IBM Maximo Licensing Models
Introduction:
IBM Maximo is a leading Enterprise Asset Management (EAM) platform used to track and maintain critical assets across industries. However, its licensing can be complex – spanning traditional on-premises setups, newer SaaS subscriptions, and a range of add-on modules.
Choosing the wrong license mix can lead to overspending or compliance risks, while a well-optimized approach can save significant budget. Read our overview of IBM Middleware and Database Licensing Analysis (DB2, WebSphere, MQ).
This guide, written from the perspective of an IBM licensing strategist, breaks down Maximo’s licensing models, user license types, module add-ons, and strategies to optimize costs and reduce compliance headaches.
We’ll also compare SaaS vs. on-premises options, cover negotiation tactics, answer common FAQs, and conclude with five actionable recommendations for maximizing the value of your Maximo investment.
Maximo Editions Overview (On-Premises vs. SaaS)
On-Premises (Perpetual Licensing):
Traditionally, organizations deploy Maximo on their own servers using a perpetual license model. This means that you purchase licenses upfront (as a capital expense) and then pay annual Subscription & Support (S&S) fees (typically ~20% of the license cost) for upgrades and support. On-prem Maximo (for example, Maximo 7.6) offers full control over the environment and customization.
You manage the infrastructure and decide when to apply updates. The trade-off is higher responsibility for maintenance and a need to monitor license compliance internally. If usage decreases, you generally cannot return perpetual licenses, though you might drop S&S on unused licenses to save costs.
Negotiating “true-down” rights in your contract (allowing reduction of license counts at renewal) is ideal but not standard.
SaaS (Subscription Licensing):
IBM also offers Maximo as a cloud-based service, with licensing provided on a subscription basis (monthly or annual, per user). Under SaaS, you pay an ongoing operational expense, and IBM manages the infrastructure and upgrades on your behalf.
This ensures you’re always on a current version and reduces the IT overhead. Maximo SaaS is available in tiered packages – for example, IBM Maximo Application Suite (MAS) SaaS is offered in Essentials, Standard, and Premium editions.
Essentials (multi-tenant) is a cost-effective option for small deployments with limited customization.
Standard offers a middle ground for mid-sized organizations in a shared cloud environment.
Premium provides a dedicated instance with maximal flexibility – you can schedule upgrades and have more control (while IBM still manages the back-end). With SaaS, licensing is often based on a per-named-user or capacity metric, depending on the specific offering.
IBM’s Maximo SaaS Flex model (now largely succeeded by MAS) even allowed a concurrent user subscription model, meaning you could license by peak usage rather than by every named user.
SaaS licensing simplifies compliance, as IBM ensures you don’t exceed the contracted users or capacity. However, it requires careful selection of the right tier and user count to avoid overpaying.
It shifts costs to predictable OpEx, although over the long term, it can total more than a one-time purchase; therefore, evaluating Maximo SaaS versus on-premises total cost of ownership is key.
IBM Maximo Application Suite (MAS):
In recent years, IBM has rebranded Maximo as part of the Maximo Application Suite. MAS unifies Maximo’s core and new functionality under a single umbrella. You can deploy MAS on-premises or as SaaS – it’s essentially a containerized version of Maximo and related applications.
MAS utilizes a token-based licensing system called AppPoints, which adds flexibility. Instead of buying separate licenses for every module, you purchase a pool of points that users consume based on what they access.
MAS On-Premises deployments typically use a subscription licensing model as well (though some entitlements might still be sold perpetually via IBM Passport Advantage).
In MAS, traditional add-ons like Maximo Scheduler and Mobile are now included in the base package, and advanced features are unlocked by assigning users to higher-tier roles (more on this later).
Industry Solutions: IBM offers industry-specific Maximo editions for various sectors, including Utilities, oil and gas, Transportation, Aviation, and Nuclear. These are essentially add-on modules that extend Maximo with industry-specific functionalities (for example, regulatory compliance tools for utilities or aviation maintenance features).
If you use an Industry Solution, it usually means purchasing that module in addition to core Maximo. Under MAS, many industry solution capabilities are available as part of the suite (often requiring a Premium user tier or additional AppPoints).
For older on-prem licenses, industry solutions had their own license SKU and costs. It’s essential to account for these in your licensing plan – industry-specific modules can significantly increase licensing requirements for users who need those features.
Read about MQ licensing, IBM MQ Licensing Pitfalls: How to Properly Size and License MQ.
Maximo User License Types
Licensing in Maximo is primarily user-based, but not all users are equal. IBM offers multiple user license types to accommodate various usage levels.
The two fundamental models are Authorized User (an individual named user license) and Concurrent User (a floating license shared by multiple people, limited by the number of simultaneous users).
