IBM licensing

IBM Virtual Processor Core Licensing (VPC)

IBM Virtual Processor Core Licensing (VPC)

  • Definition: VPC Licensing charges based on virtual cores.
  • Purpose: Aligns cost with virtualized server workloads.
  • Applies To Cloud and on-premises virtual environments.
  • Flexibility: Scales with workload demands.
  • Billing: Cost reflects actual virtual CPU use.

What is IBM Virtual Processor Core Licensing (VPC)?

What is Virtual Processor Core (VPC) Licensing?

The Virtual Processor Core (VPC) licensing model is IBM’s software licensing method in virtualized environments. VPC licensing is used for several cloud-based IBM products, including IBM Cloud Paks.

This licensing model is designed to align the costs of IBM’s software with an organization’s actual computing resources, providing greater flexibility in cloud environments.

To fully understand VPC licensing, you must first know what IBM means by a Virtual Processor Core. In simple terms, a VPC is equivalent to a virtual CPU used by a virtual machine.

This means that IBM charges based on the virtual CPU capacity that the software consumes, whether in a public cloud, a private cloud, or an on-premises virtualized environment.

Key Concepts in VPC Licensing

Here are some core concepts that are essential to understanding IBM VPC licensing:

  • Virtual Processor Core (VPC): A logical representation of a CPU assigned to a virtual machine.
  • Capacity-based Licensing: IBM’s licensing model charges based on the capacity of virtual processor cores assigned to the software.
  • Public, Private, or Hybrid Environments: The VPC licensing model applies regardless of whether your infrastructure is on a private cloud, public cloud, or hybrid setup.
  • Cloud Paks: IBM Cloud Paks are enterprise software collections requiring VPC-based licensing.

How Does VPC Licensing Work?

IBM VPC licensing involves counting the number of virtual processors assigned to a specific workload. This count determines the license requirement. The process works like this:

  1. Deployment: Deploy an IBM product (e.g., IBM Cloud Pak) in a virtual environment.
  2. Assign Virtual CPUs: Assign several to the virtual machine running IBM software.
  3. Calculate License Requirements: Use the assigned virtual CPU count to determine the required VPC licenses.

Example: Suppose you have a virtual machine running IBM WebSphere and assign it four virtual CPUs. To be compliant, you would need 4 VPC licenses.

Key Benefits of VPC Licensing

The VPC licensing metric provides several important advantages:

  • Flexibility: It scales easily with the number of virtual cores used.
  • Cost Efficiency: You only pay for virtual capacity, which benefits dynamic cloud environments.
  • Simplicity: Aligning software costs with virtual infrastructure is easier, especially in cloud or containerized deployments.

Tracking and Reporting VPC Usage

Tracking and Reporting VPC Usage

To stay compliant, you need to track and report VPC usage accurately. IBM requires regular reporting of the number of VPCs used to ensure licensing compliance.

Steps to Track and Report VPC Usage

  1. Monitor Virtual Cores Assigned
    • Use your virtualization platform (e.g., VMware vSphere, Hyper-V) to track the number of virtual CPUs assigned to each IBM software virtual machine.
  2. Keep Detailed Logs
    • Ensure you maintain a log of each deployment, specifying the assigned virtual cores. This log will be crucial for reporting.
  3. Use the IBM License Metric Tool (ILMT)
    • IBM provides the IBM License Metric Tool (ILMT), which helps track and report license usage in virtual environments.
    • ILMT collects data about virtual machine configurations and assigned virtual cores and generates reports to help you stay compliant.
  4. Regularly Review Usage
    • Perform periodic reviews of your license usage to ensure you correctly count VPCs.
    • These reviews ensure you stay compliant, particularly for environments that scale dynamically, such as Kubernetes.

IBM License Metric Tool (ILMT)

IBM License Metric Tool (ILMT)

The IBM License Metric Tool (ILMT) is central to IBM VPC compliance. It helps automate tracking and ensures accurate reporting.

Here is how ILMT helps you manage your VPC licensing:

  • Automatic Discovery: ILMT scans your infrastructure to discover IBM products.
  • Usage Reporting: ILMT provides detailed reports about virtual cores assigned to IBM software, helping you avoid penalties for under-reporting.
  • Compliance Verification: IBM often audits its customers, and ILMT-generated reports are essential to prove your compliance.

