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Tag: IBM

Why Keeping a Bad Sales Rep Could Cost You: How to Get a Great Software Deal and Strengthen Relationships

Posted on by Hailey Austin

As a customer, when you are looking to buy software, you want to get the best possible deal and build a strong relationship with the software provider. However, this can be difficult to achieve if a bad sales rep is working with you. In this blog post, we will explore why keeping a bad sales rep could cost you and provide actionable tips on how to get a great software deal and strengthen relationships.

Why Keeping a Bad Sales Rep Could Cost You

A bad sales rep can cost you in many ways. A bad sales rep:

  • Will not give you straight answers and will likely give you the runaround. This can be frustrating and time-consuming as you try to get the information you need to make an informed decision
  • May not be loyal to you and may be more interested in meeting their own goals than yours. This can lead to added costs, such as licensing, deployment, ongoing support, and increased costs over time.
  • Focuses on their quota and how they get paid. If you find a rep forcing you to buy products or services you don’t need, there is a reason. Reps that are focused on themselves are not going to help you accomplish what you need. 

Actionable Tips to Get a Great Deal and Strengthen Relationships

Now that we’ve looked at why a bad sales rep can cost you, let’s explore some actionable tips on how to get a great software deal and strengthen relationships.

  1. Do your research

Mistake: Not doing research 

Tip: Before making a software purchase, do your research. Look for reviews and testimonials from other customers, check the software provider’s website and social media accounts, and speak with current or past customers if possible. This will help you make an informed decision and avoid wasting time and money.

  1. Communicate your needs

Mistake: Not communicating your needs 

Tip: When speaking with a sales rep, be clear and specific about your needs. This will help the sales rep understand your needs and make appropriate recommendations. Don’t be afraid to ask questions or ask for clarification if you don’t understand something.

Statistic: According to a survey by TechValidate, 97% of B2B buyers said that the sales rep’s ability to understand their needs was an important factor in their decision to purchase.

  1. Negotiate

Mistake: Not negotiating

Tip: Don’t be afraid to negotiate with the sales rep. Ask for discounts or special pricing, especially if purchasing multiple licenses or a long-term contract. If the sales rep is unwilling to negotiate, consider speaking with management or looking for a different software provider.

Statistic: According to a survey by HubSpot, 89% of B2B buyers said negotiating pricing was an important factor in their decision to purchase.

Get in Touch with Us to Avoid That Bad Software and Sales Rep

As a customer, if you’re looking to buy software, you want to get the best possible deal and build a strong relationship with the software provider. We’ll help you avoid those bad sales reps that cost you, and we’ll provide even more actionable tips on how to get a great software deal and strengthen relationships.

 

  1. Don’t let a lousy software sales rep cost you more. Look for warning signs like poor communication and lack of support.

 

  • Don’t settle for vague timelines or complex deployments. A good sales rep should be clear and transparent.
  • Watch out for hidden costs and “shelf-ware” bundles. A good sales rep will work to provide value and meet your needs.
  • Work with a sales rep who prioritizes your goals and vision, not just their own. Loyalty and support are critical.
  • Choose a sales rep who values security and supports your business needs. Don’t compromise on protection or solutions.

 

  1. Don’t keep a bad sales rep if you want a great software deal and strong relationships.
  • Look for warning signs like poor communication, lack of support, and unclear timelines.
  • Don’t settle for hidden costs or unnecessary “shelf-ware” bundles. A good sales rep should provide value.
  • Prioritize your own goals and vision. Choose a sales rep who will support you and work to meet your needs.
  • Don’t compromise on security or protection. Choose a sales rep who values these aspects of software purchasing.
  • Take control of the purchasing process. Don’t let a bad sales rep drive up costs or hurt your relationship with your provider.

As businesses continue to rely more and more on software, the role of the sales representative has become increasingly important. A good sales rep can help enterprises to find the right software at the right price, while a bad sales rep can do the opposite. In fact, a bad sales rep could end up costing your business more than just money. According to a study by HubSpot, over 50% of customers say they have stopped doing business with a company because of poor customer service. So, how do you avoid keeping a bad sales rep, get an excellent software deal, and strengthen your business relationships?

  1. Identify Warning Signs

The first step in avoiding a bad sales rep is to know what to look for. Here are some warning signs that you might have a bad sales rep:

  • A sales rep who is challenging to reach, doesn’t respond to emails, or doesn’t listen to your needs is a red flag.
  • A good sales rep should be there to support you throughout the entire software purchasing process, not just during the sale.
  • Be wary of sales reps who aren’t transparent about costs or try to bundle unnecessary features or services.
  •  If the sales rep is only concerned with their own goals rather than yours, it’s time to look elsewhere.

Actionable Recommendation: Watch for these warning signs, and don’t hesitate to ask questions or voice concerns to their management team. A good sales rep will be transparent and responsive.

Error to Avoid: Don’t assume that a sales rep who seems nice or friendly will automatically be a good fit. Always do your research and ask questions.

  1. Prioritize Your Goals and Vision

Your business has unique needs and goals when it comes to software. A good sales rep should prioritize your vision, not theirs. Here are some ways to ensure that your goals are being met:

  • A good sales rep will be open and honest about what they can and can’t provide.
  • Your software needs might change over time. A good sales rep should be willing to adjust to your changing needs.
  • Look for a sales rep who provides ongoing support, not just during the sale.
  • A good sales rep will be loyal to you and your business, not just trying to make a quick sale.

Actionable Recommendation: Clearly articulate your goals and vision to potential sales reps. Look for reps who show a willingness to work with you to achieve these goals.

Error to Avoid: Don’t settle for a sales rep who tries to push their own agenda or goals onto your business. Always prioritize your own needs and vision.

  1. Don’t let your sales rep talk you into unnecessary add-ons:
  • Evaluate whether add-ons align with your goals and objectives
  • Ask for data or case studies that demonstrate how the add-on has helped similar clients
  • Push back if you feel like the add-on isn’t necessary or won’t provide a good ROI
  • Don’t let a bad sales rep pressure you into making a decision that isn’t right for your business and your budget.

Sales reps are often incentivized to push additional products or services, even if they don’t add value to your specific needs. Before agreeing to any add-ons, take the time to evaluate whether they align with your goals and objectives. Ask your rep to provide data or case studies demonstrating how the add-on has helped other clients in similar industries. Don’t be afraid to push back if you feel the add-on isn’t necessary or won’t provide a good return on investment. 

Remember, it’s your business and your budget— don’t let a bad sales rep pressure you into making a decision that isn’t right for you.

Why Keeping a Bad Sales Rep Could Cost You: How to Get a Great Software Deal and Strengthen Relationships

Posted on by Hailey Austin

As a customer, when you are looking to buy software, you want to get the best possible deal and build a strong relationship with the software provider. However, this can be difficult to achieve if a bad sales rep is working with you. In this blog post, we will explore why keeping a bad sales rep could cost you and provide actionable tips on how to get a great software deal and strengthen relationships.

