Introduction to IBM License Types
- IBM License Types: Different models for licensing IBM software.
- PVU and RVU: Based on processing power or resource usage.
- Authorized and Concurrent User: Licenses tied to specific users or shared access.
- Floating and Capacity-Based: Licenses shared across networks or tied to system capacity.
- Cloud-Based and MLC: Subscription models for cloud and mainframe environments.
Most Common IBM License Types
Processor Value Unit (PVU) Licensing
Processor Value Unit (PVU) licensing is a common IBM license type, especially for server-based software products like databases, middleware, and management tools. PVU licensing is based on the server’s processing power where the software is installed.
Key Points:
- Calculation Method: Licenses are calculated based on the number of processor cores in the server and the type of processor used.
- Use Case: Suitable for high-performance environments where software usage is closely tied to the server’s processing capabilities.
Example:
Consider an organization deploying IBM DB2 on a server with two Intel Xeon processors, each with eight cores. To determine the required number of PVUs, the organization would refer to IBM’s PVU table, which assigns a specific number of PVUs to each processor type and model. If each Intel Xeon core is assigned 100 PVUs, the total requirement would be 1,600 PVUs (8 cores × 2 processors × 100 PVUs per core).
Here are some examples of IBM products that are licensed under the PVU metric:
- IBM WebSphere Application Server
- IBM MQ
- IBM Rational Software
- IBM SPSS Statistics
- IBM Informix
- IBM DB2
Resource Value Unit (RVU) Licensing
Resource Value Unit (RVU) licensing is similar to PVU licensing but focuses on the software’s resources rather than processing power.
This model is often applied to middleware and database products, where the software’s usage is more directly tied to specific resources like memory or storage.
Key Points:
- Resource-Based: Licenses are calculated based on consuming specific resources such as memory or storage.
- Use Case: Ideal for software that heavily relies on resource allocation, like middleware or application servers.
Example:
An organization using IBM WebSphere Application Server might be licensed based on the number of gigabytes of memory allocated to the software. The total license requirement will be calculated if the RVU table defines a certain number of RVUs per gigabyte of memory.
Here are some examples of IBM products that use the RVU license metric:
- IBM Tivoli Netcool/OMNIbus
- IBM Tivoli Network Manager
- IBM Tivoli Monitoring
- IBM Tivoli Composite Application Manager
- IBM Tivoli Business Service Manager
Authorized User Licensing
Authorized User Licensing grants access to specific named users. This model suits applications with a defined user base, such as collaboration tools or business process management software.
Key Points:
- User-Specific: Each authorized user is assigned a unique license, regardless of how many devices they use to access the software.
- Use Case: This option is best for environments where the same users consistently access the software, ensuring that each individual is properly licensed.
Example:
A company deploying IBM Lotus Notes for its 500 employees would purchase 500 licenses, one for each employee using the software.
Concurrent User Licensing
Concurrent User Licensing allows a specified number of users to access the software simultaneously. This model is ideal for applications with fluctuating usage patterns, where not all users need access simultaneously.
Key Points:
- Simultaneous Access: Licenses are shared among users on a first-come, first-served basis.
- Use Case: Suitable for organizations with large user bases where software usage is intermittent.
Example:
A company with 1,000 employees might purchase 200 Concurrent User licenses for IBM SPSS Statistics. This setup allows up to 200 users to use the software simultaneously, but any user can access it if there is an available license.
Floating License
Floating Licenses permit the sharing of licenses across a network. This model is useful for organizations with distributed teams or varying usage needs.
Key Points:
- License Sharing: Licenses are managed by a central server and can be checked out by users as needed.
- Use Case: Ideal for companies with multiple locations or remote teams, allowing efficient use of available licenses.
Example:
An engineering firm with multiple offices might use floating licenses for IBM Rational Software. Engineers can check out a license when they need the software, regardless of their location, ensuring optimal use of the licenses.
Capacity-Based Licensing
Capacity-based licensing is based on the capacity of the system running the software, such as the number of cores or total processing power. This model is often used in mainframe and high-performance computing environments.
Key Points:
- System Capacity: Licensing is tied to the overall capacity of the hardware rather than individual users or instances.
- Use Case: Best suited for environments where software performance is directly related to the system’s processing power, such as in financial institutions or data centers.
Example:
A financial institution running IBM z/OS on a mainframe might be licensed based on the total number of million service units (MSUs) in the mainframe. The institution would need to purchase licenses that cover peak MSU usage.
Monthly License Charge (MLC)
Monthly License Charge (MLC) is a subscription-based model primarily used for mainframe software. Under this model, organizations are charged based on their monthly peak usage, providing flexibility in usage patterns.
Key Points:
- Subscription-Based: Charges are based on monthly peak usage, making it easier to manage costs over time.
- Use Case: Ideal for organizations with variable workloads, such as those in retail or seasonal industries.
Example:
A large retailer using IBM Customer Information Control System (CICS) on a mainframe might be billed based on the monthly peak number of CICS transactions. This model ensures that the retailer only pays for actual usage, which can vary seasonally.
