Software pricing : zNALC and z/VSE MWLC

Yesterday two new pricing models were introduced. The first one is zNALC pricing on the z/OS platform. zNALC pricing is due to become the only pricing matrix for new workload replacing NALC ànd z/OS.e. There are some differences as compared to NALC and z/OS.e pricing :

• As opposed to NALC and z/OS.e it runs on all zArchitecture machines (z900,z800,z990,z890,z9 EC enz9 BC).
• You only have one product i.e. z/OS (without the limitations that were posed to z/OS.e as e.g. number of TSO sessions limited).
• zNALC can be implemented on LPAR level and sysplex aggregation is possible.
• It comes in two flavours : full-capacity ànd sub-capacity pricing.
• The interpretation of the 'New Workload' definition seems to be more lenient than before.
  

Along with the announcement of the new z/VSE Version 4 there's a complete new pricing matrix for VSE : Z/VSE MWLC (Midrange Workload Licence Charge). The full-capacity version of MWLC is already more interesting than TWLC pricing as more levels are introduced. But what's more : for the first time sub-capacity pricing is introduced to the VSE environment. The formula can very well be compared to that on z/OS. z/VSE V4 (and only z/VSE V4) can generate SCRT89 records. An SCRT report will be sent to IBM and will be used to bill the customer. Exciting news for VSE customers, I'd say.
This pricing model can be set up on an LPAR level too. This creates the possibility to consolidate a smaller VSE machine onto an LPAR of a larger z/OS machine - without having the penalty of paying full-capacity. Bear in mind that you have to have z/VSE V4 running on a z9 machine.

As you can see, I'm only touching the surface of these matters. A comprehensive explanation can be found in the announcements I already mentioned and IBM added two pages to the IBM System z software pricing page : zNALC and MWLC.

Last remark : as type 89 records must be gathered for the sub-capacity matrixes and general availability is March 16th, 2007, the earliest billing date for these sub-capacity formulas is June 1st, 2007.