A New Way to Calculate Mainframe Savings

The constant clamor about the excessive cost of the mainframe raises the question – “How much can costs really be reduced?”  If IT focuses on the largest mainframe cost item – the licensing costs for the core systems software – the answer may turn out to surprise you.  Since these costs, frequently referred to as MLC – or Monthly License Charge, are driven by peak consumption of CPU resources, ANY reduction of consumption during the peak can reduce the MLC charges.  And ANY amount of reduction can result in savings. 


But – there is always a “but” – because of the complexity of the pricing, it is not a one-to-one relationship between resource reduction and cost reduction.  So, without creating an elaborate spreadsheet filled with VB macros and expert knowledge of the licensing structure, how can you decide what magnitude of cost savings you might be able to achieve? 


Here is one way to find out – BMC has just posted an MLC Savings Calculator online, where you can enter a few basic cost parameters and then get an estimate of how much savings would result from a resource reduction – be it 1% or 3% or more.  This is a pretty easy way to determine where you might want to focus to achieve mainframe cost reduction, and free up IT budget for some of your transformative IT projects.

Check out the MLC Savings Calculator here: http://mlc.bmcassessments.com/

MLC Savings Calc Image.jpg

These postings are my own and do not necessarily represent BMC's position, strategies, or opinion.

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Jay Lipovich

Jay Lipovich

G. Jay Lipovich is a Principal Product Manager for mainframe systems management and cost optimization at BMC Software. He has many years’ experience in the design and development of strategies and solutions for infrastructure and data management. This includes design strategy and performance evaluation for a mainframe hardware vendor; infrastructure performance consulting for industry and US government agencies; and design and development of strategies and solutions for infrastructure management solutions. He has published numerous articles in trade journals defining approaches to infrastructure performance management and cost optimization. Mr. Lipovich is ITIL Foundation and CDE certified.