Edward Jaffe wrote:
[...]
zAAP and zIIP specialty engines, which take over more and more work as more and more products are enhanced to exploit them,
IMHO it is not enhancement. From financial point of view yes, but technically the product is not better than version working on regular CP. This is definitely some effort, like IBM's effort to create such "specialies", but the word "enhancement" is not the best description IMHO.

and the technology dividend, which makes the z10 27% less expensive from a software licensing perspective than z900, are elements of an overarching strategy to gradually *lower* the price of z/OS even as MIPS use is exploding.
I really don't want to blame neither mainframe, nor IBM, but 27% is MSU base, not fee. It would be the same percentage if function fee=f(MSU) would be linear. It's not, of course it's growing (is proper math term?).
So 27% MSU less means lower fees but not necessarily 27% less.

AND IT'S VERY FINE that we have "technology dividend".

However we can also keep in mind that the "divident" makes second-hand machines less attractive. Second hand is nowadays the only IBM competitor.

If the price was slashed overnight, the market would crash and IBM would lose too much money. (So would a lot of ISVs.)
IBM yes, but ISV? I doubt. Imagine: due to lower costs of mainframe (and z/OS) more and more companies buy mainframe as new platform. That means more and more companies need ISV's products, ISV's hardware, services. That also could mean you sold not 1000, but 5000 licenses, so you can lower your prices ...no, not because you can or like customers, just to beat competition.

Oh, sweet dreams, mainframes everywhere, everyone need my skills, people schedule my course in 6 months advance, employers compete for me, offer me flexible working hours, company cars, medical care... <vbg>



--
Radoslaw Skorupka
Lodz, Poland

P.S. When talking about money, it is necessary to mention WLC. IMHO this is the greatest thing IBM did for mainframe pricing.


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Wedug stanu na dzie 01.01.2008 r. kapita zakadowy BRE Banku SA  wynosi 
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