Beyond that, IBM has historically offered tiers such as Limited and Express for users who don’t require full functionality. Understanding these types is crucial for cost optimization.
Here’s a breakdown of key Maximo user license types:
| License Type | Description & Access | Ideal For | Notes |
|---|---|---|---|
| Authorized User | A named user with full access to all licensed Maximo modules. Each license is tied to one specific person (cannot be shared). | Core users who use Maximo extensively (administrators, planners, power users). | Most comprehensive (and highest cost) per user. You can reassign the license to a new individual only when a user leaves or changes role (permanent transfer). Requires one license per active user. Compliance risk: paying for inactive named users if not managed. |
| Limited User | A named user with access restricted to a subset of Maximo modules (typically up to 3 modules). No access to administrative modules. | Users with focused roles, e.g. a supervisor or technician who only needs work orders, assets, and inventory modules. | Lower cost than Authorized. In legacy licensing, IBM required a ratio of at least 1 Authorized User for every 3 Limited Users in your environment (3:1) to ensure proper mix. Limited users should be security-restricted to their 3 modules, or they count as full users in an audit. |
| Express User | A named user with very limited access: can view data, run queries/reports, and perform basic self-service updates (e.g. update own work orders or approve tasks). | Occasional users or managers who only need to log in sporadically for simple tasks and approvals. | Lowest-cost paid user license. Legacy ratio requirement of 1 Authorized per 25 Express Users (25:1). Good for large populations of infrequent users. They cannot use most core Maximo applications beyond query/approval functions. |
| Self-Service User | Unlicensed user type for submission of service requests or work requests and viewing their status. No direct module access beyond the self-service portal. | End customers or employees who need to request service or support (e.g. an employee submitting a maintenance request). | Free license: Unlimited self-service users are allowed at no additional cost if you have at least one Authorized User in your Maximo system. These do not consume any paid license entitlements. Useful for extending requests to a broad audience without added cost. |
| Concurrent User | A floating license that allows multiple individuals to share a pool of licenses. The number of people who can be on Maximo at the same time is limited by the number of concurrent licenses purchased. | Large user communities or shift-based workforces where not all users are logged in simultaneously (e.g. 24/7 operations with rotating staff). | More flexible but higher unit cost. Typically, one concurrent license is roughly equivalent to 3 named users in cost. IBM often allows converting (trading) 3 Authorized licenses for 1 Concurrent license. Concurrent usage is measured by peak simultaneous logins – you must monitor that the maximum concurrent users at any time does not exceed your licenses. Good for optimizing costs when you have many infrequent users, but requires tracking to stay compliant. |
Current IBM Policy on Concurrent Licensing:
Yes, IBM Maximo still supports concurrent (floating) user licenses, especially in on-premise deployments and in the Maximo Application Suite model. IBM’s official definitions still include both Authorized and Concurrent user metrics. However, IBM tends to encourage Authorized (named) licensing unless concurrency yields clear benefits.
In some newer MAS SaaS packages, licensing is primarily based on the number of authorized users or AppPoints. If you opt for concurrent licenses, ensure your contract spells out the terms (how simultaneous use is counted, etc.).
In practice, concurrent licenses make sense if you have a large number of users who rarely overlap in usage. For example, instead of 100 named licenses for 100 occasional users, you might use 30 concurrent licenses if at most 30 are ever online at once.
Just keep the 3:1 cost ratio in mind – concurrent licenses cost more each, but you buy fewer of them.
Read about Cognos licensing, IBM Cognos & Planning Analytics Licensing: User Types and Cost Control.
Compliance Considerations – Named vs. Floating:
With Authorized (named) users, compliance means tracking that every individual with access has a license. The risk is accumulating “shelfware” – licenses assigned to users who no longer use the system or have left the company. Regularly auditing user accounts and inactivating or reassigning unused licenses is important (IBM does allow reassignment when someone leaves, as long as you document the change).
With Concurrent users, compliance hinges on peak usage – you must ensure your Maximo system never exceeds the number of concurrent sessions you purchased. Maximo has a License Usage Monitor tool that can help report on this.
There’s also an extra layer of complexity in legacy licensing if you use Limited or Express users: you must maintain the required ratios of higher-tier licenses to lower-tier ones (as noted above).
Failing to meet those ratios (e.g., having too many Limited users without enough Authorized users to anchor them) constitutes a compliance violation during an audit.
In summary, named user licensing carries the risk of dormant accounts wasting licenses, while concurrent licensing risks unmonitored spikes in simultaneous use; each model requires proactive management to optimize costs and stay compliant.
Maximo Module Licensing (Add-Ons and Advanced Functionality)
One of Maximo’s strengths is its modularity – you can extend the core asset management with specialized add-ons.
However, each module or add-on typically requires its own licensing considerations, which can impact your costs. It’s important to only enable and pay for the modules you actually need.