Why Keeping a Bad Sales Rep Could Cost You

A bad sales rep can cost you in many ways. A bad sales rep:

  • Will not give you straight answers and will likely give you the runaround. This can be frustrating and time-consuming as you try to get the information you need to make an informed decision
  • May not be loyal to you and may be more interested in meeting their own goals than yours. This can lead to added costs, such as licensing, deployment, ongoing support, and increased costs over time.
  • Focuses on their quota and how they get paid. If you find a rep forcing you to buy products or services you don’t need, there is a reason. Reps that are focused on themselves are not going to help you accomplish what you need. 

Actionable Tips to Get a Great Deal and Strengthen Relationships

Now that we’ve looked at why a bad sales rep can cost you, let’s explore some actionable tips on how to get a great software deal and strengthen relationships.

  1. Do your research

Mistake: Not doing research 

Tip: Before making a software purchase, do your research. Look for reviews and testimonials from other customers, check the software provider’s website and social media accounts, and speak with current or past customers if possible. This will help you make an informed decision and avoid wasting time and money.

  1. Communicate your needs

Mistake: Not communicating your needs 

Tip: When speaking with a sales rep, be clear and specific about your needs. This will help the sales rep understand your needs and make appropriate recommendations. Don’t be afraid to ask questions or ask for clarification if you don’t understand something.

Statistic: According to a survey by TechValidate, 97% of B2B buyers said that the sales rep’s ability to understand their needs was an important factor in their decision to purchase.

  1. Negotiate

Mistake: Not negotiating

Tip: Don’t be afraid to negotiate with the sales rep. Ask for discounts or special pricing, especially if purchasing multiple licenses or a long-term contract. If the sales rep is unwilling to negotiate, consider speaking with management or looking for a different software provider.

Statistic: According to a survey by HubSpot, 89% of B2B buyers said negotiating pricing was an important factor in their decision to purchase.

Get in Touch with Us to Avoid That Bad Software and Sales Rep

As a customer, if you’re looking to buy software, you want to get the best possible deal and build a strong relationship with the software provider. We’ll help you avoid those bad sales reps that cost you, and we’ll provide even more actionable tips on how to get a great software deal and strengthen relationships.

 

  1. Don’t let a lousy software sales rep cost you more. Look for warning signs like poor communication and lack of support.IBM License Metric Tool

 

  • Don’t settle for vague timelines or complex deployments. A good sales rep should be clear and transparent.
  • Watch out for hidden costs and “shelf-ware” bundles. A good sales rep will work to provide value and meet your needs.
  • Work with a sales rep who prioritizes your goals and vision, not just their own. Loyalty and support are critical.
  • Choose a sales rep who values security and supports your business needs. Don’t compromise on protection or solutions.

 

  1. Don’t keep a bad sales rep if you want a great software deal and strong relationships.
  • Look for warning signs like poor communication, lack of support, and unclear timelines.
  • Don’t settle for hidden costs or unnecessary “shelf-ware” bundles. A good sales rep should provide value.
  • Prioritize your own goals and vision. Choose a sales rep who will support you and work to meet your needs.
  • Don’t compromise on security or protection. Choose a sales rep who values these aspects of software purchasing.
  • Take control of the purchasing process. Don’t let a bad sales rep drive up costs or hurt your relationship with your provider.

As businesses continue to rely more and more on software, the role of the sales representative has become increasingly important. A good sales rep can help enterprises to find the right software at the right price, while a bad sales rep can do the opposite. In fact, a bad sales rep could end up costing your business more than just money. According to a study by HubSpot, over 50% of customers say they have stopped doing business with a company because of poor customer service. So, how do you avoid keeping a bad sales rep, get an excellent software deal, and strengthen your business relationships?

  1. Identify Warning Signs

The first step in avoiding a bad sales rep is to know what to look for. Here are some warning signs that you might have a bad sales rep:

  • A sales rep who is challenging to reach, doesn’t respond to emails, or doesn’t listen to your needs is a red flag.
  • A good sales rep should be there to support you throughout the entire software purchasing process, not just during the sale.
  • Be wary of sales reps who aren’t transparent about costs or try to bundle unnecessary features or services.
  •  If the sales rep is only concerned with their own goals rather than yours, it’s time to look elsewhere.

Actionable Recommendation: Watch for these warning signs, and don’t hesitate to ask questions or voice concerns to their management team. A good sales rep will be transparent and responsive.

Error to Avoid: Don’t assume that a sales rep who seems nice or friendly will automatically be a good fit. Always do your research and ask questions.

  1. Prioritize Your Goals and Vision

Your business has unique needs and goals when it comes to software. A good sales rep should prioritize your vision, not theirs. Here are some ways to ensure that your goals are being met:

  • A good sales rep will be open and honest about what they can and can’t provide.
  • Your software needs might change over time. A good sales rep should be willing to adjust to your changing needs.
  • Look for a sales rep who provides ongoing support, not just during the sale.
  • A good sales rep will be loyal to you and your business, not just trying to make a quick sale.

Actionable Recommendation: Clearly articulate your goals and vision to potential sales reps. Look for reps who show a willingness to work with you to achieve these goals.

Error to Avoid: Don’t settle for a sales rep who tries to push their own agenda or goals onto your business. Always prioritize your own needs and vision.

  1. Don’t let your sales rep talk you into unnecessary add-ons:
  • Evaluate whether add-ons align with your goals and objectives
  • Ask for data or case studies that demonstrate how the add-on has helped similar clients
  • Push back if you feel like the add-on isn’t necessary or won’t provide a good ROI
  • Don’t let a bad sales rep pressure you into making a decision that isn’t right for your business and your budget.

Sales reps are often incentivized to push additional products or services, even if they don’t add value to your specific needs. Before agreeing to any add-ons, take the time to evaluate whether they align with your goals and objectives. Ask your rep to provide data or case studies demonstrating how the add-on has helped other clients in similar industries. Don’t be afraid to push back if you feel the add-on isn’t necessary or won’t provide a good return on investment. 

Remember, it’s your business and your budget— don’t let a bad sales rep pressure you into making a decision that isn’t right for you.

IBM Licensing Costs Tips – Reduce Expenses, Maximize ROI

Posted on by Hailey Austin

IBM Licensing Costs: Tips for Lowering Costs and Maximizing ROI

 

Software solutions have become vital for modern businesses to stay competitive as technology evolves. However, software licensing costs have become significant, especially for IT and procurement stakeholders. The challenge has become even more critical as IBM raised its prices recently. But fear not; I’m sharing some insider tips and tricks for optimizing your IBM licensing costs. Following these strategies can reduce your licensing expenses and maximize your technology investments. So, please grab a cup of coffee, sit back, and dive into some IBM license tips to save your business significant time, money, and aggravation!

