Virtualization, multicore and software wrinkles

By Jennifer Mears, NetworkWorld.com, 07/25/06

The move to new technologies like multicore processors, server virtualization and grid computing bring the prospects of more efficient data centers. But they also bring with them some challenges. Not the least of which is how vendors will charge for their software. The old per-CPU model just doesn’t work in next generation data centers.

Slowly, ISVs are modifying their pricing strategies. This week, IBM announced a change in how it will price its software. Instead of focusing on the number of processing cores, it will charge for software based on performance – how fast the software runs.

It makes sense since hardware platforms are no longer static and inflexible. The industry is moving toward more dynamic architectures in which compute resources are pooled and then allocated as needed by applications. The operating system and the application are no longer tied to the hardware. And software pricing shouldn’t be either.

Today, IBM’s change is basically one of semantics. It won't have any immediate effect on pricing. But going forward, IBM hopes its approach will make it easier for customers to understand exactly what they’re paying for.

“We want customers to think in terms of ‘processor value units’ instead of cores,” an IBM spokesman says.

Get all the details on IBM’s new processor value unit rating system here.

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