The Processor Value Unit

Typically companies such as IBM, Oracle and Microsoft have charged for server applications based upon how many CPUs where in the device. This model scaled nicely as CPU speeds scaled. Relatively predictable and inline. Now that dual core, quad core and soon 16 core CPUs are being utilized in servers companies are forced to implement a new pricing strategy.

It goes to reason that a server with 4 CPUs compared to a server with 4 quad core CPUs are quite different. But it only has 4 physical CPUs, so how do you price?

Well IBM is officially announced the Processor Value Unit as a metric for calculating pricing. This metric will go into effect with the Intel Xeon Quad Core. Oracle announced in 2005 that it was using a model that measured the additional cores as 25% to 75% chips depending on their type.

This change in the pricing model is bound to have a significant impact on server consolidation efforts, typically a great cost saving exercises. Instead of reducing costs through dependence on newer and faster gear, you may now result in cost increases.

Yet again open source software seems to have another argument for its existence.