Maximizing Savings: Transitioning from CMP to Tailored Fit Pricing

Organizations operating under IBM’s Country Multiplex Pricing (CMP) model face unique challenges and opportunities when moving to Tailored Fit Pricing (TFP). While CMP allows workload aggregation across data centers, TFP offers the potential for greater cost predictability and flexibility. However, preparing for the switch is essential to achieve maximum savings.

Why Transition from CMP to TFP?

TFP simplifies billing by aligning costs with total MSU consumption, unlike CMP, which relies on aggregated peak usage. This shift is ideal for organizations with spikier or fluctuating workloads, enabling up to a 20% reduction in MLC bills with Zetaly.

How to Prepare for the Transition?

To ensure a smooth and cost-effective switch, organizations must optimize their environment beforehand. Here’s how:

1. Leverage Shared Capacity for Efficiency: CMP consolidates workloads, but transitioning to TFP requires analyzing MSU distribution. Use tools like Zetaly Automated Capacity (ZAC) to manage shared resources and minimize costs.
2. Implement Dynamic Soft Capping: ZAC dynamically allocates capacity across LPARs, reducing peaks and ensuring seamless operations. This can lead to significant savings while maintaining performance.
3. Plan for Growth Management: With TFP, future costs depend on your contractual baseline. Carefully monitor MSU usage and optimize workloads to set a manageable baseline.

Case Example: Reducing MLC Bills by 20%

ZAC typically delivers even greater savings in CMP environments, as shared LPAR capacity allows for more efficient optimization. This setup often achieves an additional 5% cost reduction compared to AWLC, potentially cutting MLC bills by up to 20%.

Transitioning from CMP to TFP is an opportunity to modernize billing and streamline operations. By preparing ahead and leveraging tools like ZAC, organizations can achieve significant savings and ensure a smooth transition.

Download our ebook IBM Tailored Fit Pricing Considerations & Strategies to explore CMP-specific strategies and start optimizing today!