Category Archives: «IBM Audits»

Businesses that have endured software audits from industry groups like the BSA and the SIIA or from software publishers like Autodesk likely are familiar with the basic audit process of counting the total number of installations for audited products and comparing those i......

By now, businesses using IBM’s virtual processor core (VPC) licenses should have implemented IBM’s license metric tool (ILMT).  In 2022, IBM added VPCs to the types of licenses that require ILMT to support sub-capacity usage.  Prior to that time, IBM allowed manual......

Software license compliance is a task that typically requires constant vigilance. Despite a CIO’s best efforts, it is almost inevitable that software will be deployed on a company’s computers at some point without having the necessary licenses to permit such use. ......

IBM software licensing can present an array of interpretive and compliance challenges for even the most sophisticated licensees. Here are three of the most important things to keep in mind when planning to license IBM products under the company’s standard-form agreemen......

It is standard practice for software vendors to include clauses in their license agreements giving the vendors the right to invoke audits or some other mechanisms to ensure that the licensed products are used in a way that is consistent with agreed licensing restrictions......

IBM software is expensive. In some cases, very expensive. While this may represent a necessary cost of doing business for many companies with mission-critical software solutions developed on or using IBM applications, all IBM customers clearly are incentivized to maximiz......

Software-compliance audits initiated by IBM can be extremely burdensome and time-consuming and can force companies to face challenges that are somewhat unique among major-publisher audits. For one example, a significant component of IBM’s business model is the acquisitio......

One of the most critical steps of any business faces in any software audit is conducting an internal analysis of deployments to entitlements, preferably before any audit data is shared with the auditors. That internal review serves several purposes, including (1) identif......

Most software license agreements used by major publishers like Microsoft and IBM are in many ways vague with respect to license restrictions and metrics. This leaves licensees in the position of having to interpret the agreements based on whatever guidance may be availab......

For more than a decade, IBM has allowed its end users to license IBM software products on a sub-capacity basis.  For IBM licensing purposes, sub-capacity licensing required customers to accept the sub-capacity licensing terms (originally in a separate sub-capacity licen......

Each of the major software publishers has one or two tricks up its sleeve – tricks that often are missed by licensees – affecting how its server products may be used in virtualized environments. For example, Microsoft SQL Server requires a minimum of four core licenses......

Microsoft recently ended support for all servers running Windows 2008, Windows 2008 R2, and Windows 7 operating systems.  After support ended, IBM announced that after Q3 2020, it would no longer support its IBM License Metric Tool (“ILMT”) on any computer running those......

This year, IBM announced that it was going to present certain customers with the opportunity to participate in its new IBM Authorized SAM Partner Services (“IASP”).  In a recent webinar that it co-presented with KPMG, one of its approved IASP partners, IBM described t......

It is common for software solution providers to use third-party products to support the functionalities those providers have developed for their solutions. For example, a network-monitoring solution may incorporate IBM Cognos functionality, or an accounting solution may in......

IBM may be making it more difficult for IBM customers to qualify for sub-capacity licensing in virtualized environments.  As many companies who have been audited by IBM have learned, it is sometimes difficult to demonstrate that the company has met all the criteria necess......

Recent weeks have seen a number of news reports and announcements indicating that the Next Big Thing for audits – financial audits, at least, for the time being – is the use of artificial intelligence technologies to facilitate the analysis of large volumes of data i......

In 2015, IBM acquired no fewer than 11 software and services companies.  Many software customers are surprised that after IBM purchases a company, IBM often significantly changes the license terms of the products.  For some customers that have purchased unlimited or site l......

The software-audit language contained in IBM’s standard license agreements never has been anything that anyone would mistake for customer-focused or even very fair contract terms. However, in August 2014, IBM released a new version of its Passport Advantage Agreement (PAA)......

Fans of Star Trek likely are familiar with the dreaded Borg – an alien race of cyborgs that survives and swells its ranks primarily by conquering other races and then absorbing them into the collective through brainwashing and physically altering them with Borg-y bionic bo......

In April 2012, IBM announced that it had reached an agreement to acquire Varicent Software, Inc., an Ontario-based publisher of analytics software for compensation and sales performance management. According to the announcement, Varicent’s customers include Starwood Hotels......

One of the major changes in the latest version of IBM’s Passport Advantage Agreement is the requirement that customers maintain subscription and support (S&S) on either all of the licenses that are installed and in service or none of the licenses. Customers can no long......

When first contacted by IBM for a "compliance review" (read: software audit), many business owners simply assume that the scope of the requested audit is within IBM’s rights under applicable licensing agreements. Alternatively, if they do request that IBM identify the basi......

Many businesses are realizing the processing and failover benefits of incorporating clustered servers in their IT environments. Having groups of servers whose processing resources are shared and centrally allocated means that server malfunctions can be remedied without compr......

A processor value unit (PVU) is a unit of measurement that IBM uses to determine licensing costs based on the kinds of processors deployed on servers where IBM software is installed. A server’s PVU count is defined by the brand, model and number of physical processors runn......

Business owners and managers whose companies have been targeted by IBM for a compliance audit often express surprise at the complex method IBM uses to determine the licensing requirements for many of its server software products, such as WebSphere and Tivoli. Many software v......

IBM has begun a comprehensive program of compliance audits of its software clients. Scott & Scott’s clients have begun receiving letters from IBM Software Compliance demanding cooperation with a “routine assessment” of the client’s deployment of IBM software. Acc......

Having shone its spotlight on Oracle’s notoriously complex licensing policies and often adversarial audit practices, the Campaign for Clear Licensing (CCL), a UK-based organization advocating reforms to software-licensing practices, now has shifted its attention to what it......

IBM software licensing can be a very complex knot to untie. While IBM does develop new products in house, many of its most popular offerings (Cognos, Tivoli and ILOG, to name a few) are the result of its active history of acquiring smaller publishers and then continuing to o......