9. Licence Optimisation: Reducing What You Pay For
Automic licence optimisation follows a five-step methodology that typically delivers 30–50% cost reduction without any change to operational capability.
Step 1: Agent rationalisation. Audit every server with an installed Automic agent. Remove agents from decommissioned servers, inactive test environments, and servers where scheduled jobs have been migrated to other platforms. In our advisory experience, 15–25% of Automic agents are removable without any operational impact. Each removed agent directly reduces your endpoint licence count.
Step 2: Mainframe sub-capacity optimisation. If your Automic mainframe agents run in dedicated LPARs with defined capacity, ensure your licence is based on the LPAR capacity, not the full CPC (Central Processor Complex) capacity. Broadcom’s default licensing may apply the full machine MIPS rating rather than the sub-capacity LPAR rating, inflating the licence by 2–5x. Verify the contractual basis and push for sub-capacity licensing if it is not already in place.
Step 3: Replace non-core products. Evaluate whether Automic Service Orchestration and Release Automation can be replaced with lower-cost or open-source alternatives. Ansible (free/Red Hat subscription) replaces Service Orchestration for most infrastructure automation use cases. Jenkins or GitLab CI/CD replaces Release Automation for most deployment pipelines. Replacing these two products can eliminate $200K–$1M annually from the Automic licence while improving capability through more widely supported, actively developed tools.
Step 4: Tier reclassification. If your contract uses server tier pricing, challenge the tier classification of every server. Servers classified as Tier 1 based on hardware specification but running minimal Automic workloads may be reclassifiable as Tier 2 or Tier 3 at lower per-server rates. The tier definition in your contract should specify the classification criteria — if it is ambiguous, negotiate explicit definitions that favour lower classifications for low-utilisation servers.
Step 5: Consolidate Automic automation engine instances. Enterprises with multiple Automic automation engine (AE) instances across environments or regions may be able to consolidate to fewer instances, reducing infrastructure costs and simplifying licence management. Consolidation also reduces the number of agents by eliminating redundant deployments where multiple AE instances manage overlapping server populations.
10. Third-Party Alternatives and Exit Strategies
Enterprises facing Broadcom’s Automic price increases have three categories of alternatives, each with different cost profiles and migration complexity.
Direct competitors (enterprise schedulers): BMC Control-M is the most established alternative, offering functionally equivalent cross-platform job scheduling with a mature mainframe integration. Redwood RunMyJobs provides cloud-native scheduling that competes directly with AWA for SAP workloads. Stonebranch Universal Automation Center offers a cost-effective alternative for enterprises without complex mainframe requirements. Each of these products requires migration of job definitions, dependencies, and workflows — a non-trivial undertaking for environments with 10,000+ job definitions. Budget 6–18 months and $500K–$2M for a full AWA replacement migration depending on scale and complexity.
Open-source and cloud-native alternatives: Apache Airflow, Prefect, and Dagster provide workflow orchestration capabilities that overlap with AWA’s distributed scheduling. These tools are particularly strong for data pipeline orchestration and cloud-native workloads but lack AWA’s mainframe scheduling depth and SAP integration breadth. They are best positioned as replacements for specific workload categories (data engineering, cloud automation) rather than complete AWA replacements. Partial migration savings: $100K–$500K/year by moving cloud and data workloads to open-source schedulers while retaining AWA for mainframe and SAP.
Third-party support (see Section 12): Continue running the current Automic version with third-party support from Rimini Street or Spinnaker Support at 50–60% less than Broadcom’s support fees. This approach requires no migration, no operational change, and no retraining — only a change in support provider. It is the fastest path to cost reduction for enterprises not yet ready to migrate away from Automic.
11. Negotiating Broadcom Automic Renewals
Broadcom’s Automic renewal negotiations follow a pattern that is consistent across their entire portfolio. Understanding the pattern enables you to counter it.
