IBM Support & Services Negotiation

IBM Support & Services Negotiation: Cutting Costs on Support, Cloud and On-Prem

IBM Support & Services Negotiation

IBM Support & Services Negotiation Cutting Costs on Support, Cloud and On-Prem

Introduction

IBM’s software support fees are a significant recurring expense for enterprises. Every year, IT budgets absorb large Subscription & Support (S&S) charges for on-premises licenses, as well as built-in support costs for IBM’s SaaS and cloud services.

Smart negotiation of support contracts can yield annual savings of 10–20% without compromising essential coverage.

This article offers a procurement-focused examination of IBM support models, comparing traditional on-premise support with SaaS support and examining IBM’s premium cloud support tiers.

It also outlines strategies to reduce costs. An expert, slightly skeptical lens is applied to highlight vendor tactics (such as annual price increases and upsells) and how buyers can counter them.

By understanding IBM’s support structure and leveraging key negotiation levers, enterprises can contain costs while maintaining the support levels needed to keep systems running and users happy.

On-Prem Support (S&S) vs. SaaS Support

For on-premises IBM software, support is purchased as an annual software and support (S&S) maintenance fee – roughly 20% of the software license’s cost per year. This S&S fee entitles the customer to technical support and version updates.

It’s a substantial cost that repeats yearly, and often IBM tries to increase this fee by 5–9% annually unless the customer negotiates a cap.

The upside of on-prem support is flexibility: if budgets tighten, customers can choose not to renew S&S on certain licenses (though doing so halts upgrades and support for those products).

In other words, with perpetual licenses, you retain the right to use the software indefinitely, even if you drop support – you just forgo new versions and fixes in the future.

By contrast, IBM SaaS (Software-as-a-Service) subscriptions bundle the support into the subscription price. You pay a single recurring fee (monthly or yearly) for the cloud service, and IBM provides all needed support and updates as part of that service.

There’s no separate 20% maintenance line item – support is baked into the SaaS cost. However, this convenience comes at a price: SaaS subscriptions often have a higher effective cost over time.

Because you never “own” a perpetual license, you must continue to pay to maintain usage, which can end up being more expensive than a license and support model if used over the long term.

In essence, IBM SaaS support costs are hidden in the subscription – you can’t drop support to save money without dropping the service entirely.

The trade-off here is cost certainty vs. flexibility. SaaS offers predictable all-in pricing and ensures you’re always on a supported version, but it comes at the cost of losing flexibility to cut support costs or defer upgrades.

On-prem licensing with separate S&S allows more control (you might skip a support renewal on unused licenses to save cash), albeit with the risk and limitations that come with any unsupported software.

Key Comparison – IBM On-Prem vs. SaaS Support:

  • On-Prem S&S: ~20% of license cost per year; optional each year (you can drop it at risk of no upgrades). Allows ownership of software indefinitely, but requires an additional payment for ongoing support.
  • IBM SaaS Support: Included in subscription fee; mandatory as long as you use the service. No separate support contract is required to manage your account, but you must continue to subscribe to retain access and support.
  • Cost Over Time: Perpetual + S&S can be cheaper if the software is used for many years (especially beyond ~5 years). SaaS can be more expensive in the long run, as support is paid continuously, but it bundles everything (infrastructure, updates, support) for convenience.
  • Flexibility: The on-prem model offers flexibility to pause or reduce support on unused licenses (saving cost, but losing upgrade rights). SaaS offers no such option – if you need the software, you pay, and support is inherently included. However, SaaS provides flexibility to scale usage up or down at renewal, avoiding “shelfware” licenses that continue to incur support costs despite low usage.

In summary, IBM’s traditional support model incurs a visible 20% annual fee that can be optimized or reduced.

In contrast, the SaaS model incorporates support into a larger recurring bill, which is simpler but often more costly over an extended period.

Buyers should evaluate which model yields a lower total cost of ownership for their needs, and remember that IBM support costs are always negotiable – whether as a standalone S&S discount or as part of a larger subscription deal.

Negotiating S&S Discounts

The annual subscription and support renewal time is a prime opportunity to reduce costs on IBM on-premises software. IBM’s support contracts are not set in stone; especially for large enterprises, significant discounts and concessions are achievable with the right approach.

