User-Based IBM Licensing Metrics

User-Based IBM Licensing Metrics

• Count of active users on the system
• Usage frequency per user
• Peak simultaneous users
• User roles and permissions for access control
• License allocation per department or team
• Monthly or annual user growth rate
• Average session duration per user
• User logins over time
• Expired or inactive licenses
• Cost per user

What Are IBM User-Based Licensing Metrics?

User-based IBM licensing metrics define how users are counted for licensing software. This approach differs from machine-based or processor-based licensing, where the license depends on the hardware or infrastructure setup.

Instead, user-based metrics count the number of people accessing the software, and it can be broken down into several categories:

• Named Users: Licenses tied to specific individuals.
• Concurrent Users: Licenses based on the number of people using the software simultaneously.
• Authorized Users: Licenses linked to people who can access the software, regardless of usage.

Let’s dive into the details of each of these metrics.

Named User Licensing

A named user license is tied to a specific individual, meaning only the assigned person can use the software. The key details are as follows:

• Definition: A named user is explicitly named and designated to use the software. Even if they are not actively using the software, they count against the total number of licenses.
• How It Works: Imagine your company has 100 employees, and 20 are assigned named user licenses for IBM SPSS. Even if only 5 people use SPSS on any given day, all 20 are licensed because they are called.
• Usage Scenario: Named user licensing is ideal when a set group of users needs continuous software access. For example, if you have a dedicated data analysis team that uses IBM Cognos daily, named user licensing could work well.
• Key Considerations:
  • Cost: The cost depends on the number of named licenses. Assigning licenses to people who do not use the software regularly can be expensive.
  • Reassignment: Named user licenses can often be reassigned, but usually not frequently. Check IBM’s licensing agreements for specific terms about reassignment limits.

Pros:

• Predictable costs for each user.
• Easier management for teams that need consistent access.

Cons:

• You pay for licenses even if they’re not being used actively.

Concurrent User Licensing

Concurrent user licenses are based on the number of users accessing the software simultaneously. This model is popular for organizations with many users who do not all need access simultaneously.

• Definition: A concurrent user is any user accessing the software at a specific time. With a concurrent license, the software can be installed on many devices, but only a certain number of users can log in simultaneously.
• How It Works: Imagine you have 50 employees who occasionally need access to IBM Rational Software. If you purchase a 10-concurrent-user license, only 10 people can use the software simultaneously. If an 11th person tries to log in, they will be denied access until one of the current users logs off.
• Usage Scenario: Concurrent licensing is useful when a large group of people need occasional access to the software but are not all using it simultaneously. For example, concurrent licenses benefit technical support teams where users only need to access IBM tools occasionally.
• Key Considerations:
  • Monitoring Usage: You need a way to track the number of concurrent users and ensure you don’t exceed your limit.
  • Peak Usage: Be mindful of peak hours. If everyone tries to log in simultaneously, you may need more licenses to avoid disruptions.

Pros:

• It is more cost-effective if users are accessing software infrequently.
• The flexibility of access across a large user base.

Cons:

• You may need additional monitoring tools to manage concurrent usage.
• Unexpected peak demand could limit access for some users.

Read about IBM VPC Licensing.

Authorized User Licensing

An authorized user license allows anyone in a defined group to access the software. Unlike named users, these licenses are not limited to a single person but to a certain number of individuals permitted to use the software.

• Definition: Authorized users are those permitted to access the software, even if they do not use it daily. However, the licensing agreement limits the total number of authorized users.
• How It Works: Imagine your company has 30 people who need periodic access to IBM Maximo. If you have an authorized user license for ten users, you can assign access to 10 people at a time. However, only ten people can use the software, even if not all actively use it.
• Usage Scenario: Authorized user licensing suits teams with varying usage needs. For instance, if different project teams need IBM software for a limited duration, authorized user licensing could provide a cost-effective way to give various people access on a rotating basis.
• Key Considerations:
  • Reallocation: Managing authorized users means deciding who gets access and ensuring that licenses are reallocated as needed.
  • Compliance: Ensure that the number of authorized users is not exceeded to maintain compliance.

Pros:

• More flexibility for shifting user access.
• It is often cheaper than named user licensing for larger teams with infrequent access.

Cons:

• Administrative overhead in managing and reallocating user access.
• It is not suitable if many users need access at the same time.

