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Passport Advantage Sub-capacity Announcement Overview

Passport Advantage Sub-capacity Announcement Overview. November 06, 2007. Agenda . Chronology of sub-capacity offering Review of key software licensing concepts Sub-capacity licensing concepts November 6 sub-capacity announcements Useful links.

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Passport Advantage Sub-capacity Announcement Overview

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  1. Passport Advantage Sub-capacity Announcement Overview November 06, 2007

  2. Agenda • Chronology of sub-capacity offering • Review of key software licensing concepts • Sub-capacity licensing concepts • November 6 sub-capacity announcements • Useful links

  3. Chronology of Passport Advantage Sub-capacity Licensing

  4. IBM Software Licensing Strategy is Simple • Price scales to value • Price Competitively • Balance precision with simplicity Price Value Price Price Processor Capacity available Users

  5. Transition to PVUs • Transition from per processor to Processor Value Units (PVUs) • Announced PVU structure and part numbers in July, 2006 • Renewal quotes after November 1, 2006 were processed in PVUs * • Customers renewed every 1 per processor SW maintenance entitlement with 100 PVUs • Majority of Per Processor license and SW maintenance parts were withdrawn in January, 2007 • Previously acquired (existing) per processor license entitlements • Existing per processor license entitlements can be used on an “as if converted” to PVU basis • 1 per processor license entitlement equals 100 PVUs • Licensing congruency for deployments on new technologies (in new or existing contracts) • Deployments on dual and quad-core x86 processor cores require either: • 0.5 existing per processor licenses, or • 50 PVUs per processor core • New software acquisitions or migrations to Power6 processor cores require either: • 1.2 existing per processor licenses, or • 120 PVUs per processor core * Long term contracts generally continue in per processor until renewed/amended

  6. Measuring Processor Capacity Available Processor Value Units (PVUs) are a measurement of Processor Capacity (Table current as of September 30, 2007) • Identify the number of processor cores available to the IBM software product • Multi-core chips (referred to as “processors”, “processor chips” or “processor sockets”) have more than one processor core per chip • Servers can have one or more single-core chips or multi-core chips available to IBM software • Identify the processor type and associated required number of PVUs per processor core • Number of processor cores available multiplied by the PVUs per core for each software product • For assistance in determining PVUs for a given server model, see Guide to Identifying Your Processor Website for current table:http://www-306.ibm.com/software/lotus/passportadvantage/pvu_licensing_for_customers.html

  7. PVUs Provide Flexibility Through Granularity • Continue licensing at the processor core level • Adaptable to any change in processor core performance • Granularity to address changing technology • Flexibility to deliver software price performance improvements for new processor technologies Software price performance improvements will range over time depending upon a number of factors including market conditions Price Performance Processor Core Performance • Processor core performance levels will vary between chip vendors • PVUs relative to core performance # of Processor Value Units Time

  8. Processor Capacity – Full Capacity vs. Sub-capacity • Full capacity licensing • Customers acquire Processor Value Unit (PVU) licenses based on processor capacity available on server (all activated processor cores multiplied by PVUs per core) • PVU tiers based on performance of processor cores • Sub-capacity licensing for virtualized systems • Customers acquire PVUs for virtual processor capacity available • Technology enables customers to restrict processor capacity available to middleware • Virtual processor capacity enables over-assignment of processor resources • Effectively increases processor capacity utilized and reduces customer TCO

  9. Scenario #1 - Full capacity licensing required Server with No Partitions Cores to be licensed WAS (Workload #1) MQ (Workload #1) 1 2 3 4 5 6 7 8 8 Physical Cores in the Server

  10. Scenario #2 - Sub-capacity software licensing optional Server with Simple Virtualization – Static Partitions • Same server, more workload, fewer software licenses • Static partitioning can increase processor capacity utilization • TCO improves as workload increases and cores to be licensed decreases Cores to be licensed WAS WAS (Workload #1) (Workload #2) MQ (Workload #1) Partition 2 Partition 1 4 Processor Cores Available to each Partition 3 2 4 1 3 4 1 2 1 2 3 4 5 6 7 8 8 Physical Cores in the Server

  11. Scenario #3 - Sub-capacity software licensing optional Cores to be licensed Server with Fully Virtualized Environment • Same server, more workload, fewer software licenses • Virtualized partitioning can further increase processor capacity utilization • TCO improves as cores to be licensed decreases WAS WAS WAS (Workload #2) (Workload #1) (Workload #3) MQ (Workload #1) Other (New Workload) License rule: the lower of the sum of each partition for a product or the processor capacity of the shared pool Partition 2 Partition 3 Partition 1 1 2 1 2 3 4 1 2 3 4 10 Virtual Processor Cores Partition 4 Shared Processor Pool 6 Processor Cores Available to Shared Pool 2 1 1 4 5 2 3 6 1 2 3 4 5 6 7 8 8 Physical Cores in the Server

  12. Software Licensing Financial Summary (USD prices current as of September 30, 2007) • Customer’s TCO improves with IBM Sub-capacity licensing Full cap licensing Sub-cap licensing WAS MQ Total WAS MQ Total * Suggested retail price for New License and first 12 months maint. for WebSphere Application Server Network Deployment and WebSphere MQ products

  13. Benefits of IBM’s Processor Capacity Licensing • Licensing to the core • More granular measure of processor capacity available • PVU licensing • Flexible structure allows licensing to more closely track to the value a customer can receive from processor capacity available to software • Sub-capacity licensing • Allows customers to license less than the full capacity of the server • Customers can leverage virtualization technologies to optimize their system design and improve their overall TCO • Aligns customer value with price; lesser discounts may be appropriate