Here are key tactics for IBM support contract negotiation, focusing on S&S fees:

  • Leverage Volume for Discounts: If you have a large volume of IBM licenses or a high annual support and services (S&S) spend, consider requesting a percentage discount on your support renewal. It is common to secure 10–15% off (or more) on maintenance if your spend is substantial. IBM knows third-party support alternatives exist (and that customers might threaten not to renew), so they may concede a discount to retain your business. Always benchmark what similar companies pay – if you can cite that peers negotiated, say, 15% off on a multi-million dollar renewal, IBM is more likely to match it.
  • Negotiate Multi-Year Rates: Rather than renewing support year by year with uncertainty, negotiate a multi-year renewal with fixed or capped rates. IBM often offers price protection if you commit to a term of 2-3 years upfront. For example, you might secure a deal where S&S is locked at today’s price for the next three years, or increases are capped at 3–5% total instead of compounding 7% per year. Multi-year commitments benefit IBM (guaranteed revenue), so they may reward you with a better rate. Just ensure the contract explicitly states the cap or fixed rate for each renewal year.
  • Drop Unused License Support: Review your entitlements – are you paying support on software licenses you no longer actively use? IBM allows partial support renewals, meaning you can choose not to renew S&S on select licenses. If certain modules or server licenses are truly shelfware, consider dropping their support to save money. Be cautious: if you drop support on a component, you lose upgrade rights for it, and IBM will charge hefty back fees if you later decide to reinstate support. Still, it’s wasteful to keep paying maintenance for idle assets. A middle ground in negotiations is to ask IBM for flexibility to drop a percentage of licenses from support without penalty, or convert unused licenses to a cheaper license type. At a minimum, conduct an internal audit of your usage to ensure you’re only renewing support for what delivers value.
  • Threat of Third-Party Support: As a negotiating lever, mention (tactfully) that you are exploring third-party support providers such as Rimini Street or Origina. These independent firms often charge 50% or less of IBM’s support fees to support older versions of IBM software. While moving to third-party maintenance means foregoing new IBM patches, it can be a viable option for stable, legacy systems. IBM’s sales teams are aware of this option and may offer a better discount or deal if they sense that you might leave official support. Even if you don’t actually switch, the credible possibility can motivate IBM to sweeten the renewal terms (e.g., by granting a discount or throwing in extras) to keep you on S&S.
  • Carry-Forward Discounts: If you originally received a significant discount on your licenses or support, ensure that the discount percentage carries over to the renewal. IBM’s “playbook” sometimes involves offering a one-time big discount and then attempting to “uplift” the renewal price back toward the list price in subsequent years. Don’t let that happen. Insist that any negotiated discount off list (for example, 50% off license and support in Year 1) remains in effect for future support periods. This should be written into the contract. Otherwise, you may find that your support costs increase dramatically after the initial term. A best practice is to include a clause that preserves the same net unit price or discount level for support when you renew.

Checklist: Items to Negotiate in an IBM S&S Renewal

  • Cap on Annual Uplift: Ensure maintenance fee increases are capped (e.g., no more than 5% per year or tied to inflation index) to prevent budget creep.
  • Multi-Year Commitments: Lock in a 2–3 year support term at a fixed rate or pre-negotiated minimal increase. This protects you from sudden jumps and provides cost certainty.
  • Flexibility for Reductions: Negotiate the right to reduce licenses or support quantities at renewal if usage drops. Avoid clauses that force you to pay for redundant licenses.
  • Reinstatement Terms: Clarify any penalties if you drop and later reinstate support. IBM’s default reinstatement fees are punitive (often 150%+ of back fees) – try to waive or limit these in case you need to return to IBM support.
  • Bundle Incentives: Ask if IBM can bundle in extras for free – e.g., a few months of support at no charge or complimentary training – especially if you’re considering new IBM purchases alongside the renewal. Get creative: IBM might prefer giving a “freebie” over a bigger discount, but either yields savings.

By treating your S&S renewal as a negotiation (not a routine invoice), you can usually trim the fat.

IBM sales reps may initially claim that “policy” mandates a 7% uplift or that discounts on support are rare – but in practice, everything is negotiable if your account is valuable.

Show that you’re an informed buyer willing to explore alternatives, and IBM is likely to come to the table with concessions to retain your support dollars.

Support Level Negotiation

IBM offers various support tiers and service levels, particularly in its cloud and enterprise services, which can also be negotiated. On the IBM Cloud platform, for instance, customers have access to Basic, Advanced, and Premium support plans.

