS SYSIDInput Data StartInput Data End LPARDMVSD25 Jan 2010 - 23:0005 Mar 2010 - 00:00 LPARPMVSP25 Jan 2010 - 23:0005 Mar 2010 - 00:00 LPARWPSTGP26 Jan 2010 - 00:0005 Mar 2010 - 00:00 LPARX--- CPC25 Jan 2010 - 23:0005 Mar 2010 - 00:00 ==N5=============================================================== DETAIL LPAR DATA SECTION HighestHour CountDate/Time 2nd HighestHour CountDate/Time LPARD101115 Feb 2010 - 10:00 96215 Feb 2010 - 11:00 LPARP294127 Feb 2010 - 06:00 285127 Feb 2010 - 07:00 LPARWP26128 Feb 2010 - 12:00 23128 Feb 2010 - 13:00 CPC322127 Feb 2010 - 06:00 313127 Feb 2010 - 07:00 ==P5=============================================================== PRODUCT MAX CONTRIBUTORS Product Name Product ID HighestDate/Time LPARD LPARP LPARWP z/OS V15694-A01 32227 Feb 2010 - 06:00 242944 DB2 UDB for z/OS V85625-DB2 32227 Feb 2010 - 06:0024294 4 CICS TS for z/OS V35655-M15 31827 Feb 2010 - 06:0024294 0 MQSeries for z/OS V65655-L82 32227 Feb 2010 - 06:0024294 4 IMS V105635-A01 31827 Feb 2010 - 06:00 242940 IBM Enterprise Cobol for z/OS and OS/390 V35655-G5310115 Feb 2010 - 10:00 10100 Fault Analyzer for z/OS V85655-S15296 16 Feb 2010 - 12:00962000 Fault Analyzer for z/OS V75655-R46101 15 Feb 2010 - 10:0010100 Debug Tool Utilities Functions for z/OS V85655-S1610115 Feb 2010 - 10:00 10100 Debug Tool Utilities Functions for z/OS V75655-R4510115 Feb 2010 - 10:00 10100 IBM WebSphere Application Server for z/OS V65655-N012405 Feb 2010 - 21:00 2400 IBM WebSphere Application Server for z/OS V55655-I3510615 Feb 2010 - 10:00 10105 Application Perf Analyzer for z/OS V85697-N6310115 Feb 2010 - 10:00 10100 Application Perf Analyzer for z/OS V75697-N5332227 Feb 2010 - 06:00 242944 ==Q5=============================================================== PRODUCT GRID SNAPSHOT Product Name Product IDLPARDLPARPLPARWP z/OS V15694-A01 100.0%100.0%100.0% DB2 UDB for z/OS V85625-DB2 100.0%100.0%100.0% CICS TS for z/OS V35655-M15 100.0%100.0% MQSeries for z/OS V65655-L82 100.0%100.0%100.0% IMS V105635-A01 98.9%100.0% Fault Analyzer for z/OS V85655-S1546.8% 37.6% IBM WebSphere Application Server for z/OS V65655-N0198.5%42.2% IBM WebSphere Application Server for z/OS V55655-I3584.5%74.8% ==S7=============================================================== GETTING STARTED SUB-CAPACITY PRICING ASSIGNED - HOURS LPARLPARLPAR Product NameProduct IDLPARDLPARPLPARWP IBM WebSphere Application Server for z/OS V65655-N01662 271 ==S8=============================================================== GETTING STARTED SUB-CAPACITY PRICING EQUAL TO TRADITIONAL SUB-CAPACITY - HOURS LPARLPARLPAR Product NameProduct IDLPARDLPARPLPARWP IBM WebSphere Application Server for z/OS V65655-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 ==B5========= SCRT SUB-CAPACITY REPORT - IBM Corp ==================== Run Date/Time05 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 NameSOFTWAREONZ Customer Number216 Machine Serial Number99-026EE Machine Type and Model2094-706 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=============================================================== Section P5

12. ©2010 SoftwareOnZ 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. 9:00 … 10:00 …. 11:00 … 1:00 120250300340350160150 …………………...................145140130 19:00 19:00 …… 20:0023:00 170140110107105100 …………………...................989590 R4H 250 R4H 250 R4H 120 R4H 120 LPAR 1

13. ©2010 SoftwareOnZ 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 WLC products, each hour, for each LPAR, for the month.

