Engagement Snapshot
The Challenge
A large media corporation headquartered in New York was subject to an IBM software audit, with initial claims amounting to $15 million. The company's diverse IT ecosystem supported critical functions including content creation, broadcasting, and streaming services — all of which depended on continuous uptime and could not tolerate operational disruptions.
IBM's audit findings cited non-compliance issues in virtualisation environments and sub-capacity licensing for high-demand servers. Due to the complexity of their operations and the rapid scaling of digital platforms, the company struggled with centralised licence management. Facing steep financial penalties that could impact content operations, the media giant sought Redress Compliance's expertise to navigate the audit and minimise financial exposure.
Media and entertainment companies operate some of the most dynamic IT environments in any industry. Rapid digital platform scaling, 24/7 broadcasting requirements, virtualised content workflows, and hybrid cloud deployments create licence tracking complexity that far exceeds typical enterprise environments. Sub-capacity licensing errors compound rapidly across high-demand server clusters, turning modest configuration oversights into multi-million-dollar audit claims.
The Process
Initial Analysis
Redress Compliance thoroughly reviewed the audit report provided by IBM, identifying discrepancies in the licensing claims. Key activities included:
- Analysed the company's software entitlements, agreements, and deployment data
- Determined accurate compliance levels across all environments
- Identified where IBM's calculations diverged from actual usage
- Mapped licence entitlements against deployment configurations
Data Gathering and Validation
Partnered with the company's IT teams to collect detailed data from across the entire infrastructure:
- Gathered deployment data from on-premise servers, virtualised environments, and cloud platforms
- Verified sub-capacity usage metrics, focusing on correctly applying IBM's licensing rules
- Identified unused and misallocated licences — key to offsetting audit findings
- Validated PVU calculations for high-demand server configurations
Negotiation with IBM
Engaged IBM's audit team in strategic negotiations backed by validated technical evidence:
- Presented IBM with a detailed compliance report highlighting errors in their initial findings
- Leveraged deep expertise in IBM licensing policies to advocate for fair and accurate resolution
- Emphasised the company's historical good-faith efforts to comply with IBM's complex licensing requirements
- Negotiated settlement terms that protected ongoing operations
Optimisation and Future Planning
Delivered a comprehensive forward-looking compliance programme:
- Implemented a licence reallocation strategy to close compliance gaps without significant costs
- Provided a tailored roadmap for ongoing compliance with SAM tool recommendations
- Conducted training sessions for IT and procurement teams on IBM licensing terms and governance
- Established centralised licence management processes to prevent future exposure
The Outcome
| Metric | Detail |
|---|---|
| Initial IBM Audit Claim | $15,000,000 |
| Final Negotiated Settlement | $300,000 (98% reduction) |
| Primary Savings Driver | Corrected sub-capacity calculations and identified misallocated/unused licences across virtualised environments |
| Compliance Enhancements | Centralised licensing management and improved monitoring systems across all platforms |
| Business Continuity | Zero disruption to broadcasting and streaming operations throughout the audit process |
Redress Compliance's intervention dramatically reduced the company's financial exposure by 98%. The initial $15 million claim was settled for just $300,000, covering only the cost of additional licences required for new deployments. The media company avoided operational disruptions, maintaining uninterrupted service delivery for its audience while implementing robust processes to manage licensing compliance proactively.
"IBM's audit initially seemed like an insurmountable challenge, but Redress Compliance's expertise turned it into a manageable situation. Their guidance not only saved us millions but also gave us the tools to stay ahead of compliance issues in the future."CFO — Large US Media Company
IBM audit claims are the starting point, not the final answer. In media and entertainment environments — where rapid digital scaling, virtualised content workflows, and high-demand server clusters create licensing complexity — IBM's automated calculations frequently overstate licence requirements. Expert sub-capacity analysis and entitlement mapping typically reduce exposure by 70–98%, often converting a multi-million-dollar claim into a manageable compliance purchase.
How Redress Compliance Can Help
As a fully independent advisory firm with former IBM insiders on staff, Redress Compliance provides objective IBM audit defence, licence optimisation, and negotiation support — with no commercial relationship with IBM.
Licensing Assessment
Full compliance review
Audit Defence
Expert audit protection
ELA Renewal
Enterprise agreement advisory
Negotiations
Better deals and terms
Facing an IBM Audit?
Redress Compliance provides expert IBM audit defence — staffed by former IBM insiders who know exactly how IBM audits work from the inside. We've helped enterprises reduce audit claims by 70–98% across complex global environments.
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Fredrik Filipsson
Fredrik Filipsson brings over 20 years of experience in enterprise software licensing, having worked directly for IBM, SAP, and Oracle before co-founding Redress Compliance. Over the past 11 years as an independent advisor, he has helped more than 500 enterprise clients — including numerous Fortune 500 companies — optimise costs, avoid compliance risks, and secure favourable terms with major software vendors.