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Market Research Report

Explore the Secrets of IBM Software Contracts to Optimize Spend and Reduce Compliance Risk

Published by Info-Tech Research Group Product code 614186
Published Content info 42 Pages
Delivery time: 1-2 business days
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Explore the Secrets of IBM Software Contracts to Optimize Spend and Reduce Compliance Risk
Published: March 8, 2018 Content info: 42 Pages
Description

IBM software licensing agreements put the burden of determining the number of paid licenses required on the customer. As time passes and usage requirements change, the customer must track these changes, reuse paid licenses, or buy additional ones. IBM also changes terms and conditions, and the changes may impact you.

The method of calculating the number of license units is complex. Organizations that underpay face IBM audits and fines. Organizations that overpay are unnecessarily overspending.

Effective organizations understand the licensing terms in their contracts, determine the number of licenses they need initially, and manage changes to their requirements over time. They ensure that all licenses in effect are paid for.

This research is designed for:

  • IT managers responsible for aligning the usage of IBM software with paid up licenses.
  • CIOs, CTOs, CPOs, and IT directors managing their IBM software agreements in search of cost savings.
  • ITAM/Software asset managers looking for insights into the best way to track and manage IBM software licensing.
  • IT and business leaders seeking to better understand IBM software licensing.
  • Vendor management offices in the process of a contract review.
  • CFOs and the finance department (spending wisely)
  • Procurement and sourcing (understanding what's behind IBM software contracts)
  • Legal (support for contract review and participation in IBM software audits)

This research will help you:

  • Outline why and how you should actively manage your IBM software assets.
  • Understand and simplify IBM software licensing to help optimize spend and avoid audit.
  • Understand what is negotiable in IBM software contracts.

The blueprint report is accompanied with the following tools and templates:

  • 1. IBM Passport Advantage Software RFQ Template - Use this tool when creating your RFQ for determining the cost of IBM Passport Advantage Software.
  • 2. IBM 3-Year Bundled Price Analysis Tool - Use this tool to estimate the cost of IBM's 3-year bundles.

The blueprint is published by Info-Tech's Executive Advisor, Andy Woyzbun. Andy Woyzbun is a Senior Executive Advisor with Info-Tech Research Group. Andy has over 45 years' experience in various technical, management and executive IT roles, including over 10 years with Info-Tech. He has worked in a broad variety of industries, including computer services, government, consulting services, financial services and telecommunications.

Andy has over 15 years of experience in executive roles. He gained deep experience in the business impact of technology during his tenure as executive in charge of lending services for Royal Trust, and as executive in charge of marketing, operations and systems for North American Trust. Before joining Info-Tech Research Group, Andy was Chief Information Officer for two organizations providing telecommunications services, AT&T Canada and C1 Communications, and for ADP Canada, a leading payroll and human resources services provider.

Andy has managed a variety of technical groups. He led the Management Consulting group for a major Canadian IT Consulting organization, Systemhouse, helping clients in a variety of lines of business with strategic planning and software and hardware selection. He also led the introduction of end-user computing, multi-company wide-area data networks, data administration, and large-scale PBX technology with a major Canadian financial institution, Royal Trust.

Andy has an Engineering degree and an MBA from the University of Toronto and a MS in Computer Science from Stanford University.

Executive Summary

Situation

  • IBM customers want to make effective use of their paid-up licenses to avoid overspending and stay compliant with agreements.
  • Each IBM software product is subject to different rules.
  • IBM audits software usage in order to generate revenue from non-compliant customers.

Complication:

  • The client has control of the licenses used over time and is responsible for paying for these licenses. Clients control and have responsibility for aligning usage and payments
  • Over time, the usage of the software may be out of sync with what the client has paid for, resulting in either overspending or violation of the licensing agreement.

Resolution:

With an understanding of your IBM agreements:

  • Buy the appropriate number of licenses.
  • Track and align both entitlements and usage.
  • When your usage changes, ensure that your entitlements are adequate. Either reuse licenses, reduce maintenance, or purchase additional licenses.
  • Adopt a cyclical approach to reviewing your IBM software licensing, and create a reference document to track your software needs, planned licensing, and purchase negotiation points.
  • Prepare for a penalty-free IBM audit.
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