Below are some of the most common Maximo modules and how they are licensed:
- Maximo Scheduler: An advanced planning and scheduling tool that provides graphical scheduling of work orders and resources. Historically, Scheduler was an add-on that required additional licenses (often licensed per Authorized user needing Scheduler access, or as a separate module entitlement). In the Maximo Application Suite, basic Scheduler capabilities are now included in the Maximo Manage application (the core Maximo) for users with at least Base-level access. This means that if you’re on MAS with Base or Premium users, you likely don’t need to purchase a separate Scheduler license – it’s already bundled. If you’re on older Maximo versions, you’ll need to purchase Scheduler licenses for those users who do scheduling work. Including the Scheduler can increase costs, so evaluate how many planners truly need the advanced scheduling features.
- Maximo Mobile: IBM provides mobile access to Maximo, allowing field technicians to view and update work orders on tablets or phones. The older solution (Maximo Anywhere) was licensed as an add-on per user or per device. With the Maximo Application Suite, IBM introduced a new Maximo Mobile suite, which is included for licensed Maximo users (no separate mobile license fee). It is considered part of the platform and is accessible if you have a valid user license (Authorized or Concurrent). However, if you’re not on MAS and want mobile access, you’ll need to purchase Maximo Anywhere licenses for those mobile users. Mobile capability can be a significant efficiency booster, but be mindful to license only your field workforce that needs it. Under MAS, you’ll still want to ensure your users are in the right tier; fortunately, mobile usage doesn’t require a higher tier by itself (it’s included with core Manage entitlement).
- Maximo Monitor: This is an IoT-based monitoring module (part of the newer Maximo Application Suite) that collects real-time sensor data and triggers alerts for asset conditions. Maximo Monitor is considered part of IBM’s Asset Performance Management offerings. Licensing Monitor typically requires the Maximo Application Suite Premium tier or specific entitlements to enable its use. Essentially, suppose you want to use Maximo Monitor. In that case, your users accessing it must be licensed at a level that includes Monitor (in MAS, even a Limited user can access Monitor data). If you are an existing Maximo 7.6 user, Monitor isn’t a feature you can just add via old licenses – it’s available as a cloud service or via MAS. Enabling Monitor will likely require additional AppPoints (tokens) or a higher subscription cost, so treat it as a significant add-on. The cost impact will depend on the number of assets or data points being monitored, as IBM may price it by the volume of data or require specific user licenses to cover it.
- Maximo Health: IBM Maximo Health (often simply referred to as “Health”) is another add-on in the Maximo Application Suite, focusing on asset health scoring and condition-based maintenance. It analyzes asset data to determine health scores and expected life, which is valuable for reliability engineers. To use Health, you generally need at least a Base User license in MAS (Health is included for Base and Premium users, but not available to Limited tier users). If you’re not on MAS, Health wasn’t available as part of older Maximo at all – it’s a relatively new offering. So practically, adopting Maximo Health means moving to MAS licensing (with the associated point consumption or user subscription). Health will increase your licensing costs because it likely requires upgrading some users to Base or Premium tiers (which consume more AppPoints per user). Ensure the value from predictive health insights justifies the added cost.
- Maximo Predict: This is an AI-driven predictive maintenance module in MAS that works in conjunction with Maximo Health. Predict uses machine learning models to forecast failures or optimize maintenance intervals for critical assets. Maximo Predict is typically reserved for the Premium tier in Maximo Application Suite. In other words, only Premium Users (or additional Predict-specific AppPoints) can leverage this functionality. Predictive analytics are powerful but come at a premium cost. If you plan to implement Predict, budget for the highest level of user licensing and consider doing a pilot to gauge ROI before rolling it out widely.
- Maximo Assist: Also part of the newer suite, Maximo Assist provides an AI-powered assistant for technicians (think of it as a smart knowledge base and remote expert assistance tool, using Watson AI). Assist helps field techs troubleshoot by providing relevant documentation or connecting to remote experts via AR/VR. Like Predict, Maximo Assist typically requires a Premium MAS license or a separate add-on subscription. It leverages AI services under the hood. This means if you want to use Assist, you should plan for the additional licensing (and possibly IBM Cloud services costs if not included). It can improve repair times and knowledge transfer, but you’ll need to evaluate if the scale of your operations warrants the expense.
In summary, module licensing can significantly impact your Maximo budget.
Many core add-ons (Scheduler, Spatial, Calibration, and basic mobile) are now bundled in Maximo’s modern licensing, which is a benefit of MAS. However, the advanced Asset Performance Management modules (Monitor, Health, Predict, Assist) require higher-level entitlements and thus incur higher costs.
Only deploy what you need – for each module, identify the specific users or assets that will use it and license accordingly. If a module is not delivering enough value or isn’t being used, consider disabling it to avoid paying for needless capacity.
