Case Study: IBM Audit Defense for a Leading UK Mining Corporation
Challenge
One of the United Kingdom’s largest mining companies faced an IBM audit with claims totaling £40 million in alleged non-compliance fees. The mining giant’s IT infrastructure supported critical operations, including exploration, logistics, and enterprise resource planning (ERP) systems spread across remote locations and international offices. IBM’s audit findings highlighted discrepancies in sub-capacity licensing, entitlement mismatches, and underreported usage across virtualized environments. With high operational continuity and financial exposure stakes, the mining company engaged Redress Compliance to mitigate the risks and resolve the audit.
The Process
- Comprehensive Audit Review: • Redress Compliance initiated the engagement by thoroughly reviewing IBM’s audit findings, uncovering overestimations in license usage and entitlement mismatches. • Analyzed historical agreements, including sub-capacity terms and processor value unit (PVU) metrics, to establish an accurate compliance baseline.
- Data Collection and Validation: • Collaborated with IT teams across the company’s global operations to collect detailed data from cloud platforms, virtual machines, and physical servers. • Validated sub-capacity metrics, uncovering significant overestimations in IBM’s reported figures. • Identified unused and misconfigured licenses that could be reallocated to address compliance gaps.
- Negotiations with IBM: • Presented IBM with a revised compliance report supported by accurate data and detailed evidence of proactive licensing efforts. • Engaged in strategic negotiations, leveraging Redress Compliance’s expertise in IBM licensing policies to challenge ambiguous claims. • Highlighted the company’s significant investment in IBM technologies and its critical role in the global mining industry to secure favorable terms.
- Optimization and Governance: • Reallocated licenses across the organization to close immediate compliance gaps without incurring additional costs. • Designed a robust compliance framework, including automated monitoring tools and regular internal audits. • Provided training to IT and procurement teams to enhance their understanding of IBM licensing terms and best practices.
Outcome
Redress Compliance reduced the mining company’s financial liability by 97%, bringing the £40 million claim down to £1.2 million. The settlement covered the cost of additional licenses required for future scalability with no penalties or retroactive fees. The company maintained uninterrupted operations, ensuring no disruption to critical mining and logistics activities. Enhanced compliance processes were implemented, significantly reducing the risk of future audits.
Quote from the CIO:
“Redress Compliance’s expertise turned a high-stakes audit into a manageable challenge. Their guidance saved us millions and strengthened our compliance practices, ensuring we’re well-prepared for the future. Their support was invaluable.”
Key Results:
- Initial Audit Claim: £40 million.
- Final Settlement: £1.2 million (97% reduction).
- Compliance Enhancements: Centralized license management and real-time monitoring tools.
- Operational Continuity: Ensured uninterrupted mining and logistics operations during the audit process.
This case underscores Redress Compliance’s ability to deliver exceptional results for resource-intensive industries, safeguarding financial stability and operational efficiency during IBM audits.
