<snip>
Has anyone else experienced this with Direct-Connect or any other
application?  That is have they experienced the application taking over
the system even though it has a low importance level?  This is important
to us as we want our CICS processing to be one of the last things to be
hurt if we hit the soft cap.
</snip>

How did they determine NDM was affecting CICS?
Without the answer to that question, there is little that can be done,
except to speculate.

On a general level, NDM will tend to be an IO bound application.
The CPU consumption of NDM can be increased by items like encryption
(may vary by algorithm), data compression(again, may vary by algotirhm),
and code-page translation.

CICS (in my experience) typically runs as importance 1 (and ,
optionally, may be even more preferred by the CPU critical attribute). I
find it hard to believe that any task at a lower importance can impact
CICS to that degree, with one caveat.

If the NDM task consumes enough resource to deny the CICS main task less
that a full engine, you could see some impact. There is a fairly
substantial body of work regarding the impact of the CICS main task
being starved for CPU. Try this link for a starter 

http://www.daschmelzer.com/cmg2006/PDFs/100.pdf

All of the above being said, that is why the WLM developer's created
Resource Groups and the CPU Critical attribute. CPU Crtical, IIRC, means
that the tasks so marked will run at the highest DP of any task in that
importance group. A Resource Group can be used to set a maximum,
minimum, (or both) amount of service for work in that Resource Group.
Information on both CPU Critical and Resource Groups can be found in the
WLM books.

HTH,

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