Case Study: IBM Audit Defense for a Large Florida Logistics Company
Challenge
A leading logistics company headquartered in Florida faced an IBM audit claiming $20 million in non-compliance fees. The company’s IT infrastructure supported various logistics functions, including freight management, supply chain optimization, and customer tracking systems. IBM’s audit findings highlighted discrepancies in sub-capacity licensing, entitlement mismatches, and deployment overages in virtualized environments. With operations dependent on seamless IT performance and high customer expectations, the company engaged Redress Compliance to resolve the audit and mitigate financial and operational risks.
The Process
- Audit Review and Analysis: • Redress Compliance thoroughly reviewed IBM’s audit report, identifying errors in licensing calculations and entitlement usage. • Analyzed historical agreements and deployment data to establish an accurate compliance baseline.
- Data Collection and Validation: • Collaborated with IT and operations teams to collect accurate data from physical servers, virtual machines, and cloud platforms. • Validated sub-capacity usage metrics, uncovering significant overestimations in IBM’s reported figures. • Identified underutilized licenses and misconfigured environments that could be optimized to close compliance gaps.
- Negotiation with IBM: • Presented a corrected compliance report to IBM, supported by validated data and a clear interpretation of licensing policies. • Highlighted the company’s ongoing investment in IBM technologies and its proactive approach to compliance. • Secured major concessions from IBM, significantly reducing the scope of financial liability.
- Optimization and Compliance Management: • Reallocated unused licenses within the organization to address immediate compliance gaps without additional purchases. • Designed a compliance framework with automated monitoring tools and regular internal audits to ensure ongoing adherence to IBM’s licensing policies. • Provided IT and procurement teams training to improve understanding of IBM licensing requirements and governance practices.
Outcome
Redress Compliance’s intervention reduced the company’s financial liability by 95%, bringing the $20 million claim down to $1 million. This settlement covered the cost of additional licenses required for future scalability, with no penalties or retroactive fees imposed. The logistics company’s operations continued uninterrupted throughout the audit process, maintaining its reputation for reliable service. Enhanced compliance processes were implemented to reduce the risk of future audit challenges.
Quote from the CIO:
“The IBM audit posed a significant challenge, but Redress Compliance turned it into an opportunity to strengthen our compliance framework. Their expertise saved us millions and ensured our operations remained unaffected. They were an invaluable partner.”
Key Results:
- Initial Audit Claim: $20 million.
- Final Settlement: $1 million (95% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring systems.
- Business Continuity: Ensured uninterrupted logistics operations during the audit process.
This case highlights Redress Compliance’s ability to deliver exceptional outcomes for logistics companies, safeguarding financial stability and operational efficiency during complex IBM audits.
