VCF renewals ▲ 31.4% YoY· Symantec EDR true ups ▲ 18%· Carbon Black avg quote uplift +22%· Mainframe MIPS capacity squeezes ▲· Audit notices ▲ 47% QoQ· Our last 10 deals avg −41% on quote· VCF renewals ▲ 31.4% YoY· Symantec EDR true ups ▲ 18%· Carbon Black avg quote uplift +22%· Mainframe MIPS capacity squeezes ▲· Audit notices ▲ 47% QoQ· Our last 10 deals avg −41% on quote
Wednesday · 27 May · MMXXVIIssue II
Independent · Buyer SideLive
Mainframe Software
MIPS Capacity · IPLA · MSU · ESP Mainframe · Sub capacity reporting The biggest dollars, the longest cycles, the contracts most buyers cannot afford to renew on autopilot. Not affiliated with Broadcom Inc.
The Lead · Practice Hub · Mainframe Software

The MIPS capacity squeeze is real. The contract usually predates it.

Three live mainframe engagements this quarter. Average deal size larger than any other practice on the desk. Concession bands wider than any other practice. The MIPS capacity definitions written in a different era of mainframe pricing.

Mainframe contracts are the largest single line items most enterprises carry on their software estate, and the contracts predate the current capacity dynamics by years. MIPS based pricing was built into the original paper at a time when capacity was provisioned in chunks that no longer match how modern z systems run. The renewal cycle arrives with the seller's quote priced against the chunk model and the buyer's deployment running on a different one.

The desk works two mainframe contract families. MIPS capacity, where the capacity definition, sub capacity reporting and growth allowance clauses decide most of the renewal envelope. And IPLA, MSU and ESP mainframe, where the individual product licensing agreements stack against each other and against the underlying capacity metric in ways that the unified renewal rarely models honestly.

"We were paying twice for capacity in two different units, because nobody had renegotiated the cross product definition in three cycles. The reconciliation moved eighteen million dollars onto the right line."Director Platform · Asia Pacific bank

Audit posture on mainframe runs on the slowest cycle of any product the desk handles and lands on the largest numbers. The reconciliation between sub capacity reporting and the contract definition is where most of the exposure lives. The defense begins with an independent capacity map and ends with a settlement that ideally folds into the renewal so the buyer signs once.

Each product child page below describes the contract clauses we rewrite, the typical reduction we deliver, and the case study that proves it.

§ 02

What we negotiate

Two mainframe contract children · Each linked to its own desk
#ContractCoverageLive dealsConcession band
01
MIPS capacity
MIPS capacity definition, sub capacity reporting, growth allowance clauses.
Capacity definition predates current z system deployment. Reconciliation is the negotiation.
2−40 to −58%
02
IPLA MSU and ESP
Individual product licensing agreements, MSU based pricing, ESP mainframe scheduler.
Stacked entitlements that the unified renewal rarely models honestly against the capacity metric.
1−36 to −52%
§ 03

Mainframe outcomes

Verified · Net of fees · Signed contract delta
Avg reduction on quote
47%
Trailing mainframe closes. Range: 36 to 58 percent off opening quote.
▲ updated Q2 2026
Mainframe deals closed
14+
MIPS capacity, IPLA, MSU and ESP mainframe renewals and restructures.
▲ Q2 cumulative
Largest single delta
$18M
Three year savings on Asia Pacific bank MIPS capacity renegotiation.
▲ Q3 2025 case
Avg engagement cycle
12wk
Capacity map, IPLA stack reconciliation, structure rewrite, signature.
▲ renewal cycle
§ 05

Field notes · Mainframe

Quarterly intelligence from live mainframe desks
Mainframe · CalendarQ2 · 9 min read

The mainframe MIPS capacity squeeze nobody saw coming

Three cycles of sub capacity reporting changes have left most enterprises paying for capacity on definitions their contracts do not actually carry. Here is what is happening across the installed base in 2026, and what to do about it before the next renewal.

Read essay →
Mainframe · LeverQ2 · 10 min read

The IPLA versus MSU decision that changes your mainframe contract

The choice between IPLA based and MSU based pricing on a given product line decides the negotiation envelope for the whole renewal. Here is the desk's framework for which lever to pull on which product, and what each path costs.

Read essay →
Mainframe · PositionQ2 · 10 min read

Why the 2022 mainframe playbook no longer protects you

The negotiation playbook that worked on mainframe renewals between 2018 and 2022 was built around capacity definitions that have since shifted. Here is what has changed and what works in 2026.

Read essay →
Adjacent practice · CA Technologies desk →
Correspondence Invited

Write before the quote becomes a position.

Two analyst calls. No pitch. We tell you what we would do, what the leverage actually is, and whether we are the right firm. If we are not, we will say so.
Who we work for. Buyer side only. No reseller relationship with Broadcom. No partnership of any kind. We do not earn anything from products sold or renewed. Only from outcomes delivered against the contract.