IBM Z and LinuxONE On-premises Development Program

What is the difference between the IBM Z On-premises Development Program and the IBM Z Developer Discount Program?

• The IBM Z On-premises Development Program is the next generation of the IBM Z Developer Discount Program. The program was redesigned to provide increased transparency and consistency across participants while also encouraging the growth and advancement of the IBM Z and LinuxONE ecosystem. Program participants who were part of the legacy IBM Z Developer Discount Program will be moved to the current IBM Z On-premises Development Program at the time of their next system purchase or upgrade.

Does IBM offer other development programs for IBM Z and LinuxONE ISVs?

• IBM offers several programs for IBM Z and LinuxONE ISVs. Please visit the IBM Z and IBM LinuxONE Partner Network to learn more.

Is our IBM Z On-premises Development Program benefit tier the same as our IBM Partner Plus tier?

• IBM Partner Plus is the successor program to IBM PartnerWorld. All participants in the IBM Z On-premises Development Program are required to be IBM Partner Plus members, but the benefit tiers for IBM Partner Plus are distinct from the IBM Z On-premises Development Program's benefit tiers.

How will our benefit tier for the IBM Z On-premises Development Program be determined?

• The specific requirements of each benefit tier are outlined in the program Overview with the Assessments page containing additional details about the assessment process. The assessment process is collaborative, with participants having the opportunity to showcase their contributions to the IBM Z and LinuxONE ecosystem. Assessments are performed upon initial admission to the program or in conjunction with hardware purchases and upgrades with annual reviews thereafter.

How can we move to a higher tier?

• Program participants have an annual opportunity to unlock additional benefits by working throughout the year to meet criteria of a higher tier. If your organization is willing to invest in joint advocacy, IBM can help you create a roadmap to achieving your desired tier.

How are the 45-MSU threshold and loaned capacity evaluated?

• The 45-MSU threshold is determined by the total purchased capacity across all systems the participant has enrolled in the program before any loans are applied and regardless of the capacity of any systems being upgraded. For example, if a participant has just one existing machine with 20 MSUs that they are upgrading to a new machine with purchased capacity of 50 MSUs, they will be subject to the greater-than-45-MSU criteria, and capacity loans will be calculated on the full 50 MSUs being purchased according to the rates of the participant's assessed tier (i.e. up to 50 MSUs loaned for Advanced tier and up to 100 MSUs loaned for Premier). Because the tiers/criteria are assessed according to purchased capacity, a participant who is assessed at the 45-MSUs-or-less Advanced tier will not be subject to the additional criteria of the greater-than-45-MSUs level if their loaned capacity causes them to exceed 45 MSUs so long as the purchased capacity remains at or under the 45-MSU threshold. Conversely, if a participant who already has one machine enrolled with purchased capacity of 20 MSUs later purchases and enrolls a second machine with 30 MSUs, they will become subject to the greater-than-45-MSUs level and re-assessed according to the additional tier criteria because their total purchased capacity across both systems now exceeds the 45-MSU threshold.

What is the difference between annual certification and annual assessment, and do these still apply if we have a contract term longer than one year?

• All ISVs, regardless of contract term, are required to submit an annual certification providing details about their development activities and use of program resources. IBM uses the certification information in conjunction with our own vetting of participants' websites, social media posts, and other content to perform an annual assessment of participants' continued compliance with program requirements and the criteria of their assigned benefit tier. Participants who no longer meet the general program criteria or fail to requalify for their assigned benefit tier could see their membership cancelled or software discount rate and hardware benefits reduced following this annual review. Conversely, participants who work throughout the year to meet additional tier criteria may advance to higher tiers and earn additional benefits with their subsequent contract renewal. IBM also reviews each participant's software discount addendum each year to ensure discounted software products meet currency standards and that exceptions for discounts on royalty-bearing software are still applicable. Participants may see changes to software discounts on individual line items as a result of this review.

What other factors influence the level of discount that we are currently receiving?

• Advocacy activities are the primary driver of discount changes. However, external factors such as mergers and acquisitions may also influence discount levels because program participants are assessed on the combined capacity for all development systems enrolled. If, for example, two participants who each have systems less than 45 MSUs enrolled in the program merge and the combined capacity of the two systems is greater than 45 MSUs, the new combined company will be subject to the more extensive criteria that apply to larger development systems.

We have multiple development systems. How is the number of MSUs determined for assessment purposes?

• Assessments take into account the total purchased capacity for all systems enrolled in the program.

What is the program's hardware currency requirement?

• The program's hardware currency requirement for IBM Z and LinuxONE machines enrolled in the program is N-1 where N represents IBM's latest generally available (GA) release. Participants with multiple systems in the program must have at least one system that meets the currency requirement. USB hardware keys for zPDTs are not subject to an ongoing hardware currency requirement but may require refreshes when existing models reach end-of-services.

