Robert Richards wrote:
>In reality, I finished that ELA (valued at over $8M with a
>1.5M breather) and spent all but $27K of that $1.5M and did
>not go over the cap.

That's about 1.8% on the under side according to my math, and that's very,
very good. I have no idea what Robert's organization's contract was, but I
have to assume they would have done very nicely with the sort of numbers
Robert describes. However, even if you're not as good as Robert -- even if
you deviate under or over by a rather considerable amount -- you're still
very likely to do well.

In my view if you can reasonably predict a somewhat conservative (but not
too conservative!) utilization forecast which includes growth -- most
organizations can do that -- "talk with your IBM representative." And, in
my view, be sure to aim at least some of those benefits back onto your
zEnterprise, and be sure to handle any internal cost accounting correctly
and without fostering perverse incentives.

Note that the "without...perverse incentives" comment also means not
resorting to unnatural acts to fit within a particular capacity, because
that usually only squeezes the balloon in perverse ways. Sure, optimize and
tune everywhere, starting with the most financially impactful stuff which
may not be your mainframe. I hope we all understand by now that marginal
total costs on mainframes are comparatively much lower than the initial
ones -- the IBM-related costs, anyway, and usually the others as well. The
cost curves are truly very curvy. That's not as true elsewhere, typically.
Adding a couple more non-mainframe cores to save a couple MIPS is generally
a very bad financial proposition and increasingly so over time it seems,
and it may not even accomplish that minus couple MIPS anyway.

--------------------------------------------------------------------------------------------------------
Timothy Sipples
GMU VCT Architect Executive (Based in Singapore)
E-Mail: [email protected]
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