Module licensing is an area ripe for optimization: it’s better to start small and add modules as required than to turn everything on and overspend from day one.
SaaS vs. On-Prem Maximo: Comparing the Models
Deciding between an on-premises Maximo deployment and IBM’s SaaS offering (or a hybrid) is a crucial step.
Each model has its pros and cons in terms of cost, control, and risk:
- Cost Model: On-premises Maximo involves a significant upfront cost for perpetual licenses, as well as annual support fees. This can be budget-friendly in the long term if you use the software for many years and keep maintenance active, but it requires an initial capital outlay. SaaS Maximo shifts costs to a subscription (operational expense) – you pay as you go, which is easier to budget for in the short term. Over a multi-year period, SaaS might end up costing more than the equivalent on-prem licenses (especially if you don’t negotiate well). Still, it provides flexibility to scale up or down at renewal. One advantage of SaaS is that if you downsize, you might reduce your user count in the next subscription term (whereas with perpetual licenses, you’d simply have unused licenses). Always compare the total 3-5 year cost of on-prem vs SaaS for your expected number of users and growth.
- Infrastructure & Management: With SaaS, IBM (or an IBM business partner) hosts the application in the cloud, manages the servers, performs backups, and handles technical administration. Your internal IT burden is much lower – essentially, you just configure Maximo for your business and use it, without worrying about patching servers or performance tuning the database. On-premises means you’re responsible for provisioning servers (or cloud VMs), installing the software, and maintaining it to keep it running smoothly. This requires skilled Maximo administrators and database administrators on your team (or hiring a managed services provider). If your company lacks the necessary IT resources or wants to focus on its core business rather than managing infrastructure, SaaS is an attractive option.
- Upgrades & Customization: In an on-prem model, you control the upgrade schedule. Some organizations choose to stay on an older Maximo version for stability, upgrading on their own timetable. This control also means you can highly customize the system (custom code, integrations, database tweaks) – though heavy customization can complicate future upgrades. In the SaaS model, upgrades are handled by IBM on a regular cycle (for MAS SaaS, IBM will upgrade your instance periodically, especially for Essentials/Standard tiers, which are multi-tenant). This means you’re always on the latest version with new features and security patches. The flip side is that you have less ability to delay or avoid upgrades. SaaS environments often also restrict certain customizations – for example, IBM might disallow direct database modifications or unsupported integrations in a multi-tenant SaaS. The Premium SaaS tier mitigates this by providing a dedicated instance with more configuration control (except that IBM still maintains the underlying database and core platform). If your Maximo implementation requires heavy integration and customization, an on-premises or dedicated SaaS solution might be better; if you prefer a standard, out-of-the-box approach with minimal fuss, a SaaS solution will serve you well.
- Compliance and License Management: On-prem deployments put the onus on you to stay compliant with license counts. IBM’s auditors can request an audit, and you’ll need to produce evidence of entitlements vs usage. As mentioned earlier, it’s easy to drift out of compliance on-prem if you enable extra users or modules without proper licensing. SaaS greatly reduces this risk: since IBM controls the environment, it is typically configured to match your purchased licenses. You won’t be able to create more user accounts than you’ve subscribed for (or if you do, IBM will be aware and can simply bill for the overage). Essentially, SaaS eliminates the surprise license audit – you won’t get hit with a huge compliance penalty because overuse is prevented or immediately covered by subscription adjustments. That said, it doesn’t mean you can ignore license management entirely: you should ensure you’re subscribed to the right number of users and not paying for more than you need (e.g., if you subscribe for 100 users but only 80 actively use Maximo, adjust at renewal). And if your SaaS contract has limits on aspects such as asset count or transactions, those limits still need to be closely monitored. Overall, however, SaaS makes license compliance a more straightforward billing issue rather than an audit issue.
- Performance and Scalability: With on-prem, performance depends on your hardware and tuning. You will need to add servers or CPUs if your usage grows. In SaaS, IBM is responsible for scaling the environment to meet the contracted user count and SLAs. If you need to grow, you can request more users/capacity in your subscription, and IBM will handle the scaling (often easier than procuring and setting up new hardware yourself). SaaS usually comes with availability guarantees (uptime SLAs), whereas your on-prem availability is on you (unless you have a robust IT infrastructure). Some companies with very strict uptime requirements might still prefer controlling it on-premises, but IBM’s SaaS is backed by enterprise-grade cloud infrastructure, making it suitable for most.
