Home
>
Software
>
Brief Notes About Mainframe Software Pricing

Brief Notes About Mainframe Software Pricing

We don't think about mainframe software pricing anymore, we just go out buy a server hardware/software "package" from Microsoft, but did you ever tink about how they got their ideas for the usage licence, it all started with IBM and the introduction of Cmos logic technology in 1994, simnce then mainframe software pricing has steadily became disproportion to the comparatively minute hardware costs, which has been stated to be "typically four to five times the hardware cost" in terms of the system budget.

This trend has given rise to growing concerns over the direct results of current software pricing techniques which are leading to problems such as making smaller applications costly to operate on large systems.

A pressing issue is the pricing techniques used by the independent software vendors; Such as:

[a] Negotiating individually (eliminating standard prices).

[b] Using Long term contracts (complicating business planning).

[c] Imposing restrictions (thus dose not aid expiation of IT or business capabilities).

Whilst aiming to address the immediate complexities associated with their polices, based on the Graduated Monthly Licence Charge system, which include significant administration and entry-level costs, IBM have "lost control of the techniques independent software vendors use to calculate their charges".

Such attempts include the parallel sysplex charge (a way of pricing distributed software usage), which allowed more granular pricing, and the usage bases pricing scheme (which is bases on how software is utilised not the sise of the computer) unlike the Monthly Licence Charge.

The above amendments have been stated as being "a series of ad hoc measures rather that a grand holistic rethink" and do not appear to offer sufficient benefits to enough of their costumers.

This pricing problem to take on greater importance as software complexity increases, drastic and rapid change notwithstanding, at this time, IBM systems are no longer competitive compared to Windows NT or Unix based systems.

Tips for keeping software costs down:
[a] Ensure that you are getting business benefit from the software you are paying for.

[b] Study the implications of all software contract restrictions.

[c] Avoid software contracts that cover a longer period that you can sensibly plan for.

[d] Server consolidation is a straightforward way of reducing software changes.

Notes:
1) Software pricing is now disproportionate to the comparatively tiny hardware costs in the mainframe budget. (It is an increasing proportion of the whole cost).

2) Software cost are typically four to five times the hardware cost.

3) This has been happening since the introduction of Cmos logic technology in 1994.

4) Software price increases are the biggest single issue for mainframe users.

4 Software is steadily increasing in cost due to general policies i.e: Contracts are:

[a] Negotiated individually (thus there are no standard prices).

[b] Long term (not helping business planning).

[c] Contain restrictions (eg updating the IT environment).

[d] Contracts must be renegotiated if the terms are exceeded.

5) IBM's pricing polices include:

[a] "Graduated Monthly Licence Charge" (an inflexible mechanism where by prices increase in preset steps as a system grows). Which in 1994 was replaced by;

[b] The "parallel sysplex charge" (a way of charging for operators using software over distributed mainframes which allowed more granular pricing i.e. prices better reflected smaller upgrades).

[c] Usage bases pricing scheme (which is based on how software is utilised not the size of the system). Such pricing systems are not popular because they:

* Require significant administration.
* It is costly at entry-level.
* Worked on peak rather that average use. * Pricing is inconsistent.

6) In September 1998 the usage bases pricing scheme system was revised and renamed Usage Licence Charge which aimed to solve the above problems.

7) The latest changes have not solved the basic problem (bad administration).

8) IBM's entry level costs are high compared to Windows NT or Unix rivals.

9) The overall impression of IBM's pricing changes is that of many on demand amendments to meet short term sales and solve immediate problems.

10) IBM are thus attempting to address the symptoms of the problems they created and are ignoring the causes.

11) This problem is going to grow as the pace of change increases, software continually evolves and thus places greater demands of host systems thus systems must be expanded in parallel.

http://www.wandle.org

professional maid services Park Ridge ...

In The News:

Lyft rolled out safety upgrades with a new Safety Hub, driver blocking capability and a favorite driver option to give riders more control over their experience.

New research shows Americans increasingly trust AI for wellness guidance over social media, with 63% finding artificial intelligence reliable for health.

Luxury fashion brand Dior experienced a January 2025 data breach affecting customer personal information, and notifications were sent months after the discovery.

The commercial Unitree H1 humanoid robot weighs 104 pounds with 365 pound-feet torque per joint and demonstrates dangerous potential when software glitches occur.

Americans average 10-plus hours online daily, according to recent survey, splitting time between streaming shows on TV and browsing websites on multiple devices.

Boost your smartphone privacy instantly with these security tweaks for iPhone and Android that limit ad tracking, hide notifications and prevent unauthorized access.

Platforms like Hoax Tech and JS Click Cloaker help cybercriminals bypass detection systems using machine learning to selectively display scam content to victims.

A new battery recycling technique transforms old lithium-ion batteries into high-performance components that retain 88% capacity after 500 cycles with minimal waste.

Google's Android operating system can warn users about earthquakes before the shaking even begins – and there are ways to do it on your iPhone, too.

Meta's new gesture control wristband might just be the most seamless way to control a computer yet. And no, it doesn't require surgery, a camera, or even a touchscreen. All it needs is your wrist.

Long-haul trucks are now being upgraded with a surprising twist, thanks to California-based startup Revoy. Their electric boost doesn't replace diesel but works alongside it to cut emissions and fuel costs without major disruption.

PayPal and Venmo just rolled out something big: AI-powered scam alerts for Friends and Family payments.

As data centers multiply across the United States, energy demand is increasing at a rapid pace. This has not escaped the notice of large investment firms from Wall Street.

The Unicode Consortium, the nonprofit organization that maintains the Unicode Standard to ensure emojis work across devices, has announced Unicode 17.0, which includes nine new emojis slated for release this fall, in September 2025.

OpenAI is one of the world's leading AI research labs. Founded in 2015, it's behind some of today's most talked-about tools, including GPT, DALL·E, and ChatGPT.

Ever catch your dog staring at the screen during movie night and wonder if they're actually watching? Turns out, they might be. A new scientific study from Auburn University found that many dogs really do engage with television, and not all pups react the same way.

Stop the scammers from making contact in the first place. They're getting your parents' contact information and much more personal data besides, from somewhere.

The Walker S2 robot from UBTech autonomously exchanges its batteries in just three minutes, allowing continuous operation in car factories operated by BYD, Nio and Zeekr.

The FX Super One electric MPV from Faraday Future offers flexible seating, zero-gravity recliners and an AI system that creates a personal connection between driver and vehicle.

Practical solutions for reducing unwanted charity mail, political texts and email spam by opting out of shared lists, replying "STOP" and using data removal services.

Delta's new AI pricing system eliminates static airfares for personalized rates based on individual data, raising questions about fairness while promising optimized revenue.

AI data centers are straining the power grid across 13 states, contributing to a $9 billion increase in electricity costs, and PJM customers face monthly bill increases of $25 or more.

Artificial intelligence is transforming the music industry as AI-generated bands like The Velvet Sundown earn substantial streaming revenue, prompting lawsuits from major record labels.

Microsoft phishing scams use fake security alerts and links that redirect to credential-stealing pages with warning signs, including urgent language and unusual senders.

Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.