Installing SUSE Linux Enterprise Server for IBM System z on a separate logical partition (LPAR) allows SUSE Linux Enterprise Server to use a specific portion of the physical memory. It is furthermore possible to specify how many processors should be used. This mode allows concurrently running multiple operating systems on a system.

z/VM mode runs SUSE Linux Enterprise Server for IBM System z as a hosted system in z/VM (virtual machine). This type has the advantage that z/VM provides full control over SUSE Linux Enterprise Server. This type of installation can prove very helpful for kernel development or kernel-based debugging. It is furthermore very easy to modify the hardware configuration of a hosted Linux system. The creation of hosted SUSE Linux Enterprise Server systems is also very easy, because it is possible to run several hundred Linux instances concurrently.

An FCP-attached CD-ROM can be used to IPL in an LPAR or in VM mode. The installation data is read directly from the CD-ROM.