- Hybrid Options: It’s not a strictly either-or choice. Some organizations start on-prem and then migrate to SaaS when it makes sense (or vice versa). IBM offers programs to help convert on-premises licenses to SaaS credits in the Maximo Application Suite, allowing you to preserve your investment. You might also consider a hybrid approach, where non-production environments remain on-premises. In contrast, production is hosted in the Cloud (or use IBM’s SaaS for certain business units and on-premises for others during a transition). These hybrid scenarios require careful license tracking to ensure you’re not double-paying. Under MAS licensing, you might use your AppPoints entitlements flexibly between self-managed and IBM-managed deployments. Always coordinate with IBM on how a migration or hybrid deployment is covered from a licensing perspective. The good news is IBM is generally interested in moving customers to the cloud model, so they may offer incentives (like credit for unused support or bundle deals) to switch to SaaS.
Which to choose?
If you value full control, have complex integration needs, or already invested heavily in perpetual licenses, on-prem (or MAS deployed in your private cloud) could be the right choice.
If you prioritize ease of use, quick deployment, and reduced IT overhead – and don’t mind a pure subscription expense – Maximo SaaS is very appealing. Many enterprises evaluate the total cost over 5 years for both options, including infrastructure and staffing costs for on-prem, to make an informed decision.
Just remember that with SaaS, you’re also paying for peace of mind and support that can be worth the premium, especially to avoid compliance pitfalls.
Optimization Strategies for Maximo Licensing
Maximo licensing costs can add up, but there are several strategies to optimize spending and ensure you’re not over-licensed.
Here are some effective practices to manage and reduce your Maximo license costs:
- Audit User Accounts Regularly: Keep your user list up to date. Periodically review all Maximo user accounts to identify people who have left the organization or no longer need access. Inactivate or remove these accounts to potentially reduce the license count at renewal. Dormant named users waste money – by trimming them, one company was able to “true-down” 15% of their Maximo licenses during a support renewal, directly cutting costs. Make it a process: for example, quarterly check with department heads to confirm which users still need Maximo, and reclaim licenses from those who don’t. This also improves compliance because you won’t get caught with licenses assigned to ghost users in an audit.
- Right-Size License Types: Not everyone needs a full Authorized User license. Analyze usage patterns and assign the appropriate license type to each user. Suppose you have many users who log in infrequently or perform only limited tasks. Consider using Limited or Express licenses for them (if you’re on the old model) or assigning them a lower-tier role in MAS. Conversely, ensure heavy users have the proper license – cramming a power user into a limited license could violate terms if they access unauthorized modules. Use Maximo’s own reports or an audit tool to see how often each user logs in and what they do, then adjust the license type accordingly. This optimization can produce big savings: for instance, if 50 out of your 200 users are only checking status occasionally, moving them from Authorized to Express licenses (or to a shared concurrent pool) could dramatically lower costs without impacting their work.
- Consolidate Module Usage: Evaluate which add-on modules and industry solutions you have enabled, and who is using them. It’s common to find that a company purchased a module (such as Maximo Scheduler or an industry-specific solution) for a specific project or group, but over time, usage has dwindled. If a module isn’t providing value, consider retiring it. This might allow you to drop the associated licenses or, at the very least, not renew the add-on’s support. For example, if only two people are actively using a Scheduling module that you licensed for $ 20, you might remove those two or find a cheaper way (perhaps using base functionality or an optimization plugin) to meet the need. Align your module investments with current business needs – don’t pay for what you aren’t actually using.
- Optimize SaaS Tier and User Counts: If you’re on Maximo SaaS, choose your subscription tier and user quantities wisely. Right-sizing is key. For instance, if you subscribed to the Premium SaaS package but aren’t using all the dedicated features, you might downgrade to Standard in the next term to save money. Or perhaps you purchased 100 SaaS named users, anticipating growth, but you consistently only have 70 active users – consider negotiating to reduce your committed count in the future. SaaS gives you the opportunity to adjust at renewal (and sometimes mid-term, if you request it). Additionally, evaluate the need for non-production environments or extra sandbox instances in SaaS, as each may incur additional costs. Only pay for the environments and capacity you truly need. Essentially, treat the SaaS subscription like a utility bill: monitor usage and adjust the plan periodically so you’re not overpaying for unused capacity.
- Leverage True-Downs and Trade-Ins: In the world of enterprise software, vendors often focus on “true-ups” (you add more licenses if you used more), but smart customers also negotiate true-down rights. A true-down means if your usage decreases, you can reduce your license count or subscription in the next period without penalty. IBM is sometimes willing to agree to this, especially in multi-year or subscription deals. Be sure to request it during negotiations (more on that in the next section). Similarly, if you are transitioning from on-premises to MAS or SaaS, leverage any trade-in programs. IBM has offered credit for unused term licenses or for converting perpetual licenses into MAS AppPoints. By trading in what you have, you lower the net new investment needed. The key is not to pay twice for the same capability – optimize what you own, and when moving models, ensure that IBM recognizes your prior investment.
