Case Study: IBM ELA Review and Optimization for a French Global Professional Services Company
Challenge
A global professional services company headquartered in France engaged Redress Compliance to thoroughly review its IBM Enterprise License Agreement (ELA). The company’s IT infrastructure supported diverse operations, including consulting, legal advisory, and financial services, across more than 50 countries. With a complex licensing landscape, the company sought to:
- Ensure compliance with current IBM licensing terms.
- Optimize license usage to reduce unnecessary costs.
- Identify the right products and entitlements to include in its upcoming ELA renewal.
- Negotiate favorable terms for the new agreement.
Given the financial stakes and the need for strategic alignment of IT resources, the company required expert guidance to navigate the ELA renewal process.
The Process
- Comprehensive Licensing Review: • Analyzed existing IBM licensing agreements, entitlements, and deployments across cloud, on-premise, and virtualized environments. • Validated software usage data to identify compliance gaps and overprovisioned licenses. • Reviewed historical spending patterns and product usage to identify underutilized solutions.
- License Optimization: • Identified redundant or low-utilization licenses, creating opportunities to reduce overall costs. • Recommended reallocations of entitlements to align with actual usage patterns, eliminating unnecessary purchases. • Consolidated licensing requirements to streamline the software portfolio.
- Defining ELA Scope: • Worked with key stakeholders to identify critical IBM products essential for the company’s operations. • Removed non-critical solutions from the upcoming ELA renewal, focusing on core business needs. • Provided a roadmap for future licensing needs, considering growth and scalability.
- Negotiation Support: • Leveraged usage data and optimization findings to negotiate more favorable terms with IBM. • Secured concessions on pricing and licensing flexibility, ensuring alignment with the company’s strategic goals. • Ensured the inclusion of terms that minimized financial exposure and provided cost predictability for the duration of the agreement.
Results
- Compliance Achieved: • Addressed all identified compliance gaps, reducing the risk of audit penalties.
- Cost Savings: • Annual savings from license optimization: €3.2 million. • Additional savings from removing low-utilization products: €1.5 million. • Total savings achieved: €4.7 million annually.
- ELA Renewal Outcomes: • Reduced total cost of the new ELA by 25% compared to the previous agreement. • Achieved pricing flexibility and scalable terms to support the company’s growth. • Streamlined product portfolio, focusing on essential solutions.
Quote from the CIO:
“Redress Compliance’s expertise in IBM ELA reviews was instrumental in delivering a cost-effective and strategically aligned agreement. Their guidance ensured compliance, optimized our licensing, and positioned us for future success. Their support during negotiations was invaluable.”
Key Results:
- Total Savings: €4.7 million annually.
- Compliance Enhanced: Fully compliant with IBM licensing terms.
- Operational Efficiency: Streamlined software portfolio and reduced overhead.
- Strategic Alignment: Negotiated a flexible, scalable ELA tailored to the company’s long-term goals.
This case highlights Redress Compliance’s ability to deliver financial and strategic value through expert IBM ELA reviews, ensuring compliance, cost savings, and alignment with business objectives.
