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Putting software costs in context
This session looks at how mainframe software pricing has evolved and explains why the evolution has followed the path it did. The varying costs at different capacity levels are reviewed to understand the issues facing IBM as it changes its pricing model.
* The history of software pricing * The different costs for small and large users * What is the budget split between hardware and software? * What is the budget split between IBM and ISVs? * What are the pressures on vendors to change their pricing structure? * Why do software costs apparently reduce but the bills increase? * How do software costs relate to the business? * What will happen to software costs in the future if nothing changes? * What is IBM's software pricing strategy?
New pricing models and future costs
The different licensing models from IBM and the ISVs are explored and attendees will learn how to project their future software costs - an essential element of negotiating an ELA software contract with IBM. Attendees will also gain an understanding of the thinking behind IBM's price changes, to help protect them from the hidden agenda behind the changes.
* AWLC explained * FWLC and VWLC - is this something new? * How does WLC/AWLC compare with Parallel Sysplex Licence Charging? * Where are the specific benefits of VWLC pricing? * Software cost differences around the world * Calculating future software costs * How did IBM arrive at the AWLC model and how will it affect its revenues? * All vendors say they are trying to charge according to the value of their products to your business, but how do you put a value on software? * Why cutting software costs is extremely difficult and possibly not the best long-term solution (compared with stopping or controlling the growth of software costs in the future) * Ideas for controlling software costs in the future - with examples * How to negotiate with the ISVs * Licence fees and maintenance - how to avoid budget issues * Win/win negotiations explained - initial proposal £3 million, final contract £250,000: who's kidding who? * Controlling the software cost explosion * Why not relate software costs to the business rather than capacity? * The returns on a software control policy are long-term - so why should a manager with short-term objectives focus on this area?
Negotiating an ESSO/ELA contract
This session shows attendees how to break down the IBM 'bottom line' contract and understand the cost of each element. It also shows how buying an OTC software product that is not top of the user's list of requirements, but critical to IBM, can dramatically reduce the cost of all other products.
* The ESSO/ELA contract explained * The OIO explained * How to negotiate an ELA/ESSO with IBM * The relationship between MIPS, MSUs and Value Units explained - essential to understanding any IBM mainframe OTC pricing * How to grow your capacity at 25% per year for no increase in cost * The implications of NEON’s zPrime product
Maximising the benefits of mainframe
Based on his experience managing IBM’s mainframe software business in Europe over a period of ten years, guest speaker David Wilson explains why IBM’s mainframe software pricing developed to its current state, and (more importantly) the directions it is likely to take over the next few years. He will cover the most effective actions taken by customers to get to ‘best of class’ mainframe TCO. He also presents some new ideas to classify different workloads which, in conjunction with ‘fine tuning’ of chargeback mechanisms, should help organizations to better understand the true cost effects if workloads are moved off the mainframe, and also help the cost case to bring new workloads onto the mainframe. Delegates will gain new ideas about how to leverage their position to reduce supplier spending, and to get significantly more out of their systems without incurring increased software charges. They will understand why much of the required background activity has to start well before negotiating a contract with software vendors to achieve the desired outcomes.
Hardware pricing update
Based upon Arcati's Mainframe Market Information Service, this session offers an update on current processor market prices and illustrates how to reduce the cost of any purchase and maintenance deal. With the actual price range paid by different users varying by over 100% for identical configurations, this session is invaluable for attendees.
* What is the current pricing for mainframe processors? * Mainframe pricing history and trends * What is a reasonable maintenance cost for a mainframe processor? * How to negotiate hardware prices * How does IBM charge for System z processors? * Upgrades compared with new systems * Maintenance pricing trends and 'warranty recapture' * How leasing System z can damage your wealth * Should I buy a new System z processor and will it reduce my costs?
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Negotiating mainframe software and hardware contracts Programme
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