- Monitor Usage and Adjust Continuously: Optimization is not a one-time task. Make use of Maximo’s License Usage Monitor (in newer versions) or other tools to continuously track how many users are online, which license types are being consumed, and if you’re nearing any limits. This proactive monitoring will enable you to react before an issue becomes a compliance problem or before the renewal time. For example, if you see concurrent usage never exceeds 50 but you have 70 concurrent licenses, you might plan to reduce that pool to 50 at renewal (assuming peak coverage is maintained). Conversely, if you notice more people needing access than you planned, you can arrange a purchase before IBM knocks on your door. Ongoing optimization ensures you keep costs aligned with actual usage and prevent unpleasant surprises.
Negotiation Tactics with IBM for Maximo
IBM Maximo licenses (like most enterprise software) are negotiable. Don’t accept list pricing or standard terms without discussion – especially if you’re a large customer or making a significant purchase.
Here are several negotiation tactics and tips to help you get a better deal and more flexibility in your Maximo contracts:
- Bundle with Other IBM Products or Services: IBM often offers better discounts when Maximo is purchased as part of a larger bundle. If your company is also investing in related IBM software (WebSphere, DB2, Cloud Paks) or IBM Cloud infrastructure, consider negotiating them together as a package. Likewise, bundling Maximo license purchase with IBM consulting or implementation services can give you leverage – IBM might lower the software cost if they know they’ll get services revenue, or vice versa. Be cautious to only bundle what you actually need (don’t let sales convince you to add shelfware software just for a nominal discount). But do bring up the idea: for example, “If we include 50 WebSphere licenses needed for Maximo’s middleware, what discount can you offer on the whole package?” Bundling can also mean an Enterprise License Agreement (ELA), where you commit to a suite of IBM products for a fixed price. In an ELA, Maximo could be one component among many, often yielding a volume discount.
- Leverage IBM Business Partners: IBM partners and resellers can sometimes offer better pricing or, at the very least, create competitive pressure. Get quotes from an IBM authorized reseller in addition to IBM’s direct sales team. Business Partners often have the flexibility to reduce margins or include additional incentives (like free training or extended payment terms). They can also advocate on your behalf to IBM for special pricing, since they want to win your business. If you’re renewing licenses, a partner might be able to find creative solutions, such as using promotional part numbers or bundling in a way IBM Direct might not. Even if you plan to stick with IBM direct, letting them know you’re talking to partners signals that you expect a market-competitive deal.
- Negotiate Conversion and Migration Terms: As mentioned, IBM has a keen interest in moving customers to the cloud and the Maximo Application Suite. Use this to your advantage if you’re considering a migration. Request migration credits – for example, trade in each of your existing on-premises Maximo licenses for a specific credit towards the MAS SaaS subscription. IBM has offered programs where unused support years or a percentage of your original license value is credited in a SaaS deal. Ensure that any agreement to move to SaaS includes language that you won’t be double-charged during transition (you might negotiate a grace period where both on-prem and SaaS are allowed so that you can migrate gradually). Also, clarify upgrade rights: if you invest in traditional licenses now, can you later convert them to AppPoints or SaaS if you choose to upgrade? Including a clause in the contract that outlines a conversion path at predetermined rates will prevent you from being stuck or paying full price again later. IBM’s product models evolve, so protect yourself by securing options to adapt your licensing as technology changes.
- Multi-Year Commitments for Discounts: If you are confident in your Maximo usage needs, consider a multi-year agreement to receive discounts. Committing to a 3-year or 5-year term can improve your negotiating position. IBM may offer better per-user pricing if you sign a longer contract or pre-pay for multiple years, since it guarantees them revenue. In such cases, try to lock in favorable terms: for example, fix the yearly price increase (or negotiate none at all) for the term, and include the ability to adjust the user count up or down at certain anniversaries. A multi-year deal should ideally have price protection (no surprise hikes) and flexibility (some ability to true-down or at least add more at the same rate). Remember, a longer commitment is only beneficial if you’re certain you’ll need the licenses; otherwise, you may end up paying for unused capacity. However, if Maximo is mission-critical and stable within your organization, locking in a decent discount for several years can save significantly compared to annual renewals with price increases.
- ELA and Cloud Pak Negotiation: For large enterprises, it may make sense to negotiate Maximo as part of an Enterprise License Agreement (covering multiple IBM products) or to utilize IBM’s Cloud Pak licensing. IBM’s Cloud Paks are bundles that utilize token-based licensing across various software products. For instance, IBM might allow certain Cloud Pak for Automation or AI applications entitlements to cover Maximo usage in MAS. If your company has unused IBM Cloud Pak capacity, see if it can be allocated to Maximo; or when negotiating a new ELA/Cloud Pak, explicitly include Maximo (Maximo Application Suite) as one of the covered programs. The benefit is that you get a pool of resources that can flex between software, potentially smoothing out peaks and valleys of usage. During negotiation, mention that you’re evaluating other solutions or that you have a fixed budget – IBM might then be more inclined to find a way to fit Maximo into an existing bundle. Also, ensure any ELA, including Maximo, has clear language on how new modules or users are added and how they are counted (to avoid post-agreement confusion).