Comparison of Licensing Models

Let’s summarize the differences between these three types of user-based licenses to make it easier to decide which one suits your needs:

Choosing the Right Licensing Metric

Selecting the right licensing model depends on your organization’s needs. Here are some key questions to help you choose the right one:

• Frequency of Usage: If specific users need the software daily, named user licensing is the best fit. It guarantees that users always have access.
• Number of Users vs. Frequency: Concurrent licensing can save you money if many users only need occasional access.
• Changing Access Requirements: If user access requirements change frequently or users need software on a rotating basis, authorized user licensing is likely the most flexible and cost-effective option.

Common Pitfalls in IBM Licensing

IBM licensing can be complex, and organizations often fall into some common pitfalls:

• Over-Licensing: Buying more licenses than needed is a common problem, especially with named user licenses. Always assess the actual needs before buying.
• Underestimating Peak Demand: For concurrent licensing, underestimating how many users need access simultaneously can lead to access issues. It’s essential to monitor usage patterns and plan accordingly.
• Compliance Risks: Misunderstanding the difference between authorized and named users can lead to non-compliance. If too many people access software under an authorized user license, IBM could audit and penalize your organization.

Examples of User-Based Licensing in Real Life

To make things clearer, let’s consider two real-life scenarios:

1. Software Development Company: A software company uses IBM Rational for testing and development. Since different teams work at different times, they opt for concurrent user licensing with 15 licenses for 50 developers. This allows them to manage usage efficiently without purchasing 50 separate licenses.
2. Banking Institution: A bank’s data analysis team requires IBM SPSS daily for fraud detection. They choose named user licensing for 10 analysts, ensuring they always have uninterrupted access, as the software is critical to their daily workflow.
3. Consulting Firm: A consulting firm has different project teams working on IBM tools at different phases of projects. They use authorized user licensing so that as a team finishes its work, those licenses can be reassigned to another team, ensuring efficient use of their licenses.

Best Practices for Managing IBM Licenses

Managing IBM user-based licenses can be tricky. Here are some best practices to help you stay on top of it:

• Perform Regular Audits: Regularly audit license usage to understand if all assigned licenses are being utilized. This helps reduce unnecessary spending.
• Track Peak and Off-Peak Times: For concurrent licenses, identify peak usage times and determine if you need additional licenses or if you can spread access across non-peak hours.
• Reassign Licenses as Needed: Track employees who no longer require access and reassign those named user licenses to others who do. This prevents underutilization.
• Use License Management Tools: License management tools help track who uses the software and when. This can be especially helpful with concurrent and authorized licenses.

Read about IBM and Sub-Capacity Licensing.

User-Based Licensing Metrics FAQ

What defines an active user?
An active user logs in and uses the service regularly within a specified period.

Why track usage frequency?
Tracking frequency helps understand user engagement, showing who frequently uses the software and who doesn’t.

How is peak simultaneous usage calculated?
It’s calculated by recording the maximum number of users online simultaneously.

Why does role-based access matter?
It ensures that users only access necessary features, improving data security and optimizing resource allocation.

How does the department manage license allocation?
Many companies allocate licenses based on team size, usage needs, and budget limitations to avoid over-purchasing.

What’s the best way to monitor user growth rate?
Track new users monthly or yearly to see growth patterns and plan licensing needs.

How does session duration impact costs?
Longer sessions can indicate heavier usage, possibly leading to different pricing or license types.

Why track login trends over time?
Login trends show peak activity hours and can reveal changes in usage patterns, helping with resource planning.

What are expired licenses?
These licenses are no longer active due to non-renewal or inactivity, potentially saving costs.

How does cost per user affect budgeting?
Knowing the cost per user helps budget accurately, especially for scaling or downsizing.

What’s the difference between user count and usage frequency?
User count is the total number of unique users, while frequency is how often they log in, showing engagement levels.

How often should license metrics be reviewed?
Monthly or quarterly reviews are common, though high-usage organizations may benefit from weekly assessments.

Is there an ideal session length per user?
This depends on the software’s purpose; longer sessions suit collaborative tools, while shorter ones may fit task-based tools.

What’s the purpose of tracking inactive users?
Tracking inactive users helps identify unused licenses for reassignment, reducing waste and costs.

Why consider departmental allocation in user licensing?
Departmental tracking shows which teams need more or fewer licenses, aligning costs with actual usage.