Case Study: IBM Audit Defense for a Leading Professional Services Firm in Spain
Challenge
A prominent professional services firm based in Spain faced an IBM audit claiming €10 million in non-compliance fees. The firm’s IT infrastructure supported diverse business functions, including consulting, legal advisory, and financial services, with operations spanning multiple offices nationwide. IBM’s audit findings highlighted discrepancies in sub-capacity licensing, entitlement mismatches, and deployment overages in virtualized environments. The firm’s decentralized IT structure and reliance on hybrid cloud platforms complicated compliance management. The firm engaged Redress Compliance for expert support to address the audit and minimize financial impact.
The Process
- Audit Review and Analysis: • Redress Compliance thoroughly reviewed IBM’s audit findings, identifying errors in licensing calculations and entitlement mapping. • Analyzed historical agreements and deployment data to establish a compliance baseline.
- Data Collection and Validation: • Collaborated with the firm’s IT and operations teams to gather accurate usage data from virtual servers, cloud platforms, and physical systems. • Validated sub-capacity usage metrics, uncovering significant overestimations in IBM’s audit report. • Identified unused and misconfigured licenses that could be optimized to address compliance gaps.
- Strategic Engagement with IBM: • Presented a corrected compliance report to IBM, supported by accurate data and detailed analysis. • Negotiated directly with IBM’s audit team, leveraging Redress Compliance’s expertise to challenge inflated claims and secure concessions. • Highlighted the firm’s proactive compliance measures and its critical role in delivering professional services.
- Optimization and Compliance Management: • Reallocated underutilized licenses to close compliance gaps without additional purchases. • Designed a compliance framework with automated monitoring tools and governance practices to ensure future adherence to IBM’s licensing policies. • Delivered training sessions to IT and procurement teams to strengthen their understanding of licensing requirements.
Outcome
Redress Compliance reduced the firm’s financial liability by 95%, bringing the initial €10 million claim down to €500,000. The settlement covered the cost of additional licenses required for future scalability, with no penalties or retroactive fees imposed. The firm maintained uninterrupted operations throughout the audit process, ensuring the delivery of high-quality professional services. Enhanced compliance processes were implemented, reducing the risk of future audit challenges.
Quote from the CIO:
“Redress Compliance transformed a daunting audit into a manageable process. Their expertise saved us millions and provided a clear path for maintaining compliance as we grow. Their partnership was indispensable to our success.”
Key Results:
- Initial Audit Claim: €10 million.
- Final Settlement: €500,000 (95% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring systems.
- Business Continuity: Ensured uninterrupted service delivery during the audit process.
This case highlights Redress Compliance’s ability to deliver outstanding results for professional services firms, safeguarding financial and operational stability during complex IBM audits.
