Sorry if my posts yesterday were confusing. I posted as a reply to the 6% post, 
but realized many would not open that old thread and that I needed to have 2% 
as part of the subject. So I "replied" again, and did not repeat the content. 
So here is the content and below that I'll respond to the questions and 
comments I've received: 

----------------------------------
I've done further analysis, now that the LCS_PRICING Interactive Report is 
updated with the new prices. When viewed not tier by tier, but with a stack of 
other software products (for which the prices did not change) the increase on 
the MLC invoice due to the z/OS increase is closer to 2%. As more and more 
products are added to the software stack, the percent increase will be smaller, 
as the other products are added to both the before and after totals equally. 
One customer has shared their analysis with me and for their products and 
features the monthly impact is approximately 1.8%. 

My analysis is available at: 

http://www.sherkow.com/updates/zos_2012_price_increase.html 

I hope you find this interesting and I welcome any comments or feedback you may 
have. I can find no other public analysis that shows this effective increase is 
near 2%. 

The bottom line is that everyone needs to analyze their own site. Similar to 
determining which software pricing metrics your site should be using there 
still are not clear rule of thumbs that work for every site. 
----------------------------------

My analysis was with IBM software only, and a very small, completely 
sub-capacity product set. Adding other products, whether from IBM or from an 
ISV would lead to smaller and smaller increases. Additional products would 
minimize the effect of the z/OS increase. 

The analysis used prices in US Dollars. 

I did not assume the growth or pricing for CICS, DB2, or WebSphere MQ series. 
On the linked page above, in the lower portion I describe the actual increases 
of the version changes. I won't full repost here, but between DB2 V7 and DB2 
V10 the increases ranged from 9.5% to 12%. CICS TS V2 through V4 had a range of 
11.7% to 14.5%. Again over a range of MSU levels. 

I did not use zNALC pricing, this was VWLC and AWLC. I could run some zNALC 
scenarios. However, the effect of the z/OS increases would be even smaller with 
the very large zNALC discounts. 

In the US z/OS did have a price increase effective 1 April 2009 (see 
http://ibm.co/Dec2008-308-887-increases). I know as I typed those prices into 
the LCS pricing tables. For example the VWLC tier of 176 to 315 MSUs was 
announced on 10/3/2000 as $110, on 4/1/2009 this increased to $113 and now on 
4/1/2012 it will be $120. The lower tiers changed on 10/3/2003 with the 
mainframe charter; some tiers were raised and some lowered to as the initial 
z/OS announcement had a minimum starting base of 45 MSUs.

Thanks for all the comments and feedback, these are all good points in the 
discussion! 

Al Sherkow, I/S Management Strategies, Ltd. 
Consulting Expertise on Mainframe Software Pricing, 
WLC, LPARs and LCS Software 
Seminars on IBM SW Pricing 
Voice:             +1 414 332-3062       
Web: www.sherkow.com 

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