IBM licensing

IBM Authorized User Licenses

IBM Authorized User Licenses

  • Define the number of individuals allowed access
  • Specific to individual users, not devices
  • Cannot be shared among multiple users
  • Provides access to IBM software or services
  • Ensures compliance with IBM’s licensing terms

What Are IBM Authorized User Licenses?

An IBM Authorized User License is a type of license that allows a specific individual—rather than a device—to access and use IBM software. The concept is straightforward: each named user (even if they are not actively using the software all the time) must have their license.

This differs from other licensing models, such as concurrent licensing, where a set number of licenses can be shared among multiple users, or processor-based licensing, which licenses the usage based on hardware capacity.

Key Points about IBM Authorized User Licenses:

  • They grant access per user, not per device or usage.
  • The license is tied to the individual, regardless of how often they use the software.
  • Each user accessing the software must be licensed individually.

Benefits of IBM Authorized User Licenses

Benefits of IBM Authorized User Licenses

IBM’s Authorized User licenses offer several distinct benefits, particularly for companies with specific usage patterns or a stable team of users who consistently need access. Let’s explore the main benefits in more detail:

1. Cost Control for Predictable Usage

  • Authorized user licenses provide a predictable cost structure for companies where the same employees require consistent access to IBM tools.
  • You avoid surprises arising from a metered or usage-based model, which is ideal if your organization has a fixed team working on specific projects.

2. Flexibility Across Devices

  • Since the license is assigned to a person, that individual can use multiple devices to access IBM software without needing separate licenses for each device.
    • Example: A project manager who uses a desktop at the office and a laptop when working remotely would only require one Authorized User license.

3. Customization for Role-Specific Software

  • Authorized User licenses are especially useful if specific organizational roles consistently use particular IBM products.
    • Example: A team of five database administrators regularly uses IBM Db2. Instead of purchasing a concurrent license, each team member has an Authorized User license, ensuring everyone has the access they need at all times.

Restrictions of IBM Authorized User Licenses

Restrictions of IBM Authorized User Licenses

While Authorized User licenses have advantages, they also have notable restrictions that organizations must be aware of to avoid compliance issues.

1. No Sharing of Licenses

  • IBM strictly enforces the “no sharing” policy with Authorized User licenses. A single license cannot be shared among multiple individuals, even if only one person uses it at a time.
    • Example: If two employees on different shifts plan to share one license, that’s a violation. Each employee must have a license.

2. Fixed Assignment

  • Once a license is assigned to a user, it cannot be easily reassigned. Although reassignment is possible, it should only occur under specific circumstances, such as when an employee leaves the company.
  • Frequent reassignments to minimize costs can lead to compliance audits and penalties.

3. Minimum License Requirement for Access

  • Any person who could potentially access the software requires a license, even if they are only using it for limited activities.
    • Example: Suppose a supervisor occasionally needs to generate a report using IBM Cognos. That supervisor must still have their Authorized User license.

Best Practices for Compliance

Best Practices for Compliance

Maintaining compliance with IBM licensing requirements is crucial, as failing to do so can lead to costly penalties and a damaged reputation.

Here are some best practices to ensure compliance with IBM Authorized User licenses:

1. Track Users Carefully

  • Maintain an up-to-date record of all users who have access to IBM software. Use a software asset management (SAM) tool to help track and manage licenses effectively.
    • Tip: Regularly audit user lists to ensure only current employees are assigned licenses, and remove access when users leave the company or change roles.

2. Assign Licenses Based on Actual Need

  • Ensure that only those employees who actively use the software are assigned licenses. Conduct an assessment to determine which employees need full-time access and which may need alternative arrangements.
    • Example: If a particular IBM tool is only occasionally used by a few team members, consider whether it’s more cost-effective to use a different type of license rather than assigning multiple Authorized User licenses.

3. Plan for Employee Turnover

  • Establish procedures for license reassignment when an employee leaves. This should include updating your user records and ensuring that the license is either reassigned or terminated based on actual needs.
    • Tip: Avoid frequent or suspicious reassignments, as this may trigger an audit from IBM, especially if the licenses are being manipulated to avoid purchasing new ones.

4. Use IBM’s Licensing Tools

  • IBM provides several tools, such as the IBM License Metric Tool (ILMT), to assist customers in tracking and managing their licenses. These tools ensure accurate reporting and compliance.
    • Example: ILMT can help ensure that every named user is properly accounted for and that there is no overlap or missing information that could lead to non-compliance.

