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IBM Software
© 2006 IBM Corporation
Processor Value Unit Licensing for Middleware
Evolving The Structure To Provide a Foundation For The Future
Customer Presentation
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Agenda
Historical perspective on the middleware software licensing environment
Current middleware software licensing approaches
New IBM licensing approachWith no price changes
Benefits of the new structure
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Middleware Is Licensed In Primarily Two Ways
In general, two licensing models predominate today:
Per User
One license per user20 users = 20 licenses
Per Processor
Historically, one license per processor4 processor cores = 4 licenses
ProcProc
ProcProc
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Current Marketplace for Per Processor Licensing
More complex licensing structures Unique licensing requirements for differing
technologies Fractional licensing to provide necessary granularity
Uncertainty of licensing for multi-core technologies
Multi-core technology has created a number of challenges for customers
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Single-core Chip
Processor Core
Chip
Socket
1
Dual-core Chip
Processor Core
Chip
Socket
1 2
The core is a functional unit on which software executesMulti-core chips have more than one processor core on the chip
Processor Definition is Important in Middleware Licensing
IBM defines processor = coreAs do most Middleware Vendors…eg. Oracle and BEAHowever, some Hardware Vendors . . . Intel, AMD, and
Sun define processor = chip
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Processor Cores Are Not All Created Equal Today
1 Core1 Core
Same Workload
1 Core 1 Core 1 Core
1 Core 1 Core
1 Core
1 Core
The number of processor cores required for a given workload varies by processor technology
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Core Disparity Will Increase In Future
The performance gap is growing between processor core technologies as a result of diverging strategies
Core performance improvement Flat core performance, but increase cores per chip
Cor
e Pe
rfor
man
ce
Time
One Processor Core
Improve Core Strategy
Multi-core Strategy
CoreDisparity
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Customers Want More Licensing Granularity
Leverage the performance of the processor core
Increasing interest in virtualization
Enables consolidation and the adoption of new hardware technologies Sub-capacity licensing
Server
1 DB2 License Required
2 Chips4 CoresAppl DB2Appl Appl
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Middleware Vendors Differentiate by Processor Type . . .
. . . Adding complexity to middleware licensing
RISC Dual-coreSingle-core x86 Dual-core Sun Octi-core
* Microsoft per processor entitlements are derived from their per chip licensing.
Effective License Entitlements per Processor
Chip Type IBM Microsoft* Oracle BEA
Single-core (All Chips) 1.00 1.00 1.00 1.00
RISC Dual-core 1.00 N/A 0.75 0.50
x86 Dual-core 0.50 0.50 0.50 0.50
RISC Sun T1 Octi-core 0.38 N/A 0.25 0.25
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Customer Focus Should be on the Total Effective Price
License requirements are only part of the effective price Price per Processor = License quantity x Product price per License
* Suggested Retail Price of License & Maintenance for 12 months
Chip Type IBM Microsoft Oracle IBM Microsoft Oracle($K) ($K) ($K)
Single-core (All Platforms) 1.00 1.00 1.00 $36 $31 $49
RISC Dual-core 1.00 N/A 0.75 $36 N/A $37
x86 Dual-core 0.50 0.50 0.50 $18 $16 $24
RISC Sun T1 Octi-core 0.38 N/A 0.25 $14 N/A $12
Data Server - Enterprise Edition
Effective Licensing Per Processor Effective Price Per Processor *
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In Today’s Environment, the Marketplace Needs
SimplicityObtain benefits of fractional licenses without calculating fractions
More flexibility through granularityEspecially for multi-core chipsLeverage sub-capacity licensingContinued software price performance improvements
Clarity in the licensing structure
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Introducing Processor Value Unit Licensing Middleware will be licensed in processor value units
Each processor core assigned a specific number of processor value units Acquire the appropriate number of value units for each processor core Each middleware program has a unique price per value unit Processor value units are transferable among systems by product within the enterprise
* Power PC 970 and Power 5 QCM dual-core chips require 50 Value Units** T1 entitlements per processor adjusted with the elimination of fractional licenses.
