Maximizing the Value of IBM’s New IBM Z Pricing Model
IBM Z Tailored Fit Pricing is a new, flexible software pricing model that promises to simplify the existing pricing landscape.
IBM recently announced a new pricing model for IBM Z software charges for their mainframe customers. Tailored Fit Pricing is a new, flexible software pricing model that promises to simplify the existing pricing landscape. Two new pricing solutions, Enterprise Consumption and Enterprise Capacity, offer alternatives to the rolling four-hour average (R4HA) based pricing model, for both new and existing workloads.
The motivation behind the new pricing model had a lot to do with the challenges around the R4HA pricing model that has been in place since 1999. This model is what we’re all used to and how we’ve come to know the IBM software pricing. In the era of hybrid cloud, where everything is connected and workload patterns are constantly changing, predicting demand for IT services can be a major challenge. The new pricing model is intended to be a simpler, more transparent and predictable option for mainframe customers. IBM expects that these new tailored pricing models are going to be more attractive for many of their mainframe customers.
4HRA Pain Points
The 4HRA pricing model had a couple of challenges that we are all familiar with. The complexity around trying to manage it, measure it and accurately report it to IBM are all challenging for many organizations. Additionally, efforts to keep workloads running at certain times of day to minimize your cost on the 4HRA leads to additional effort and stress on the part of customers trying to architect their systems and their environments around the pricing model as opposed to architecting them for the best performance or the most optimal sort of deployment options. Further, the impact of short-term spikes in workloads could have
an inordinate, and likely unpredictable, impact on a customer’s software licensing costs.
In this model, there are two new pricing solutions – Enterprise Consumption and Enterprise Capacity. These alternatives to the four-hour rolling average (4HRA) based pricing model are for both new and existing workloads and were created to provide a simpler, more transparent and predictable option for mainframe customers.
Download this eBook to learn how this new pricing model allows customers to realize even more savings with Precisely – through direct cost savings as well as delayed upgrades because of CPU usage reduction.