Do You Need an IBM Software Audit?

Before you conduct an IBM software audit, you need to understand what an IBM software audit is. This article will explain how the audit process works, common challenges you may face, and ILMT compliance risks. In addition, you’ll learn about IBM’s licensing policies and procedures. These documents will help you decide if you’re ready to undergo an audit. If you’re not sure whether your organization needs an IBM software audit, read on to learn more about the benefits and risks of such an engagement.

What is an IBM software audit

An IBM software audit can be triggered by a variety of events, including mergers and acquisitions, company expansion, and cancellation of maintenance. IBM routinely audits all of its customers worldwide. The primary purpose of these audits is to determine whether or not the licensee is complying with its terms and conditions and if they are missing any opportunities to generate additional revenue from the licensee. An audit will not go away if the licensee refuses to cooperate. To avoid the hassle and cost of an audit, licensees should make sure that the scope of the IBM proposed audit is permissible under their licensing agreements. Customers should clarify their obligations if they don’t understand the audit scope.

IBM audits may find that you are not complying with licensing policies and requirements for some of your IBM software products. This type of audit is conducted by a third party that requires payment from the licensee, so if you stop paying your maintenance contracts with IBM, you may find yourself subject to an audit. While you may have a valid license, if the software you use is not up to date, your auditor will assume it is.

IBM audit process

Performing an IBM software audit is not an easy task. It requires you to perform a number of steps in order to achieve the desired results. ILMT (Intelligent License Management Tool) is a vital step in the audit process. Without ILMT, you will not be able to count the number of products on your server. However, if you install the software on separate servers, you will be able to count the number of licenses on each server separately.

You should start by determining what triggered an IBM software audit. Generally, these audits are triggered by mergers, company expansion, or canceled maintenance. Otherwise, they may be triggered by your own actions. Regardless of the reason, IBM conducts audits of all customers worldwide. The primary reason for audits is to determine whether you’re compliant with your licensing agreement and if you can generate more revenue from your licensee. This process is never going away. Before accepting an IBM audit, check to make sure that it’s covered by your license agreement. If it does not, ask IBM for clarification.

During the kick-off meeting, you’ll have an opportunity to learn about the IBM audit process. The auditors will present the audit process to the customer and request information about your IT environment, IBM software footprint, and other details. It’s not necessary to provide all of these details at this point, but it helps to have them ready. Also, make sure to discuss any non-disclosure requirements you have during this meeting.

Common IBM licensing challenges

Most IBM clients are familiar with the ILMT, IBM’s mandatory licensing tool. While it is beneficial to use sub-capacity licensing, most customers face challenges when implementing this new tool. Atonement provides clients with the support and knowledge they need to navigate this complicated process. To learn more about the ILMT, continue reading. This article is a quick overview of some common challenges. After reading the summary, prepare to ask your team questions during your licensing audit.

The main challenges to determining which licensing model to adopt depend on the volume of computing and storage. In the past, IBM licensed server-based products based on the number of processors. Today, the company licenses software based on its CPU cores (PVUs), which allows it to calculate the compute power of a given server. But while the CPU core counts are more straightforward, it is not without its challenges. Whether a single-core or dual-core processor is more efficient, the cost of processing power will increase accordingly.

In addition, IBM does not have built-in controls for limiting the use of user-based software. This means that customers must consider usage metrics when evaluating the licensing plan. One common licensing challenge involves IBM mainframes, also known as System z. While System z mainframes are equipped with a built-in Sub-Capacity Reporting Tool, many customers miss the eligibility criteria for sub-capacity and Sysplex licenses. Further, mainframes are notoriously difficult to understand and a mainframe bill is not optimised for customer consumption.

ILMT compliance risks

There are several compliance risks associated with ILMT that you should be aware of during an IBM software audit. These risks can include an ILMT report being unreliable or incomplete, or a license violation. To mitigate these risks, it is important to understand the process and how to manage ILMT properly. Read on to learn more about IBM’s licensing compliance process and what to look for during an IBM software audit.

