Neon is trying to sell zPrime to mainframe customers as a way to reduce software bills. IBM is trying to prevent this. Customers are caught in the middle. If, as Neon contends, using zPrime is just a smart and perfectly legal way to cut software bills (even if that makes IBM unhappy), a VPDP who doesn't evaluate the product could be in trouble. Corporate management might want to know why that IT manager is wasting scarce corporate funds. On the other hand, if IBM prevails and gets to shut down Neon it could go after customers who got cute with zPrime, and that, too, could lead to awkward conversations between corporate computing managers and their company's bean-counters. Making matters even more difficult, IBM is not entirely sure it will win in court, so it's trying to change the rules under which it sells mainframe hardware and software to run on it. Mainframe shops trying to turn on a specialty engine are starting to see new documents that circumscribe their use of the equipment. At shops that already have zIIP or zAAP engines up and running, it may be too late, but IBM seems to have no problem pressing customers to sign new deals or amend their old arrangements . . . without offering any quid pro quo.
We asked IBM to provide contextual material that might make what they are asking customers to do easier to understand, if such material is available.
In the meantime, here is a letter IBM sent a user who ordered a specialty engine, according to a source who may have redacted the material to protect the recipient:
Thank you for your interest in IBM Specialty Engines. As you are aware, like any IBM Licensed Internal Code, this offering is subject to the IBM License Agreement for Machine Code (a copy of which may be found at http://www-947.ibm.com/systems/support/machine_warranties/machine_code.html).
As we have reason to be concerned you intend to utilize Specialty Engines to process unauthorized workload (workload beyond that for which the Specialty Engine was created and marketed by IBM), which would constitute a breach of the license, we will fulfill the specialty engines per your order only if you provide reasonable assurances you will comply with our agreements. Please confirm that you will operate these engines in compliance with your existing agreements with IBM, and specifically including that you will not run any workload on these specialty engines other than those workloads expressly designated by IBM as eligible and authorized to run on these processors.
For your convenience, the product announcement letters summarizing eligible workload may be found at: http://www-03.ibm.com/systems/z/advantages/zaap/index.html and http://www-03.ibm.com/systems/z/advantages/ziip/index.html.
Please acknowledge your assurance of compliance by executing and returning a copy of this letter to my attention. Thank you again for your interest.
IBM is also in some cases changing definitions in its product licenses, according to a party familiar with the situation:
Authorized Workload — the specific, limited workload (including without limitation programs, code, or machine readable instructions) that IBM has specifically authorized in writing (including in Announcement Letters) for execution on a particular type of Specialty Engine Capacity. For each type of Specialty Engine, the capacity to process all workloads other than Authorized Workloads is Unauthorized Built-in-Capacity.
Specialty Engine Capacity (including System z Application Assist Processors ("zAAP") and System z Integrated Information Processor ("zIIP")) — is a processor on or in conjunction with which IBM has restricted use to execute only Authorized Workloads and on or in conjunction with which IBM authorizes you to use IBM LIC to execute only Authorized Workloads. IBM designates Specialty Engines by feature code; (3) Unauthorized Built-in-Capacity — is Built in Capacity that is not authorized by IBM for access or use.
Last but not least, here is an intimidating paragraph from a menace letter sent to a mainframe customer. We hope this prose appeared in a document that included a balancing statement, such as an offer by IBM to compensate the customer for the unprovoked assault if it turns out that the shop's using zPrime to help reduce software costs was perfectly legal, as Neon claims.
If it is determined that at any time [Acme] was executing on Specialty Engine Capacity any workload other than Authorized Workload, the Actual Inventory Value will be recalculated using the charges for the MLC Programs installed on such Specialty Engine Capacity which are applicable to General Purpose Engine Capacity and [Acme] will be responsible for full payment of any additional amounts.
