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Is it possible to create a virtual instance of either BS2000/Posix or z/OS on libvirt KVM, or any other virtualization platform? I have been asked to provide this so that software can be tested within these environments.

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z/OS can be run on the Hercules mainframe emulator, but it is probably not allowed by your IBM licensing terms. The Hercules FAQ briefly discusses this issue.

I'm not sure about BS2000 nor have I used it, but Wikipedia claims that it's been ported to x86, so that version should be able to run on some virtualization platform. If the usual suspects don't work, I would try Bochs or QEMU. They can be run as full emulators which means that they support operating systems such as OS/2 that use the stranger features of the x86 architecture that more mainstream virtualization platforms may not take the time to properly implement.

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Thanks for the tip - I'll look into that all (making sure to keep an eye on the licensing) – schuhmi2 Feb 18 '13 at 10:13

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