Understanding what each level includes – and ensuring you get the appropriate level without overpaying – is another angle for cost control.

  • Basic Support (IBM Cloud): This is the default support included for IBM Cloud accounts. It provides 24/7 access to support via support cases (online), but no guaranteed response times for issues, and no phone/chat immediate support. Essentially, it’s entry-level help for non-critical needs. Basic is fine for development or test environments, but production systems may require faster responses.
  • Advanced Support: This is a paid upgrade (often priced at 10% of your monthly cloud spend, with a minimum of approximately $200/month for IBM Cloud) that offers prioritized case handling. You gain access to IBM support via phone and chat, and IBM commits to specific initial response time targets (for example, under 1 hour for Severity 1 critical issues, under 2 hours for Severity 2, and so on). Advanced support ensures your high-priority issues are addressed quickly than under Basic. It’s geared towards businesses running production workloads that require more than “best effort” assistance.
  • Premium Support: IBM’s highest tier (often 10% of spend with a high minimum, e.g. $10k per month on IBM Cloud) for mission-critical environments. Premium includes all the Advanced features plus a dedicated Technical Account Manager (TAM) assigned to your company. The TAM provides proactive guidance, quarterly reviews, and personalized assistance. Initial response times are even faster (IBM Cloud promises a response time of ~15 minutes for Severity 1). Premium is designed for large enterprises that demand white-glove support and very fast turnaround on issues.

For on-premise software, IBM doesn’t label support as Basic/Advanced/Premium in the same way – your S&S contract generally includes standard support.

However, IBM does offer Premium Support Services (sometimes referred to as Enhanced Support or named support engineer programs) at an additional cost for large customers.

These can include a dedicated support engineer, faster SLAs, or on-site assistance. If you have a mission-critical IBM software stack (like core banking systems on WebSphere, or mainframe software), IBM might propose such premium services for an extra fee.

Negotiation tips for support levels:

  • Assess Actual Needs: Don’t automatically opt for the highest support tier if you don’t truly need it. IBM’s sales teams may push premium support “for peace of mind,” but you should evaluate the impact of an incident and required response times. If your usage is not 24/7 or life-and-death, Advanced support might suffice instead of Premium. Understand what you’re paying for – e.g., do you need a TAM to conduct quarterly reviews, or will occasional support tickets with a one-hour response time be enough? Align the support level to your business criticality.
  • Negotiate Tier Upgrades in Large Deals: If you are committing a significant amount to IBM (either through cloud consumption or an Enterprise License Agreement), request that a higher support tier be included at no additional cost. For example, if your IBM Cloud usage is expected to be, say, $1 million/year, it’s reasonable to request Premium support free of charge as part of the deal. IBM, like other cloud providers, has discretion to waive or discount support fees for strategic customers. Similarly, in on-premises deals, if you’re buying a large bundle of licenses, ask for some premium support services to be included – such as a dedicated support liaison or faster SLA commitments – without additional cost. The key is that support is a value-add IBM can use to sweeten a contract without reducing the software price on paper.
  • Ensure Upgrades and Fixes Are Included: Be wary of any attempt to make you pay extra for what should be standard. All IBM S&S agreements include the right to new version upgrades and patches. If IBM offers a premium support add-on, it should be for additional services (like a TAM or direct hotline), not basic fixes. Do not let necessary patches or critical bug fixes become a paid upgrade. Occasionally, vendors try to position certain advanced troubleshooting or “product extensions” as part of a higher support package – push back and insist that keeping the software running (and updated) is covered under your base support fees. In negotiations, spell out that you expect all software updates, security patches, and general incident support to be provided under the standard S&S terms. Premium support should only be considered for truly extra value (like architectural guidance, extremely tight SLAs, etc.). This avoids a scenario where you feel forced into an upsell just to get normal support quality.
  • Trial the Support Level: If you are unsure whether, for example, Premium support is worth it, negotiate a trial period or a short-term escalation clause. Perhaps IBM can agree to provide Premium-level support for the first 3–6 months of your cloud deployment as a courtesy. Then you can evaluate whether the metrics justify continuing (and paying) for it. This way, you’re not locked into expensive support tiers without seeing the real value. IBM may also agree to let you start at Advanced and upgrade to Premium mid-term if needed, charging a pro-rated difference. Keep flexibility in your support terms.