Our system no longer meets currency requirements. When do we need to upgrade?

• Participants with systems older than N-1 will have 12 months from the general availability date of the latest system to upgrade to a compliant machine. Participants who decide not to upgrade during the 12-month grace period will no longer be eligible to receive program benefits.

Is the use of hardware loans for capacity or specialty engines required when we purchase our system?

• Participants are not required to accept loaned capacity and specialty engines offered by IBM. However, capacity and specialty engine loans are only provided in conjunction with a hardware purchase. After the initial system purchase, program participants will need to make a capacity or specialty engine purchase to take advantage of loan benefits.

Can we add loaned capacity or specialty engines to an existing development system?

• Capacity and specialty engine loans can be added to any system the participant has enrolled in the program so long as the machine meets currency requirements, but hardware loans are only provided in conjunction with a hardware purchase. After the initial system purchase, program participants will need to make a capacity or specialty engine purchase to take advantage of loan benefits.

When can we start using the capacity and specialty engine loan benefits of our new tier?

• Capacity and specialty engine loans are only provided in conjunction with a hardware purchase. After the initial system purchase, program participants will need to make a capacity or specialty engine purchase to take advantage of loan benefits.

How do capacity loans affect software billing?

• IBM's billing rates are determined by total system capacity including any loaned capacity the program participant receives from IBM, less the discount rate documented in the participant's software discount addendum. This means adding loaned capacity will increase billing rates for participants who receive less than 100% software discount.

What software is included in program discounts?

• Only IBM Z software products that are configured and ordered through Shopz are eligible for program discounts. Passport Advantage products and software distributed through the IBM Partner Plus Software Access Catalog are not discounted. In general, program discounts are provided for IBM-owned Monthly License Charge (MLC), One-Time Charge (OTC), and Annual License Charge (ALC) IBM Z products with software currency of at least N-1 where N is the most current Generally Available (GA) version of any specific product. Royalty-bearing products are not eligible for discount without an approved exception from IBM, but program participants may purchase royalty-bearing products at list price to run on enrolled development systems. The software currency requirement applies to operating systems, middleware (CICS, IMS, DB2, WAS) and compilers used. Program participants will have 12 months to meet software currency requirements when a new software product version becomes GA and what was N-1 becomes N-2. Participants may continue to use older software versions in parallel to ensure compatibility so long as participants also leverage the latest version, but participants should note that software products are no longer eligible for discount after they have reached end-of-service. IBM reserves the right to deny discounts on products that directly compete with a program participant's products and offerings. z/OS and z/VM software is supported. z/TPF and z/VSE are not supported operating systems. Linux for IBM Z distributions are not eligible for discounts under this program and must be obtained from the Linux distributors. Value Unit Edition (VUE) or other IBM Z software pricing methodologies or discounts are not supported unless specifically approved by IBM. Products must be explicitly documented with their product ID, description, and discount rate in the participant's fully executed software discount addendum to be eligible for discount.

We are already enrolled in the program. How do we get a discount on software not currently listed in our software discount addendum?

• Existing members of the IBM Z On-premises Development Program wishing to license additional software at their discounted rate may contact zopd@ibm.com to request the discount. Please provide the Product ID, Name and S&S ID, if applicable. If the product is eligible for discount, the IBM team will work with you to execute a new software discount addendum that includes the additional discount line item. Once the updated addendum is fully executed, the program team will register it in IBM's billing system, and you can proceed with placing the order in Shopz.

How long will our software discount be in effect?

• Regardless of contract term, IBM does an annual review to confirm participants continue to comply with program requirements and benefit tier criteria. Participants who no longer meet the criteria of their tier could see their software discount rate reduced during this annual review, and participants who work throughout the year to meet the criteria of higher tiers may see their discount increased. IBM also reviews the software discount addendum during this annual certification to ensure discounted software meets currency standards and that exceptions for discounts on royalty-bearing software are still applicable. Participants may see changes to software discounts on individual line items as a result of this annual review. Any changes to billing will coincide with the start date on the renewal contract.

Where can I learn more about zPDT and the ADCD software bundle?

• The ADCD website describes the software included in the ADCD stack and provides links to the zPDT Redbooks that have technical information about the zPDT solution.

How are zPDT orders fulfilled?

• zPDT is only available to qualifying independent software vendors enrolled in the IBM Z On-premises Development Program. The agreements authorizing organizations to license zPDT technology and the ADCD software bundle are owned by IBM. All zPDT hardware and emulation license orders are fulfilled by IBM’s OEM Information Technology Company (ITC), subject to IBM approval. Interested ISVs must be admitted to the program before placing a zPDT order through ITC. ITC can only renew zPDT licenses for current program participants with confirmation from IBM of a valid program agreement.