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IBM’s introduction and active promotion of the Software Consumption (SC) solution within Tailored Fit Pricing (TFP) brings with it a fundamental change in how sites will approach managing and reducing software expense. Instead of being driven only by CPU usage during the monthly peak four-hour interval, under the SC model, software is charged based on the total CPU consumption for the entire month (at a much lower unit price). This new SC model brings with it a new set of challenges for managing an environment and at the same time potentially significant opportunities to reduce software expense over the long term.

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