- Request Audit and Licensing Term Relief: Although it may not always be top-of-mind, you can negotiate aspects of the IBM audit clause and license metrics in your contract. While IBM likely won’t remove its right to audit, you can request things like a longer notice period, or that audits be at most once every X years, or that they must use your data from built-in tools first before requesting more. Some customers negotiate a provision that if an audit reveals you are out of compliance, you can purchase the necessary licenses at a discounted rate (rather than the full list plus penalties). This kind of term can save massive costs if the worst happens. Additionally, clarify ambiguous terms: for example, if you’re using concurrent licenses, define what constitutes “simultaneous use” (is it concurrent login count per day, per second, etc.?) to avoid any loose interpretation. Iron out any ratio requirements or user definitions by referencing IBM’s official license texts in your contract. The goal is to avoid gray areas that IBM’s auditors could exploit. IBM’s sales representatives might say, “Oh, we don’t typically change that clause,” but if the deal is significant, push for reasonable adjustments – even a written side letter can be effective.
- Avoid Overbuying (Shelfware): Sales teams might tempt you with discounts to buy more licenses than you need upfront (“If you increase from 50 to 100 users now, I’ll give you 30% off!”). Be wary of this. It’s only a deal if you truly will use those extra licenses within the term. Otherwise, you’ve just spent money on shelfware that also incurs support costs. A better tactic is to negotiate a price hold for future purchases – for example, get IBM to agree that you can buy additional users at the same per-user price as this deal for the next 12 or 24 months. That way, you secure the discount for expansion without having to commit all the cash upfront. Most IBM contracts allow add-on purchases to co-term with the original anyway; make sure they honor the original discount percentage. This strategy ensures you aren’t stuck with paid-but-unused licenses just to get a volume break.
Approach the negotiation with a clear understanding of your needs and usage data. Show IBM that you’ve done your homework on current usage, future growth, and even competitive alternatives. The more informed you are, the more likely they’ll come to the table with a reasonable offer to keep Maximo as your choice.
Remember, everything, from price and support fees to special provisions and transition assistance, is negotiable. Get any promises in writing (in the contract or an addendum) – verbal assurances won’t help later.
With a solid negotiation, you can secure a licensing arrangement that aligns with your budget and provides flexibility as your asset management program evolves.
FAQs — Maximo Licensing
Q: Can I convert on-prem Maximo licenses to a cloud subscription (Maximo SaaS)?
A: Yes. IBM offers programs to “trade in” your existing on-prem Maximo entitlements for credit towards the Maximo Application Suite SaaS. For example, you might surrender perpetual licenses in return for a discounted MAS subscription. The exact terms (such as conversion rate) depend on your agreement and IBM’s current offers, so please discuss this with your IBM representative. The key is that IBM recognizes your prior investment; you won’t necessarily have to pay full price all over again to move to the cloud.
Q: Are Maximo licenses transferable if an employee leaves or changes roles?
A: Generally, yes – Authorized User licenses can be reassigned to another individual permanently. IBM’s policy is that a named user license is unique to one person, but if that person leaves the company or no longer needs access, you may transfer that license to a replacement user. You should document the change (e.g., disable the old user account and enable the new one). What’s not allowed is sharing one license between two active people at the same time, or frequent swapping back and forth. The transfer should reflect a genuine personnel change. Always check your specific contract language, but IBM’s standard terms permit reassignments due to staffing changes.
Q: Does using Maximo as a SaaS eliminate audit risk and compliance issues?
A: It significantly reduces traditional audit risk, but it doesn’t mean you can ignore licensing entirely. With Maximo SaaS, IBM manages the software and will ensure you can’t exceed the number of users or usage level in your subscription – so you won’t accidentally deploy more licenses than you own. This removes the classic compliance gap that leads to audits. However, you still need to stay within the bounds of your contract (e.g., if you somehow use more resources or modules than your tier allows, IBM will expect you to upgrade your subscription). Additionally, financial compliance is a factor: you must ensure that you’re not overpaying for unused capacity. In short, SaaS spares you from unexpected audit penalties, but you should actively manage your subscription to ensure it matches your needs.
Q: Do Maximo modules like Scheduler, Mobile, or Industry Solutions require separate licenses?
