It costs nothing to use the CPU, other than the electrical power it consumes 
and the heat load on the building HVAC. It just sits there. 

But there are costs associated with making the CPU usable. Software licensing 
costs, support personnel costs, etc. Some of the software costs may be keyed to 
how much the CPU is used. But, then, use of the CPU also produces income 
directly or indirectly. 

Some add up the TCO (total cost of ownership or operation) and then prorate 
that across the user community using some arbitrary metric such as CPU seconds. 
Some prorate on transaction counts. Some do some combination thereof. 

Even then, the foundation of any such calculations would be a management 
decision to consider the operation a cost center or a profit center. 

For example, a really good measurement of the TCO of a given box would include 
the electrical power and the heat load on the building HVAC. But that rarely 
happens because those are almost always different cost centers and therefore 
operate under different budgeting strategies.     

So, add up all the costs associated with a given box. That's the cost of having 
a CPU to use. But it costs nothing to actually use it. Some might even argue 
that there are tangible costs of -not- using the CPU. 

-----Original Message-----
From: IBM Mainframe Discussion List [mailto:ibm-m...@bama.ua.edu] On Behalf Of 
Carson, Brad
Sent: Tuesday, March 10, 2009 6:36 AM
To: IBM-MAIN@bama.ua.edu
Subject: Cost of CPU Time

Hello IBM-Main'ers,

I'm looking for some information on how to calculate the cost for using CPU.  
Our new performance management team is trying to come up with a calculation 
that can be used for multiple platforms.  Those include zSeries, Unisys, 
pSeries, HP9000, and intel.  Since I'm not allowed to access the Gartner site 
(due to $$), we're trying this the old fashioned way on our own.

Any insight, tips, hints would be appreciated.



Brad S. Carson
Manager Mainframe Technical Support
Laboratory Corporation of America
Phone: 336-436-8294
Fax: 336-436-1033
email: cars...@labcorp.com

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