Note: In many cases, IBM requires clients running IBM products in virtualized environments to use ILMT.

Common Challenges in VPC Licensing

IBM VPC licensing can be challenging, especially when dealing with a complex or hybrid infrastructure.

Here are some common issues that companies face:

  • Dynamic Environments: Virtualized environments often have virtual machines scaling up and down automatically, which makes tracking virtual cores assigned to IBM software a constant effort.
  • Complex Infrastructure: Hybrid environments involving both on-premises and cloud-based resources can be tricky to track. Licensing compliance across multiple platforms requires careful planning and reporting.
  • Audits: IBM frequently audits customers to ensure compliance. If VPC usage is not correctly tracked, your company could be liable for significant costs.

Best Practices for Managing IBM VPC Licensing

To manage IBM VPC licensing effectively, consider these best practices:

  • Use ILMT Consistently: Ensure that ILMT is installed and configured to track your IBM products and generate reports automatically.
  • Align Licensing with Deployment: Make sure that licensing requirements are evaluated during every deployment and modification of virtual machines.
  • Automate Usage Tracking: If possible, use automation to manage and track virtual cores across all platforms. Integration between cloud orchestration tools and ILMT can significantly reduce manual effort.
  • Educate Stakeholders: Train relevant IT and finance department stakeholders to understand the licensing model and the importance of compliance.
  • Review Regularly: Conduct monthly reviews to ensure that all deployments are compliant and there are no discrepancies in the reports.

Licensing in Different Environments

Licensing in Different Environments

IBM VPC licensing can vary slightly depending on the environment in which it is applied. Let’s break down how it works in publicprivate, and on-premises scenarios.

Public Cloud Environments

In a public cloud like IBM Cloud or AWS, IBM VPC licensing directly relates to the virtual machines created and the virtual CPUs assigned.

  • For example, if you use IBM Cloud to run a containerized instance of IBM WebSphere and allocate eight virtual cores, you need 8 VPC licenses.
  • Cloud Paks on public cloud environments follow the same model, scaling based on the number of virtual cores assigned.

Private Cloud and On-Premises

The concept is the same for private clouds or on-premises virtualized environments using hypervisors like VMware, but tracking may require more manual intervention.

  • Use ILMT to keep track of VPC usage and ensure that all virtual cores are reported accurately.

Hybrid Cloud

VPC licensing becomes more challenging in a hybrid environment because workloads can be moved between environments, causing fluctuations in VPC usage.

  • For example, moving workloads from an on-premises private cloud to a public cloud may require re-evaluating the number of VPC licenses needed.
  • Use tools that can track workloads across hybrid environments to maintain consistency in licensing and compliance.

Strategies for Ensuring Compliance and Reducing Licensing Costs

Strategies for Ensuring Compliance and Reducing Licensing Costs

Ensuring compliance while keeping costs down is often a delicate balance. Here are a few strategies to make sure you’re optimizing your IBM VPC licensing:

1. Implement Automation for Compliance Monitoring

Automation can be a powerful tool to maintain compliance without dedicating extensive manual effort. With automation, you can:

  • Track Virtual Machine Deployments in Real Time: Use scripts or cloud automation tools to monitor virtual cores allocated to IBM products.
  • Integrate ILMT with Cloud Management: If possible, integrate ILMT with cloud management platforms to automate data collection and reduce manual discrepancies.
  • Dynamic Rightsizing: Set policies to dynamically right-size your virtual machines based on workload performance metrics, which can reduce the number of unnecessary VPCs.

2. Build an Internal Licensing Team

While it might sound over-the-top for smaller companies, building a small, dedicated licensing team can pay off substantially in larger organizations.

The team’s responsibilities might include:

  • Tracking Deployments and Changes: Keeping a running log of infrastructure changes involving IBM products.
  • License Negotiation: Keeping abreast of IBM’s license offerings and negotiating better contracts for bundled licenses or discounts.
  • Proactive Compliance Management: Scheduling periodic internal audits to review licensing compliance before IBM does.

