Sub-capacity pricing terms for z/VM and select z/VM-based programs help improve flexibility and price/performance

IBM United States Software Announcement 217-267
July 17, 2017

Table of contents
OverviewOverviewDescriptionDescription
Key prerequisitesKey prerequisitesTerms and conditionsTerms and conditions
Effective dateEffective date


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At a glance
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IBM® introduces sub-capacity pricing for z/VM® V6 along with sub-capacity terms for select z/VM-based programs running in a z/VM operating environment.

Under sub-capacity pricing, you may:

  • Improve alignment between software use and software pricing
  • Add hardware capacity without necessarily increasing software pricing
  • Enable greater flexibility with software licensing
  • Achieve better price/performance for z/VM programs

The IBM License Metric Tool (ILMT) is used to determine z/VM sub-capacity program licensing requirements. ILMT is the same tool that is used to support sub-capacity pricing for Linux™ on z Systems™ programs from IBM that are licensed under Passport Advantage®.



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Top rule
Overview
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Sub-capacity pricing for the z/VM V6 operating environment is available to clients running z/VM Version 6 Release 3 or higher. Software pricing at less than full machine capacity can provide more flexibility and improved cost of computing as a client manages the volatility and growth of new workloads.

Through the implementation of sub-capacity pricing for select z/VM programs, clients can:

  • Pay for z/VM programs based on defined workload requirements and not necessarily the full engine capacity of the machine
  • Add hardware capacity for new workloads, capabilities, and functions, such as KVM, and not have IBM software pricing for z/VM programs automatically increase for existing workloads
  • Buy new hardware capacity for future growth with no immediate increase to their IBM software bill provided that no additional software capacity is required at that time
  • Potentially benefit from improved price/performance as workloads grow

For a list of the specific IBM Z programs eligible for sub-capacity pricing, refer to the z/VM programs eligible for sub-capacity section in the Description section.



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Key prerequisites
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Sub-capacity terms and conditions for z/VM are available only for eligible IBM Z programs and only on eligible IBM Z or LinuxONE machines that have implemented z/VM sub-capacity pricing.

Prerequisites for sub-capacity terms include:

  • Run z/VM Version 6 Release 3 (5741-A07) or higher, on a supported IBM Z or LinuxONE server. z/VM V6.3 requires the PTF for APAR VM65419 available on RSU 1501, or later.
  • Install and configure the most recent version of the ILMT.
  • Install and configure the z/VM Hypervisor Proxy in each logical partition (LPAR) running z/VM.
  • Run ILMT to prepare ILMT reports on a monthly basis, and keep these reports on file for presentation to IBM upon request.
  • Each month, determine from the ILMT report if any additional program license entitlements are required, and if so promptly place an order for that additional required license entitlement.

IBM Z and LinuxONE servers supported by z/VM are available in the z/VM General Information Manual on IBM Knowledge Center.

ILMT and instructions for its ordering and installation and use are available from the IBM License Metric Tool information website.

Installation instructions for the z/VM Hypervisor Proxy are available from the z/VM section of the IBM z Systems™ Software Pricing website.



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Effective date
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July 17, 2017



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Description
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IBM announces Value Unit Pricing at less than full machine capacity for eligible z/VM programs, subject to applicable terms. The minimum required release of z/VM is Version 6 Release 3.

The term "sub-capacity" generally describes a situation in which an IBM client may pay for software at less than full machine capacity.

The quantity of each z/VM program needed to satisfy applicable IBM terms and conditions is referred to as the "required license capacity." The quantity of each z/VM program that you have acquired is referred to as "entitled license capacity." The unit of measure for licensing z/VM programs is the engine, of which there are two types: standard engines, also known as Central Processors (CPs), and Integrated Facility for Linux (IFL) engines.

If your required license capacity exceeds your entitled license capacity, you must promptly place an order for additional license capacity for that program to meet or exceed the required license capacity.

After you have acquired a z/VM program, you cannot reduce your entitled license capacity for that program. Subscription & Support (S&S) for z/VM programs is optional. If you elect to purchase S&S for a z/VM program, the S&S capacity must be equal to the z/VM program entitled license capacity across your enterprise.

For a description of the specific requirements to implement sub-capacity pricing for eligible z/VM programs, refer to the Eligibility requirements section.

Full machine capacity terms

Full capacity licensing rules apply unless sub-capacity pricing is in effect. The full capacity licensing rules for z/VM and its related z/VM programs that use Value Unit Exhibit VUE021 are as follows:

  • If the program is used on any CPs on a machine, it must be licensed on all the CPs on that machine.
  • If the program is used on any IFLs on a machine, it must be licensed on all the IFLs on that machine.
  • If the program is used only on CPs you do not count the number of IFLs.
  • If the program is used only on IFLs you do not count the number of CPs.

The references above to "program" also refer to each z/VM feature, including the z/VM base feature as well as each optional priced feature, such as RACF®.

The "use of program" boundary is by engine type (CP or IFL) and by machine, so a client using a z/VM program or feature on IFL engines on Machine A and not on CP engines on Machine A does not count any of the CP engines on Machine A. Also, a client using a z/VM program or feature on Machine A and not on Machine B does not count any of the engines on Machine B.

