Steven Zolman

Dec. 23,2025 | Mainframe, IBM

Your organization manages 100,000+ MIPS of IBM mainframe infrastructure. You're evaluating z17. And somewhere in your budget planning, you're staring at a spreadsheet that shows mainframe costs potentially escalating from $50M annually to $259M annually by year 10.

You need to know: Is this inevitable, or is this a negotiation problem masquerading as a technology problem?  We can help you realize cost savings on IBM z17 upgrades and develop IBM x17 Upgrade Strategies - read on...

The answer, backed by 30 years of enterprise mainframe negotiations and data from hundreds of major deals, is that it's almost entirely a negotiation problem. And it's worth hundreds of millions of dollars to get it right.

We've just published Z17 Shackles, a comprehensive white paper that shows enterprise organizations exactly how IBM's contract structure creates cost escalation, and more importantly, how to prevent it.

What You'll Learn in Z17 Shackles

This isn't a generic "negotiate better" guide. This is a detailed technical and financial breakdown written specifically for organizations managing:

• 100,000+ MIPS of IBM mainframe capacity
• 100+ million lines of code in production
• Multi-year capital planning cycles where mainframe decisions lock in hundreds of millions in spend

The white paper includes:

The Real Numbers

Most organizations don't actually understand their z17 financial exposure. We break down:

• Year 1 baseline: $50M annual spend (100,000 MIPS @ $500/MIPS)
• Year 10 unmanaged: $259M annual spend (20% escalation compounds)
• 10-year total commitment unmanaged: $1.3B+
• 10-year total commitment with proper protections: $612M
• The actual savings opportunity: $691M over a decade

Those aren't hypothetical numbers. They're based on real IBM pricing patterns and successful mainframe negotiations across financial services, government, airlines, healthcare, and manufacturing.

The Five Protections That Actually Matter

IBM doesn't volunteer these. You have to negotiate for them. The white paper details exactly what to demand:

• Transparent EOS Roadmap ($7.5M value)
  • Clear support end-dates through 2035, not vague marketing promises
• MIPS-Based Pricing Flexibility ($12M value)
  • Stop paying for capacity you don't use
• Migration Credits ($15M value)
  • Real resources to move to cloud if your strategy changes
• Price Cap Governance ($25M value)
  • CPI + 2.5% escalation, not IBM's typical 18-24% annual increases

Total protection value: $77.5M (10-year impact)

This is what separates a $612M commitment from a $1.3B+ commitment. These aren't nice-to-haves. These are deal fundamentals.

Industry-Specific Risk Analysis

We know mainframe dependency varies dramatically by sector:

• Financial Services (95% dependency) – Transaction processing systems that process billions daily
• Government Agencies (98% dependency) – Mission-critical operations with zero tolerance for missteps
• Airlines & Aviation (96% dependency) – Reservation and operations systems that directly impact revenue
• Insurance (92% dependency) – Policy and claims processing at massive scale
• Healthcare Systems (87% dependency) – Patient records and regulatory compliance
• Hospitality & Hotel Chains (94% dependency) – Reservation and loyalty systems across global operations
• Manufacturing (78% dependency) – Supply chain and inventory at enterprise scale
• Retail (75% dependency) – Point-of-sale and transaction processing

For each sector, Z17 Shackles shows the specific contract risks and how other organizations in your industry have negotiated protections.

Strategic Negotiation Insight: When Your Leverage Disappears

One of the most valuable sections: a detailed timeline showing how your negotiating power shifts during a contract lifecycle.

Today (before commitment): 95% leverage Year 1: Still strong at 90% Year 3: Drops to 55% without exit clauses Year 5+: Approaching zero without protections

This visualization alone is worth the cost of the white paper. It explains why everything you negotiate now matters exponentially more than anything you negotiate later.

Real Case Study: $691M in Avoidable Costs

We include a detailed walk-through of a major financial services organization managing 100,000 MIPS that faced exactly this situation:

• Initial IBM proposal: $1.3B+ over 10 years, no flexibility
• NET(net) negotiated alternative: $612M over 10 years, with exit clauses and flexibility
• Actual outcome: $691M in avoided costs, plus the strategic ability to evaluate cloud alternatives in 2028-2029 without financial penalties

This case study includes the specific contract terms that made the difference: the exact MIPS-based pricing structure, the migration credit amounts, the escalation caps, and the exit clause language.

Why We're Charging $2,500 for This

Here's the direct answer: Because if you use even one insight from this white paper correctly, it pays for itself 1,000x over.

If your organization is evaluating a z17 commitment, you're likely looking at:

• A $50-60M annual spend (at baseline)
• A decision that locks in costs for 5-10 years
• Commitment levels that require CFO and board-level approval
• Financial impacts that touch multiple business units

A $2,500 investment in understanding your negotiation position before you commit is not an expense. It's risk management.

Here's what you're actually paying for:

1. 30 years of mainframe negotiation expertise - distilled into actionable contract strategies
2. Hundreds of real negotiation precedents - we've done this at enterprise scale, repeatedly
3. Detailed financial modeling - showing exactly how escalation compounds and how protections prevent it
4. Industry-specific risk analysis - because mainframe dependency varies by sector
5. Negotiation leverage maps -showing you exactly when and how to push back
6. Professional visualizations - six detailed charts that make the financial impact unmistakable

If your organization uses one contract protection from this white paper correctly, you could save $10-50M or more. The $2,500 investment becomes the softest, sweetest background noise you’ll ever hear.

