IBM Licensing Terminology
- License Metric: Defines the measurement used to determine license usage.
- Sub-Capacity Licensing: Licensing based on actual resource usage.
- Authorized User: A license assigned to an individual user.
- Floating License: Allows multiple users to share a license.
- Processor Value Unit (PVU): Licensing based on processing power.
- License Compliance: Ensuring adherence to license agreements.
1. License
A license is essentially the permission granted by IBM to use its software according to specific terms and conditions.
Think of it like renting a car: you can drive it if you follow certain rules, such as returning it on time and keeping it in good condition.
Types of Licenses:
- Perpetual License: This license allows you to use the software indefinitely once purchased. However, support and updates are usually not included after a certain period.
- Subscription License: A subscription license allows you to use the software for a limited period, typically annually. This type often includes support and upgrades.
Example: If you buy a perpetual license for IBM SPSS, you can use it forever, but support might end after the initial term unless renewed.
2. PVU (Processor Value Unit)
Processor Value Unit (PVU) is a licensing metric used by IBM to determine the cost of software based on the server’s processing power. IBM assigns different PVU values to different processors, which help calculate the number of PVUs needed for licensing.
- How It Works: IBM assigns a PVU rating to each processor core in your system. The more powerful the processor, the higher the PVU rating.
- Example: If your server has a quad-core processor with each core rated at 50 PVUs, you would need a license for 200 PVUs (4 cores × 50 PVUs each).
3. Authorized User License
An Authorized User License permits a specific person to access the software, regardless of how many devices they use. Only individuals explicitly named in the license agreement are allowed to use the software.
- Example: Imagine you have five team members, but only two need access to IBM Cognos Analytics. You will purchase two authorized user licenses for those specific users.
4. Floating User License
A Floating User License allows multiple people to share access to the software, but only a set number can use it simultaneously. It’s more flexible than an Authorized User License, but it comes with limits on the number of concurrent users.
- Example: Your company has ten analysts but only needs three people to use IBM SPSS at any given time. To accommodate this, you could purchase three Floating User Licenses.
5. ILMT (IBM License Metric Tool)
The IBM License Metric Tool (ILMT) is software provided by IBM to help manage and report on software licenses, especially for compliance. This tool is essential for customers using PVU-based licensing to comply with IBM’s rules.
- Why It’s Important: IBM audits customers to ensure they aren’t overusing software without the appropriate licenses. ILMT helps track usage and provides accurate reports, reducing the risk of non-compliance.
- Example: If you run IBM WebSphere on several servers, ILMT will track the number of PVUs you’re using, helping you avoid costly overages.
6. Sub-Capacity Licensing
Sub-capacity licensing allows you to license only part of a server’s capacity rather than the entire server. This is particularly useful in virtualized environments where multiple applications might be shared.
- Benefit: This can significantly reduce costs by allowing you to pay only for what you use.
- Example: If you’re running IBM DB2 on a virtual machine with limited resources instead of the entire physical server, Sub-Capacity Licensing allows you to pay for just that virtual portion.
7. Full-Capacity Licensing
Full-capacity licensing requires you to license the full power of the server, regardless of how much of it is used by IBM software.
- Example: If you install IBM software on a server with eight cores, Full-Capacity Licensing means you must license all eight, even if your workload only uses two cores.
8. Compliance
Compliance refers to adhering to the terms and conditions of IBM’s licensing agreements. Non-compliance can lead to costly fines and penalties during audits.
- Tips to Stay Compliant:
- Use ILMT to track your software usage.
- Regularly review license entitlements against actual usage.
Example: A company using IBM software in a cloud environment must ensure that its virtual instances match the licensed PVU values to avoid penalties.
9. Passport Advantage
Passport Advantage is IBM’s licensing and software maintenance program. It consolidates the purchasing, licensing, and support of IBM software into one program.
- Benefits:
- Easier tracking of licenses.
- Regular updates and support are included.
Example: If you purchase multiple IBM products, such as IBM MQ and IBM Rational, Passport Advantage helps you manage everything under one contract.
10. Capacity-Based Licensing
Capacity-based licensing is based on the computing power of the hardware. Unlike per-user licenses, it considers the server’s capacity, such as CPU cores or memory.
- Example: IBM Spectrum Protect might be licensed based on the number of terabytes of data managed, which ties into the overall server capacity.
11. Node-Locked License
A Node-Locked License is tied to a specific physical machine or server. This license type restricts usage to the designated machine, meaning it can’t be transferred to another server without permission.
