Avoiding IBM Software Over-licensing with SAM
- Conduct regular software audits to monitor usage
- Use SAM tools to track licenses accurately
- Review IBM licensing agreements for compliance
- Set up automated alerts for overuse or misassignment
- Optimize license allocation based on usage needs
- Archive unused licenses to prevent excess costs
- Maintain clear records for license renewals and updates
Why Over-Licensing Happens
IBM licensing is notorious for being intricate and overwhelming. The complexity is a perfect breeding ground for over-licensing.
Here are some common reasons why companies over-license:
- Fear of Under-Compliance: Organizations often purchase extra licenses to avoid hefty compliance penalties.
- Misinterpretation of License Metrics: IBM has various license types, such as PVU, RVU, Authorized User, etc. Misunderstanding these metrics can lead to excess purchasing.
- Lack of Visibility: Without good tracking, organizations can lose sight of what’s deployed and what’s needed.
- Merger and Acquisitions: When organizations merge, license inventory can be duplicated, leading to multiple payments for the same software.
How Software Asset Management (SAM) Can Help
Software Asset Management (SAM) is the key to tackling over-licensing. SAM helps you maintain the right balance between having enough licenses for compliance and avoiding waste.
Below, we explore different SAM techniques that can be employed to avoid over-licensing.
1. Inventory and Discovery Tools
The first step in any SAM strategy is inventory and discovery. You need to know your software, where it is installed, and how it is used.
- Use Automated Discovery Tools: Tools like Flexera, Snow Software, or IBM License Metric Tool (ILMT) help track software deployments. These tools scan your network and detect all the installed software, providing a snapshot of your software landscape.
- Keep an Updated Software Inventory: Maintain a centralized inventory of all software assets, licenses, and installations.
- Track Users and Usage: Identify active versus inactive users for user-based licenses. This helps eliminate licenses for employees who no longer need them.
Example: Company A thought it needed 200 IBM licenses. After using an inventory tool, it realized only 150 licenses were in use. It promptly saved costs by decommissioning the surplus licenses.
2. IBM License Metrics
IBM uses different license metrics, and misunderstanding these can lead to over-licensing. Here are some of the most common metrics and how to manage them effectively:
- Processor Value Unit (PVU): This metric is based on the computing power of your hardware. Accurately understanding your hardware configuration and PVU requirements can help reduce unnecessary licenses.
- Resource Value Unit (RVU): This relates to the resources a software component consumes. You should monitor these metrics to avoid unnecessary licensing.
- Authorized User Metrics: These are based on the number of individuals authorized to use the software. Regular audits of employee access can help right-size the number of licenses.
Tip: Use the IBM License Metric Tool (ILMT) to track your PVU and RVU metrics automatically. This will help ensure compliance without overestimating your needs.
3. License Optimization and Recycling
License optimization is one of the simplest ways to avoid over-licensing. It helps you get the most out of the licenses you already have.
- Reclaim Unused Licenses: Regularly audit usage; if certain users are not using their allocated licenses, reassign or cancel them.
- Identify Shelfware: Shelfware is software that is purchased but never used. Identify and eliminate such software from your environment.
- Employee Turnover: When an employee leaves, reclaims, and redistributes their license to avoid purchasing additional ones unnecessarily.
Example: If an employee leaves without one claiming their license, it sits there unused. A SAM process that includes de-provisioning and license reclamation ensures that this unused license is reassigned rather than remaining idle.
4. Implement Role-Based Access Control (RBAC)
Assigning software based on employee roles helps avoid over-provisioning.
- Access Based on Roles: Instead of assigning licenses individually, allocate software according to employee roles. This ensures that only those who need the software can access it.
- Monitor License Usage by Department: Departments may differ in their software needs. RBAC ensures no department gets more software than it needs, optimizing the license count.
Example: If a marketing intern does not need access to IBM WebSphere, removing their license ensures it can be used more for someone who needs it, preventing waste.
5. Regular Internal Audits
Conducting internal license audits regularly can help you stay ahead of any compliance or over-licensing issues.
- Monthly or Quarterly Audits: Set a fixed schedule to audit software usage and license assignments.
- Compare Deployment with License Entitlement: Your audit should compare what’s installed against what’s entitled to be installed under your current agreements.
- Avoid surprises during vendor audits: IBM can conduct a license compliance audit at any time. Regular internal audits ensure you are compliant and do not possess excess licenses.
6. Maintain License Documentation and Entitlements
Proper documentation of license agreements is crucial for understanding what you own versus what you need.
- Maintain All Licensing Agreements: Store contracts, terms, and conditions in a centralized location.
- Know Your License Rights: Be aware of whether your licenses include sub-capacity rights. This means you can license only part of a server rather than the full machine, which can significantly reduce costs.
- Use License Reconciliation Tools: Reconciliation tools can match license entitlements with actual deployments, giving you a real-time picture of whether you are over or under-licensed.
Example: If you have a contract allowing you sub-capacity rights but don’t use ILMT to document it, you may unnecessarily end up licensing full capacity. Documentation and automated tools save you from paying for more than you need.
7. SAM Tools and Automation
Automating SAM processes can significantly reduce the risks of over-licensing.
