Case Study: IBM Audit Defense for a US University
Challenge
A prominent US university faced a daunting IBM audit, revealing significant compliance gaps in their software licensing. IBM’s initial audit findings alleged millions of dollars in non-compliance fees. The university’s decentralized IT structure and a lack of centralized license management led to challenges in accurately tracking software usage across departments. The university sought Redress Compliance’s expertise to resolve the audit findings and minimize financial exposure.
The Process
- Initial Assessment: Redress Compliance initiated the engagement by thoroughly reviewing the university’s IBM licensing agreements, entitlements, and deployment data. This step identified discrepancies in how the university used IBM software compared to their entitlements.
- Data Collection and Analysis: • Collaborated with the university’s IT and procurement teams to gather detailed usage data from servers, virtual environments, and cloud platforms. • Identified areas where licensing rules, such as sub-capacity licensing, were not applied correctly. • Created a comprehensive usage report to counter IBM’s audit claims.
- Engagement with IBM: • Facilitated negotiations with IBM audit teams to challenge the initial findings based on factual data and accurate license interpretations. • Highlighted the university’s compliance efforts and historical good faith in license management. • Presented alternative interpretations of licensing rules, such as processor value unit (PVU) calculations and virtualization policies, which reduced the reported shortfall.
- Optimization and Remediation: • Identified opportunities for optimization within the university’s existing license pool, reallocating underutilized licenses to meet compliance gaps. • Developed a detailed compliance roadmap, ensuring future adherence to IBM’s licensing terms.
Outcome
Redress Compliance’s intervention reduced the university’s alleged non-compliance fees by 95%. IBM accepted the recalculated compliance report, significantly lowering the financial impact and avoiding further escalations. The university’s IT team gained a clearer understanding of IBM’s licensing policies and a roadmap to avoid similar issues in the future.
Quote from the IT Executive:
“Partnering with Redress Compliance was a game-changer for us. Their expertise in IBM licensing turned a daunting audit into a manageable challenge. Thanks to their efforts, we preserved critical funding for our academic programs instead of paying unnecessary penalties.”
Key Results:
- Initial Audit Claim: $3.5 million.
- Final Settlement: $0 due to compliance revalidation.
- Reduction in Financial Impact: 100% avoidance of penalties.
- Improved Compliance Practices: Enhanced license tracking and management processes across all departments.
This case demonstrates Redress Compliance’s ability to deliver exceptional results in IBM audit defenses, protecting clients from unnecessary financial and operational burdens.
