The information provided so far is somewhat incomplete. Here are some more
important points:

1. Customers that adopt Country Multiplex Pricing (CMP) no longer have
Single Version Charge (SVC) term limits at all. (Yay!) Please refer to IBM
announcement letter 215-230 (dated July 28, 2015) for details, or "talk
with your friendly IBM representative." Note that CMP does not require more
than one machine or even more than one z/OS LPAR. You can certainly be a
"small" z/OS customer with even a single z/OS LPAR and single machine and
still find CMP to be attractive -- maybe even especially attractive.

The elimination of SVC periods should NOT (triple underscore) be
interpreted as a license to run old, crusty versions "forever." Old, crusty
versions will still be old and crusty, still unsupported if they're beyond
their service periods. Please don't get old and crusty, at least not in
this respect.

Sysplex aggregation rules also disappear with CMP, by the way. [Excited
yet? :)]

2. Even among those customers choosing to maintain SVC term limits (i.e.
not adopt CMP), SVC term limits do not apply between Solution Edition LPARs
and non-Solution Edition LPARs. For example, if you license the IBM
Solution Edition for Data Warehousing with z/OS 2.2 and DB2 11 for z/OS,
and you install that Solution Edition on an existing machine with z/OS 1.13
and DB2 10 for z/OS, you do not start the Single Version Charge periods for
either z/OS or DB2. Each Solution Edition license is treated as a separate
entity. *Within* a specific Solution Edition license the SVC term limits
may apply, for example if you have two Solution Edition for Data
Warehousing LPARs on one machine (or aggregated Sysplex) then those two
LPARs would be within one SVC scope.

My understanding is that zNALC z/OS is treated the same way. For example,
if you have two zNALC z/OS LPARs and two non-zNALC z/OS LPARs on one
machine, all currently running z/OS 1.13, and you upgrade one of your zNALC
LPARs to z/OS 2.2, you have only started the SVC period for your zNALC
LPARs, not for all z/OS LPARs. (Somebody please correct me if I'm mistaken,
but that's my understanding.)

Anyway, to net it out, zNALC and Solution Editions are already separate
license entities, so you can think of them as separate non-aggregated
machines for SVC purposes, effectively -- separate SVC "zones."

3. In general (and I cannot think of any exceptions), Early Support
Program, Preview, Beta, and Trial licenses do not start SVC term limits --
at least not pre-General Availability of the new version, and perhaps not
even then. (Another good reason to participate in those programs! They
effectively give you elongated SVC periods. Fortune favors the brave, and
in this case you don't have to be too brave.) For example, you can license
the IBM Enterprise COBOL Developer Trial for z/OS without starting the SVC
period for your COBOL compiler.

4. Even if you exceed your SVC period it's not the "end of the world" --
far from it. You don't "pay double" -- at least I've never seen that,
unless perhaps you have full capacity licensing on every machine.
(Unlikely, especially these days.) What ends up happening is that you take
an additional trip on the Monthly License Charge price curve, but you don't
travel as far along the curve on each trip as you did when you had one
trip.

For example, let's suppose you are subject to SVC terms, you exceed your
SVC period, and you have both CICS Transaction Server Version 5 and CICS
Transaction Server Version 3 running on the same machine. You've upgraded
all but one LPAR to CICS TS Version 5, but you've got a "straggler" LPAR
still running CICS TS Version 3. You have sub-capacity licensing of some
type, e.g. VWLC, AWLC, AEWLC, etc. Let's suppose you have a 200 MSU
machine, and your total CICS TS peak four hour rolling average is typically
160 MSUs as reported in SCRT or MWRT. OK then, before you run past your SVC
period you'd be reporting 160 MSUs of CICS TS Version 5 (only) and pay for
that. After running past your SVC period you'd most probably report
something less than 160 MSUs of CICS TS Version 5 (i.e. your CICS TS
Version 5 license charge would decrease somewhat), and "a few" MSUs of CICS
TS Version 3 (i.e. your CICS TS Version 3 license charge would increase
from zero to something non-zero). Yes, 145 + 15 MSUs (for example) is
greater than 160 MSUs in licensing terms, but *usually* not hugely
greater.(*) If you do get caught in this situation I recommend:

(a) Segregating software versions (using LPARs) as best you can, setting a
"softcap" (defined capacity) at least on the LPAR(s) containing your older
software version(s), and getting migrated as quickly as you can; or

(b) Switching to Country Multiplex Pricing; or

(c) Asking your friendly IBM software representative for advice and
forbearance consideration. In particular, if the delay in getting over to
the new version is due to something IBM did or didn't do -- an impactful
defect that IBM hasn't been able to close, as a notable example -- and if
you have a realistic plan to get over to the new version once the defect is
actually closed, then IBM might consider an exception. No promises, of
course.

(*) If you have a particular type of enterprise licensing agreement with
IBM (as you probably should) and are "below caps" your bill may not change
at all.

--------------------------------------------------------------------------------------------------------
Timothy Sipples
IT Architect Executive, Industry Solutions, IBM z Systems, AP/GCG/MEA
E-Mail: [email protected]

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