In summary, match IBM’s support offerings to your requirements, and use your total spend as leverage to get higher service levels without proportional cost increases.

Often, support tier negotiation is about getting more for the same price. For example, paying the Basic included rate but receiving some Advanced benefits due to your enterprise status, or paying for Advanced but getting some Premium-level attention.

IBM wants to keep your cloud workloads and license business, so use that as leverage to ensure you’re well-supported without breaking the bank.

Cloud Support Credits and Enterprise Perks

Beyond the formal support tiers, enterprise customers should seek out any available cloud support credits or waivers.

Other major cloud vendors (AWS, Azure) sometimes offer support fee credits or reduced rates as part of large agreements – IBM can too, if pressed.

First, understand that if you’re using IBM SaaS or cloud subscriptions, support charges may already be embedded. For instance, as discussed, IBM Cloud’s Advanced/Premium support is calculated as a percentage of consumption.

In a large-scale deal, rather than paying that formula price, negotiate a custom support charge or credit structure. For example, if standard Premium support is 10% of spend, you might negotiate it down to 5% or a flat monthly fee that effectively reduces the cost.

One approach is to ask for “support credits”: a pool of value that can offset support costs each month. If you commit to a high level of IBM Cloud usage, IBM might agree to provide a certain amount of support services at no cost (essentially crediting back support fees).

While IBM doesn’t publicly advertise support credits, enterprise agreements are flexible – you can bake in, say, $100,000 in support services credit per year that you can use towards Premium support or other IBM services.

Secondly, offer free Premium support once thresholds are met. A common enterprise practice is to include premium support if spend exceeds a threshold – essentially, “if we spend $X million with you, you will give us your highest support tier.”

Make this argument during negotiations: the more you invest in IBM’s cloud, the more IBM should invest in supporting you. If IBM balks at completely free support, aim for a significant discount (50% off the list rate for Premium support, for example).

The cost of support to IBM is mostly staffing; if you’re a large account, they will often concede on support margin to win or retain your business on the platform.

Another lever: avoid double payment of support in hybrid deals. If you have a mix of on-premises licenses and IBM Cloud services, be aware of potential overlapping support charges.

For example, if you have an IBM software deployed on-premises that you also burst into IBM Cloud occasionally, ensure you’re not paying full S&S plus extra cloud support for essentially the same product usage.

You may negotiate an integrated support plan that covers both environments. Additionally, if you’re transitioning from on-premises to SaaS, consider asking IBM for support fee amnesty during the transition.

Perhaps you can stop paying for on-premises S&S a few months early as you transition to the SaaS, without penalty – IBM can then treat the SaaS subscription (with support included) as the replacement.

The goal is to eliminate any period where you’d be paying twice for support (once on-prem, once in SaaS) for the same software capabilities.

In IBM Cloud enterprise agreements, also inquire about service credits for support issues. For instance, if IBM Cloud misses an SLA or if there’s a major outage affecting you, will they provide credits or refunds?

While this is more about SLA guarantees, it’s part of the support-value equation. Ensure the contract includes meaningful penalties for IBM if they fail to meet support responsiveness or uptime commitments – or, at the very least, a process for claiming credits.

This indirectly saves costs by holding IBM accountable; if they know they’ll owe credits, they may be more inclined to offer a better upfront support deal or ensure quality.

Bottom line: Treat cloud support as a negotiable component, just like the core service. Don’t accept the rack-rate percentages blindly; look for creative ways (such as credits, bundled thresholds, or transition arrangements) to keep those support costs down.

IBM wants to grow its cloud business, so use that to get premium support perks included as part of your total cloud investment.

IBM Global Services & License Bundling

IBM often wears two hats – as a software vendor and as a professional services provider (IBM Consulting/Global Technology Services).

Savvy customers can play these offerings off each other to drive savings. When negotiating a major IBM deal, consider the bundle of licenses, support, and services holistically.

One common scenario: You’re purchasing a set of IBM software licenses (or a big renewal) and also need consulting or implementation services. IBM may propose a package deal.

They might offer a steep discount on software licenses (for example, 30–50% off list price) if you also sign up for a certain amount of IBM Global Services work.

Essentially, IBM can cross-subsidize – making money on services while cutting you a break on the license cost, or vice versa. This can be advantageous, but you must ensure it’s a genuine win for you, not just a shell game.

Be cautious of inflated service rates:

If IBM heavily discounts the software, it might attempt to inflate the hours or rates on the services to compensate.

