Clark Morris writes:
>My view of it is that the software charge per MIP/MSU/latest
>measurement unit should follow the same trend as the Windows cost per
>megahertz.

*IBM* software pricing "per MIP" keeps declining, taking all factors into
account and for the *typical* environment.  (See a previous post listing
some of those factors.  I'm sure I forgot some.)  Said another way, for the
typical shop you can pump the same number of "transactions" through your
mainframe for a decreasing IBM software price.  Or you can pump more
transactions for the same IBM software price.  Your mileage may vary, but
that's typical under reasonable assumptions.

It also happens to be the case that the mainframe offers the lowest
software price entry point for a wide variety of IBM software products
because of having a minimum 3 MSU order quantity versus 100 Value Units for
every other system.  (And, really, it's hard to do anything real world --
like development, testing, and HA clustering -- with only 100 Value Units.)
That's assuming you can "fence" via VWLC and/or hardware, which is a pretty
reasonable assumption.

Software costs seem to be spiraling upward off the mainframe.  Do note that
there are software vendors who are now pricing Windows and UNIX software
according to the relative performance of the processors, so the days of
straight per-processor software pricing in those environments seem to be
over.  Some of the software price increases are due to business growth, but
some are not.  Software bloat rates are also different than the mainframe;
they seem to be higher off the mainframe.

Software is only one element of the IT budget, of course.  The price of
labor keeps going up, and mainframes are extremely efficient in that
respect and keep getting moreso.  (That "productivity gap" seems to be
widening, actually.)  Hardware costs are declining across the board.
Hardware maintenance costs, at least for mainframes, are also declining.
And is everyone remembering to include inflation for everything?
Hamburgers have a "higher price," but a 2007 dollar isn't worth what a 1980
dollar is.

Again, typical experiences, and your mileage may vary.  But if your mileage
does vary, especially considerably, it should vary for good cause.  If you
can't find that good cause, I'd recommend careful investigation and
remediation.

- - - - -
Timothy Sipples
IBM Consulting Enterprise Software Architect
Specializing in Software Architectures Related to System z
Based in Tokyo, Serving IBM Japan and IBM Asia-Pacific
E-Mail: [EMAIL PROTECTED]
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