A: Yes, in most cases, additional modules or industry solutions come with additional licensing requirements. In older versions of Maximo, modules such as Scheduler, Maximo Anywhere (Mobile), Spatial, or an Industry Solution (like Utilities or Oil & Gas) were separate add-on licenses you had to purchase on top of core Maximo. Each module might be licensed per user or per installation. Under the newer Maximo Application Suite, IBM has bundled certain functionality (Scheduler, Spatial, and core mobile) into the base product; however, advanced modules (Monitor, Health, Predict, etc.), as well as industry packs, still consume additional AppPoints or require higher-tier user licenses. The bottom line: whenever you enable an add-on module, assume there’s a licensing implication – either an extra cost or needing to allocate license capacity for it. Always confirm with IBM which modules are included in your edition and which are add-ons.
Q: Can I mix SaaS and on-prem Maximo deployments in a hybrid model?
A: Yes, it’s possible to have a hybrid Maximo deployment, but it requires careful license management. For example, you might keep a production instance on-premises and spin up a test or development environment in the IBM Cloud, or vice versa. IBM allows this as long as you have the appropriate licenses covering each environment. If you own perpetual licenses, you can even have a partner host your Maximo (which can resemble SaaS). With Maximo Application Suite, your entitlements (AppPoints) could potentially be applied to either self-managed or IBM-managed deployments. However, you cannot “double dip” – one license entitlement can’t cover two active installations at the same time beyond what’s permitted (unless you have a special arrangement). Many clients transitioning to SaaS run parallel on-prem and SaaS environments temporarily; IBM typically provides a conversion period for that. Always communicate your hybrid plans with IBM to ensure compliance. In short, mixed models are allowed; however, ensure you have sufficient licensing for all instances in use and understand how support will be provided across them.
Q: Does IBM still offer concurrent (floating) user licenses for Maximo?
A: Yes, concurrent user licensing for Maximo is still available, particularly for on-premises licensing and certain SaaS offerings like IBM’s Maximo SaaS Flex. Under concurrent licensing, you buy a pool of shared licenses instead of one per named user. IBM’s current approach (especially with Maximo Application Suite) is to allow concurrency by using token pools (AppPoints) – effectively implementing concurrency across the suite. However, concurrent licenses often cost more per seat (IBM equates roughly three named users to one concurrent user in value). Not every SaaS tier may support concurrency (some SaaS packages are strictly per named user). If concurrency is important to you, make that clear during procurement so you get a model that supports it. And remember to actively monitor usage – IBM will audit peak usage to ensure you didn’t exceed the concurrent count.
Q: Do all Maximo users need a paid license, even those who just submit requests or view data?
A: Not all users require a paid license. Maximo provides a Self-Service User role, which allows individuals to perform very limited actions (like submitting a service request, creating an incident ticket, or checking the status of their requests). These self-service users are free and unlimited as long as you have at least one Authorized User in the system. For example, all employees in a company could be given access to a simplified request portal without consuming licenses. They cannot use the full Maximo applications – their access is restricted to the self-service functions. Additionally, if someone only needs read-only inquiry access or basic approvals, you may consider whether an Express user license (a very low-cost option) is sufficient. Always map the user’s needs to the lowest appropriate license tier. This way, managers or casual users don’t have to purchase expensive full licenses when they don’t need to.
Five Recommendations — Maximo Licensing
- Regularly Review User Accounts: Implement a quarterly review of all Maximo user accounts to ensure accuracy and compliance. Promptly remove or reassign licenses from users who have left or are inactive. This practice prevents the need to pay for idle licenses and ensures your user count accurately reflects your actual needs.
- Audit Module Utilization: Take inventory of which Maximo modules and add-ons you have enabled. Determine if each is actively used and delivering value. If you find that modules (e.g., an industry solution or IoT add-on) aren’t being utilized, consider turning them off and dropping the associated licensing to reduce costs.
- Compare SaaS vs. On-Prem Total Cost: Perform a multi-year cost analysis for your deployment options. Include software fees, infrastructure, support, and staffing in the comparison. Select the model that best suits your usage stability and budget preferences. For a steady user base with IT resources, on-premises might be cheaper in the long term; for variable growth or limited IT support, SaaS’s predictable pricing could be worth the premium.
- Negotiate SaaS Migration Credits: If you plan to move to IBM’s SaaS or Maximo Application Suite, don’t start from scratch. Push IBM to credit your existing on-prem investments. Negotiate a conversion deal (such as a trade-in value or discounted subscription rate) to transition to the cloud. This can significantly lower the cost of migration and make executive approval easier.
- Utilize Partners and Bundling for Leverage: Engage an IBM Business Partner or reseller to obtain competitive quotes and gain valuable insights. Bundle your Maximo purchase or renewal with other IBM products or services to gain volume discount leverage. Also consider broader deals like an Enterprise License Agreement if you use multiple IBM software products. Bundling and partner channels can unlock deeper discounts and more favorable terms than a standalone license purchase, maximizing the value for your organization.
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