- Example: If you have an IBM Rational license tied to a specific workstation, you can’t move the license to another workstation without notifying IBM.
12. License Entitlement
License Entitlement refers to the specific rights you have under a license. It includes details like the number of users, the environments where the software can be used, and the duration of use.
- Example: If you buy an entitlement for IBM Cloud Pak, your license details may specify usage for development purposes only and not for production.
13. Dual Entitlement
Dual Entitlement provides flexibility by allowing the licensee to use two versions of the software simultaneously during an upgrade. This is useful to ensure smooth transitions when upgrading to a newer version.
- Example: If you’re upgrading from IBM Db2 version 11 to version 12, Dual Entitlement allows you to run both versions for a certain period without additional licenses.
14. Trial License
A Trial License grants temporary permission to use IBM software, usually for a limited time (e.g., 30 days), and is often used to evaluate the product before committing to a purchase.
- Example: IBM offers a 30-day trial of IBM Watson Studio, which allows potential customers to explore its features before deciding to buy.
15. Enterprise License Agreement (ELA)
An Enterprise License Agreement (ELA) is a contract that provides an organization with access to multiple IBM products under a single agreement. This can benefit large companies looking for predictable costs and centralized license management.
- Example: A large corporation using IBM’s software across various departments might enter into an ELA to cover all its licensing needs in one contract, simplifying administration and budgeting.
16. Limited Use License
A Limited Use License restricts how and where the software can be used, often specifying limitations on features or deployment environments.
- Example: An IBM WebSphere license might be sold with a restriction that it can only be used for non-commercial purposes, such as training.
17. BYOSL (Bring Your Software License)
Bring Your Software License (BYOSL) allows customers to use their existing IBM licenses on different infrastructures, including the cloud.
- Example: If your organization already holds a license for IBM MQ, BYOSL allows you to use that same license for deployments in a cloud environment like Amazon Web Services (AWS).
18. SaaS Licensing
SaaS (Software as a Service) Licensing refers to licenses for software that is delivered as a cloud service rather than installed on-premises. You usually pay based on usage or a recurring subscription fee.
- Example: IBM offers Watson Assistant as a SaaS product, meaning you access it over the Internet and pay a monthly fee based on the features you use.
IBM Licensing FAQ
What is sub-capacity licensing?
Sub-capacity licensing allows customers to license software based on the hardware resources used rather than full server capacity.
How do I calculate PVU (Processor Value Unit) licensing?
PVU licensing is calculated based on the server’s processing power, with specific metrics assigned to different hardware configurations.
Can I transfer licenses between users?
Yes, floating licenses can be shared among multiple users, but they cannot be used simultaneously by more than the licensed number of users.
What is the difference between an authorized user and concurrent licensing?
Authorized user licensing is assigned to a specific individual, while concurrent licensing allows a set number of users to access the software simultaneously.
Is sub-capacity licensing available for all IBM products?
Not all IBM products support sub-capacity licensing. Check the product’s documentation for eligibility.
What is the role of the IBM License Metric Tool (ILMT)?
ILMT helps track sub-capacity licensing usage and ensures compliance with IBM’s licensing rules.
How often should I perform a license compliance audit?
Regular audits, at least annually, ensure your organization complies with IBM’s licensing terms.
Can licenses be returned if unused?
Typically, IBM does not allow license returns unless specified in the contract, so reviewing terms before purchasing is critical.
What are floating licenses?
Floating licenses allow a pool of users to access the software as long as the number of active users doesn’t exceed the total licenses available.
Do all users need their licenses?
It depends on the license type. Authorized users need individual licenses, while concurrent users share limited floating licenses.
How does IBM handle non-compliance with licensing?
Non-compliance may result in penalties, including additional fees or termination of the license agreement.
What happens if my usage exceeds the licensed capacity?
Exceeding licensed capacity can result in penalties, and additional licenses may need to be purchased.
Is PVU licensing still applicable in cloud environments?
Yes, PVU licensing applies in some cloud environments, depending on the resource usage. Always verify with IBM’s licensing policies.
What is the difference between perpetual and subscription licenses?
Perpetual licenses are one-time purchases that last indefinitely, while subscription licenses are for a set period and require renewal.
How can I ensure my licenses are up to date?
Use tools like ILMT to monitor usage and regularly review IBM’s licensing policies to ensure compliance.
