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White Paper · IBM

Cut IBM mainframe cost with MLC and IPLA levers

IBM mainframe pricing splits into Monthly License Charges and One Time Charges. Inside MLC the Tailored Fit Pricing options change the cost shape entirely. The buyer side reference for negotiating mainframe renewal in 2026.

Format PDF + HTML
Read Time 20 Minutes
Last Updated July 29, 2025
What you will take away
  • MLC covers z OS and the strategic middleware. Billed monthly on a usage curve.
  • IPLA covers Db2, IMS analytics, and most modern z products. Billed as one time charges plus subscription and support.
  • Tailored Fit Pricing is the MLC lever. Three options: Enterprise Capacity, Enterprise Consumption, Software Consumption.
  • MSU is the MLC currency. Million Service Units, billed on the rolling four hour average.
  • MIPS is a hardware metric. Often quoted to procurement teams; not the actual MLC currency.
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PublishedSeptember 22, 2022
Last updatedJuly 29, 2025
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