1. I missed this one last week, but it's interesting.  Novell SUSE Linux
Enterprise Server (SLES), including mainframe Linux, is now available for
ordering through IBM:

http://www.ibm.com/common/ssi/rep_ca/2/897/ENUS206-172/ENUS206-172.PDF

Linux itself is free software, remember.  (It's perfectly legal for you to
install and run Linux on your mainframe without asking anyone for
permission.)  You're buying Novell support using an IBM part number, and
that might be helpful to some procurement departments.

2. On July 25, 2006, IBM announced Value Unit-based pricing for nearly its
entire Passport Advantage (distributed) software portfolio.  Details here:

http://www.ibm.com/common/ssi/rep_ca/4/897/ENUS206-154/ENUS206-154.PDF

This one is quite interesting.  IBM now assigns a number (Value Units) to
each distributed server processor core.  Then software is priced based on
the proxy number, not on the number of cores or chips.  None of the
software pricing changed with this announcement, but in the future it
effectively could.  Here's how the numbers are assigned today (per core) as
the starting baseline:

All single core processors: 100
AMD Opteron dual core: 50
Intel Xenon dual core: 50
IBM POWER5 dual core: 100
HP PA-RISC dual core: 100
Sun UltraSPARC IV dual core: 100
IBM PowerPC dual core: 50
IBM POWER5 QCM dual core: 50
Sun UltraSPARC T1 quad/hexa/octi core: 30
Intel Itanium dual core: 100
IBM System z IFL or engine: 100
Everything else: 100

As you can see, with 100 Value Units = 1 old "processor" license, i.e. each
Value Unit = 1% of the processor license price, none of the pricing changed
today.

That's very good news for System z IFLs, I'd say.  (Some people have
expressed fear that IBM would "come to its senses" with IFL software
pricing.  It has.  No change.  Keep enjoying.)  One possible side effect is
that, at least in the future, software pricing should tend to reward code
efficiency and virtualization and make even more costly huge numbers of
non-virtualized distributed servers.  Unlike some other software vendors
there's no cap on the number of virtualized servers that you can run --
virtualization is moot in terms of IBM software licensing costs.
Considering that IBM has really, really good virtualization technologies
(IFLs being the pinnacle in the non-z/OS world), this makes perfect sense.
I suppose this is also good for the planet, (more electricity for your
servers and you'll probably pay more for software, too).

This is actually a simpler pricing schedule than before because it
eliminates some wacky fractional licenses, especially for Sun, that were
painful to track for everyone involved.

I guess you could say that even Intel processors now get MSU ratings, more
or less.  We live in interesting times.

As a reminder, I don't speak for IBM.  Which should be obvious by now. :-)

- - - - -
Timothy F. Sipples
Consulting Enterprise Software Architect, z9/zSeries
Tokyo (Serving IBM Japan and IBM Asia-Pacific)
E-Mail: [EMAIL PROTECTED]
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