ITchak writes:
>Just to remind Timothy that IBM is not the only software supplier,
>3rd parties and even IBM OTC does not take into account (at least,
>most of them) usage metrics.

I wrote:
>First of all, general purpose engine upgrades don't increase software
>licensing charges unless you're talking about software licenses tied to
>machine capacity (i.e. full capacity licensing).

No need to remind me. :-)

Just to correct your assertion about IBM OTC, IBM's System z "one-time
charge" software *does* take into account usage metrics (and, for that
matter, software for other machines does, too). That's called Sub-Capacity
IPLA (International Program License Agreement) software licensing, and IBM
started offering it years ago. Here's some more information:

http://www.ibm.com/systems/z/resources/swprice/reference/exhibits/ipla.html

With that bit of information about how to get additional software pricing
efficiency out of the way, yes, software licensing is typically the largest
part of the IT budget after payroll. (Look to your left, look to your
right, look in the mirror... :-)) That's a good thing, and maybe if
software were bigger than the IT payroll budget it would be even better.
But that's also like saying the biggest part of an airline's operations
budget is fuel. Well, sure, that's not surprising. And yes, maximizing the
efficiency of that fuel is also a good thing. But stop loading fuel onto
the airplanes?

Great stuff, software. Good software solves business problems. Want to stop
solving business problems and/or increase costs elsewhere? Cut off the fuel
supply: software.

Let's not get software pricing efficiency confused with business problem
solving/business optimization. I'm a "bigger picture" person on this, and
hopefully you've got a few in your organizations.

- - - - -
Timothy Sipples
Resident Enterprise Architect
STG Value Creation & Complex Deals Team
IBM Growth Markets (Based in Singapore)
E-Mail: [email protected]
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