Unleashing the Secrets of IBM Software Licensing Models

 

IBM offers a range of licensing models, each with advantages and disadvantages. It’s crucial to understand the details of each model to choose the most suitable option for your organization.  For example, the Authorized User licensing model grants access to specific users, while the Concurrent User model limits the number of users accessing the software simultaneously. The Processor Value Unit (PVU) model is based on the number of processor cores and their power.  The Resource Value Unit (RVU) model measures CPUs, memory, and storage.

Pro Tip – Many products offer different license metrics.  

 

You must ensure you pick the suitable IBM license for your needs, or it could cost you. Also, don’t forget to regularly review that metric to ensure it is still the best one for your requirements (at renewal time).

Understanding the licensing terms and conditions is equally important to avoid unexpected costs. For instance, some licenses may require specific hardware or software configurations or limit the usage to a certain number of servers or virtual machines.

The Power of IBM License Optimization Tools

 

IBM offers several tools to help organizations optimize their software licenses and reduce costs. The License Metric Tool (ILMT) is a critical tool for sub-capacity licensing that allows organizations to monitor their software usage and remain compliant. The ILMT provides reports on software usage, which can help organizations identify usage patterns and optimize licenses accordingly.

 

Mastering Best Practices for IBM License Optimization

 

Organizations can follow several best practices to optimize their IBM software licenses. One fundamental approach is to monitor and manage software usage continually. This helps organizations identify over-licensing and under-licensing and make necessary adjustments.

Regularly reviewing license agreements and terms are crucial to avoid unexpected licensing costs. This helps organizations stay informed about the terms of their licenses and ensure compliance with the usage limitations.

Organizations can also avoid over-licensing or under-licensing software by implementing IBM license management policies and procedures.

Harnessing the Wisdom of IBM License Cost Reduction Experts

 

Industry experts have several tips for reducing IBM license costs and improving IBM license ROI. One effective strategy is negotiating license agreements with IBM to secure better pricing and favourable terms.

Optimizing virtual environments is another way to reduce costs. By leveraging virtualization technologies, organizations can reduce the number of physical servers required and optimize their software licenses accordingly.

Finally, leveraging bundled licensing options can help organizations get more value from their IBM software licenses. Bundled licensing options combine several software products into one license, providing more flexibility and cost savings. You just have to ensure that the bundle you buy makes sense and that you’re not falling into a trap from an IBM seller.

 

It’s a Continuous Process, but We’ll Guide You Along the Way

 

Optimizing IBM licensing costs is a continuous process that requires constant attention, planning, and management. By implementing the tips and tricks we’ve shared in this blog post, you’ll have the necessary tools to reduce your licensing expenses and optimize your software usage, enabling you to gain a competitive edge in today’s rapidly evolving digital marketplace.  

Review your license agreements regularly, leverage IBM’s license optimization tools, and consult industry experts like us for guidance on reducing license costs. With these steps in place, you can maximize the value of your IBM software investments and drive your organization’s success toward high IBM license ROI. 

Along with these steps, you can speak to us today at MetrixData360, and we’ll help you along the process of optimizing your IBM software licensing costs.

IBM Announces New Requirements for License Compliance

Posted on by Hailey Austin

IBM Announces New Requirement for Effective License Positions: IBM Passport Advantage Customers Impacted

 

As an IBM Passport Advantage customer, maintaining compliance with your IBM software license agreements is paramount. Recently, IBM announced a new requirement for Effective License Positions (ELP), which means that all Passport Advantage customers must regularly create an ELP to demonstrate compliance with their license agreements. IBM has implemented this new rule to ensure that all organizations fully comply with their IBM software license agreements.

IBM Announces New Requirement for Effective License Positions: IBM Passport

Having a Good Software Management Practice Is Crucial

 

Creating an ELP can be complex and time-consuming, particularly if you’re already struggling to keep up with the maintenance and reporting requirements of the Inventory License Metric Tool (ILMT). That’s why having a good Software Asset Management (SAM) practice is crucial, including having ILMT up and running.

SAM is a critical business practice that involves managing and optimizing an organization’s purchase, deployment, maintenance, utilization, and disposal of software applications. The primary goal of SAM is to help organizations manage and control their software assets and ensure that they are in compliance with their software license agreements.

A comprehensive SAM practice includes a variety of processes and procedures, including software inventory management, software usage monitoring, license compliance reporting, and license optimization. A well-structured SAM practice can help organizations avoid costly software compliance violations, eliminate unnecessary software expenses, and improve their overall software asset management efficiency.

Perform a Comprehensive Software Inventory

 

The first step in establishing a good SAM practice is to perform a comprehensive software inventory. This means identifying all software applications and their usage within the organization, including vendor, version, and license type. A detailed software inventory can help organizations identify redundant or underutilized software applications and optimize their software licensing accordingly.

Implement a Software Usage Monitoring Solution 

 

Once an organization has a comprehensive software inventory, the next step is to implement a software usage monitoring solution like the Inventory License Metric Tool (ILMT). ILMT is a software tool that helps organizations monitor and report software usage, which is critical for license compliance.

ILMT is specifically designed for organizations that use sub-capacity licensing for IBM software applications. Sub-capacity licensing means that the license cost is based on the number of processors the software application uses rather than the total number of processors available on the machine. ILMT tracks and reports the usage of each processor core, providing real-time data that helps organizations ensure compliance with their IBM software license agreements.

The challenge with ILMT requires regular maintenance and reporting to ensure it’s up-to-date and accurately reflects the organization’s software usage. This can be time-consuming and resource-intensive, particularly for organizations with large and complex software environments.

However, not having ILMT in place can result in significant compliance risks and costs. Organizations can violate their IBM software license agreements without accurate data on software usage, resulting in costly fines, penalties, and legal fees. Additionally, organizations may be paying for unnecessary software licenses, wasting resources and unnecessary expenses.

Comprehensive SAM Practice Must Include ILMT

 

Implementing a comprehensive SAM practice that includes ILMT is critical for organizations that want to ensure compliance with their IBM software license agreements. A well-structured SAM practice can help organizations avoid compliance risks and unnecessary expenses, improve their software asset management efficiency, and fully comply with license agreements.

SAM will also assist in making informed decisions about software licensing. It’s essential to be familiar with IBM’s various licensing models, each with its benefits and drawbacks. For instance, the Authorized User model provides access to specific users, while the Concurrent User model limits the number of users who can use the software simultaneously. On the other hand, the Processor Value Unit (PVU) model is based on the processing power of the cores, while the Resource Value Unit (RVU) model measures resources such as CPUs, memory, and storage.