When referring above to "all" of the CPs or IFLs on a machine, engines that are "assigned" (activated for use) are counted, whether or not all of them are currently being used. Purchased but "unassigned" engines, sometimes called "banked" engines, are physically unavailable to be used and therefore are not counted.

Types of z/VM program sub-capacity terms

Each sub-capacity eligible z/VM program will be licensed according to either terms applying to the z/VM hypervisor and its features, or z/VM-based terms, as determined by IBM. For a list of the specific IBM Z programs eligible for sub-capacity pricing, refer to the z/VM programs eligible for sub-capacity section below.

  • z/VM hypervisor and optional feature terms

    For z/VM and any of its optional features, the required license capacity is the calculated engine capacity utilized by z/VM, as reported by ILMT from data generated by the z/VM Hypervisor Proxy running in each z/VM LPAR. The engine capacity will be determined by the "License Counting Rules" specified in the "IBM Linux for System z® " section of the Virtualization Capacity License Counting Rules website.

  • z/VM-based program terms

    z/VM-based terms apply to IBM programs running on the z/VM operating system. Under these terms, the required license capacity of each program equals the license capacity of z/VM on the machine(s) where the z/VM-based program executes.

Eligibility requirements

To be eligible for z/VM sub-capacity charging for select z/VM programs on a machine, you must first implement all terms of z/VM sub-capacity for that machine.

The ILMT server has to be installed only once per enterprise. It is the server that collects all the information being sent to it from all of the client's machines, which must be running the ILMT Agent, and in this case, clients also must run the z/VM Hypervisor Proxy. The ILMT server is supported on Linux and on Microsoft™ Windows™. ILMT and instructions for its ordering and installation and use are available from the IBM License Metric Tool information website.

Prior to using ILMT in support of z/VM sub-capacity you must install and configure the z/VM Hypervisor Proxy in a Linux virtual machine in each logical partition (LPAR) running z/VM. The Proxy is required in order to provide z/VM configuration information to the ILMT agent. Installation instructions for the z/VM Hypervisor Proxy are available from the Sub-Capacity for z/VM section of the IBM z Systems Software Pricing website.

Each month you must run ILMT to prepare ILMT reports containing z/VM program usage information for every machine running z/VM, and keep these reports on file for presentation to IBM upon request.

Each month you must determine from the ILMT report if any additional program license entitlements are required, and if so you must promptly place an order for that additional required license entitlement. To determine the number of entitlements required, see the Virtualization Capacity License Counting Rules website.

z/VM programs eligible for sub-capacity

Program eligibility is subject to program availability, including new programs that may become available. For future updates see the IPLA z/VM-Based section of the IBM z Systems Software Contracts website.

Eligible z/VM hypervisor features:

Program Number Program or Feature Name
5741-A07 z/VM V6 Base
5741-A07 Directory Maintenance Facility for z/VM Feature
5741-A07 Performance Toolkit for VM Feature
5741-A07 RACF Security Server for z/VM Feature
5741-A07 RSCS Networking for z/VM Feature
5741-A07 z/VM Single System Image (VMSSI) Feature
5741-A07 IBM Wave for z/VM Feature

Eligible z/VM-based programs:

Program Number Program or Feature Name
5648-AE1 IBM Wave for z/VM
5655-T13 IBM Security zSecure™ Manager for RACF z/VM
5697-J05 IBM Archive Manager for z/VM
5697-J06 IBM Backup and Restore Manager for z/VM
5697-J08 IBM Tape Manager for z/VM
5697-J10 IBM Operations Manager for z/VM
5698-A36 IBM Tivoli® OMEGAMON® XE on z/VM and Linux
5698-IS2 IBM Infrastructure Suite for z/VM and Linux


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Top rule
Terms and conditions
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The client's agreement to z/VM sub-capacity terms and conditions is required for the receipt of z/VM sub-capacity benefits. Client must be running z/VM V6.3 or later, installed on a supported IBM Z or LinuxONE server, and have a valid license to z/VM programs eligible for sub-capacity installed on that server that has implemented sub-capacity pricing.

All terms and conditions associated with z/VM sub-capacity pricing, and the IBM Client Relationship Agreement (or equivalent) apply. Agreement to the terms of the IBM Attachment for z/VM Sub-Capacity Pricing (Z126-7731) is required.



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Top rule
Reference information
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For more information on sub-capacity terms for z/VM and eligible z/VM related programs, see the Sub-Capacity for z/VM web page and the IPLA z/VM-Based section of the IBM z Systems Software Contracts website.

For information on IBM z/VM V6.4, refer to Software Announcement 216-075, dated October 25, 2016.

For information on IBM z™/VM V6.3, refer to Software Announcement 213-297, dated July 23, 2013.

For information on the IBM z14, refer to Hardware Announcement 117-044, dated July 17, 2017.

Trademarks

z Systems, IBM z Systems, zSecure and IBM z are trademarks of IBM Corporation in the United States, other countries, or both.

z/VM, IBM, Passport Advantage, RACF, System z, Tivoli and OMEGAMON are registered trademarks of IBM Corporation in the United States, other countries, or both.

Linux is a registered trademark of Linus Torvalds in the United States, other countries, or both.

Microsoft and Windows are trademarks of Microsoft Corporation in the United States, other countries, or both.

Other company, product, and service names may be trademarks or service marks of others.

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