IBM Systems magazine, Mainframe - November/December 2018 - 18

Containers to deploy their own
solutions in the environment. IBM's
embrace of Docker container technology and Kubernetes supports
that goal.
IBM Cloud Private in combination with the IBM Secure Service
Container offering helps clients
embrace microservices and agile
DevOps deployment of their
containerized workloads. Organizations can focus on the development and deployment pipeline of
applications within their organization while IBM Secure Service
Container for IBM Cloud Private
provides the execution environment-including an OS virtualization layer, management interfaces
and REST APIs-for clients to host
their critical applications.

SCLC: A ConsumptionBased Pricing Model
Organizations engaged in creat à É)Ã%É$(ÇÉ%ÃÈÉ%$ÉÃ&ÉïÉ0ibility to add new applications to
their systems in a cost-effective
way. IBM is responding to client
needs with the new SCLC metric, a
consumption-based pricing model
for new IBM z/OS technology-based
applications on IBM z13* and
IBM z14* platforms.
SCLC is a new monthly license
charge (MLC) metric that delivers a
true metered usage model, where
the MSUs that are consumed are
charged at the same per-MSU rate,
regardless of hourly peaks. This
gives clients predictable economics to help them understand the
costs associated with deploying
new services.
This new consumption-based
pricing model was announced in
October as a part of the IBM New
Application (NewApp) Solution, a
Container Pricing for IBM Z offering.
The NewApp Solution allows qual®ÉÈà É)ÃÄ""ÇÄ&! %Ã&!ÃÆÉÃ&&1Ã
integrated with colocated workloads
from a technical perspective, while
delivering a standalone environment from a pricing perspective.

Origins of Container
Pricing for IBM Z
IBM introduced Container Pricing
for IBM Z in 2017 with the goal of
dramatically simplifying pricing for
Äà 'ÆÉ$Ã!Ã#'Ä®ÉÈÃ%!'&! %NÃ) Ã
&%ÃÇ! &É0&QÃ)"-ÃÈÉ® É%ÃÄÃÇ! &Ä É$Ã
as a method of measuring the scope
of a workload for pricing and billing
purposes. "Container Pricing for
IBM Z provides standalone workload
pricing, which is important for highly virtualized IBM Z environments,"
says Sherri Hanna, program director, Worldwide IBM Z Marketing.
The offerings that are available under Container Pricing are
referred to as solutions. It's these
solutions that actually carry the
price point. Each solution is priced
differently, and IBM provides
competitive economics that are directly related to each. "Pricing for
the solutions is based on business
value and doesn't affect unrelated
workload costs," Hanna says.
Three announced solutions are
offered as part of Container Pricing:
1. The Applications Development
and Test (DevTest) Solution, a
highly discounted option for
DevTest software.
2. The Payments Pricing Solution,
which offers per-payment pricing for payment applications.
3. The NewApp Solution, geared to
create predictable costs for new
workloads. With this year's
announcement, the NewApp
Solution is now a consumption-based model, offering
pay-as-you-go pricing for new
z/OS-based applications.
4!Ã'1ÃÄ""$ÉÇÄ&ÉÃ&ÉÃÆÉ É®&%Ã
of Container Pricing, it's useful to
compare it to what came before. For
many years, clients were charged
for full capacity of the hardware. In
the 1990s, IBM introduced pricing
based on a peak rolling four-hour
average (R4HA). This peak R4HA
approach was well received at the
time because it allowed clients to

18 | NOVEMBER/DECEMBER 2018 IBMSYSTEMSMAG.COM

add hardware capacity without
immediately increasing software
costs. However, over the years, the
R4HA model has become rather
complex. In addition, many clients
are now architecting to manage this
peak R4HA, rather than architecting for technical excellence.

Opting for Simplicity
IBM's Container Pricing is a move
toward a simpler pricing model
and the October 2018 announcement of a true consumption-based
charging model shows that IBM
continues to innovate in this area.
"Consumption pricing is made possible by the ability to more precisely meter and report on the usage of
a new application for the purposes
of billing-even if that new application is colocated alongside another
workload in an existing LPAR,"
Hanna says. "This provides a
&$'ÉI®&Ã"$Ç ÃÆÄ%ÉÈÃ! Ã&ÉÃÄÇ&'ÄÃ
usage and can easily be compared
to the business value to determine
ROI for the new workload."
With SCLC, clients are charged
the same per-MSU rate, giving
clients pricing predictability and
transparency. For instance, if a
client's application uses 50 MSUs
!$Ã&Éî$%&Ã!'$QÃ>;;Ã-35%Ã!$Ã
the second hour and 50 MSUs for
the third hour, the total number of
chargeable MSUs for the three-hour
period is 200. Hourly periods continue to be calculated this way over
the entire month.
"IBM's SCLC is a pricing model
similar to cloud pricing," Hanna
explains. "We aren't charging for
peaks or averages. We are charging
for exactly what the client uses."
&!$Ã#'Ä®ÉÈà É)ÃÄ""ÇÄ&! %QÃ
two pricing options are available. The
SCLC pay-as-you-go option offers a
low-priced, per-MSU model for each
software program within the NewApp
3!'&! NÃ4É$ÉV%à !Ã 'î Ä cial commitment for the client. With
the SCLC-committed MSU option,
clients have a monthly minimum
MSU commitment of just 25,000


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IBM Systems magazine, Mainframe - November/December 2018

Table of Contents for the Digital Edition of IBM Systems magazine, Mainframe - November/December 2018

