Case Study: IBM Audit Defense for a Singapore Telecommunications Provider
Challenge
A leading telecommunications provider in Singapore was subjected to an IBM software audit, with alleged non-compliance claims exceeding SGD 12 million. The provider’s IT environment supported critical telecommunications infrastructure, including customer data platforms, billing systems, and 5G network management. IBM’s audit findings highlighted discrepancies in sub-capacity licensing for virtualized environments and outdated entitlements for key applications. Given the complexity of managing licenses across hybrid cloud systems and data centers, the provider turned to Redress Compliance to manage the audit and protect its financial interests.
The Process
- Comprehensive Audit Analysis: • Redress Compliance began by meticulously reviewing IBM’s audit report, identifying inaccuracies in sub-capacity calculations and entitlement mappings. • Examined historical license agreements and deployment data to establish a compliance baseline.
- Data Collection and Validation: • Partnered with the provider’s IT and network teams to collect detailed data from physical servers, virtual machines, and cloud platforms. • Validated licensing metrics, particularly for high-demand applications and systems critical to the telecom infrastructure. • Discovered misconfigurations and underutilized licenses that contributed to inflated audit findings.
- Negotiations with IBM: • Engaged directly with IBM’s audit team, presenting corrected data and challenging inaccurate claims. • Highlighted the provider’s investment in IBM software and proactive compliance efforts to secure goodwill in negotiations. • Achieved agreement on revised usage calculations, significantly reducing the scope of alleged non-compliance.
- Compliance Optimization and Planning: • Reallocated existing licenses to address compliance gaps without additional purchases. • Designed a comprehensive license management strategy to ensure long-term compliance across hybrid environments. • Provided training and governance recommendations to the provider’s IT and procurement teams to manage licensing more effectively.
Outcome
Redress Compliance successfully reduced the provider’s financial liability by 98%. The SGD 12 million audit claim was negotiated down to SGD 240,000, covering only the cost of additional licenses required for future growth. The provider maintained uninterrupted operations throughout the audit process, ensuring that critical telecommunications services remained unaffected. Enhanced license tracking and management practices were implemented to prevent future non-compliance risks.
Quote from the CTO:
“Redress Compliance’s expertise turned a complex and high-stakes audit into a manageable situation. Their insights saved us millions and equipped us with the tools to maintain compliance as we continue to expand our networks and services.”
Key Results:
- Initial Audit Claim: SGD 12 million.
- Final Settlement: SGD 240,000 (98% reduction).
- Compliance Enhancements: Centralized license management and improved governance practices.
- Operational Continuity: Ensured uninterrupted service delivery throughout the audit process.
This case highlights Redress Compliance’s ability to navigate complex licensing landscapes in the telecommunications sector, delivering significant financial and operational benefits.