14. ©2010 SoftwareOnZ 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, 15 th at 10:00

15. ©2010 SoftwareOnZ VWLC – IBM Sub Capacity Reporting Tool SCRT = MAX ( SUM ( Average R4Hs ) ) 1 month LPARs per LPAR

16. ©2010 SoftwareOnZ IBM Soft-Capping feature vWLC, you just paid from what you used, now how do I control it? But I hear that impacts performance ! And it not with Defined Capacity = 0

17. ©2010 SoftwareOnZ 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. ©2010 SoftwareOnZ Where is the SoftCap set? Hardware Management Console (HMC)

19. ©2010 SoftwareOnZ IBM Soft-Capping feature – Example of an LPAR which is capped:

20. ©2010 SoftwareOnZ An example of how you control your costs with Soft-Capping Defined Capacity = 0

21. ©2010 SoftwareOnZ You don’t !

22. ©2010 SoftwareOnZ An example of how you control your costs with Soft-Capping Defined Capacity = x

23. ©2010 SoftwareOnZ Hour/ LPAR Intervals 2 Hour/ LPAR Interval2 LP1 55/56/57/55 Av = 55  55 LP1 DC=50 48/53/52/55 Av = 52 > DC  50 LP2 74/70/72/74  72 LP2 DC=69 72/68/69/74  69 LP3 87/89/88/88  88 LP3 DC=81 80/84/84/82  81 LP4 13/15/15/13  14 LP4 DC=12 11/13/12/11  11 Total230Total 211 Without Soft-Capping With Soft-Capping Soft-Capping feature – Invoicing Example

24. ©2010 SoftwareOnZ Soft-Capping feature Defined Capacity being used Here, Cobol runs only on SYVA. SCRT displays 100 MSU because it retained the DC of 100 since the R4H was higher. 100

25. ©2010 SoftwareOnZ An example with Soft-Capping when using Group Capacity Limit

26. ©2010 SoftwareOnZ Group Capacity Limit Group Capacity Limit is an extension of Defined Capacity 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 problems

27. ©2010 SoftwareOnZ Group Capacity Limit

28. ©2010 SoftwareOnZ 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

29. ©2010 SoftwareOnZ The down side of GCL MVS Planning: Workload Management SA22-7602-14

30. ©2010 SoftwareOnZ Conclusion

31. ©2010 SoftwareOnZ VWLC with Soft-Capping: LPAR view IMSU : Instantaneous consumption of MSU for the LPAR 8:00 Beginning of OLTP 10:00 Peak of consumption AM 12:00 – 14:00 Lunch time 17:00 Peak of consumption PM 21:00 Beginning of Batch

32. ©2010 SoftwareOnZ 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

33. ©2010 SoftwareOnZ 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) !

34. ©2010 SoftwareOnZ vWLC – IBM Sub Capacity Reporting Tool SCRT = MAX ( SUM ( min ( Average R4Hs or DC ) ) ) SCRT = MAX ( SUM ( Average R4Hs ) ) 1 month LPARs per LPAR With Soft-Capping it takes into account either the peak of R4H or the DC.

35. ©2010 SoftwareOnZ 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: + / - IBM Soft-Capping Low DCsAllows billing control Potential performance problems (capping) High DCsNo capping The bill is not controlled anymore

36. ©2010 SoftwareOnZ Q&A

37. ©2010 SoftwareOnZ Group Capacity Limit

38. ©2010 SoftwareOnZ 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