Case Study — IBM ELA Renewal

IBM ELA Review for a Renowned US University: $3.1M Annual Savings

How Redress Compliance delivered $3.1 million in annual savings and a 25% ELA cost reduction for a prestigious US university through comprehensive IBM Enterprise License Agreement review, portfolio optimisation, and renewal negotiation support.

🎓 Higher Education 🏷️ IBM ELA Renewal 📍 United States 📅 January 2025
$3.1M
Annual Savings Achieved
25%
ELA Cost Reduction
100%
Compliance Achieved
Streamlined
Product Portfolio Optimised

Client Profile

🎓
Sector
Higher Education
📍
Location
United States
🏗️
IT Environment
Research clusters, admin servers, cloud platforms
🔍
Engagement Type
IBM ELA Review & Renewal Support
📋
Systems Supported
Student info, research computing, admin ops
🛡️
Service Provided
IBM ELA Review & Negotiation

At a Glance

🚨 The Challenge

A prestigious US university engaged Redress Compliance to review its IBM Enterprise License Agreement ahead of an upcoming ELA renewal. The university's IT estate combined legacy systems with modern cloud-based solutions.

  • Student information systems and administrative platforms
  • Research computing clusters and high-performance environments
  • Mix of legacy on-premises and modern cloud deployments
  • No clear visibility into compliance position
  • Upcoming ELA renewal with no independent advisory
  • Need to align licensing strategy with future IT roadmap

✅ The Outcome

Redress Compliance delivered $3.1 million in annual savings and a 25% reduction in the new ELA cost.

  • $2.3 million annual savings from optimised licence usage
  • $800,000 annual savings from retired redundant products
  • 25% reduction in new ELA cost vs. previous agreement
  • All compliance gaps identified and addressed
  • Pricing flexibility and scalable terms secured
  • Governance framework and monitoring tools implemented

Savings Breakdown

$2.3M
Annual Savings — Optimised Licence Usage
$800K
Annual Savings — Redundant Products Retired
$3.1M
Total Annual Savings Achieved

📋 ELA Renewal Outcome

Previous ELA
Prior Agreement Cost
25% Lower
New ELA Total Cost

The new ELA was negotiated at 25% below the previous agreement, with improved pricing flexibility and scalable terms aligned to the university's strategic growth. Non-essential solutions were removed from the renewal, and the product portfolio was streamlined to focus on mission-critical tools for academic and research operations.

Our Process

Redress Compliance delivered a five-phase engagement covering ELA review, compliance remediation, portfolio optimisation, renewal negotiation, and governance — ensuring the university achieved both immediate savings and long-term licensing resilience.

1

Comprehensive ELA Review

Conducted an in-depth analysis of the university's IBM licensing agreements and entitlement data. Evaluated deployments across research clusters, administrative servers, and cloud environments to ensure accurate entitlement mapping. Validated software usage data to identify compliance risks and overutilisation across the entire IBM estate.

2

Optimisation & Cost Savings

Identified underutilised licences and redundant IBM products, creating opportunities for significant cost reduction. Reallocated entitlements to align with actual usage, eliminating the need for unnecessary licence purchases. Recommended retiring outdated products to streamline the university's software portfolio — delivering $800,000 in annual savings from decommissioned solutions alone.

3

Defining ELA Scope

Collaborated with university IT leadership to define the key IBM products critical to academic and research missions. Identified non-essential solutions that could be removed from the upcoming ELA renewal. Provided a roadmap for future licensing needs, considering scalability and evolving requirements as the university's research computing demands grow.

4

Negotiation Support

Leveraged optimisation findings and accurate usage data to negotiate more favourable terms for the new ELA. Secured concessions on pricing and flexibility aligned with the university's strategic goals. Ensured the new agreement minimised financial exposure while supporting operational growth — achieving a 25% total cost reduction compared to the previous ELA.

5

Governance & Compliance Framework

Implemented automated tools for real-time monitoring of IBM licence usage across all environments. Delivered training to IT and procurement teams on IBM licensing policies and compliance best practices. Established periodic internal reviews to ensure ongoing compliance and cost control, preventing future drift and exposure.

"Redress Compliance's ELA review ensured our compliance while unlocking substantial cost savings. Their tailored approach helped us optimize our licensing strategy and negotiate a favorable agreement. Their guidance has positioned us for long-term success."
CIO
Chief Information Officer
Renowned US University

Key Takeaways

💡 What This Case Demonstrates

IBM ELA renewals represent one of the highest-leverage opportunities in enterprise software licensing. Universities and research institutions frequently carry ELAs that include products no longer in active use, entitlements misaligned with actual deployment, and terms that were never negotiated with independent advisory support. In this case, a comprehensive pre-renewal review uncovered $3.1 million in annual savings and enabled a 25% reduction in the overall ELA cost — simply by right-sizing the agreement to match the university's actual needs. Organisations approaching IBM ELA renewals should engage independent licensing expertise well before the renewal deadline to maximise leverage, identify savings, and ensure the new agreement genuinely supports their strategic direction.

IBM ELA Renewal Coming Up?

Redress Compliance delivers independent IBM ELA reviews and renewal negotiation support — typically achieving 20–40% cost reductions. We ensure your agreement is right-sized, competitively priced, and strategically aligned.

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FF

Fredrik Filipsson

Co-Founder @ Redress Compliance

Fredrik Filipsson brings 20+ years of experience in enterprise software licensing, having worked directly for IBM, SAP, and Oracle before co-founding Redress Compliance. He has delivered IBM ELA reviews, licensing assessments, and audit defence engagements across higher education, banking, government, automotive, and technology sectors — helping organisations eliminate compliance risk and recover millions in unnecessary spend. Redress Compliance maintains complete vendor independence — no commercial relationships or referral fees from any software vendor.