Over the last 9 years, we've held the line on MIPS growth to essentially 
rounding effects during machine life cycles.  As a result, our MIPS count is up 
only 16% over that period.  However, due to the "technology dividend"s, our MSU 
count is actually down.  

I don't have all the cost data readily at hand, but I can say with confidence 
that our z/OS (only) cost decilined over that time due to the declining MSU 
count and the implementation of VWLC.  

Whether it's a fair value or not is a reasonable question, and one that's not 
as easily answered.

Historically IBM has raised MLC prices at version changes.  Lately they've 
raised prices on older versions some time after the newer version have been out 
for some time.  My presumption is that they're trying to incent people to stay 
current.  And make more money.  Because after all they are in business to make 
money.  

My theory about the z/OS price increase is that they did this so the September 
release can be z/OS v2r1, at the same price as the new (raised) z/OS v1r13 
price.  Otherwise if they just released v2 with a price increase there'd 
probably be a lot of people trying to hang on to v1r13 for as long as possible. 
 

Scott Chapman

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