If you look in the SMF manual at SMF70LAC it talks about long-term average. But 
in practice it DOES mean 4-Hour Rolling Average.

I believe the figure is generated by the hardware / firmware - from the z/OS 
perspective. This is important because I don’t think you can negotiate with IBM 
execs to have the meaning change with a simple z/OS PTF.

Which leads me to a minor “war story”. I was dispatched by one of our execs - a 
good few years ago - to help a customer manage their software bill down. They 
had been arguing for a SIX Hour Rolling Average metric, rather than FOUR. I 
don’t think it takes much of a Math(s) background to understand why. :-)

(Almost) needless to say, their request for a change was refused.

And as to why we have this mechanism it is to smooth out spikes and to get a 
(vaguely) repeatable metric that’s defensible all round.

And, for what it’s worth, I think we’ve been very creative over the years with 
software licensing schemes - to be helpful. And remember we have to be 
equitable and defensible in doing so. It’s just that implementation - the 
customer’s responsibility - sometimes takes some doing.

Cheers, Martin

Sent from my iPad

> On 25 Sep 2017, at 04:50, Peter <[email protected]> wrote:
> 
> Hi Cheryl,
> 
> Thank you so much
> 
> I was just trying to understand the meaning of FOUR hour and why not more
> than that..
> 
> 
> I will read it and come back
> 
> 
> On 25-Sep-2017 8:58 AM, "Cheryl Watson" <[email protected]> wrote:
> 
> Hi Peter,
> 
> It's best to start at the source using IBM' Software Pricing website.  The
> calculation for the R4HA is explained here - http://www-03.ibm.com/systems/
> z/resources/swprice/subcap/corner5.html.
> 
> Sub-capacity products are charged based on the highest simultaneous sum of
> the R4HA MSUs for all LPARs that the product runs in.  Said in another
> way...for each RMF interval, WLM calculates the highest R4HA (as described
> in the article above) for each LPAR on a CPC and records that to an SMF
> type 70 record.  Most sites, on the second day of the month, collect the
> SMF type 70 and SMF type 89 records and process them with a program called
> the Sub-Capacity Reporting Tool (SCRT).  SCRT will then calculate the
> highest R4HA for each LPAR and each hour.  From the type 89 records or
> control statements, SCRT can determine in which LPAR(s) each product runs.
> SCRT then finds the hour during the month for that combination of LPARs
> where the sum of the R4HA MSUs is the highest.  Thus my earlier sentence
> that it's the highest simultaneous sum.  That sum is then the R4HA for the
> product.  Each product could theoretically have a different R4HA.
> 
> Note: In most cases, finding the highest sum for a combination of LPARs is
> done at the CPC level.  For Country Multiplex, it's done by finding the
> highest sum of the LPARs on all CPCs in the multiplex.
> 
> The MSUs in that hour are used to calculate the price of the product for
> the entire month.  The art of reducing or containing your z/OS software
> costs is often focused on reducing or capping the R4HA for a product.  Some
> sites have a single R4HA for all LPARs, perhaps at 10 am or maybe at 3 am,
> and you can try to tune your system to that time frame.  Other sites might
> have a 10 am R4HA for CICS and a 3 am R4HA for DB2, so tuning might be
> directly at different time periods with different solutions.
> 
> Here are two articles in a series on software pricing that Alan Murphy and
> I wrote for Enterprise Executive:
> 
> 2016 No 2 - 
> https://urldefense.proofpoint.com/v2/url?u=http-3A__ourdigitalmags.com_publication_-3Fi-3D297321-23&d=DwIBaQ&c=jf_iaSHvJObTbx-siA1ZOg&r=BsPGKdq7-Vl8MW2-WOWZjlZ0NwmcFSpQCLphNznBSDQ&m=vfA_jMXcR0x4mRLiyaMZmRNTjHJjpbTX92upu96AmN4&s=ZrDm52Ym8VCdi5VHCV8cujOKilGa_WGkussy1mDbyMc&e=
>  {"issue_
> id":297321,"numpages":1,"page":47}
> 
> 2017 No 1 - 
> https://urldefense.proofpoint.com/v2/url?u=http-3A__ourdigitalmags.com_publication_-3Fi-3D384426-23&d=DwIBaQ&c=jf_iaSHvJObTbx-siA1ZOg&r=BsPGKdq7-Vl8MW2-WOWZjlZ0NwmcFSpQCLphNznBSDQ&m=vfA_jMXcR0x4mRLiyaMZmRNTjHJjpbTX92upu96AmN4&s=l9bH-oprg1GdJVVpTt7lJPdc-bWBSrEyzDqpK4IjrBE&e=
>  "{issue_
> id:384426,numpages:1,page:28}"
> 
> Does that help a little?
> 
> Best regards,
> Cheryl
> 
> 
> Cheryl Watson
> Watson & Walker, Inc.
> www.watsonwalker.com
> 
> 
> 
> -----Original Message-----
> From: IBM Mainframe Discussion List [mailto:[email protected]] On
> Behalf Of Peter
> Sent: Sunday, September 24, 2017 10:36 PM
> To: [email protected]
> Subject: What is 4 Hour rolling average
> 
> Hi Group
> 
> Apology for being ignorant here.
> 
> I am not a capacity analyst but even in the manuals I can't make out the
> real meaning behind 4 hour rolling average.
> 
> Could someone please explain me in simple or in layman terms about 4 hour
> rolling average ?
> 
> Regards
> Peter
> 
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