Broadcom Introduces Value-Based Licensing for Software on IBM z/OS Mainframe Systems

Broadcom has introduced value-based software licensing model designed to provide increased clarity regarding software consumption on z/OS mainframe systems. With this announcement, Broadcom says, it is the Broadcom is the first mainframe ISV to announce software licensing solutions based on total consumption of million service units (MSU).

The new Mainframe Consumption Licensing (MCL) model gives mainframe customers better visibility and predictability into their software spending while enabling them to maximize the value created for their end customers, the company says.

According to Broadcom the new software licensing model addresses a key issue. In the past, mainframe customers typically used one of two options for licensing software: full capacity licensing models based on the maximum capacity of their machines or sub-capacity licensing models that utilized a rolling 4-hour average (R4HA) metric. While simple and technically flexible, Broadcom notes, full capacity licensing models can be expensive and do not align value with utilization. Sub-capacity licensing models entail management overhead for optimizing workloads to minimize economic impact from spiking R4HA, constraining customers from fully exploiting capabilities of mainframe systems & subsystems. For these options, Broadcom offers the CA Dynamic Capacity Intelligence solution to optimize resources and capacity.

The new MCL model addresses customer demands for increased clarity, predictability, and flexibility and brings pricing and value in line with the reality of modern computing workloads on z/OS mainframe systems. It is designed for clients who are maintaining or growing their software needs on the mainframe, and offers simplified terms, conditions and reporting requirements. It also is intended to support future mainframe pricing strategies based on a consumption methodology.

According to Broadcom, its MCL model offers:

Consumption-based Licensing: Execute mainframe workloads when it matters most to enterprise needs, avoiding economic impacts from spiking R4HA.

Unlimited Dev/Test Support: For customers licensing IBM development and test container solutions, Broadcom’s MCL model will exclude development and test utilization from MCL utilization because robust Dev & Test systems are required for modern, mission critical workloads.

Flexibility: Utilization below baseline can be rolled over to next true-up period—like roll-over minutes, providing customers with additional flexibility to manage growth and unexpected events within the term of their contract.

“The MCL program helps provide an alternative licensing mechanism for customers to obtain more flexibility and predictability in their software investments,” said Greg Lotko, senior vice president and general manager of the Mainframe Division at Broadcom. “We are confident this approach eliminates a major barrier for innovation on the mainframe.”

Further information about Broadcom's MCL program can be found online at

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