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

scheduled maid service Northbrook ..

In The News:

A third-party dental marketing agency's unsecured database exposed millions of patient profiles with personal information that could be exploited for identity theft and insurance fraud.

New York-based Aircela unveils refrigerator-size device that converts air and water into fossil-free gasoline, with initial deployments planned for 2025.

Your home address is easily accessible on people finder sites, putting you at risk for stalking and identity theft, but data removal services can help protect your personal information.

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

Robot combat evolves at Unitree's Iron Fist King event as G1 robots face off in China, featuring knockouts, precise strikes and agile machines that can perform side flips.

Take control of your digital privacy with actionable tips like Facebook privacy checkup, location tracking management and data removal services to protect your personal information.

Smart TVs and streaming devices manufactured in China are being compromised by BadBox 2.0 malware before users even power them on; infections have been detected in 222 countries.

The lightweight, 15-pound Tenniix tennis robot mimics pro playing styles like Nadal and Federer, using AI trained on 8,000 hours of professional tennis data.

Oak Ridge's uranium enrichment facility supports America's AI ambitions amid concerns that China's aggressive nuclear reactor construction could give it an edge in powering data centers.

Facebook scam ads now leverage AI and deepfakes to create convincing celebrity endorsements, targeting specific demographics with sophisticated schemes.

Apple unveils iOS 26, macOS 26 Tahoe and iPadOS 26 with translucent Liquid Glass design at WWDC 2025, featuring ChatGPT integration as competitors advance rapidly.

The Atom Touch prosthetic arm combines an AI neural interface with EMG sensors, allowing amputees to control individual fingers with precision at an affordable $25,000.

Aspen officials aim to have crews on the scene within five minutes — something they say would be nearly impossible without precise location data the AI technology gives.

Tech expert Kurt “CyberGuy" Knutsson says iPads are usually secure, but hackers can access them. Spot warning signs early to protect your data.

Tech expert Kurt Knutsson reveals how to easily move photos and videos off your iPhone or Android to securely protect your favorite moments.

The Social Security Administration is launching digital SSN access this summer. Tech expert Kurt “CyberGuy" Knutsson helps you learn how to use it and protect your identity.

Glide underwater with CudaJet and make the ocean your playground. Kurt “CyberGuy" Knutsson discusses the redesigned tech that might be your next big thrilling adventure.

Protect yourself from login alert scams with five security steps, including avoiding suspicious links, checking account activity and enabling two-factor authentication

Skip the usual Father's Day gifts with personalized ideas for tech enthusiasts, home brewers, pool owners, seniors, outdoor lovers and privacy-conscious dads.

DMV text scam alert: Fraudsters impersonating motor vehicle departments nationwide are sending threatening messages about unpaid tickets and tolls to steal your information.

Fox News' AI Newsletter brings you the latest on this rapidly evolving technology.

E-BAR, MIT's mobile robot, provides physical support for seniors with handlebars that follow from behind, helping prevent falls while maintaining dignity for aging adults.

AI is changing everything – now, we can even use it to generate video. I tried OpenAI's Sora and Google's Veo – here's how they measure up against each other.

Five simple phone setting tweaks that make your device work harder for you, from automatic text message deletion to scheduled focus modes.

Android users can save time with 10 simple automations, including automatic battery saver mode, location-based Wi-Fi settings and scheduled "Do Not Disturb" mode.