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Legal Risks of IBM Licensing

Because IBM products like WebSphere, DB2, Tivoli, Informix, and Lotus Notes are expensive, and companies cannot easily or quickly verify compliance, the risks associated with IBM licensing can be severe.  For example, if a company is trying to license under IBM’s Sub-Capacity license rules and fails to adhere to all of the requirements, IBM often demands enough licenses to cover the full capacity of the computers on which the software is installed. In some instances, the costs associated with non-compliance can be tens of millions of dollars. Proper licensing is critical to avoid unexpected liabilities.

Julie Machal-Fulks discusses some of the challenges that organizations encounter when trying to ensure compliance with their IBM license agreements.