- IBM License Metric Tool (ILMT): IBM provides ILMT, a free tool for tracking and managing licenses, especially under PVU metrics. It can automatically detect software installations and calculate PVU licensing requirements.
- Third-Party SAM Solutions: Tools like Flexera or Snow License Manager can integrate with your existing IT infrastructure, making it easy to track and manage licenses across multiple vendors, including IBM.
- Automated Alerts: Configure alerts in your SAM tool to notify you whenever new installations occur without approval, preventing accidental over-licensing.
8. Negotiating with IBM
IBM licensing contracts can often be negotiated for favorable terms, especially if you know your software usage.
- Buy Only What You Need: After conducting an audit, go into negotiations with a clear understanding of how many licenses you need rather than blindly accepting IBM’s renewal recommendations.
- Multi-Year Deals: Opting for multi-year deals can sometimes save money, but you must ensure the quantity of licenses is accurately forecasted.
- Audit Clauses: Understand audit clauses clearly. Some agreements allow IBM to audit without prior notice, while others might have provisions that protect you from sudden, inconvenient audits. Negotiating these terms carefully can provide financial and operational benefits.
9. Leveraging IBM’s Sub-Capacity Licensing
Sub-capacity licensing allows you to license based on partial usage of servers rather than the full capacity, which can save money.
- Virtualization Environments: If you run IBM software in virtual environments, ensure you use sub-capacity licensing to your benefit.
- ILMT Requirement: Sub-capacity rights require ILMT to be installed and active. Failing to use ILMT could lead to over-licensing the full capacity.
Example: Company B runs their IBM DB2 database on a server with 16 CPUs but only uses 8. Instead of buying licenses for 16 CPUs, sub-capacity licensing allows them to buy only for the eight they use, halving their licensing costs.
10. License Retirement Plan
Some IBM products may become obsolete as your company evolves, requiring a proper license retirement strategy.
- Sunset Legacy Software: If software becomes outdated and is replaced by newer solutions, ensure the old licenses are decommissioned and removed from your active inventory.
- Track License Expiry: IBM licenses often come with expiration dates. A strategy for expiring licenses ensures you are not paying for software you no longer need.
Tip: Develop a workflow where retiring licenses is mandatory when rolling out new software.
11. Rightsizing and Capacity Planning
Accurate capacity planning can help you purchase only what you need and avoid over-licensing.
- Understand Your Environment Growth: Analyze historical data and your environment’s growth trends. Buy licenses according to need rather than assumption.
- Cloud Deployments: If you move workloads to the cloud, plan which licenses can be reduced or eliminated.
- Align Licenses with Projects: Don’t over-buy in anticipation of future projects. Instead, use short-term licenses if your needs are going to change soon.
Example: A company moving part of its application stack to the cloud may no longer need on-premises IBM WebSphere licenses. Once the migration is complete, the company should plan to eliminate these licenses.
FAQ: Avoiding IBM Software Over-licensing with SAM
What is IBM Software Asset Management (SAM)?
IBM SAM helps monitor, manage, and control software licenses to prevent overuse and ensure compliance with licensing agreements.
How does SAM reduce the risk of over-licensing?
SAM tracks actual usage, which helps identify unused or excess licenses. This allows organizations to adjust allocations and prevent unnecessary purchases.
Why are regular software audits important?
Audits help identify gaps between license usage and entitlement, ensuring compliance and avoiding potential penalties for overuse.
What should be included in a software audit?
Gather details on license types, quantity, usage, and entitlements to compare with your SAM data and check compliance.
Can SAM automate compliance monitoring?
SAM can automate license overuse alerts, helping quickly identify and address compliance risks.
What is the role of IBM’s License Metric Tool (ILMT)?
ILMT tracks the usage of IBM software in virtual environments, helping ensure compliance with IBM’s licensing policies and minimizing over-licensing.
How can I optimize IBM license allocation?
Identify peak usage patterns, reassign underused licenses, and archive inactive licenses to optimize costs effectively.
What are the risks of IBM software overuse?
Overuse can result in non-compliance, leading to fines, legal risks, and unexpected costs during software audits.
How often should IBM licenses be reviewed?
Reviewing IBM licenses quarterly or annually to ensure allocations align with changing usage needs is best.
What are the consequences of over-licensing?
Over-licensing can lead to wasted resources, unnecessary spending, and reduced budget for other IT investments.
How does SAM help with renewals?
SAM tracks license expiration dates, renewal terms, and usage trends, helping plan timely and cost-effective renewals.
Can SAM support budgeting for IBM software licenses?
Yes, SAM helps budget accurately for current and future IBM software requirements by analyzing past usage data and forecasting needs.
What is IBM’s Passport Advantage?
IBM’s Passport Advantage is a program for large organizations that provides flexible software licensing options, discounts, and access to IBM SAM tools.
Does IBM SAM cover all license types?
IBM SAM can manage various license types, but it’s essential to check IBM’s documentation to confirm all license types used are covered.
Is SAM useful for companies of all sizes?
Yes, SAM benefits all companies by minimizing risks of overuse, enabling cost savings, and ensuring license compliance regardless of size.