Choose the Right License Metric for Your Organization

 

Choosing the right license metric for your organization’s needs is crucial to avoid incurring unnecessary costs. Remember that different products may offer different license metrics, so carefully evaluate which best suits your needs. And remember to review your license metric regularly, especially at renewal time, to ensure it meets your requirements. Doing so can optimize your licensing costs and avoid any compliance issues arising from improper licensing.

IBM’s new requirement for regular ELPs ensures that all organizations fully comply with their software license agreements. To meet this requirement, organizations need to have a well-structured SAM practice in place that includes ILMT. Implementing a comprehensive SAM practice can help organizations avoid compliance risks and unnecessary expenses, improve their software asset management efficiency, and fully comply with their software license agreements.

Implement a Comprehensive Software Asset Management Practice

Implementing a comprehensive software asset management practice is crucial to meeting IBM’s new requirement for regular ELPs and ensuring long-term success and cost-efficiency for any organization. 

A well-structured SAM practice with an efficient tool like ILMT can help organizations stay compliant, reduce the risk of audits, and prevent costly penalties. It can also help organizations optimize software usage, reduce unnecessary expenses, and improve overall software asset management efficiency. 

Let Us Help You Prioritize SAM and Demonstrate Compliance with Your License Agreements (IBM)

 

Organizations must prioritize SAM and make it an integral part of their operations to ensure they stay on the right side of licensing agreements with IBM and avoid potential financial and legal consequences. With the right approach and tools, SAM can become a powerful tool that enables organizations to take control of their software assets and achieve long-term success. Need assistance with this? We can help. Click here to learn more.

Four Secrets of A Champion CIO

Posted on by Hailey Austin

Mastering Software Licensing: Insights from Champion CIOs

As a Chief Information Officer (CIO), one of your primary responsibilities is managing and optimizing your organization’s technology. To correctly manage technology includes ensuring you have the correct software licenses to support your business needs while controlling costs. This blog post will examine chief information officer roles, responsibilities, and secrets of champion CIOs who have excelled at software licensing and cost optimization.

The first step in optimizing your software licensing costs is clearly understanding your business needs. To know what you need, you must identify the specific software applications and tools required to support your operations and the number of users needing access to these applications. It’s essential to take the time to carefully assess your needs, as having too few licenses can result in productivity bottlenecks while having too many can lead to unnecessary costs.

  • Negotiate favourable terms

Once you clearly understand your software needs, it’s time to start negotiating with vendors. Champion CIOs are skilled at negotiating favourable terms with software vendors, including discounts on licensing fees and additional features or services at no extra cost. The role of a CIO here is to be upfront about your budget and willing to walk away if the vendor is unwilling to meet your needs.

 

  • Leverage volume licensing agreements

Volume licensing agreements allow organizations to purchase many licenses at a discounted price. These agreements are typically available for popular software applications such as Microsoft Office and Adobe Creative Suite and can result in significant cost savings for organizations with many users. Champion chief information officers are adept at leveraging volume licensing (and combing with point 2 – negotiate favourable terms) agreements to get the best deal for their organization.

  • Monitor and review your licenses.

It’s essential to regularly review your software licensing agreements to ensure that you are still meeting your organization’s needs. A best practice is tracking the number of licenses you have in use and identifying areas where you may be over-licensed or under-licensed. The role of a CIO here is to be proactive in monitoring and reviewing their licenses and quickly make changes as needed to optimize costs.

In conclusion, optimizing your software licensing costs requires a combination of careful planning, strong negotiation skills, and ongoing review. By following the secrets of these champion CIOs, you can ensure that you have the correct software licenses to support your business needs while keeping costs under control. So, these are the secrets of four champion CIOs that will help optimize the cost of software licensing in your organization.

Bonus: Leverage data to your advantage

In today’s digital age, data is “the new oil” – a valuable resource that helps drive growth and innovation. A champion CIO method here seeks to understand the value of data and use it to advantage regarding software licensing and cost optimization. By collecting and analyzing software deployment and usage metrics data, CIOs can better understand how their software is used and identify areas where they can save costs.

For example, by tracking the number of active users for a particular software application, a CIO may discover they have more licenses than they need. They then use this data to negotiate a reduction in licensing fees with the vendor. Additionally, by analyzing data on software usage patterns, CIOs can identify underutilized applications and decide to discontinue them, reducing costs and simplifying the software environment.

In today’s fast-paced, data-driven world, having access to accurate and actionable data is essential for effective software licensing and cost optimization. A champion chief information officer understands the importance of data and uses it to gain insights that drive better decision-making and cost savings. Collecting, analyzing, and leveraging data can earn a competitive advantage and stay ahead of the curve in software licensing and cost optimization.

In summary, you can optimize software licensing costs in your organization by understanding your needs, negotiating favourable terms, leveraging volume licensing agreements, monitoring and reviewing your licenses, and leveraging data to your advantage. In today’s fast-paced and data-driven world, data is the new oil, and having access to accurate and actionable data is essential for effective software licensing and cost optimization. Using your own data around deployment and software usage metrics will give you the most leverage possible for cost optimization.

For more information on how our services at MetrixData 360 can meet the needs of your technology and financial departments, contact us today. Let’s work with you and your chief information officer’s roles and responsibilities to manage and optimize your organization’s technology.

 

What are Software Audits, and Why Are They On The Rise?

Posted on by Hailey Austin

Recent years have seen an uptick in software audits, with more companies being asked to provide evidence of licensing compliance. This is largely due to the fact that organizations are now using more software than ever before, with an increasing number of employees working remotely.

Watchdog groups like the Business Software Alliance (BSA) and the Federation of Software Theft (FAST) serve the sole purpose of ensuring the protection of software vendors’ intellectual property. These groups and software vendors are dedicated to discovering and auditing non-compliant organizations every single day with little to no notice. According to Gartner, the likelihood of an assessment for a medium to a large firm over the next two years is predicted to be 40%, which is expected to rise by 20% annually.

But why do software vendors act in this manner? 

Simply put, the main motivator is money. Revenue from software sales fell when the American economy saw a downturn and software expenditures were slashed. Software vendors were forced to hunt for alternative income sources when these profits started to decline. Audit fines and penalties of several hundred thousand dollars to even millions of dollars appeared as lucrative options for these vendors. According to the BSA, 25% of businesses that operate in the US are non-compliant in some way, costing software vendors an estimated $6 billion in the loss. 

 

What is a Software Audit?

A software audit is an assessment of a company’s compliance with software licensing agreements. Organizations that use pirated or unlicensed software can be subject to expensive penalties, including fines and damages. In some cases, they may even be required to forfeit their business’ computers and other equipment. 

 

How Do Organizations Fall Out of Compliance?

