Case Study: IBM Audit Defense for a Leading Italian Retailer
Challenge
One of Italy’s largest retail chains, with operations spanning hundreds of stores and an expanding e-commerce platform, faced an IBM audit claiming €18 million in non-compliance fees. The company’s IT infrastructure was critical for managing inventory, customer data, and supply chain logistics. IBM’s audit findings highlighted alleged discrepancies in sub-capacity licensing, entitlement mismatches, and overages in virtualized environments. The retailer engaged Redress Compliance to manage the audit and mitigate risks to protect its financial position and ensure uninterrupted operations.
The Process
- Audit Analysis and Strategy Development: • Redress Compliance conducted a comprehensive review of IBM’s audit report, identifying overestimations and errors in licensing calculations. • Reviewed historical agreements and entitlement data to establish a baseline for accurate compliance.
- Data Collection and Validation: • Collaborated with the retailer’s IT and procurement teams to collect precise data from servers, virtualized systems, and cloud platforms. • Validated sub-capacity metrics and uncovered significant inaccuracies in IBM’s reported figures. • Identified underutilized licenses and misconfigurations that could be optimized to close compliance gaps.
- Strategic Negotiations with IBM: • Presented IBM’s audit team with a corrected compliance report backed by accurate data and a clear interpretation of licensing policies. • Highlighted the retailer’s proactive compliance measures and significant investment in IBM solutions. • Secured substantial concessions, reducing the financial liability while avoiding penalties or retroactive fees.
- Optimization and Governance: • Reallocated unused licenses across the organization to address immediate compliance issues without additional purchases. • Designed a compliance framework incorporating automated monitoring tools and regular internal audits to ensure long-term adherence to licensing policies. • Provided IT and procurement staff training sessions to enhance understanding of IBM licensing requirements and governance practices.
Outcome
Redress Compliance reduced the retailer’s financial liability by 95%, bringing the €18 million claim down to €900,000. The settlement covered the cost of additional licenses required for future scalability, with no penalties imposed. The retailer maintained uninterrupted operations throughout the audit process, ensuring continued excellence in service delivery and customer satisfaction. Enhanced compliance processes were implemented to mitigate the risk of future audit challenges.
Quote from the CIO:
“Redress Compliance’s expertise turned a daunting audit into a manageable challenge. Their guidance saved us millions and strengthened our compliance processes, leaving us better equipped for the future. Their support was invaluable to our business.”
Key Results:
- Initial Audit Claim: €18 million.
- Final Settlement: €900,000 (95% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring systems.
- Business Continuity: Ensured uninterrupted operations across retail and e-commerce platforms during the audit process.
This case highlights Redress Compliance’s ability to deliver exceptional results for retail organizations, safeguarding financial stability and operational efficiency during IBM audits.
