On Thu, 12 Dec 2013 09:41:19 -0500, Scott Ford wrote:

>I wasn't aware of Cobol SRBs violated IBM licensing. I don't mean to be 
>ignorant, by why ?

ITYM "running Cobol on a zIIP", not "Cobol SRBs".

You have to understand a little about software pricing.  When IBM started to 
charge for MVS, it seemed to make sense to charge more for a bigger processor.  
The general idea was that the software charges would be almost twice as much on 
a processor that is twice as fast.  Actually, the idea was that a small shop 
shouldn't have to pay as much as a big one.  After a while, there were no more 
of the smallest model group processors available.  IIRC, the pricing was never 
linear, but not terribly far from it.  In those days a big computer would run 
at about 4 MIPS and you could license MVS on a smaller processor for about 
$2000 per month.

With the latest mainframes approaching 80,000 MIPS, the price of the operating 
system is many times higher than it was 30 years ago.  It is not uncommon to 
pay hundreds of thousands of dollars per month for MVS.  The result has been 
that other operating systems are considered to be preferable in any case where 
the other operating system seems to be adequate for the purpose.

Consequently, new workloads are rarely deployed on MVS.  This has been true for 
a long time despite the fact that many of these new workloads could run just 
fine on MVS, and benefit from the strengths of MVS and the mainframe.  And even 
arguably be less expensive to run on MVS.  While the use of computers has 
increased at an amazing rate over the last few decades, the installed base of 
MVS systems has not kept pace, and has instead declined.  Actual numbers are 
hard to come by, but we all know sites that were once MVS sites that now use 
other systems instead.  Does anyone know of any new MVS sites?

As processors continued to get faster, the pricing structures were revised 
several times.  Parallel Sysplex pricing was the first clue that I saw that IBM 
recognized that software pricing was an issue.  In fact, the talk about the 
mainframe being expensive is really about software pricing.

With z/Architecture machines, IBM started to offer a "technology dividend" in 
the form of a relatively modest discount for the software charges on the newer 
processors.  This was done by adjusting the MSU rating, so that a new computer 
that would run a given workload using the same amount of resources as the 
previous generation would have an MSU rating that was maybe 10% less than the 
equivalent processor of the previous generation.

Since software charges are now based upon the MSU capacity, this reduced the 
charge for running a given workload on the newer processor.  However, the newer 
generation of processor would top out at maybe 50% more capacity than the 
previous generation, so the potential cost of running z/OS continued to rise.  
One consequence of the software pricing problem is that for most of the models 
of z/Architecture systems, the processors have been deliberately slowed down, 
allowing customers to acquire mainframes with a capacity that is closer to 
their actual needs.  As a result, often there is no spare capacity for new 
workloads..

zIIP and zAAP processors were introduced to allow customers to exploit new 
system facilities that require additional processing power without having to 
incur additional costs for the software.  This was done by providing zIIP and 
zAAP processors that could run only certain kinds of work, and that would not 
count when calculating the compute power of the complex.  Therefore, adding 
zIIP and/or zAAP processors doesn't increase the software charges for the 
complex.

zIIP and zAAP processors are a short term solution for the problem of 
increasing software charges.  The result of the increasing software charges is 
that customers minimize the use of the mainframe, and have been doing so for 
decades.  One way of doing that is to move workload from MVS to other 
platforms.  The other way is to deploy new workloads on other systems, without 
even considering the mainframe as a possible place to run them.

In other words, as the size of the data center grows to accommodate more 
applications, the non-MVS hardware grows at a considerably higher rate than the 
MVS related hardware.  Even in shops where no applications have moved off of 
MVS, the percentage of the workload that could run on MVS that does in fact run 
on MVS is decreasing.

-- 
Tom Marchant

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