Always break out the components. Insist on detailed proposals: the software prices, support fees, and service fees should all be itemized.

If IBM says, “We’ll give you 40% off licenses if you buy a year of our consulting,” evaluate the consulting quote carefully. Are the daily rates for IBM consultants reasonable and market-aligned? If possible, benchmark consulting costs against those of other providers.

Sometimes, IBM’s service rates can be significantly higher than those of third-party integrators.

If you suspect that’s the case, you have a few options: push IBM to match market rates on services, reduce the scope of IBM’s services and use a third-party for some work, or ask for an alternative concession (e.g., “We won’t take IBM services, but give us a smaller license discount plus a support fee waiver”).

The key is not to be so dazzled by a big license discount that you overpay on services, eroding the overall value.

Bundle support with new purchases: Another angle is to negotiate support concessions when buying new licenses or subscriptions. If you’re making a new IBM purchase (say, adding IBM Cloud Pak licenses), you could request a period of free support on your existing licenses as part of the deal.

For example, “We’ll buy this new software, but in return we want 6 months of support renewal on our current environment at no charge.” IBM might accept that to encourage the upsell.

Alternatively, if expanding your license footprint, ask IBM to keep the support rate unchanged for the enlarged volume (preventing them from charging full price on new units). Use the expansion as leverage: “We’re giving you more business, so hold our maintenance at the same or lower percentage.”

Also, consider the timing of deals. IBM reps have quotas and are often willing to bundle and discount more aggressively at quarter-end or year-end.

If you align a services contract negotiation with a support renewal at year-end, IBM might stretch to meet multiple goals – perhaps granting a concession on support costs if you sign a big services deal in Q4 that helps them hit a target.

Coordinate internally between your procurement and IT teams so that software and services negotiations aren’t siloed; a unified approach yields more leverage.

Verify pricing integrity: Whenever bundling, always compute the “all-in effective rate” you’re paying. After the dust settles, what’s the total cost for licenses, support, and services, and does it truly reflect the claimed discounts?

For instance, if IBM offers 50% off licenses, but then you realize its services are 30% higher than those of a competitor, your net savings are smaller.

Try to negotiate each component to a fair price: perhaps you can accept a moderate software discount in exchange for fairly priced services and fixed support rates. Or, if service quality is crucial and you trust IBM for it, consider getting as much as you can on the license/support side in return.

Make IBM compete with itself: the software division and services division each have their own margins, and you can use one to get a better deal from the other.

In summary, bundle carefully and intentionally. IBM will often be flexible on one part of the deal if they gain on another. Ensure you, not IBM, decide where value is taken.

The goal is a true net reduction in cost or improvement in value – not just moving the spend around.

If done correctly, combining an IBM Global Services engagement with your licensing deal can lead to overall savings and a more effective support structure (e.g., IBM may include additional support oversight during the project).

But always read the fine print and do the math: you want to emerge with both reasonably priced software and services, rather than overpaying for one under the guise of a “bundle discount.”

FAQs: IBM Support Cost & Policy Questions

Q: Can I drop support on some IBM licenses I’m not using?
A: Yes – IBM generally allows you to selectively not renew S&S on unused perpetual licenses. However, those licenses will then be frozen at their current version with no upgrades or fixes. If you later need to reinstate support, IBM will charge back support fees and penalties for the lapsed period, which can be costly. So, you can drop support to save money on shelfware, but weigh the risk and try to negotiate minimized reinstatement penalties if possible.

Q: Is third-party support available for IBM software, and is it allowed?
A: Absolutely. Independent providers like Rimini Street and Origina offer third-party support for many IBM products (WebSphere, DB2, Notes/Domino, etc.). Using them is legal as long as you remain properly licensed for the software. The third-party firm will provide technical help and bug fixes (often through workarounds) even after IBM’s official support ends. The caveat is you won’t get official IBM patches or new versions. Many companies utilize third-party support to extend the life of stable systems, typically saving 50% or more on support fees. Just ensure you don’t need future upgrades – because if you do, you’d have to return to IBM’s support and pay those back fees.

