Case Study: IBM Audit Defense for a Midwestern US Robotics Manufacturer
Challenge
A leading robotics manufacturing company based in the Midwest faced an IBM software audit with claims of non-compliance totaling $18 million. The company’s IT infrastructure supported advanced robotics design, manufacturing operations, and supply chain management systems. IBM’s audit findings highlighted licensing issues in virtualized environments, entitlement mismatches, and underreported sub-capacity usage. With tight margins in a competitive industry and reliance on uninterrupted IT systems, the company turned to Redress Compliance for assistance in resolving the audit and minimizing financial exposure.
The Process
- Audit Review and Strategy: • Redress Compliance initiated a detailed review of IBM’s audit findings, uncovering licensing calculations and entitlement mapping inconsistencies. • Analyzed historical agreements and deployment data to establish accurate compliance baselines.
- Data Validation and Analysis: • Collaborated with IT and engineering teams to collect accurate usage data from virtual machines, cloud platforms, and physical servers. • Validated sub-capacity metrics, identifying overestimations in IBM’s reported usage. • Discovered underutilized licenses and misalignments that could be optimized to address compliance gaps.
- Engagement with IBM: • Presented a corrected compliance report to IBM, backed by accurate data and licensing interpretations. • Negotiated directly with IBM auditors, leveraging Redress Compliance’s deep understanding of licensing policies to challenge inflated claims. • Secured concessions by demonstrating the company’s proactive compliance efforts and critical role in advancing robotics innovation.
- Optimization and Compliance Management: • Reallocated unused licenses across the organization to mitigate compliance gaps without additional purchases. • Designed a compliance framework, incorporating automated tracking and monitoring tools to prevent future discrepancies. • Conducted IT and procurement team training to strengthen understanding of IBM licensing requirements and governance practices.
Outcome
Redress Compliance’s intervention reduced the company’s financial liability by 96%, lowering the initial $18 million claim to $720,000. The settlement covered the cost of additional licenses required for future scalability, with no penalties or retroactive fees imposed. The robotics manufacturer maintained uninterrupted operations, ensuring no disruption of production or innovation timelines. Improved compliance processes were implemented, reducing the risk of future audit challenges.
Quote from the CTO:
“Redress Compliance turned an insurmountable challenge into a manageable situation. Their expertise saved us millions and provided a clear roadmap for maintaining compliance as we grow. They were invaluable to our business.”
Key Results:
- Initial Audit Claim: $18 million.
- Final Settlement: $720,000 (96% reduction).
- Compliance Improvements: Centralized license management and real-time monitoring systems.
- Business Continuity: Ensured uninterrupted robotics production and supply chain operations during the audit process.
This case highlights Redress Compliance’s ability to deliver exceptional results for technology-driven manufacturing companies, ensuring financial security and operational stability in the face of complex IBM audits.