Table of Contents
Editor's Desk: Room for imporovement
Currents: The big redesign unveil
Currents: ExxonMobil and IBM improce the mobile app user experience
Currents: 8 emerging storage trends of 2018
Currents: Solutions
Currents: Remembering Dr. John Ehrman: The father of IBM High Level Assembler
Partner POV: DevOps requires quality, velocity and efficiency to transform software delivery life cycles
Cover Story: Enabling opportunity: Get the most out of IBM Z with Secure Service Containers and a consumption-based pricing model
Feature 1: Skilling up: How Russell Tobin, Per Scholas and IBM brought new talent into the mainframe workforce
TECH Showcase: How to reap the full benefits of virtual tape storage, properly measure its performance and choose the right strategy for your business
Techbits: Banco do Brasil improves processes after migrating to the IBM Db2 Utilities Suite for z/OS
Techbits: Multifactor authentication is a user-friendly upgrade to password-only systems
Beyond the Box: The mainframe Playground Education Initiative opens the mainframe to the next generation
Reference Point - Global Events, Education, Resources for Power Systems
2018 Mainframe Solutions Edition Product Index
IBM Systems magazine, Mainframe - November/December 2018 - Intro
IBM Systems magazine, Mainframe - November/December 2018 - Cover1
IBM Systems magazine, Mainframe - November/December 2018 - Cover2
IBM Systems magazine, Mainframe - November/December 2018 - 1
IBM Systems magazine, Mainframe - November/December 2018 - 2
IBM Systems magazine, Mainframe - November/December 2018 - 3
IBM Systems magazine, Mainframe - November/December 2018 - Table of Contents
IBM Systems magazine, Mainframe - November/December 2018 - 5
IBM Systems magazine, Mainframe - November/December 2018 - Editor's Desk: Room for imporovement
IBM Systems magazine, Mainframe - November/December 2018 - 7
IBM Systems magazine, Mainframe - November/December 2018 - Currents: The big redesign unveil
IBM Systems magazine, Mainframe - November/December 2018 - Currents: ExxonMobil and IBM improce the mobile app user experience
IBM Systems magazine, Mainframe - November/December 2018 - Beyond the Box: The mainframe Playground Education Initiative opens the mainframe to the next generation
IBM Systems magazine, Mainframe - November/December 2018 - 11
IBM Systems magazine, Mainframe - November/December 2018 - Currents: Solutions
IBM Systems magazine, Mainframe - November/December 2018 - Currents: Remembering Dr. John Ehrman: The father of IBM High Level Assembler
IBM Systems magazine, Mainframe - November/December 2018 - Partner POV: DevOps requires quality, velocity and efficiency to transform software delivery life cycles
IBM Systems magazine, Mainframe - November/December 2018 - 15
IBM Systems magazine, Mainframe - November/December 2018 - Cover Story: Enabling opportunity: Get the most out of IBM Z with Secure Service Containers and a consumption-based pricing model
IBM Systems magazine, Mainframe - November/December 2018 - 17
IBM Systems magazine, Mainframe - November/December 2018 - 18
IBM Systems magazine, Mainframe - November/December 2018 - 19
IBM Systems magazine, Mainframe - November/December 2018 - 20
IBM Systems magazine, Mainframe - November/December 2018 - 21
IBM Systems magazine, Mainframe - November/December 2018 - Feature 1: Skilling up: How Russell Tobin, Per Scholas and IBM brought new talent into the mainframe workforce
IBM Systems magazine, Mainframe - November/December 2018 - 23
IBM Systems magazine, Mainframe - November/December 2018 - 24
IBM Systems magazine, Mainframe - November/December 2018 - 25
IBM Systems magazine, Mainframe - November/December 2018 - 26
IBM Systems magazine, Mainframe - November/December 2018 - 27
IBM Systems magazine, Mainframe - November/December 2018 - 28
IBM Systems magazine, Mainframe - November/December 2018 - TECH Showcase: How to reap the full benefits of virtual tape storage, properly measure its performance and choose the right strategy for your business
IBM Systems magazine, Mainframe - November/December 2018 - 30
IBM Systems magazine, Mainframe - November/December 2018 - 31
IBM Systems magazine, Mainframe - November/December 2018 - 32
IBM Systems magazine, Mainframe - November/December 2018 - 33
IBM Systems magazine, Mainframe - November/December 2018 - 34
IBM Systems magazine, Mainframe - November/December 2018 - 35
IBM Systems magazine, Mainframe - November/December 2018 - Techbits: Banco do Brasil improves processes after migrating to the IBM Db2 Utilities Suite for z/OS
IBM Systems magazine, Mainframe - November/December 2018 - 37
IBM Systems magazine, Mainframe - November/December 2018 - Techbits: Multifactor authentication is a user-friendly upgrade to password-only systems
IBM Systems magazine, Mainframe - November/December 2018 - 39
IBM Systems magazine, Mainframe - November/December 2018 - 40
IBM Systems magazine, Mainframe - November/December 2018 - Cover3
IBM Systems magazine, Mainframe - November/December 2018 - Cover4
IBM Systems magazine, Mainframe - November/December 2018 - Reference Point - Global Events, Education, Resources for Power Systems
IBM Systems magazine, Mainframe - November/December 2018 - 2018 Mainframe Solutions Edition Product Index
IBM Systems magazine, Mainframe - November/December 2018 - SE2
IBM Systems magazine, Mainframe - November/December 2018 - SE3
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