5. Understand the License Agreement

  • Carefully review the specifics of the IBM Passport Advantage Agreement or any other agreement under which you purchased the software. Each contract may have different requirements regarding reassignment, access rights, and license transferability.
    • Tip: If in doubt, consult with IBM or a licensing specialist to ensure you fully understand the obligations under your agreement.

Common Compliance Pitfalls and How to Avoid Them

Common Compliance Pitfalls and How to Avoid Them

IBM licensing compliance can be challenging due to the intricacies of their agreements. Here are some common pitfalls and strategies to avoid them:

1. License Reassignment Abuse

  • Pitfall: Frequently reassigning licenses to different users to minimize the number of licenses purchased.
  • How to Avoid: Limit reassignment strictly to changes in employment status. Keep a log of reassignments, including reasons, to show good-faith efforts toward compliance if audited.

2. Misinterpreting User Roles

  • Pitfall: Assuming that certain roles do not require a license, such as managers who only access software occasionally.
  • How to Avoid: Conduct regular reviews to ensure all users with potential access are licensed, regardless of their role or frequency of use.

3. Failing to Remove Access When Employees Leave

  • Pitfall: Continuing to have ex-employees listed as Authorized Users can result in over-licensing and unnecessary costs.
  • How to Avoid: Implement an offboarding process that includes a step for removing software access and reassigning or terminating licenses as needed.

4. Overlooking Indirect Access

  • Pitfall: Ignoring situations where employees indirectly access IBM software through another application.
  • How to Avoid: Analyze workflows to determine whether indirect access counts toward license requirements. Depending on the terms of the agreement, indirect access often still requires licensing.

Benefits vs. Restrictions: Is an Authorized User License Right for You?

Benefits vs. Restrictions: Is an Authorized User License Right for You?

To determine if an IBM Authorized User license is the best fit for your organization, consider the following:

Ideal Scenarios for Authorized User Licenses:

  • Dedicated Users: This licensing model is efficient and predictable when the same set of users consistently need access to specific IBM software.
  • Multiple Devices per User: When users need to access the software on multiple devices, an Authorized User license can be more economical than licensing each device.
  • Stable Team Size: This model offers straightforward administration if your organization has a relatively stable workforce with little turnover or role change.

When to Consider Other Licensing Models:

  • High Turnover or Dynamic User Base: If your organization frequently changes the roles or number of people using the software, Concurrent User or Floating licenses might be a better fit.
  • Occasional Use: If many users need only occasional access, a usage-based model could offer cost savings over individually licensing each potential user.

FAQ for IBM Authorized User Licenses

What is an IBM Authorized User License?
Individual users are assigned an IBM Authorized User License, which allows them access to specific IBM software or services.

Can an IBM Authorized User License be shared?
No, each license is designated for a single user and cannot be shared among multiple individuals.

How many users can be assigned per license?
Each IBM Authorized User License is limited to one specific user.

What happens if a user no longer requires the license?
The license may be reassigned to another user only after the original user no longer requires access.

Do devices count under IBM Authorized User Licenses?
No, the license is tied to individual users, not their devices.

Is there a time limit on IBM Authorized User Licenses?
The license duration is based on the terms of your agreement with IBM.

Are there any restrictions on user access?
Access is restricted to only the software or services included in the license agreement.

Can users outside my organization use the license?
No, licenses are typically restricted to users within your organization unless otherwise specified.

How do I assign an IBM Authorized User License?
Licenses are assigned through IBM’s licensing portal or the software management system.

What happens if I exceed the number of authorized users?
Exceeding the user limit would violate the terms of your agreement and may result in penalties or additional fees.

How can I track the number of active licenses?
Use IBM’s license management tools to monitor and track active licenses within your organization.

Can IBM Authorized User Licenses be upgraded?
You can typically upgrade or adjust licenses based on your changing business needs.

What software is included under IBM Authorized User Licenses?
The license applies to specific IBM products as outlined in your licensing agreement.

Can I temporarily transfer a license to a different user?
Licenses cannot be transferred temporarily; only permanent reassignment is allowed when the previous user no longer needs access.

What support is available for managing IBM Authorized User Licenses?
IBM offers support through its customer service team and online resources to help manage and optimize your licensing.

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