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

licensed cleaning services Park Ridge ..

In The News:

Scammers create fake Evite invitations that mimic legitimate event emails, requiring users to verify senders and use antivirus software for protection.

The new Apple Watch hypertension feature passively monitors blood pressure patterns over 30 days using sensors to detect chronic high blood pressure signs.

Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.

New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.

The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.

Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.

TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.