©2010 SoftwareOnZ Sub capacity pricing Are you STILL paying too much?

©2010 SoftwareOnZ©2010 SoftwareOnZ

Sub capacity pricing Are you STILL paying too much?

©2010 SoftwareOnZ

AGENDA

• Intro to zSeries pricing framework• General Terminology• Pricing models • vWLC

• SubCapacity Report Tool (SCRT)• Sending your Invoice?• Understanding R4H• SCRT Section P5

• IBM SoftCapping• Defined Capacity = 0 • Defined Capacity = x• Group Capacity Limit (GCL)

• Q&A

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Quick Survey

• Who is running vWLC ?• Who is running with Defined Capacity = 0 ?• Who is running Group Capacity Limit (GCL) ? • Who is running Industry Standard methods for

controlling WLC ?• Who is manually controlling

the Defined Capacity line?

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General Terminology

• Technical terms and abbreviations used in this document.

– MSU: (Million Service Units) : reference unit for Software billing.

– IMSU (or ACTMSU): instantaneous MSU consumption

– R4H : Rolling 4 Hours

– CPC Capacity : z/Server full capacity

– Soft-Capping / WLM

• WLM, PR/SM and enforcement the Soft-Capping limit

– Hardware Management Console (HMC)

– DC : Defined Capacity

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General Terminology

Define Capacity (DC)

System z10 Processor Resource/Systems Manger Planning Guide SB10-7153-03

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A well-managed Datacenter

Significant growth of Datacenters New jobs such as Software Cost Planner (just like Capacity Planner which emerged a few years

ago)

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How Many Pricing Models ?!

• Monthly license Charge (MLC) Pricing• Software charges are determined by the capacity of the CPC in which the

product runs• Examples are : Parallel Sysplex License Charges (PSLC) and zSeries Entry

License Charges(zELC)

• SubCapacity Pricing• Software charges are determined by utilization capacity of the LPARs in which

the product runs• Examples are: Workload License Charges(WLC), Entry Workload License

Charges(EWLC) and Midrange Workload License Charges (MWLC)

• And more and IPLA International Program License Agreement(IPLA), System z New Application

License Charges(zNACL), Value Units, CBU’s , Select Application License Charges(SALC), Execution Based, Reference Base, z/OS based…..

– http://www-03.ibm.com/systems/z/resources/swprice/mlc/wlc.html


I want my vWLC !

©2010 SoftwareOnZ

I want my vWLC !

• Read Planning for Subcapacity Pricing (A22-7999-04)• Step by Step Guide

• Form a team• Prerequisites• Timeline• Software inventory• Run a planning tool• Get a cost analysis from IBM • Create cost chart • Review T&C’s


I’ve got vWLC !But where are the

savings ?

©2010 SoftwareOnZ

VWLC – IBM Sub Capacity Reporting Your Invoice

==B5========= SCRT SUB-CAPACITY REPORT - IBM Corp ====================

Run Date/Time 05 Mar 2010 - 10:55Name of Person Submitting Report: Joe BrockertE-Mail Address of Report Submitter: [email protected] Number of Report Submitter: 281 808-0270Customer Name SOFTWAREONZ

Customer Number 216Machine Serial Number 99-026EEMachine Type and Model 2094-706Machine Rated Capacity (MSUs) 422Purchase Order Number (optional)Customer Comments (255 chars max) (optional)

For recurring charge (MLC) products the data supplied in this report will be used to adjustthe billable MSUs in inventory for all MLC Products listed under the MLC Product Namecolumn on this report. In accordance with our agreement IBM will treat a change in productlicensed capacity as an order. If the MSUs have changed since the last report software billingbased on inventory MSUs will increase or decrease accordingly.

For One Time Charge (IPLA) products the data supplied in this report will be used tobill those IPLA products listed under the IPLA Product Name column in this report whichexceed your entitled capacity. In accordance with our agreementIBM will treat the use of a product in excess of its entitled capacity as an order and you will be billed forthe amount in excess of your entitlement.

Note: This report is expected to provide a "% data collected" > 95% and data reportingperiod beginning on the 2nd of the previous month and ending on the 1st of the current month.

==C5===============================================================

Section P5

©2010 SoftwareOnZ

VWLC - the R4H The R4H represents the average consumption (in MSU) of the LPAR during the last 4 hours

= Average of the last 48 IMSU metrics.9:00 … 10:00 …. 11:00 … 1:00

120 250 300 340 350 160 150 …………………................... 145 140 130

19:00 19:00 …… 20:00 23:00

170 140 110 107 105 100 …………………................... 98 95 90 90

R4H 250R4H 250

R4H 120R4H 120

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VWLC – IBM Sub Capacity Reporting Tool

• SCRT (Sub Capacity Reporting Tool) is a tool used by IBM for z/OS billing.• It uses the following SMF records : SMF 70-1 and SMF 89-1 / 89-2

• The SCRT is computed on a monthly basis :– During the month (from the second day of the month at 0h00 to the first day at 24h00 of the

following month)

– R4H averages are calculated for each WLC products, each hour, for each LPAR, for the month.

