I was using the term 'CPU upgrade' loosely as going from one 'model' to another
with or without a change in technology. It's true that IBM offers (sometimes
deep) software discounts for technology upgrades. IBM, however, is only one
player. Not long after tiered pricing was foisted on us, ISVs jumped on the
bandwagon. Of course they blamed their move on IBM. Just playing the same game,
they said. While IBM discounts *their* software pricing for upgrades, ISVs have
no incentive to follow suit.
As Joel points out, the easiest upgrade is simply activating CPs that are
already installed. We have a box that includes an extra CP that we actually
bought and paid for at acquisition time. Turning it on is still a battle with
our bean counters because of *software* costs. And the big ISVs know when
you're turning on a CP because their enabling key is based on model. They're
only too happy to ship you a new key once the new bill is paid.
.
.
J.O.Skip Robinson
Southern California Edison Company
Electric Dragon Team Paddler
SHARE MVS Program Co-Manager
323-715-0595 Mobile
626-543-6132 Office ⇐=== NEW
robin...@sce.com
-----Original Message-----
From: IBM Mainframe Discussion List <IBM-MAIN@LISTSERV.UA.EDU> On Behalf Of
Joel C. Ewing
Sent: Saturday, July 4, 2020 5:51 AM
To: IBM-MAIN@LISTSERV.UA.EDU
Subject: (External):Re: Mainframe co-op
CAUTION EXTERNAL EMAIL
The easiest hardware upgrade by far is turning on more CPs or bumping
the aggregate CP capacity on existing hardware. Raising the MSU
capacity on existing hardware never decreases software cost and usually
increases software costs, sometimes very significantly. Note that Jesse refers
to a CPU upgrade, not a processor upgrade.
It is true that replacing the entire processor system and running the same
workload on newer hardware has lowered software per-MSU costs in recent years,
which provides incentive for upgrading a processor sooner
rather than later. However, if the motivation for an upgrade to newer
technology is to remove hardware constraints on your workload, a new system
that is able to satisfy the latent workload demand also has a good chance of
using enough additional MSUs to more than offset any new-hardware software
discount. One would have to assume that the intent of IBM's pricing strategies
is that the cumulative effect of all processor upgrades would be increased
revenue for IBM.
Joel C. Ewing
On 7/4/20 12:33 AM, Ed Jaffe wrote:
> On 7/3/2020 12:16 PM, Jesse 1 Robinson wrote:
>> Ah, software cost. I still remember the first CPU upgrade after the
>> insinuation of tiered pricing. We budgeted for the hardware and
>> extracted approval from management. Then we were bowled over when the
>> software bills rolled in. Of course it was our fault for not
>> considering the budget busting impact of increased MIPS. Not sure IBM
>> thought it through. We now refrain from hardware upgrades because of
>> software costs.
>
> The opposite is true. For many years now, hardware upgrades have
> resulted in *lower* software costs!
>
> This change in behavior began back in the z9 days (2007?) when IBM
> began adjusting MSU ratings to provide "Technology Dividends." Once
> the folly of that hardware "dial-back" methodology became clear, they
> stopped "monkeying" with processor ratings and focused instead on
> providing software discounts based on which generation of hardware you
> were running. These discounts take the form of what IBM today calls
> Technology Transition Charges and Technology Update Pricing. For example:
>
> 1. Suppose you have a 400 MSU zEC12. You receive a 6.3% discount on
> AWLC pricing.
> 2. If you upgrade to a 400 MSU z13. You receive an 11% discount on AWLC
> pricing.
> 3. If you upgrade to a 400 MSU z14. You receive a 16% discount on AWLC
> pricing.
> 4. If you upgrade to a 400 MSU z15. You receive an 18% discount on AWLC
> pricing.
>
> So, if you don't grow your CP-based MIPS when upgrading from a zEC12
> to a z15, you get 35% faster IFLs, zIIPs, and ICFs and your software
> bill goes down over 14%.
>
> Alternatively, because of the way the pricing curves work, you can
> upgrade your CP-based MIPS *far* more than 14% and keep your software
> bill essentially unchanged.
>
>
--
Joel C. Ewing
----------------------------------------------------------------------
For IBM-MAIN subscribe / signoff / archive access instructions,
send email to lists...@listserv.ua.edu with the message: INFO IBM-MAIN
