The holidays are approaching, and shops are crowded with people looking for the best deal. On Black Friday and Cyber Monday, we are lured towards the signs and advertisements promising “bargains”, “discounts”, and “sales”. Consumers make a habit of buying products labeled as “on sale” and businesses use this to their advantage in their pricing strategies. Some retailers have been known to label an item as discounted while selling it for regular price. So how do you know if you scored a good deal? It can be hard to tell if you don’t know what the starting price should have been.
When it comes to your IBM Mainframe software you are always looking to find the best deal too. There is a lot of buzz around Container Pricing right now because of a promised discount on growth workloads. We have published blogs on Container Pricing discussing the consequences of adopting this pricing model and some tips to mitigate them. With Container Pricing, IBM can lock in your current spend rate (including factoring in yearly price increases) and provide discounts only on growth. This all sounds wonderful, especially the part mentioning “discounts” on future growth, but is your current spend rate what you want your baseline to be for the remainder of your contract, knowing it will only increase from here? The discount promised is only as good as your starting point.
The time to focus on savings and cost reduction is now – before your IBM software contract renewal. The best practice for saving real dollars is to actively manage your MLC costs and to optimize your Rolling 4 Hour Average (R4HA) peak MSU consumption. By optimizing your MLC costs now, you can lock in the savings over the term of the fixed price contract. Otherwise you will be locked in at current consumption rates and lose the opportunity for optimization and cost savings in the future.
Steve Solomon and Jeremy Hamilton hosted an IBM Systems Magazine webinar discussing three tips to help you optimize your peak before committing to new pricing models like Container Pricing. Watch this before you lock in a baseline for Container Pricing.
Learn more how BMC can help you reduce mainframe MLC costs up to 30% or more here
These postings are my own and do not necessarily represent BMC's position, strategies, or opinion.