This is usually very misunderstood. It's really the number of service class 
PERIODS WITH velocity or response GOALS (i.e. with an importance level). The 
reason is because WLM on each system will wake up every ten seconds (that's an 
eternity in a z14!) to see if goals are being missed. It starts with 
importance=1 periods and works its way down. If there are too many periods, the 
ones at a lower importance level will never get adjusted and you might have 
some less important periods exceeding their goals while more important periods 
are missing their goals. I was able to include both my own recommendations and 
other IBM recommendations when I was on an IBM residency working for Frank Kyne 
and writing a really neat Redbook called System z Mean Time to Recovery Best 
Practices - SG24-7816 - http://www.redbooks.ibm.com/redbooks/pdfs/sg247816.pdf. 
I consider it one of the most useful Redbooks I own. It contains best practices 
for reducing start up and shut down of z/OS and each of the major subsystems. I 
especially like the section that explains the IPL process.

As an example, here are recommendations from section 5.2 of the Redbook:

General WLM recommendations:

1. Keep your WLM policy as simple as possible. Service classes with only a 
single period are usually better than two periods, and two periods are almost 
always better than three periods. Of course there are exceptions to every 
recommendation, but this provides a good place to start.

2. Use response time goals, especially percentile response time goals, when you 
can. Only use velocity goals when transactions goals are not supported, or for 
test subsystems. Specifically, you should use percentile response time goals 
for DB2, CICS, IMS, and WebSphere.

3. Remember to review and possibly adjust velocity goals after any hardware 
upgrade. 

4. If you have a very large number of classification rules, consider their 
sequence carefully. The rules are applied serially, starting with the first 
one, until a match is found. 

5. Do not have too many service class periods with non-discretionary goals. A 
good guideline is to have less than 30 non-discretionary service class periods 
that are active on any one system. [Cheryl note: ON ANY ONE SYSTEM! If a 
service class is active on SYSA and not on SYSB, you don't need to count that 
on SYSB.]

6. Any service class with velocity goals should have multiple address spaces 
assigned to it so that it can collect meaningful statistics. If you need more 
granularity for reporting reasons, assign the address spaces to report classes.

7. If you have not reviewed your WLM policy in several years, take the time to 
do it now. Several enhancements to WLM have been made that can simplify your 
policy, or improve response time for transactions.

Cheers!
Cheryl

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