©2010 SoftwareOnZ

SCRT feature – Invoicing (Example)• the IMS bill reports 318 MSU at the same date and time with only LPARD & LPARP• The COBOL bill reports 91 MSU with only LPARD and at different date and time:

February, 15th at 10:00

©2010 SoftwareOnZ

VWLC – IBM Sub Capacity Reporting Tool

SCRT = MAX ( SUM ( Average R4Hs ) ) 1 month LPARs per LPAR


IBM Soft-Capping feature

vWLC, you just paid from what you used, now how do I control it?

But I hear that impacts performance !

And it not with Defined Capacity = 0

©2010 SoftwareOnZ


• IBM Soft-Capping is a feature which allows the control of z/OS bill. – This limit is called Defined Capacity (DC)

• The Soft-Capping rule:– When Rolling 4 Hours (R4H) becomes greater than or equal to DC then the LPAR is

capped. That means that the IMSU consumption will not be able to exceed DC anymore until the R4H becomes lower than the DC.

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Where is the SoftCap set?

Hardware Management Console (HMC)

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– Example of an LPAR which is capped:


An example of how you control your costs with Soft-Capping Defined Capacity = 0


You don’t !


An example of how you control your costs with Soft-Capping Defined Capacity = x

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Hour/LPAR Intervals 2

Hour/LPAR Interval2

LP1 55/56/57/55Av = 55

55

LP1DC=50

48/53/52/55Av = 52 > DC

50

LP2 74/70/72/74

72

LP2DC=69

72/68/69/74

69

LP3 87/89/88/88

88

LP3DC=81

80/84/84/82

81

LP4 13/15/15/13

14

LP4DC=12

11/13/12/11

11

Total 230 Total 211

Without Soft-CappingWithout Soft-Capping With Soft-Capping With Soft-Capping

Soft-Capping feature – Invoicing Example

©2010 SoftwareOnZ

Soft-Capping feature Defined Capacity being used

• Here, Cobol runs only on SYVA. SCRT displays 100 MSU because it retained the DC of 100 since the R4H was higher.

100

100


An example with Soft-Capping when using Group Capacity Limit

©2010 SoftwareOnZ

Group Capacity Limit

• Group Capacity Limit is an extension of Defined Capacity

• It allows an installation to define a “softcap” for multiple logical partitions on the same CPC

•The group limit is a defined capacity for all partitions defined in the group• A “CPCMAX” for group of LPARs to share

• Created on the HMC

• Can help reduce “softcapping”

• Creates it’s own problems

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Soft-Capping feature Group Capping limit

• For z/OS, the CPC peak is 993 MSU on January, the 5th at 12H and GCL overrides this value by 910 on January, the 4th at 12H : why? Because it is the first time (15) in the month GCL has been activated

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The down side of GCL

MVS Planning: Workload Management SA22-7602-14


Conclusion

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VWLC with Soft-Capping: LPAR view

IMSU : Instantaneous consumption of MSU for the LPAR

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R4H : Average of IMSU in 4 consecutive hours.

DC : Defined Capacity, billing limit that you do not want to exceed … and that you can fix at any level you want

©2010 SoftwareOnZ



R4H : Average of IMSU in 4 consecutive hours.

DC : Defined Capacity, billing limit that you don’t want to exceed … and that you can fix at any level you want

But performance can be affected (capping IMSU is brought back to the DC) !

©2010 SoftwareOnZ

vWLC – IBM Sub Capacity Reporting Tool

SCRT = MAX ( SUM ( min ( Average R4Hs or DC ) ) )

SCRT = MAX ( SUM ( Average R4Hs ) ) 1 month LPARs per LPAR

With Soft-Capping it takes into account either the peak of

R4H or the DC.

©2010 SoftwareOnZ

VWLC with IBM Soft-Capping: Pros & Cons

• VWLC with IBM Soft-Capping: – IBM Soft-Capping is easy to setup on the machine– It allows you to control the bill at a chosen level (by fixing DCs)

• VWLC with IBM Soft-Capping: + / -


Q&A

©2010 SoftwareOnZ


©2010 SoftwareOnZ


•Group Capacity Limit (GCL) introduced in 2008

•ShareW% This is the %SHARE calculated from the WEIGHT of the LPAR•ShareW_GCL% This is the %SHARE calculated from the WEIGHT in the GCL of the LPAR•ShareD% %HARE calculated from the DEFINDED CAPACITY of the LPAR•Target MSU from Weight: ShareW% translated in MSU•Target MSU from GCL Weight: ShareWGCL% translated in MSU

Documents

©2010 SoftwareOnZ Sub capacity pricing Are you STILL paying too much?