Case Study: IBM Audit Defense for a Large Dutch Retailer
Challenge
One of the largest retail chains in the Netherlands faced an IBM audit with non-compliance claims totaling €14 million. The retailer’s extensive IT infrastructure supported a network of physical stores, e-commerce platforms, and supply chain management systems. IBM’s audit findings highlighted discrepancies in sub-capacity licensing, entitlement mismatches, and deployment overages in virtualized environments. Given the potential financial and operational impact, the retailer engaged Redress Compliance to address the audit, safeguard its interests, and ensure uninterrupted operations.
The Process
- Audit Review and Analysis: • Redress Compliance began by thoroughly analyzing IBM’s audit report, identifying errors in sub-capacity calculations and license usage interpretations. • Reviewed historical agreements, entitlement documents, and deployment records to establish an accurate compliance baseline.
- Data Validation and Collection: • Worked closely with the retailer’s IT and procurement teams to collect accurate data from virtual servers, cloud platforms, and on-premise systems. • Validated usage metrics and identified overestimations in IBM’s claims. • Discovered unused and misallocated licenses that could be optimized to address compliance gaps.
- Engagement with IBM: • Presented IBM’s audit team with a corrected compliance report, highlighting inaccuracies in their findings. • Negotiated directly with IBM, leveraging Redress Compliance’s expertise in licensing policies to challenge ambiguous claims. • Secured significant concessions, reducing the scope of financial liability by focusing on actual usage and entitlement alignment.
- Optimization and Compliance Strategy: • Reallocated existing licenses to address immediate compliance gaps without incurring unnecessary costs. • Developed a comprehensive license management framework to monitor and manage software usage in real-time. • Provided IT and procurement staff training to ensure ongoing compliance and audit readiness.
Outcome
Redress Compliance successfully reduced the retailer’s financial exposure by 94%. The initial €14 million claim was negotiated down to €840,000, covering only the cost of additional licenses required for future scalability. No penalties or retroactive fees were imposed. The retailer’s operations remained uninterrupted throughout the audit process, and improved compliance processes were implemented to minimize future risks.
Quote from the CIO:
“Facing such a significant audit was daunting, but Redress Compliance’s expertise made it a manageable challenge. Their guidance saved us millions and left us with stronger processes to handle licensing in the future. Their support was invaluable.”
Key Results:
- Initial Audit Claim: €14 million.
- Final Settlement: €840,000 (94% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring tools.
- Business Continuity: Ensured uninterrupted retail and e-commerce operations during the audit process.
This case underscores Redress Compliance’s ability to deliver exceptional results for the retail sector, protecting financial and operational stability during complex IBM audits.
