On Wednesday, 11/08/2017 at 09:55 GMT, Philipp Kern <p...@philkern.de> 
wrote:
> I thought unused CP capacity was literally costing OpEx whereas IFLs
> would be CapEx? If it's both OpEx, then yes, agreed. (And I suppose
> originally there might have been deals about giving some IFLs with
> upgrades? ;-)

Eh?  Processors are processors: CP, IFL, zIIP, CF, whatever.

- Processor purchase: CapEx
- Processor rental: OpEx
- Processor recurring maintenance: OpEx
- Software one-time-charge (z/VM): CapEx
- OTC software recurring maintenance: OpEx
- Monthly software charges (z/OS): OpEx

This is why z/OS usage is so carefully monitored and controlled.  You can 
budget a large spike for a capital purchase, but uncontrolled monthly 
software charges create monthly budget crises.

By adding capacity, you increase the software costs.

If your software is priced per CPU (z/VM, Linux), then you will know that 
when you add a CPU, you also need to add money for licenses, and you know 
exactly what your maintenance bill will be.  Over-configured machines 
typically mean over-paying for your software and wasting money on 
maintenance charges on something you're not using.

If your software is priced based on capacity rather than the number of 
CPUs, as z/OS is, then you typically look at subcapacity billing models 
that let you configure your hardware for spikes, but hold the rolling 
4-hour average to a lower level.  There are mechanisms in z/OS that can be 
configured to thwart it's natural tendency (common to all OSes) to run as 
much as it can as fast as it using all the resources at its disposal.

No rule applies 100% of the time (except this one), so there can be 
variations and combinations.

Alan Altmark

Senior Managing z/VM and Linux Consultant
IBM Systems Lab Services
IBM Z Delivery Practice
ibm.com/systems/services/labservices
office: 607.429.3323
mobile; 607.321.7556
alan_altm...@us.ibm.com
IBM Endicott

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