3. Use Container-Based Deployments Where Possible

Containerization platforms like Kubernetes offer the ability to use computing resources more efficiently. When IBM products are deployed in a containerized environment, you can:

  • Share Resources: Allocate VPCs more granularly, potentially reducing the overall count.
  • Easier Scalability: You can scale specific microservices up or down depending on their resource requirements, allowing for the optimization of VPCs.
  • Dynamic Load Management: Containers make it easier to shift workloads based on resource demand, enabling you to deallocate VPCs during low-demand periods.

4. Leveraging IBM’s License Waiver Programs

In certain cases, IBM offers licensing waiver programs for specific clients, often during migration or temporary high usage. Examples include:

  • Migration Period Waivers: If you are migrating from on-premises to a cloud-based deployment, IBM may offer a temporary waiver to accommodate additional licensing requirements.
  • Seasonal Workload Waivers: Some businesses operate on a seasonal cycle, requiring higher computing resources during peak periods. IBM might accommodate such situations with temporary license waivers to help manage the spike.

5. Explore IBM Sub-Capacity Licensing

IBM’s sub-capacity licensing allows organizations to license fewer virtual cores than are physically available on the host. This approach helps in reducing licensing costs by allowing:

  • Licensing for Actual Usage: Instead of licensing every virtual core available, you only need to license the virtual cores used by the IBM software.
  • Limiting Core Utilization: If certain virtual machines only partially use their virtual cores, sub-capacity licensing will allow you to avoid paying for unused capacity.
  • Managed Scaling: In cloud environments, sub-capacity licensing is particularly advantageous, as resources can be scaled dynamically without requiring a full-capacity license.

Advanced Use Cases and Considerations

Advanced Use Cases and Considerations

Multi-Cloud Deployments

Many businesses operate across multiple cloud platforms, such as AWS, Azure, and IBM Cloud. Licensing becomes complicated when software is spread across different cloud environments.

  • Unified Reporting: A unified reporting mechanism for VPCs across multiple clouds is essential to ensure consistency.
  • Federated Cloud Management: Federated cloud management tools can help manage IBM VPC licensing across different platforms, reducing discrepancies.
  • Workload Shifting: Shifting workloads between clouds can impact VPC requirements, so tools that can automatically track and report these shifts are invaluable.

IBM VPC Licensing FAQ

What is IBM Virtual Processor Core (VPC) Licensing?
IBM VPC Licensing calculates licensing based on virtual core usage rather than physical cores.

How is VPC Licensing different from traditional licensing?
It adapts to virtualized environments, aligning costs with virtual cores instead of physical CPUs.

Does VPC Licensing apply to cloud and on-premise systems?
Yes, VPC Licensing covers both cloud environments and on-premises virtual servers.

Why use VPC Licensing over per-server models?
It offers cost flexibility, charging only for the virtual cores in use.

How does IBM calculate VPC Licensing?
IBM assesses the total virtual cores, matching costs to compute demand.

What products are licensed with IBM VPC?
IBM’s VPC model applies to various products, including WebSphere, DB2, and cloud services.

Is VPC Licensing suitable for hybrid environments?
VPC Licensing fits well in hybrid environments, covering both on-prem and cloud-based systems.

How do I measure VPC requirements?
IBM provides tools to measure virtual core use across environments, helping to determine licensing needs.

What are the benefits of VPC Licensing for cloud users?
Cloud users benefit from scalable licensing that adjusts to variable virtual core use.

Is VPC Licensing usage-based?
Yes, VPC costs reflect virtual core usage, adapting to demand changes.

Can VPC Licensing scale with demand?
It’s designed to scale with usage, making it cost-effective for variable workloads.

Are there different VPC pricing options?
IBM offers tiered and flexible pricing based on core requirements.

How do I track my VPC usage?
Usage tracking is possible through IBM monitoring tools, ensuring accurate licensing.

Does VPC Licensing require regular reassessment?
Periodic assessments are recommended to match licensing to workload needs accurately.

What support does IBM offer for VPC Licensing?
IBM provides resources and assistance for monitoring and adjusting VPC licensing as needs evolve.

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