Who Should Buy This White Paper?

You should buy Z17 Shackles if:

✓ Your organization manages 100,000+ MIPS of IBM mainframes

✓ You're evaluating z17 options in 2025 or early 2026

✓ Your current mainframe spend exceeds $50M annually

✓ You have decision-making authority over mainframe contracts

✓ You want to know more IBM z17 negotiation tactics

✓ Your CFO/board needs detailed financial modeling for approval

✓ You want to avoid IBM mainframe traps

✓ You want IBM z17 cost-saving techniques

✓ You want to learn how to upgrade mainframe efficiently

✓ You want to learn how mainframe MLC to VUE conversion

✓ You want to avoid mainframe upgrade pitfalls

You probably shouldn't buy this if:

✗ Your organization manages less than 10,000 MIPS

✗ Your mainframe strategy is already locked in with no flexibility

✗ You're not involved in vendor negotiations

✗ You don't have budget authority for IT decisions

What's Included

When you purchase Z17 Shackles for $2,500, you receive:

The White Paper (PDF)

• 25-30 pages of detailed analysis
• Six professional charts and visualizations
• Complete financial models and scenarios
• Negotiation frameworks and contract templates
• Real case studies with actual numbers
• Industry-specific risk assessments

Immediate Access

• Email sent immediately upon payment with PDF
• No waiting for shipment or approval
• Full access to all financial models and data
• Ready to share with your procurement team, CFO, and executives

Premium Distribution

• Not available anywhere else for free or at a lower cost
• Written specifically for enterprise organizations managing 100K+ MIPS
• Based on real negotiations with major customers
• Contains proprietary NET(net) methodologies developed over 30 years

The Real Question

Here's what every CFO, CIO, and procurement leader evaluating z17 is asking themselves right now:

"Are we about to lock in costs that will escalate to $259M annually by year 10, or are we going to negotiate a contract that keeps us at $75M annually with strategic flexibility?"

That's not a $2,500 question. That's a $691M question. Z17 Shackles gives you the roadmap to the right answer.

How to Get Z17 Shackles

Purchase for $2,500 (one-time fee)

Click here to securely request and pay for the document. Upon successful payment, you will immediately receive an email with a PDF Whitepaper.

What happens next:

1. You'll receive email with the white paper
2. Share with your procurement team, CFO, and stakeholders
3. Use the financial models and negotiation frameworks for your z17 evaluation
4. Reference the contract protections when you begin IBM discussions
5. Make your z17 commitment from a position of informed leverage

Special Consideration for NET(net) Savings Cloud Subscribers

If you're already a NET(net) Savings Cloud Subscriber (Silver, Gold, Platinum), this white paper is included in your subscription at no additional cost. Contact your account manager for access.

New subscribers can add this white paper to their onboarding package when they join.

Questions?

This white paper is comprehensive and detailed, but if you have specific questions before purchasing:

Email: info@netnetweb.com

Subject: Z17 Shackles Questions

Phone: [YOUR PHONE NUMBER]

We're happy to discuss whether this resource is the right fit for your organization's situation.

The Bottom Line

IBM's z17 announcement is real. Your need to upgrade is probably real. But your cost escalation from $50M to $259M annually - that's entirely optional.

Z17 Shackles shows you how to make it optional.

PURCHASE Z17 SHACKLES FOR $2,500.

Z17 Shackles is written for enterprise organizations managing 100,000+ MIPS with 100+ million lines of code in production. It's based on 30 years of mainframe negotiation experience and hundreds of real enterprise deals. It's not a generic procurement guide. It's a technical and financial blueprint for getting your z17 commitment right.

P.S.

Your negotiating power is highest right now, before you commit. Every month you wait, IBM gains more leverage. Z17 Shackles should be read and discussed with your stakeholders before you enter serious IBM negotiations.

Don't let $691M in avoidable costs become inevitable costs because you didn't understand your options.  IBM Mainframe negotiation is a serious matter given the size of the investments.

About NET(net)

At NET(net), we don't just optimize IT investments, we weaponize them for competitive advantage. As the world's leading technology investment optimization firm, we've spent over two decades perfecting the art and science of extracting maximum value from technology supply chains while neutralizing vendor pricing manipulation.

Our battle - hardened methodology has influenced trillions of dollars in technology investments, captured hundreds of billions in documented value, and transformed how enterprises approach every facet of IT spend - from emerging technology such as AI, ML, IoT, RPA, Quantum, and Blockchain, to IaaS, PaaS, and SaaS, to enterprise hardware and software solutions, and professional services arrangements including strategic outsourcing relationships.

We're not consultants who theorize about optimization, we're the specialists who help you devise and execute your strategy. Our proven frameworks turn vendor pricing chaos into strategic opportunity, licensing complexity into competitive advantage, and cost centers into value engines. Whether you're facing an aggressive vendor audit, navigating a forced migration, or simply refusing to accept runaway IT costs, NET(net) delivers the expertise, experience, and execution you need to dominate rather than merely survive.

Founded in 2002, NET(net) has established itself as the essential strategic partner for enterprises and technology providers who demand performance, not promises. We've mastered every major area of IT optimization because we understand that in today's vendor-hostile environment, half-measures guarantee defeat.

Experience the NET(net) advantage. Contact us at info@netnetweb.com, visit www.netnetweb.com, or call +1 (616) 546-3100 to discover how we can transform your technology investments from cost burden to strategic weapon.

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