IBM overhauls mainframe-software pricing, adds hybrid, private-cloud services

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IBM continues to adopt new tools and practices for its mainframe customers to keep the Big Iron relevant in a cloud world.

First of all, the company switched-up its 20-year mainframe software pricing scheme to make it more palatable to hybrid and multicloud users who might be thinking of moving workloads off the mainframe and into the cloud.

Specifically IBM rolled out Tailored Fit Pricing for the IBM Z mainframe which offers two consumption-based pricing models that can help customers cope with ever-changing workload – and hence software – costs.

Tailored Fit Pricing removes the need for complex and restrictive capping, which typically weakens responsiveness and can impact service level availability, IBM said. IBM’s standard monthly mainframe licensing model calculates costs as a “rolling four-hour average” (R4HA) which would determine cost based on a customer’s peak usage during the month. Customers would many time cap usage to keep costs down, experts said

Systems can now be configured to support optimal response times and service level agreements, rather than artificially slowing down workloads to manage software licensing costs, IBM stated.

Predicting demand for IT services can be a major challenge and in the era of hybrid and multicloud, everything is connected and workload patterns constantly change, wrote IBM’s Ross Mauri, General Manager, IBM Z in a blog about the new pricing and services.  “In this environment, managing demand for IT services can be a major challenge. As more customers shift to an enterprise IT model that incorporates on-premises, private cloud and public we’ve developed a simple cloud pricing model to drive the transformation forward.”

Tailored Fit Pricing for IBM Z comes in two flavors, the Enterprise Consumption Solution and

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