ILMT cannot automatically bundle IBM software. To properly bundle IBM software, you must understand license entitlement, restrictions, and signature dependency. Incorrect bundling can prevent you from obtaining Sub-Capacity licensing for IBM PVU software. For this reason, you must ensure that you use the right licensing methods to deploy PVU software. Otherwise, the software will be unsupported. For this reason, you should use an ILMT audit tool to ensure that your IBM software is compliant.

An ILMT software audit can identify ILMT compliance risks, particularly if your ILMT server is not equipped with an agent. A typical ILMT agent coverage rate for IBM products is 75-95%, which means a gap of 5% to 25% can lead to millions of dollars in IBM audit findings. This gap is particularly significant for legacy deployments, where there are no software ID tags. However, it is possible to count licenses using ILMT on separate servers.

Who conducts IBM audits

Who conducts IBM software audits? Usually, a rep from IBM will ask for information about an organization’s software challenges and opportunities. It will also ask for details about the organization’s licensing agreement, which may include future maintenance fees or license costs. After gathering all this information, the rep will propose a settlement with IBM, which may include license costs and retroactive maintenance fees. It is essential for licensees to review the audit findings and object if they disagree with the company’s proposal.

It is not unusual for IBM software partners to embed their own software in third-party applications, which may put the company out of compliance with its licensing policies. For example, the auditors may find DB2 out-of-compliance, causing the organization to challenge its entitlement to secondary programs. The result might be that IBM has a difficult time determining what a company should not use. The question becomes, who should do the audits, and when?

During the kick-off meeting, the company and the audit firm should discuss how the audit will work and what details they will need to collect. The audit firm may ask about the customer’s IT environment and software footprint, but they don’t need all of this information. The customer should raise this requirement during the kick-off meeting, however, if they have non-disclosure requirements. The auditor will then be able to assess any gaps in the company’s infrastructure, based on the information they have.

Benefits of getting help in an IBM audit

Getting help during an IBM software audit can provide many benefits. This process takes several months to complete and is often accompanied by many challenges. IBM’s reps will ask about your software assets and identify any shortfalls. They may even offer solutions to help you maximize your license entitlement. In addition to offering legal advice and assistance, an IBM audit can help you minimize business interruptions and other expenses. Read on for more information.

One of the biggest challenges with IBM is that its products can be confusing and difficult to understand. Additionally, licensing terms are frequently changing. This can make it difficult to determine effective license positions and compliance measures. Getting help in an IBM software audit can help you prevent costly audit penalties and loss of Sub-Capacity eligibility. By partnering with a certified auditor, you can take advantage of this expertise and avoid costly auditing penalties.

Having a qualified third-party audit perform your software is vital. As a customer, you’ll have the opportunity to get help in determining which software products you use, allowing you to better understand what is required of you and your organization. Moreover, the IBM software audit helps you understand how your business functions. It also helps you to better understand how the software works and how to improve it.

How to negotiate an IBM audit

A successful negotiation strategy includes validating your right to be audited by IBM, as well as clarifying any contractual exceptions. Next, negotiate the scope of the audit and its timing. It is vital that you carefully document your needs, so you can use them to maximize your license and contract terms. Once the scope has been agreed upon, you can proceed to the next phase of the negotiation: addressing the details of the audit. The scope of the audit must include all IBM software and site numbers.

When it comes to negotiating an IBM software audit, it’s crucial that you prepare for the audit. The most common reasons for audit failure are: organic network growth, mismanaged purchases, and inaccuracies in license records. You should maintain an accurate record of every license purchase, and track and document every installation of the software. This will give you the upper hand during negotiations. Lastly, you must be prepared with a strategy to defend your rights.

IBM license agreements include hyperlinks to their website and licensing policies. As IBM is a large company with many complex products, it can be challenging to keep track of licensing details. Being prepared with your license agreement can prevent you from incurring expensive penalties, including losing Sub-Capacity eligibility. If you’ve made the necessary preparations, an IBM software audit can be a simple and straightforward experience. However, a successful negotiation will take time, effort, and knowledge.