Q: How do SaaS support costs compare to traditional S&S costs?
A: With SaaS, support is bundled into the subscription, so there’s no explicit maintenance fee. However, that doesn’t mean it’s free – the subscription price often effectively includes a margin for support (and infrastructure). In fact, over a long period, SaaS can be more expensive than a perpetual license plus 20% a year maintenance. You’re continuously paying, and the vendor can raise subscription prices at renewal. Traditional S&S at 20% annually may be cheaper if you run the software for, say, 5 years or more. The benefit of SaaS is that you get full service (hosting, updates, support) for the price, which, for shorter-term or highly elastic use, can be worth it. But if you calculate “support vs. S&S”: often SaaS equates to paying a premium where support might effectively be 30-40% of the cost portion, versus 20% in the on-prem model. It varies by product, but the key point is that SaaS includes support, albeit often at a higher effective rate, whereas on-premises S&S is a separate (and negotiable) line item.

Q: Can premium cloud support (Advanced/Premium) be negotiated for free or at a discount?
A: Yes, especially for large contracts. IBM won’t usually volunteer it, but if you’re a significant IBM Cloud customer or bundling cloud services in an enterprise agreement, you can negotiate to get an Advanced or Premium support tier at little to no extra cost. For instance, an enterprise spending a high amount annually on IBM Cloud could request Premium support to be included as part of that investment. IBM account teams often have the discretion to waive support charges or provide credits to key customers. Even if not completely free, you might secure a heavy discount (e.g., paying 5% of spend instead of 10%). Always ask – the worst they can say is no, but often, to win or keep big deals, IBM will negotiate on support fees.

Q: Does IBM offer multi-year fixed support rates or price caps on support?
A: Yes. IBM will not advertise it upfront, but in negotiations, you can definitely get multi-year support terms with fixed pricing or capped increases. It’s common in large agreements to include a clause like “Support fees shall remain at $X per year for 3 years” or “shall not increase more than 5% at renewal.” IBM may tie increases to an inflation index or simply agree to a flat fee for a period.

Additionally, multi-year prepaid support (paying for two or three years at once) sometimes comes with a small discount or a price freeze.

The key is you must negotiate and get it in writing; otherwise, IBM’s standard practice is an annual uplift. However, multi-year fixed-rate support deals are available – many customers secure them to protect against unexpected price hikes.

Related articles

Five Recommendations for IBM Support Negotiation

  • Audit Current Spend: Conduct a thorough audit of your IBM support costs, including on-premises licenses and SaaS subscriptions, to ensure accurate and up-to-date information. Identify where the money is going – which products have high S&S fees and which cloud services have support bundled. This clarity enables you to target the largest savings opportunities (e.g., eliminating unused support or prioritizing high-value support contracts first). Understanding your on-prem vs. SaaS support cost breakdown will inform your negotiation strategy with IBM.
  • Negotiate Rate Caps: Don’t accept yearly price increases as a given. Push for rate caps or freezes on support during your contract term. Insist on clauses that limit support fee increases to a minimal level (or 0% for a couple of years). IBM is often willing to set these caps for valuable customers, but only if you ask. A capped support rate safeguards you against IBM’s standard annual uplifts of 5–7% and provides budget stability.
  • Bundle Carefully: Use IBM’s portfolio to your advantage by bundling strategically. If you plan to buy new licenses or IBM Cloud services, negotiate support concessions in tandem – for example, get a discount on S&S renewals or a free support upgrade as part of a larger deal. Conversely, if you are purchasing IBM consulting services, leverage them to secure better software support terms. Bundle, but verify that each component’s pricing is fair, so you net true savings rather than moving costs around.
  • Leverage Alternatives: Keep third-party support and in-house options on the table. Even if you remain with IBM support, the mere option of switching adds leverage. Evaluate if stable legacy systems could go to a third-party supporter at half cost – if so, bring that up in talks. Also, consider if you can self-support minor products. IBM is more flexible on price when they know you have other avenues. Use those alternatives as a pressure point to get better terms or reduced fees.
  • Push for Cloud Credits: In cloud and SaaS negotiations, aim to secure premium support as part of the deal. This could mean requesting a certain amount of support at no additional cost (via credits) or having IBM include the Advanced/Premium tier without any extra charge once your spend reaches a predetermined level. The goal is not to pay extra for high-tier support when you’re already investing heavily in IBM’s cloud. Make premium support a condition of large cloud commitments. By tying support into the subscription, you ensure that you’re fully covered without any surprise line-item expenses, maximizing the value of your IBM enterprise agreement.

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Author
  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizations—including numerous Fortune 500 companies—optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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