2. PERFORMANCE REPORTING ANALYSIS › 2.10 Product Measured Usage Analysis › 2.10.4 Subcapacity Pricing Concepts

2.10.4 Subcapacity Pricing Concepts

Subcapacity pricing is IBM's methodology for charging for
certain software based on the utilization capacity of the
LPARs in which the products run, rather than on the MSU
rating of the machine.

Workload License Charges (WLC) is an example of subcapacity
pricing.  This pricing method offers LPAR-based pricing for
subcapacity eligible software products based on the highest
four-hour rolling average utilization of the LPARs where the
product ran. WLC may also be implemented in full capacity
mode. Full capacity mode will mean pricing is based on the
MSU rating of the machine in which the product executes.

Subcapacity pricing is based on the concept of the highest
observed rolling four-hour average utilization of the LPAR or
LPARs where a product runs. The simultaneous combined
utilization of these LPARs is determined for each hour in the
reporting period and the highest observed combined
utilization is used as the basis for pricing the product.

There are many advantages and disadvantages to moving to a
subcapacity pricing method, so careful planning and analysis
is important. You will need to understand the prerequisites
for subcapacity pricing, create a software inventory, create
a capacity and growth plan, and determine your current
capacity and usage for each LPAR.

See the z/OS Planning for Subcapacity Pricing guide for more
information on implementing subcapacity pricing for IBM
products.