This morning, IBM announced availability of a new Domino Utility Server for LotusLive:

Based on the same model as the Domino Utility Server, this new license allows you, as LotusLive Notes subscribers, to use the included Notes client for access to Notes/Domino applications. That means that instead of paying per-user software subscription to continue to use Notes/Domino applications, regardless of client/browser access method, you can now switch to a server-only based licensing model. Instead of paying for everyone in an organization to continue to use those applications, you can pay for anyone in the organization to use those applications. You are able to more easily evaluate and value your Domino applications in a separate context from the commodity and cost-focused decisions around messaging, and yet retain all the benefit of existing and future investment in building applications on Domino.

Many organizations have wanted to separate the mail and applications discussion. This new approach recognizes that trend and addresses it for businesses moving to the cloud.
At Lotusphere 2011 we made a two part announcement. The first part was this new license type, now available as described in the announcement.

The second part was the ability to run Domino applications in the cloud, on the IBM Smart Business cloud (formerly development and test cloud) or Amazon EC2. This piece of the announcement covered the ability to deploy production Domino images in the cloud, using the same fixed, predictable pricing model as other cloud services. Now, these cloud services are a little different in that they offer much in the way of customization. The IBM cloud, for example, allows you to either use a pre-built Domino Linux server (8.5.1 now, 8.5.2 soon) or bring your own image. You can either pay-as-you-go for the Domino server license (Enterprise now, Utility soon)--in increments as small as hourly rates--or bring your own Domino license. You can either go public cloud over the Internet, or private connection. You can deploy on one of three different data centers -- US, Canada, Germany. Lots and lots of flexibility to Smart Business cloud. Amazon EC2 (no production images yet, so only the bring your own approach) also adds credit card billing but is only a public access model.

This announcement is really the beginning of a shift my team and I are undertaking to ensure the Domino applications side of our story garners full attention. In too many of the initial LotusLive Notes conversations with existing customers, organizations have been struggling to figure out how to approach their Domino apps going forward. Per-user pricing, CEO licenses, compliance situations, version compatibility, all of these became discussion points in the mix whilst a customer was simply looking to evaluate mail and collaboration in the cloud. Now, we can isolate the discussion around applications running on Domino in a way that allows a customer to get away from per-user analysis (does Bob access that app? What about Sue?) and simply provide apps in their environment. It may mean changing the way the organization is licensed for Domino today, but with credit for past investment. One time change, easy-peasy.

In short, many of my licensing-related actions in Notes/Domino land over the last 18 months have been designed to move away from selling the way IBM want towards the way customers and prospects want. We're going to keep going in that direction, with lots more to come this year.

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  1. 1  Alexey Zimarev http://zimarev.com |

    Indeed after the first "great" shout, licensing model is a method to cool down and have closer look at this offering. For now, even when I read Ed's post here, it is not easy-peasy, sorry for my a bit negative approach. As I already wrote about the Blackberry offering for LotusLive, the new "cloud" for Domino apps raises a question does IBM really mean cloud or uses it to promote their hosting platform.

    Sorry to mention that but now I see bits and pieces when I look at LotusLive. We have LotusLive Mail iNotes, LotusLive Notes and in my interest to see a Domino app in the cloud interoperating with these services and I expect it to be like Google Apps, Mail and Docs integrated together. Unfortunately I see no adequate response on that from IBM in LotusLive.

  1. 2  Kam Cheung https://www.bleedyellow.com/blogs/HOC/?lang=en |

    Hello

    I ve looked at my IBM Domino price book and the PA price list but can't find prices to the part codes in the announcement letter.

    Do you know when the pricing will be made avaiable?

    Thanks

  1. 3  Steve Medure  |

    Ed, nice to see. Maybe tackle the "sub-capacity" licensing model for running domino in a virtual environment like VMWare next. The PVU licensing model is down right horrible and the License Metric Tool provided to track and count PVU's is about the wort pile of junk I have ever seen. More and more environments are utilizing VMware and I think IBM could make it a little easier to calculate license cost. No other software that we run requires us to audit how many CPU cores are available to the software and keep audit reports quarterly for two years if we choose to install it on a virtual server. The fact that IBM requires this is absurd.

  1. 4  Ed Brill http://www.edbrill.com |

    @1 I guess you can choose to define cloud however you want. The usual attributes are fixed price (we do that), operated on shared servers (we do that), accessible over the public Internet (we do that). In a hybrid LotusLive Notes configuration, you also have integrated directory, application logic, and security. In a LotusLive Notes (or iNotes) + Engage scenario, you have integrated dashboard services including files, profiles, activities, communities, etc. This seems easily as integrated as Google Apps if not moreso. What about the LotusLive user experience do you find lacking vs. the spartan Google Apps?

    @2 pricing available today. The main part number is D0IG3LL.

    @3 In the cloud model, you can pay as you go on licensing and not have to maintain license metric tool etc. I understand there is angst about the PVU model, but it works far better for an app approach than per-user pricing, which is why we moved in this direction.

  1. 5  Chris Miller http://www.IdoNotes.com |

    Ed (from your #4 answers), we define the cloud a bit differently. Dedicated instead of shared servers.

    I have received an email today and two 'pings' about the announcement so I tried to break it down some more on my blog

    { Link }

  1. 6  Kam Cheung https://www.bleedyellow.com/blogs/HOC/?lang=en |

    Thanks Ed

    I am going to assume pricing will be done US time. I will keep check back in the price book and PA price list tomorrow.

  1. 7  Igor B http://www.ibsi-us.com |

    Wondering whether the pricing will be attractive for small businesses with 10 - 50 users. And where can I see the price?

  1. 8  Kam Cheung https://www.bleedyellow.com/blogs/HOC/?lang=en |

    I checked yesterday and again today, still no pricing info available.

  1. 9  Ed Brill http://www.edbrill.com |

    We definitely have pricing loaded as we accepted SBOs yesterday -- please email me offline if you are still having issues.

  1. 10  Kam Cheung https://www.bleedyellow.com/blogs/HOC/?lang=en |

    Thanks for the reply Ed. The pricing are now showing in my price book.

  1. 11  Steve Medure  |

    @4 Ed, you assume everyone wants to go to the cloud. For those of us that have zero interest in doing so the PVU licensing model is broken. Also the requirement to run a tool, that quite frankly functions like it was built by 3rd graders, doesn't work. There has to be a better way to help both types of customers.

  1. 12  Ed Brill http://www.edbrill.com |

    I definitely do NOT assume everyone wants to go to the cloud. But for those that do I am determined to make it as easy as possible.