Cloud-Based Licensing
With the growing adoption of cloud computing, Cloud-Based Licensing models are tailored for IBM’s cloud services and solutions. These models often include pay-as-you-go or subscription-based options.
Key Points:
- Flexible Pricing: Pay-as-you-go or subscription models allow organizations to align their software costs with actual usage.
- Use Case: Suitable for businesses scaling their operations or those with unpredictable demand patterns.
Example:
A startup using IBM Watson Discovery on the IBM Cloud would be billed based on the number of API calls made each month. This allows the startup to start small and scale its usage as its business grows, avoiding large upfront investments.
Key Differences Between IBM Licensing Models
Understanding the differences between these licensing models is essential for selecting the right option for your organization. Here’s a summary of how they compare:
PVU vs. RVU Licensing
- PVU is based on processor cores and processing power, making it suitable for high-performance environments.
- RVU focuses on resource usage like memory or storage, which is ideal for resource-intensive applications.
Authorized User vs. Concurrent User Licensing
- Authorized User Licensing is tied to specific individuals, ensuring that each user is covered regardless of device.
- Concurrent User Licensing allows a set number of users to access the software simultaneously, offering flexibility for large organizations.
Floating vs. Capacity-Based Licensing
- Floating Licenses are shared across a network, making them ideal for distributed teams or varying usage needs.
- Capacity-based licensing is based on system capacity, perfect for high-performance computing environments like mainframes.
Choosing the Right IBM Licensing Model
Selecting the right IBM licensing model depends on various factors, including your organization’s size, industry, and specific software needs. Here are some considerations:
Assess Your Infrastructure
Understand the hardware and resources you currently have and how they will grow. For example, PVU or capacity-based licensing might best fit for running high-performance servers.
Evaluate User Access Needs
Determine how many users need access to the software and how frequently they will use it. Concurrent or floating licenses could be more cost-effective for environments with many users but variable access needs.
Consider Flexibility
If your organization is moving toward cloud services or has fluctuating workloads, cloud-based licensing or MLC might offer the flexibility you need.
Plan for Growth
Choose a licensing model that can scale with your organization. Cloud-based and subscription models often provide the easiest path to scaling up for growing companies.
FAQs
What are IBM License Types?
IBM License Types refer to the various models IBM offers for licensing its software products. These types are designed to cater to different business needs, ranging from perpetual licenses to cloud-based and subscription models.
How does Processor Value Unit (PVU) licensing work?
PVU licensing is based on the server’s processing power where the software is installed. Licenses are calculated based on the number of processor cores and the processor type, making it ideal for high-performance server environments.
What is Resource Value Unit (RVU) licensing?
RVU licensing is based on the software’s resources, such as memory or storage. This model is commonly used for products like middleware or databases, where usage is closely tied to resource consumption.
When should I choose Authorized User Licensing?
Authorized User Licensing is best for applications with a defined user base. Each named user gets a unique license, ideal for tools like collaboration software where specific individuals consistently access the software.
How does Concurrent User Licensing differ from Authorized User Licensing?
Concurrent User Licensing allows a set number of users to access the software simultaneously, regardless of their identity. This model is useful for organizations with large user bases and varying access needs.
What is a Floating License?
A Floating License allows licenses to be shared across a network. Users can check out a license when needed, making this model suitable for organizations with distributed teams or fluctuating software usage.
What is Capacity-Based Licensing?
Capacity-based licensing is tied to the system’s overall capacity, such as the number of cores or total processing power. It’s commonly used in high-performance computing environments like mainframes.
How does Monthly License Charge (MLC) work?
MLC is a subscription-based model primarily for mainframe software. Organizations are charged based on their monthly peak usage, offering flexibility in managing software costs.
What are the advantages of Cloud-Based Licensing?
Cloud-Based Licensing offers flexibility with pay-as-you-go or subscription options. It’s ideal for organizations moving to or expanding their presence in the cloud, allowing them to align software costs with actual usage.
How do I decide between PVU and RVU licensing?
The choice between PVU and RVU licensing depends on your software’s reliance on processing power versus specific resource usage. PVU is better for processor-intensive applications, while RVU is suited for software that heavily uses memory or storage.
Can I combine different IBM License Types in my organization?
Many organizations use a combination of IBM License Types to meet different needs. For example, you might use PVU licensing for server software and Authorized User Licensing for desktop applications.
What should I consider when choosing a license type?
Consider your organization’s infrastructure, user access needs, and growth plans. Assess whether your usage patterns are stable or fluctuate, and choose a model that aligns with your current and future needs.
Is there a licensing model suited for virtual machines?
Yes, IBM offers specific licensing options for virtual machines. These models often consider the virtual environment’s capacity or usage patterns, similar to capacity-based licensing for physical machines.
What is IBM’s approach to disaster recovery licensing?
IBM provides specific licensing models for disaster recovery scenarios. These licenses typically allow organizations to deploy software in a disaster recovery environment without requiring additional full licenses.