  14. Sub-capacity Announcement – Nov. 6, 2007 • Eliminate LMS registration and Quarterly Reporting to IBM • Simplified license metric tool due mid-2008 • Tracks all PVU-based offerings • Will be required for sub-capacity offering (suspension will be lifted when available) • Statements of Direction for support by end of 4Q08*: • Multiple Virtual Shared Pools feature for AIX V5.3 and V6.1 • Dedicated and Shared Processor LPAR Groups • Live Partition Mobility for AIX V5.3 and V6.1 • Workload Partitions Manager (WPAR) for AIX V6.1 • Live Application Mobility for AIX V6.1 • Additional granularity for supported technologies • x86 multi-core • Sun UltraSPARC T1 (Niagara 1)

  15. 1 2 Register Admin Server Install IBM license metric tool (mid-2008) 3 Generate & Submit Report (Quarterly) Sub-Capacity Licensing Requirements • Customers must agree to the terms of the sub-capacity attachment • Install IBM license metric tool (mid-2008) • Identifies IBM software deployed on servers • Identifies processor type and number of processor cores • Calculates PVUs required based on maximum processor capacity • Use tool and maintain reports to be audit ready

  16. Customer Notification of Changes • Announcement letter • AP: AP07-0273 • Canada: A07-2348 • EMEA: ZA07-0206 • US: 207-273 • This announcement modifies existing PA Sub-cap Attachment • Updated Sub-cap attachment planned to coincide with release of new license metric tool • Letter to all existing sub-capacity customers • Public web site updated

  17. Sub-capacity Licensing Requirements Summary • Customers must agree to the terms of the sub-capacity attachment • Customers must use eligible IBM programs with sub-capacity part numbers • Customers must use eligible virtualization technology • Customers must use eligible processor technology • Install IBM license metric tool when it becomes available (mid 2008) • Identify processor type and number of processor cores • Identify IBM software deployed on servers • Calculate PVUs required based on high water mark processor capacity available Supported products/technologies lists found on XL Sub-capacity web site Please note: Customers are responsible for the installation of the upcoming IBM license metric tool and for the server it runs on. While required use of the current IBM license management tool is temporarily suspended, customers remain responsible for acquiring sufficient quantities of license authorizations to comply with the sub-capacity offering terms.

  18. Full capacity to Sub-capacity License Conversions • Sub-capacity products have unique part numbers • Need to license sub-capacity part numbers • Same PVU list price for both sub-capacity and full capacity • See list of eligible products • Customers may convert their full capacity entitlements to sub-capacity • Existing per processor or PVU licenses converted to PVU (only) sub-capacity licenses • Existing SW maintenance entitlements converted to PVU sub-capacity entitlements • Must be in compliance and SW maintenance must be current prior to conversion • No refunds, credits, or substitutions • Conversion process and forms available • Contact your local support representative

  19. Useful Links • Sub-capacity licensing (external) • http://www-142.ibm.com/software/sw-lotus/services/cwepassport.nsf/wdocs/subcaplicensing • Included on this page: • Sub-capacity Eligible product list • Sub-capacity Eligible Virtualization Technologies • Sub-capacity attachment • Sub-capacity customer letter for temporary suspension • Sub-capacity licensing (IBM Internal only) • http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=Z693913I54286V29 • XL PA portal (IBM Internal only) • http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=P216209A21004Q75#overview • Included on this page: • PVU Table: • PVU Resources for Customers: • Guide to Identifying Your Processor Family (IBM Internal only) • P6 FAQ’s & other PVU announcement info (IBM Internal only):

  20. Counting SW Licenses Using Specific Virtualization Technologies New scenario-based license counting material will be available to assist you in determining the correct number of cores requiring licenses in the following virtualized sub-capacity environments: • Currently supported System p, System i and zLinux • HP • Sun coming soon • VMware coming soon Look for the link on the XL Sub-capacity web page

  21. Questions?

  22. Backup

  23. What is Virtualization? • Logical representation of resources not constrained by physical limitations • Virtualization is the process of presenting computing resources in ways that users and applications can easily get value out of them, rather than presenting them in a way dictated by their implementation, geographic location, or physical packaging. In other words, it provides a logical rather than physical view of data, computing power, storage capacity, and other resources. -- Jonathan Eunice, Illuminata Inc. • A technique for hiding the physical characteristics of computing resources from the way in which other systems, applications, or end users interact with those resources (Wikipedia)

  24. What can be virtualized? • Virtualization can be used with: • Servers • Storage • Networks • IBM Software’s PVU licensing only affected by server virtualization • Types of server virtualization • Hardware support: IBM POWER, Sun SPARC, HP Integrity • Software support: VMware, Xen, Microsoft, et al. • Operating System support: IBM AIX 6.1, Sun Solaris 10, etc. • Applications • Desktops

  25. Benefits of Server Virtualization • Higher resource utilization • Lower management costs • Usage flexibility • Improved security • Higher availability • Increased scalability • Interoperability and investment protection • Improved provisioning

  26. Unused Consolidated & Virtualized USED Unused Unused Unused USED USED USED Impact of Improved Server Utilization • Server utilization refers to the percentage of the CPU cycles required to perform work • Average utilization varies significantly between platform types • In general, • System z has the highest average utilization • RISC systems have moderate utilization • PC Servers (x86) have lowest utilization • Server virtualization can improve average utilization and lower TCO Overall utilization improved

  27. Impact of Virtualization on SW Licensing • SW costs can vary in a virtualized environment depending on the vendor’s terms • Some vendors charge per virtual machine • IBM’s strategy is to only require licenses for the maximum processor core capacity available to the virtualized system • Leverages the strength of IBM’s PVU licensing • Leverages the processor core as the surrogate for customer value • Provides the flexibility to increase partition capacity as business needs require • Provide a tool to track PVU usage • Lower total cost of software ownership (fewer licenses required)

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