The pattern: Broadcom sends a renewal proposal 60–90 days before expiration at a significantly increased rate (40–300% above current). The proposal bundles products you may not use. The timeline creates urgency. The implicit message: accept the increase or risk losing support and maintenance on mission-critical batch processing infrastructure. This is a negotiation tactic, not an ultimatum.
Counter-strategy 1: Start early. Begin renewal preparation 12 months before expiration. Conduct the licence optimisation programme in Section 9 during months 12–8. Evaluate alternatives and obtain competitive pricing during months 8–4. Enter Broadcom negotiation during months 4–2 with documented alternatives, a right-sized licence position, and clear leverage.
Counter-strategy 2: Unbundle. Reject the Value Plan bundle and request standalone AWA pricing. If Broadcom insists on the bundle, identify the products you don’t use and negotiate their removal from the agreement with corresponding price reduction. Every product you remove reduces the total deal value and your cost.
Counter-strategy 3: Right-size before you negotiate. Remove inactive agents, correct tier classifications, and verify mainframe MIPS before presenting your renewal requirements to Broadcom. Presenting a right-sized entitlement request (400 endpoints instead of 500) immediately reduces the negotiation baseline by 20%. Broadcom cannot charge for endpoints you have verifiably decommissioned.
Counter-strategy 4: Use competitive displacement credibly. Obtain written proposals from BMC Control-M and/or Redwood RunMyJobs before engaging Broadcom. Present the competitive proposals explicitly: “We have evaluated Control-M at $X/year with migration services included. To remain on Automic, we need pricing that is competitive.” Broadcom’s deal desk has competitive displacement pricing authority that is not available for standard renewals. Activating this authority requires a credible competitive threat — not a vague statement that you are “evaluating options.”
Counter-strategy 5: Negotiate reduction rights. Secure 15–20% annual reduction rights on endpoint counts and MIPS/MSU allocations. As you migrate workloads to alternatives, consolidate environments, or move to the cloud, your Automic footprint should decrease. Without reduction rights, you are locked into the renewal quantity for the full term. This is the same principle applied in all Broadcom negotiations and across other vendors like Salesforce.
12. Third-Party Support for Automic
Third-party support has emerged as a powerful cost-reduction tool for Automic, following the same model that enterprises use for VMware, Oracle, and SAP. Third-party providers offer ongoing technical support, security patching, and break-fix assistance for the current Automic version at 50–60% below Broadcom’s support pricing.
How it works: You continue running your current Automic software version (AWA 12.x, 21.x, or whatever version is deployed). The third-party provider delivers 24/7 technical support with defined SLAs, develops and distributes security patches independently of Broadcom, and provides configuration guidance and troubleshooting. Your production environment is unchanged — same software, same configurations, same operational procedures. Only the support provider changes.
What you give up: Access to new Automic version upgrades. If Broadcom releases AWA v23, third-party-supported customers cannot upgrade to it. For enterprises running stable, mature Automic environments where the current version meets all operational requirements, this trade-off is highly favourable. The cost savings of 50–60% far outweigh the value of incremental feature updates in a product whose development velocity has slowed under Broadcom ownership.
When third-party support makes sense: Your Automic deployment is stable and mature. You are not planning major version upgrades. Your primary concern is cost reduction, not new features. You want to maintain full operational capability while reducing Broadcom dependency. You want contractual flexibility — third-party support typically offers annual terms versus Broadcom’s 3–5 year commitments.
When it does not make sense: You require mainframe Automic features that are only available in newer versions. You have a contractual obligation to run a specific version that requires Broadcom support. You are actively migrating away from Automic and need Broadcom’s cooperation during the transition (though this is negotiable).
For enterprises where the annual Automic spend exceeds $500K, the optimisation and negotiation strategies in this guide typically deliver savings that justify engaging independent advisory support. Our Broadcom Advisory practice maintains benchmark pricing data for Automic across all licensing metrics and deployment scales, providing the comparative data that transforms your renewal negotiation from a reactive defence into a proactive cost-optimisation programme.