 The truth is that conformity is not simple. It involves more than just purchasing adequate licenses. Even techies typically struggle to completely comprehend software licensing laws because they are so sophisticated, and even when they do, modifications to the regulations occur so often that it is challenging to stay up to date. 

Most businesses lose their ability to comply with the rules when they lack proper record keeping and miscomprehend software usage rights. Both parameters are equally crucial to stay in compliance. The first approach is to have clear visibility into your integrated software usage. In the unfortunate case of your company being audited, this can be an added benefit because you will be able to provide records immediately and demonstrate your good faith efforts to adhere to the regulations.

Furthermore, it’s crucial to have an attorney or specialist who excels in contract negotiations. They can elaborate to you how you can lawfully utilize your software, saving you from involuntary non-compliance. Avoid attempting to resolve this on your own, as it is easy to misinterpret or fail to notice crucial facets of software use terms and conditions. For instance, there have been instances where a business has expanded internationally and had staff members using software in other countries. They believed this was acceptable since they had many licenses, but since those licenses were only intended for use in the United States, they were in violation without even recognizing it. 

 

How to Lower Your Risk of Being Audited

  1. Exhibit a Sound Understanding to the Software Auditors 

To show that you have a good grasp of your software agreements, it is crucial that you respond to any inquiries the auditors pose in an efficient and thorough manner. In order to achieve this, you’ll need a workforce in control of the project, a SAM solution in place to oversee your software inheritance, and frequent internal audit findings to get a complete picture of your software assets utilization. 

This is especially true if your business has just undergone a merger or acquisition or if it is a large corporation with numerous branches. Such circumstances will make you prone to disorganization, which in turn raises the possibility of overlooking factors important for compliance.

  1. Stay Prepared

Inform your staff on the importance of software asset management, and prepare a defense plan in case a software inspection occurs. Even if a software audit is conducted, a quick assessment with a few fines will show the software provider that you are not an easy catch. Preparing includes having your licenses in order, appointing a specific person to oversee your company’s software audit, and having an audit defense strategy in place. Knowing what to do will ensure that every software audit of your company proceeds without incident and with the least amount of damage possible.

  1. Be aware of your Software Architecture

Establish an efficient asset life cycle, along with a streamlined procedure to purchase and retire software resources to keep a close check on them. Failure to do this can lead to the acquisition of numerous unnecessary licenses, which quietly drain the company’s IT budget. Keep track of what licenses you have and how many licenses you need so that you can stay compliant. Additionally, make sure that only authorized users have access to your organization’s software. Implement user controls and set up alerts so that you can immediately spot any unauthorized access or usage. 

Often, the majority of software audits search in the company’s Active Directory (AD) to assess compliance. A company’s AD contains all devices and accounts—not just those that are currently in use—that have ever used their software resources. There will be ex-employees in your Active Directory, along with devices that have been gathering dust in the company’s store, and the auditors will claim that each of these entities needs a license.

 

Conclusion 

Monitoring your software resources will cost much less than having them audited. In addition to achieving compliance, successfully managing your software and how they are used also ensure that your software resources are used to their full potential. You may delete shelfware and restructure your agreements to ensure that every software program you have is being successfully utilized. Efficient asset administration has no drawbacks because the added administrative costs will eventually result in equal cost reductions. By making sure all of your organization’s software is properly licensed and keeping track of who is using it and when, you can help your company avoid costly penalties associated with non-compliance.

Bring Your Own License (BYOL) Rules on Third-Party Cloud Providers

Posted on by Hailey Austin

Bring Your Own License (BYOL) Rules on Third Party Cloud Providers

Software licensing is ridiculously confusing, and its hyper complexity is not slowing down anytime soon. This confusion can easily lead to overspending, which equates to more money in the software vendor’s pockets, taken at the expense of your company’s software budget. how does overspending occur? One key reason behind our client’s overspending stems from the complexity of Bring Your Own License rules (BYOL) on their third-party cloud providers. 

At MetrixData360, we have helped hundreds of companies save millions of dollars, in this article, we will clear the waters by showing you the steps you can take to mitigate any potential areas of overspending in your software licensing environment.

 

 

 

Rule Change 

Microsoft changed its rules as of 1st October 2019 around how Microsoft products are licensed in 3rd party hosting scenarios.  These changes primarily impact AWS, Google, and Alibaba clouds (although others are affected).  The concept of Bring Your Own Licenses (BYOL) is influenced significantly by these changes.  Before these changes, as long as you had hardware dedicated to your use (i.e., were not using shared infrastructure), you could BYOL now.  With these changes, you may be required to purchase subscription licenses for these products through the hoster (e.g., Windows Servers, Office).  Specific versions may still be licensed via BYOL if licenses were acquired for those products before October 2019 or on a contract still active as of October 2019. 

 

To understand these rights, you must review the Microsoft Product Terms.  Below are the relevant sections: 

 

 

  1. Customers may use the server software on a Licensed Server, provided it acquires sufficient Server Licenses as described below. 

  

A Licensed Server is: 

A Licensed Server means a single Server, dedicated to the Customer’s use, to which a License is assigned.  Dedicated Servers that are under the management or control of an entity other than the Customer or one of its Affiliates are subject to the Outsourcing Software Management clause.  For purposes of this definition, a hardware partition or blade is considered to be a separate Server. 

  

 

The Outsourcing Software Management clause states: 

Customers may install and use licensed copies of the software on Servers and other devices that are under the day-to-day management and control of Authorized Outsourcers, provided all such Servers and other devices are and remain fully dedicated to Customer’s use.  The customer is responsible for all of the obligations under its volume licensing agreement regardless of the physical location of the hardware upon which the software is used.  Except as expressly permitted here or elsewhere in these Product Terms, the Customer is not permitted to install or use licensed copies of the software on Servers and other devices that are under the management or control of a third party. 

  

Authorized Outsourcer means any third-party service provider that is not a Listed Provider and is not using Listed Provider as a Data Center Provider as part of the outsourcing service. 

  

AWS is a Listed Provider.  Next, we need to determine if we have a right to utilize software at the Listed Providers through Microsoft License Mobility through Software Assurance right: 

 

License Mobility through Software Assurance 

Under License Mobility Through Software Assurance (SA), Customer may move its licensed software to shared servers under any of its Licenses which are designated as having License Mobility for which it has SA, subject to the requirements below.  Products used for Self-Hosting may be used at the same time under License Mobility through SA rights, subject to the limitations of the Self-Hosting License Terms.  

  

Permitted Use: 

With License Mobility through SA, Customer may: 

      • Run its licensed software on shared servers;  
      • Access that software under access licenses and for which it has SA, and under its User and Device SLs that permit access to the Products;  
      • Manage its OSEs that it uses on shared servers; and/or  
      • Manage its OSEs that it uses on its servers using software that it runs on shared servers. 

