On-Premises Development Program FAQs
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What other factors influence the level of software discount that we are currently receiving?
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We have multiple development systems. How is the number of MSUs determined for assessment purposes?
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Our newest system no longer meets the N-1 currency requirement. How long do we have to upgrade?
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One of our older systems has reached its end-of-service date. How long do we have to upgrade?
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Is the use of hardware loans for capacity or specialty engines required when we purchase our system?
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Can we add loaned capacity or specialty engines to an existing development system?
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When can we start using the capacity and specialty engine loan benefits of our new tier?
General program questions
What is the difference between the IBM Z and IBM LinuxONE On-premises Development Program and the IBM Z Developer Discount Program?
The IBM Z and IBM LinuxONE 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 IBM LinuxONE ecosystem. Program participants who were part of the legacy IBM Z Developer Discount Program will be moved to the current IBM Z and IBM LinuxONE On-premises Development Program at the time of their next system purchase or upgrade.
Does IBM offer other development programs for IBM Z and IBM LinuxONE ISVs?
IBM offers several programs for IBM Z and IBM LinuxONE ISVs. Please visit the IBM Z and IBM LinuxONE Partner Network to learn more.
Assessments
Is our IBM Z and IBM LinuxONE 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 and IBM LinuxONE 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 and IBM LinuxONE On-premises Development Program’s benefit tiers.
How will our benefit tier for the IBM Z and IBM LinuxONE 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 IBM 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.For new machines, loans are calculated on the total purchased capacity of the new system regardless of the relative size of the system being replaced. For example, if a participant has just one existing machine with 20 MSUs and they are upgrading to a brand new machine with a total 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 with the new system 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).For vertical upgrades, loans are calculated on the incremental MSUs included in the transaction. For example, if a participant has just one existing machine enrolled in the program with a total purchased capacity of 20 MSUs and they purchase a vertical upgrade of 30 MSUs resulting in a total purchased capacity of 50 MSUs, they will be subject to the greater-than-45-MSUs criteria, and additional loaned capacity will be calculated on the incremental 30 MSUs purchased in the transaction according to the rates of the participant’s assessed tier (i.e. up to 30 MSUs loaned for Advanced tier and up to 60 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.
Any software discount changes resulting from the new assessment will go into effect with the install of the newly purchased system or additional capacity.
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 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. Therefore, the annual certification provides key information for the annual assessment.
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 list 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 software discount that we are currently receiving?
Advocacy activities are the primary driver of software discount changes. However, external factors such as mergers and acquisitions may also influence software discount levels because program participants are assessed on the combined capacity for all development systems enrolled. For example, if one program participant who has a system with total purchased capacity of 20 MSUs merges with another program participant who has a system with a total purchased capacity of 30 MSUs, the resulting total purchased capacity of the new combined enterprise is 50 MSUs. The new enterprise 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. Any software discount changes resulting from the new assessment will be reflected in the renewal agreements for the two systems at the end of their existing contract terms.
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.
Hardware
What is the program’s hardware currency requirement?
Participants must have at least one machine that meets the program's N-1 hardware currency requirement where N represents IBM’s latest generally available (GA) release for the class of system. Participants may keep additional machines enrolled in the program provided they are still in service.
Our newest system no longer meets the N-1 currency requirement. How long do we have to upgrade?
Participants whose latest system is N-2 will have 12 months from the general availability date of the latest system to upgrade to a compliant machine. Participants who fail to complete their upgrade during the 12-month grace period will be removed from the program
One of our older systems has reached its end-of-service date. How long do we have to upgrade?
Participants will have 12 months from a system’s end-of-service date to upgrade to a compliant machine. If participant fails to complete the upgrade during the 12-month grace period, the EOS system will be removed from the program, but participant’s other enrolled systems will remain eligible for benefits provided participant meets other requirements for participation.
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 software 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 program agreement. This means adding loaned capacity will increase software billing rates for participants who receive less than 100% software discount.
Software
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 program agreement 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 program agreement?
Existing members of the IBM Z and IBM LinuxONE 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 revised program agreement that includes the additional discount line item. Once the updated program agreement 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 list 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.
Does IBM provide a Linux distribution to use with ZVDT?
ISVs are responsible for procuring their own Linux distribution for use with ZVDT. ZVDT supports Red Hat Enterprise Linux (RHEL) and Ubuntu. ZVDT enhancements to support z/VM as a hypervisor for sysplex are scheduled to be completed on or around June 30, 2026. These enhancements require changes in the underlying Linux system. Ubunutu is expected to support the enhancements early in the second half of 2026 as a patch to Ubuntu 26.04. RHEL support will come later, likely with versions 9.9 and 10.3.