New StructureValue Unit
EntitlementsChip Type Per Processor
Single-core (All Platforms) 100
RISC Dual-core * 100
x86 Dual-core 50
RISC Sun T1 Octi-core ** 30
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Processor Value Unit Licensing has Simple Conversion
Current per Processor Entitlements x 100
= New Processor Value Unit Entitlements
New Structure"Old" Structure Value Unit
Entitlements Conversion EntitlementsChip Type Per Processor Factor Per Processor
Single-core (All Chips) 1.00 x 100 100
RISC Dual-core 1.00 x 100 100
x86 Dual-core 0.50 x 100 50
RISC Sun T1 Octi-core 0.30 x 100 30
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Additionally, Simple Migration of Existing Entitlements Existing Maintenance Processor Entitlements converted to Processor
Value Unit Entitlements Current Per Processor Entitlements x 100 = Processor Value Units Same conversion factor for all processor types
"Old" Structure New Structure
Per Processor MigratedEffective Effective Migration Value Unit
Entitlements Entitlements Conversion EntitlementsPer Chip Per Processor Factor Per Processor
Single-core (All Chips) 1.00 1.00 x 100 100
RISC Dual-core 2.00 1.00 x 100 100
x86 Dual-core 1.00 0.50 x 100 50
RISC Sun T1 Octi-core 3.00 0.30 x 100 30
* T1 entitlements per processor adjusted with the elimination of fractional licenses
*
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With No Price Changes for our Middleware for Existing Processors* Consistent conversion factor to create product prices
Both New Licenses and Maintenance Renewals
Current per Processor Price /100 = New Processor Value
Unit Price
Customer price = # entitlements X price per entitlement . . . UNCHANGED!*
WebSphere Application Server Network Deployment on RISC Dual-core (2 cores)
Price per Entitlement
Number of Entitlements
Extended Price
Per Processor $15,000 2 $30,000
Conversion factor Divide by 100 Multiply by 100
Processor Value Unit $150 200 $30,000
* There may be slight changes due to rounding with the implementation of processor value units in some countries
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Processor Value Units Provide Flexibility Through Granularity
Value Unit Licensing at the processor core levelCapability to enable sub-capacity licensingGranularity to address changing technology
Flexibility to create new processor value unit levelsDeliver software price performance improvements
Time
Software price performance improvements will range over time depending upon a number of factors including market conditions
Processor core performance levels will vary between chip vendors Processor Value Units relative to core
performance
Processor Core Performance
Price Performance
# of Processor Value Units
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Increased Clarity as New Processors Will Be Assigned Processor Value Units
Deliver software price performance improvement Over time, new processors will be differentiated based on relative
performance, among other factors Overall framework balances precision and simplicity Will publish all Processor Value Unit requirements
New StructureValue Unit
Processor EntitlementsChip Type Introduction Per Processor
Single-core (All Platforms) 100
RISC Dual-core 100
x86 (Intel / AMD) Dual-core 50
RISC Sun T1 Octi-core 30
Intel Itanium Dual-core 100
PowerPC 970 Dual-core 50
Power 5 QCM Dual-core 50
"'New" 2006
"Existing" Pre-2005
"'New" 2005
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Processor “Value Unit Calculator” Helps Determine License Quantities Passport Advantage Online contains a link to the processor “Value Unit
Calculator” Available to all customers with a Passport Advantage contract
New Tools to Determine Processor Value Unit License Quantities
Calculates number of processor value units required for every hardware environment
Used to calculate price (number of value units X price per value unit)
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Benefits Of The Processor Value Unit Structure
Creates simple licensing structure Avoids fractional licensing for multi-core chips
Provides flexibility and granularity Enables sub-capacity licensing at processor core Positions for future
Continue to deliver software price performance improvements Licenses are transferable across distributed systems
Provides clarity to middleware licensing Over time, new processors will be differentiated based on relative performance No price changes for middleware on existing processors
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Processor Value Unit Licensing for Middleware