The applicability of sub capacity pricing is a pretty complex issue. Usually 
software is priced in MIP or MSU ranges so you'd have to figure out what your 
break points are. For example, we have a license for a product that goes up to 
110 MSU. If we use more than that, then we move to the next tier. 

The larger strategy is to buy a much bigger box than you need and then grow 
into it. Meanwhile your software costs grow along with your workload not with a 
big bang for the new box. 

Conversely, if your shop is shrinking, your software costs also shrink.

All assuming, of course, that your OEM software venders will agree to the 
reduced prices. 

-----Original Message-----
From: IBM Mainframe Discussion List [mailto:[email protected]] On Behalf Of 
Jacky Bright
Sent: Friday, May 01, 2009 9:15 AM
To: [email protected]
Subject: Re: Pricing of Software Licenses

Yes. We do have sub-capacity pricing, but to generate SCRT report we need
Type 70 records for which either CMF or RMF Required.  So its necessary to
have RMF or CMF.

Now that this topic has come up its worth discussing pricing of softwares. I
have a question here. If your utilisation is consistently more that 80-85%
of overall CPC capacity then is it worth going for sub-capacity pricing ? I
have not done any research on this but came to know from one sales guy that
I sub-capacity pricing is 10% more than PSLC charges.

Does anyone have any idea about this ?

JAcky



 
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