Mainframe Blog

Think You’re Saving on Mainframe Licensing Costs? Think Again.

John McKenny
2 minute read
John McKenny

Think you’re already saving on mainframe licensing costs?

Are you under the impression that your company has maximized efforts to reduce mainframe monthly license charges (MLC)? The truth is that nearly every mainframe shop has the potential to save up to 30 percent on MLC. In fact, we’ve identified five specific MLC savings strategies that can benefit any mainframe-dependent business:

  1. Cost driver awareness
  2. Peak workload tuning
  3. Dynamic workload capping
  4. Subsystem license charge optimization
  5. Advanced contract negotiation

You’re probably employing a couple of these savings strategies today, to some extent. For instance, many businesses are already monitoring their major mainframe cost drivers and tuning their applications. Even within these simple strategies, however, there’s still more you can do.

Check out these results from customer implementations of BMC solutions.

Here is some data directly from customers who recently implemented BMC solutions that target these strategies and aim to achieve the greatest possible savings on mainframe licensing costs.

Major U.S. Transportation Company

This customer has achieved 20 percent savings on MLC costs as well as an increased understanding of the drivers of those costs by using BMC cost analyzer and intelligent workload capping solutions. An effective cost analyzer tool can not only help you understand the drivers of peak resource usage, but can also track and forecast MLC budgets and model the future impact of any changes to the software environment. Automating capping thresholds lowers peak MSUs without risking impact to critical workloads, while reducing overall costs.

U.S. Insurance Company

When this customer decided that they needed to reduce their peak MSUs to save on MLC, they chose  BMC’s intelligent workload capping solution. They have achieved nearly 10 percent in MLC savings without any impact to their service levels. Intelligent capping software constantly monitors workload activity and automatically adjusts caps, ensuring that critical workloads are never delayed. And the solution is cost-aware, so there’s no risk of unintentional increases in MLC costs as a result of balancing capacity limits across systems.

Major Multinational Bank

This financial services company had recently improved their batch processing performance, but was seeing an increase in CPU consumption as a result. Using BMC’s intelligent workload capping and subsystem optimizer solutions, they were able to correct their unexpected peaks, saving 10 percent on MLC while actually improving application performance. The subsystem optimizer approach enables the most expensive IBM MLC software products to coordinate with each other to significantly decrease MLC costs without sacrificing any business performance.

All mainframe IT organizations have the potential to squeeze more savings from their MLC bill. By using a combination of cost management solutions and services, you can save even more than you thought possible—all without risk to your current business. If you are not seriously considering the positive impact to your business that these strategies can offer, you should be.

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

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About the author

John McKenny

John McKenny

As Vice President of Strategy for ZSolutions Optimization at BMC Software, John leads the Product Management and Solutions Marketing teams for mainframe solutions. Prior to joining BMC in 1995, he spent 15 years in various IT technical, management, and consulting roles in the transportation and insurance industries.