  

Requirements: 

To use License Mobility through SA, the Customer must: 

      • Run its licensed software and manage its OSEs on shared servers under the terms of its volume licensing agreement;  
      • Deploy its Licenses only with Microsoft Azure Services or qualified License Mobility through Software Assurance Partner; and 
      • Complete and submit the License Mobility Validation form with each License Mobility through Software Assurance Partner who will run its licensed software on their shared servers. 

  

License Mobility allows for use on a shared server.  Products that have this right associated with them allow BYOL (as long as you have active Software Assurance).  Next, we need to see if a product has Server Mobility.  For Windows Server: 

 

4. Software Assurance 

 

Windows Server does not include License Mobility rights.  For Windows Server (or any product without License Mobility), this means BYOL is only available for versions that were released before October 2019 and for which licenses were acquired prior (or on active contracts as of October 2019) to October 2019 

 

 

Please refer to the current Product Terms to ensure this info is still accurate as Microsoft makes changes frequently to their licensing rules. 

 

Start Saving on Your Software Licensing

Being able to cut software licensing costs will mean money back into the IT department for smarter and more innovative investments. This can be done by tracking the life cycles of your assets through the successful deployment of an inventory tool (along with someone who can effectively read it), through having a clear understanding of usage during contract negotiations, carefully considering your migration to the Cloud, and by conducting internal audits to ensure compliance.

At Metrixdata360, we can help you cut down your costs to save you from unnecessary drains on your budget and potentially heavy audit penalties. Don’t put off saving money, get your free consultation today!

Information About IBM Licensing

Posted on by Ben Tight

IBM licensing can easily overwhelm you, with so many different definitions and rules, it’s like learning a more complicated and even nerdier version of Klingon.

Where do you even begin?

At MetrixData 360 , we pride ourselves in diving deep into complicated licensing issues and understanding even the most complex scenarios. We often help our clients successfully navigate these complex terms. So, in this blog post we will go through a quick overview of IBM licensing for beginners because despite how it looks, software contracts don’t have to be a confusing affair.

Types of IBM Users

There are many different types of users in IBM’s books:

Authorized User

An Authorized User is someone who is given access to the Program. The Program in question may be installed on multiple computers or servers and the Authorized User can access multiple instances of the Program at once.
As an Authorized User, you are not limited to a single device or a single instance of the program. If I wanted to open a piece of IBM software that I was an Authorized User to on every desktop in my workspace at the same time, I could.

Each Authorized User must have their own separate entitlements in order to access the Program in any manner directly or indirectly, such as through a multiplexing program, device, or application server. Authorized User entitlements cannot be shared with other people unless permanently transferred.

However, some IBM programs license devices so that they are considered users. In which case, any device that “requests the execution of or receives for execution a set of commands, procedures, or applications from the Program or that is otherwise managed by the Program” must be licensed as if that device were a person.

Takeaway Points:

  • Authorized Users can access the Program from multiple computers and can access multiple instances of the Program at the same time.
  • Authorized Users cannot share their entitlements with another person.
  • In certain programs, devices that interact with the program must be licensed as if they were a person.

Concurrent Users

A Concurrent User is defined as any person who is accessing the Program at any given time. A Concurrent User may access the Program multiple times, they still only count as one Concurrent User.

While the program may be installed on multiple servers, what‘s important is that you license your program based on the maximum number of Concurrent Users that have accessed the program.

So, if you have 1,000 employees — 500 working days and 500 working nights — as long as there’s no way they could overlap, then you only need to license for 500 Concurrent Users.

Just like with Authorized Users, there are programs that are licensed so that devices are considered users. Any device that “requests the execution of or receives for execution a set of commands, procedures, or applications from the Program or that is otherwise managed by the Program” needs to be licensed as if it was a person.

Takeaway Points

  • Concurrent User metric is based on the number of users at any given time
  • A Concurrent User can access the program multiple times and still be considered only one Concurrent User.
  • For some programs, devices that interact with the Program will need to be licensed like a person.

Floating Licences

A floating license is connected to either a hostname/ID or a machine’s address.

A Floating License is for a single software product, which can then be shared between team members, with the number of concurrent users not allowed to exceed the number of floating licenses you have.

To use the floating license, you need to have a floating license key, which then any user of the organization can use to access the product at any given time. The server will then respond to the request of the key and then grants access based on the number of licenses the organization has.

A Floating User is a unique person who can access the program in question from a variety of different points, however, to simultaneously access the program from multiple points will require separate entitlements.

Takeaway Points

  • Floating licenses can be shared between users.
  • If the number of users matches the number of licenses the organization owns, anyone else wishing to use a floating license must wait until one of its current users has logged off.

Resource Value Unit (RVU) and Processor Value Unit (PVU)

Resource Value Unit (RVU) is a unit of measurement with which IBM licenses its Programs. RVU Proofs of Entitlement revolves around the number of units of a specific resource that is used or managed by the program in question. Each program has specific RVU entitlements and in no way can you exchange, interchange, or aggregate RVU entitlements with that of another program.

Processor Value Unit (PVU) on the other hand is a unit of measurement used to determine the cost of licensing IBM middleware products, based on the type of processor that is on the server where the software is held.

The number of PVUs required is unique to the specific server and is based on the processor’s technology and the number of processor cores on a chip in the server. It is used for licensing at Sub-capacity, which brings us into our next topic.

Find Out How Much ILMT-as-a-Service Can Save You

Capacity and Sub-Capacity: ILMT and Me

IBM’s Sub-capacity licensing is an excellent way for businesses to save money. Essentially, using a PVU count will allow you to only partially license a server with an IBM product installed on the server. You will only need to license the individual processors that the product will use, based on the number of chips that each processor carries.

However, in order to make sure that the product doesn’t cross that invisible line and is installed across the whole server, IBM makes it mandatory for those using sub-capacity licensing to have ILMT installed.

ILMT is a tool designed to help companies conduct inventory and maintenance of PVU-based software that is licensed at sub-capacity. ILMT is a delicate dance and failing to play by all the rules when it comes to ILMT will leave you being licensed at full capacity during your next IBM software audit:

  • You need to have ILMT installed within 90 days of the first use of products eligible for sub-capacity licensing.
  • ILMT must be maintained and up to date in order to determine consumption. If ILMT is not maintained, not fully or incorrectly deployed across your products, then you could lose your sub-capacity status.
  • You need to generate and keep quarterly reports from ILMT.
  • ILMT also has its limits on the accuracy of its reporting capabilities.

More information about ILMT and IBM Software Audits.

Common IBM Licensing Mistakes

As confusing as IBM licenses its products, it no wonder that there are a few common slips ups people always fall into, such as:

Messing up Sub-Capacity Licensing

Sub-Capacity Licensing proves to be one of the easiest mistakes for IBM customers to fall into. Sometimes customers do not realize they need to have ILMT installed in order to use sub-capacity licensing or if they have ILMT installed it is easily not accurately deployed or not deployed in all the areas it needs to in order to keep your company safe during an IBM audit.

Underestimating the Complexity

This article only covers the tip of the IBM licensing iceberg, with so many licensing types and metrics, it can easily get overwhelming, which is why it is important that you don’t give the management to these licenses to just a single person, or worse yet, a single person who is already has a full-time role.

To effectively get the job done, you’ll need someone who can fully own the project (or a team depending on the size of your company).

Related: Hire a Software Asset Management Expert or Do it Yourself? The Pros and Cons of Each.

Get Your IBM Licensing Under Control

IBM licensing can be a tricky business but as confusing as it can be, it is important to understand these licensing requirements in order to adhere to them to the best of your company’s ability. Of course, there is no shame in feeling overwhelmed because this isn’t a one-person job.

Software asset management, especially for companies of larger sizes, can easily become the full-time job of a team of people.

At MetrixData 360, we’ve helped our clients out of the toughest software related issues, IBM being only one of our major successes. To learn more and find out how we saved one of our clients nearly 20% of their IBM budget, you can check out our IBM page.

Book a Meeting with Our IBM Licensing Specialist

IBM DB2 vs Oracle Database

Posted on by Ben Tight

With a constantly growing IT infrastructure, it is important to know how your company plans on managing data storage and data management. At MetrixData 360, our customers are taking an interest in IBM’s DB2 and Oracle’s Database, although there seems to be a bit of confusion about which one is right for their system. While we are unaffiliated to any software vendor, we aim to empower our customers to make smarter IT spending decisions for their business and so today, we’d like to go over what IBM DB2 and Oracle Database are and some things to consider before signing any contracts around either.

IBM DB2 Databases

IBM DB2 is a collection of relational database management systems (RDBMS). First commercially released in 1983, DB2 offers its clients a means to manage their structured and unstructured data that is stored both on-prem and in the Cloud. These hybrid data management products are powered by AI capabilities to create an efficient means of providing data insights while being both flexible and scalable. It is one of the three most popular databases available in the market today, alongside Microsoft SQL Servers and Oracle’s Database.

Features of DB2

The reviews for this product rank it highly for its ability to work with substantial amounts of data without reducing its performance by any means. Clients also report receiving very little downtime from the product. IBM’s DB2 is praised for its stability, customers reporting that both its hardware and software have proven reliable. DB2 is also proven to have excellent storage capabilities, and claims to be especially SQL server compatible, so if you have experience with similar products, you won’t be starting from square one.

Disadvantages of DB2

Reviews on Gartner from IBM’s clients reveal that the setup of DB2 can be quite laborious and there is a risk that queries would produce the wrong results if the DB2 fails to interact correctly with other products. There is also a learning curve to be found with DB2 and it requires a skilled team for the product to reach its full potential. The tools for queries have also been reported to be a bit lacking.

What is the Future of DB2

In June of 2019, IBM released DB2 11.5, which is praised for its AI capabilities. This new database is powered by and run by AI. The benefits of this can be found in the database’s high-speed queries, and its ability to handle natural language querying, which are styled after search engines and can provide a similar user experience.

Can IBM DB2 be Taken to the Cloud?

IBM does offer a Cloud solution, IBM DB2 on Cloud, which presents tempting features like quick and easy installation, compatibility with Oracle’s database, and even a free tier available if you’d like to try it out – though we always advise caution around free software and exposure to shadow IT. Although reviews have claimed that it lacks the regional options of larger Cloud platforms, so it is always best to check the availability of IBM Cloud capabilities in your particular region, as it could easily influence its overall performance and your user experience.

Oracle Database

Another popular option that many businesses are opting into is the highly reputable Oracle Database. Oracle Database appeared in 1979 with Oracle v2 being marked as the first commercially available SQL-based RDBMS.

Features of Oracle Database

Oracle comes with many wonderful features, such as their high quality support, scalability, and the ability to track sophisticated architecture. It has also been reported to be extremely reliable, with very little down time and applying new instances to Oracle can be relatively painless.

Disadvantages of Oracle Database

Some of the disadvantages of having Oracle as your database is, according to reviews on Gartner, that the system needs an experienced administrator at the helm in order to properly manage it. The product is also very expensive, with the tool proving out of reach for most start-up businesses on a budget.

The Future of Oracle Database

Oracle has been tentatively looking into things like having algorithms embedded directly into microprocessors and integrating big data storage with the data their customers have already accumulated when installing Oracle Database. Oracle’s database also wishes to make its product able to more easily integrate with other products like SQL Server and JSON.

Can Oracle Database be Taken to the Cloud?

Oracle can be taken to the Cloud thanks to Oracle Cloud for Database Management, which offers a variety of features including the ability to easily implement it, easily creating backups and restore processes and easy patching. One of the main appeals of Oracle Database, according to Oracle’s own website, can be found in in the fact that you can move to the Cloud seamlessly, using the same technology that you had on-prem and claiming to have zero downtime during the transition (although reviews have tracked the installation time to anywhere between 2.5-3.5 hours). The product has also been praised in Gartner Reviews for being able to handle a large workload (one review even claims to run a million daily transactions through Oracle). Although, more critical reviews have said that the auto-extend data storage needs to be improved, and the DB monitor alerts are not exactly effective.

Which Works Best for You?

At MetrixData 360, we want you to make as an informed decision as possible about your next purchase with IBM or Oracle as both have reputations of frequently auditing their customers’ compliance with their difficult to read contracts. It is important that you get a fair deal that best suits your business’s unique software profile. At MetrixData 360, we have saved our clients millions of dollars through successful contract negotiations with IBM, Oracle, Microsoft, and Adobe, just to list a few of the vendors that we have handled in the past. Get the Software Contract Negotiation Experts on your team and save big on your next software contract.

IBM Software Audit: How to Prepare a Defense and Handle it Like a Pro

Posted on by Ben Tight

IBM Software Audit: How to Prepare a Defense and Handle it Like a Pro

An IBM Software Audit can be an utterly grueling experience. While there is no way to completely eliminate your risk of incurring an audit from IBM as long as you have their products, being prepared for an audit, should one occur, is your best means of defense. We at MetrixData360 have helped countless clients prepare for an IBM audit and successfully defend themselves against IBM auditors. Here are our recommendations for making sure you’re properly prepared for your IBM audit.

Our Process and Recommendations:

Have a Non-Disclosure Agreement (NDA) At The Ready

IBM strives to have an audit engagement with their customers at least once a year as outlined in the terms of their contracts. Due to this, it is advisable to put in place a Non-Disclosure Agreement (NDA) or confidentiality agreement for IBM’s auditor to sign so you can protect the data that will be collected from your environment. This step is essential in every audit situation.

Have IBM’s License Metric Tool (ILMT) Properly Deployed

ILMT comes with many benefits, namely providing you with protection when faced with an IBM software audit. To summarize, IBM’s License Metric Tool (ILMT) is a software asset management tool freely available to IBM’s customers that is used to monitor consumption of IBM’s products.

It is compulsory for any customer who wishes to benefit from IBM’s sub-capacity licensing and its primary function is to make sure a customer is within compliance and using the products efficiently.

Most organizations do not adequately configure, manage, or maintain their IBM License Metric Tool (“ILMT”) and are relaxed about Sub-Capacity (“SC”) reporting. The current IBM Passport Advantage Agreement (“IPAA”) relevant language is:

“For Sub-Capacity usage of EPs, Client agrees to install and configure the most current version of IBM’s license metric tool (ILMT) within 90 days of Client’s first Sub-Capacity-based Eligible Sub-Capacity Product deployment, to promptly install any updates to ILMT that are made available, and to collect deployment data for each such EP”

“Reports (generated by ILMT or manual if Client meets manual reporting exemptions) must be prepared at least once per quarter and retained for a period of not less than 2 years. Failure to generate Reports or provide Reports to IBM will cause charging under full capacity for the total number of physical processor cores activated and available for use on the server.”

Not having ILMT puts a huge target on your back for a software audit from IBM as it will make IBM suspect that you have no way of tracking your consumption without it. Unless you meet the criteria that exempts you, you will have to license all IBM products under Full-Capacity terms if you don’t have ILMT.

Organizations that fail to meet their contractual obligations will have an IBM Licensing conundrum. Not meeting these obligations exposes your organization to IBM’s Full-Capacity (“FC”) licensing, which bloats the Processors Value Units (“PVU”) and consequently exposure to financial risk.

If you are found to have IBM’s software that has been deployed for 90 days and it doesn’t have ILMT on the same virtual server, then it is no longer eligible for Sub-Capacity licensing. If it is not licensed at Full-Capacity either, then it can be subject to heavy penalties. This is where many IBM customers find compliance issues during a software audit.

 

IBM Virtual Host Server Core Diagram

Here is what an example of what this would look like:

The Road to IBM Audits are Paved with Good Intentions

It’s our experience that most organizations have intentions to abide by their contractual agreements; however, those intentions rarely manifest into reality. Some notable reasons for this are:

 

    • Shifting Sands: IPAA is ever-changing, and the standard agreement does not need two-party written consent to have the language. Thus, the agreement you reviewed when you entered into the contractual relationship with IBM is not the agreement you have now.
    • Effort vs. Reward: ILMT is only required for IBM’s Processor Value Units (“PVU”) and Resource Value Units (“RVU”) to gain Sub-Capacity rights. IBM has hundreds of other licensing metrics that require manual efforts outside of ILMT. Thus, operationality can at times become perceived as a lower priority or value.
    • Technical Complexity: ILMT was not designed with simplicity as a guiding principle. The installation, configuration, maintenance, and management require technical knowledge as well as dedication. Thus, most organizations may use the initial installation; however, ongoing maintenance and operation are forgotten.

Don’t Expect ILMT to Protect You from Everything

Even if you have ILMT, that doesn’t mean that you are safe from compliance issues during an IBM Software Audit. In fact, many companies experience a lot of technical issues surrounding ILMT’s deployment. For instance, you could be subject to any of the following issues that can result in the loss of your sub-capacity eligibility:

  • Not generating and properly keeping quarterly reports from ILMT
  • Having an outdated version of ILMT
  • ILMT agents can fail when it comes to agent scans and capacity scans because of incompatibility, lack of disc space, or credential issues
  • If you want to selectively deploy ILMT to only servers with IBM products on them, then ILMT might come across issues detecting and identifying which servers to monitor. Anything that is missed will lose its Sub-Capacity eligibility.
  • Having any IBM products deployed on Operating Systems that ILMT doesn’t support
  • ILMT can easily struggle with accurately bundling unique software signatures for reporting. To do this successfully requires knowledge of your specific license restrictions and entitlements.

Failure to remain compliant simply because of technical issues regarding ILMT may open a company up to the possibility of a concession regarding the adverse findings but such a case would be difficult to achieve since it is reliant on a number of factors.

These issues include when you first tried to deploy ILMT, if IBM support was ever contacted, if ILMT was set to deploy over your entire estate or simply over IBM’s products, if problems with ILMT were reported and how much effort you put into solving the issue.

For more information on IBM’s ILMT, you can check out our article: IBM ILMT: Everything You Need to Know.

Expect Either KPMG or Deloitte to be Involved

 

Software vendors each approach software audits a little differently. Some have an internal audit team, but IBM outsources the project to either KPMG or Deloitte. However, simply because the auditors are a third-party does not mean that they are neutral.

IBM hired them to find compliance gaps in your infrastructure, so they will take the worst-case scenario as reality when given the chance to make assumptions. Since they are outsourcing the project, you can (and should) have a Non-Disclosure Agreement (NDA) with the auditors so that neither your data, nor the estimated licensing position (ELP) that the auditors come up with can go to IBM without your approval first.

This will play to your advantage because the wide array of confusing and complex IBM products and their licensing will almost ensure that the initial ELP that auditors come up with will be far from an accurate depiction of what you actually owe.

If You’re Found Out of Compliance, Expect to Pay Retroactive Maintenance Fees

IBM sends out their audits roughly every four years. As nice as it may sound not having to worry about having auditors at your door every year, if you are found out of compliance, not only will you have to pay for your missing licenses, you will also have to pay retroactive maintenance fees going back years.

Watch Out for IBM Licenses Changes

You can expect IBM to change up their license metrics when they acquire a new software company or release new versions of their existing products.

IBM will continue to take maintenance fees based on old licensing models, so don’t let the fact that they are still taking your company’s money be any indicator that you are adhering to the correct licensing model. 

If you have an arrangement that allows for licenses to be used on an unlimited basis, you could very easily lose that privilege after IBM acquires the product and releases the first upgrade after the acquisition. So it is important you keep up to date on any industry updates concerning IBM and what that could mean for your company.

Preparing Your IBM Audit Defense

IBM is a massive company with complex products that can prove a challenge to keep track of but that doesn’t mean it is impossible to keep on top of your IBM licensing. Being prepared will keep you from potentially paying out expensive auditing penalties and losing your Sub-Capacity eligibility.

At MetrixData 360, we know how to defend our clients when they are facing off against IBM. They only pay what they actually owe. If you’d like to learn more about how you can get yourself ready for an audit, download our free Audit Risk Checklist today!

 

Take the IBM Licensing Quiz:

If you want IBM licensing professionals handling your IBM assets, take stab at our IBM ILMT Quiz:

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