Executive Summary
$23M in IBM licensing savings through proactive internal assessment
Samsung is a global leader in electronics, semiconductors, digital infrastructure, and advanced manufacturing. Headquartered in Seoul, South Korea, Samsung’s technology divisions operate one of the most complex IT ecosystems in the world with over 300,000 employees across more than 80 countries. Annual revenue exceeds $200 billion.
Samsung has relied on IBM software products for over a decade, including WebSphere Application Server, DB2, Tivoli, MQ Series, and Maximo, deployed across hundreds of business units spanning virtually every country in which Samsung operates. Over the years, this IBM footprint had grown organically through business expansion, acquisitions, and decentralised technology procurement, resulting in fragmented records, over-provisioned deployments, hidden compliance risks, and significant unnecessary cost. For a strategic overview of how we approach these assessments, see our guide on negotiating IBM audit settlements.
In early 2024, Samsung’s global procurement team initiated a proactive review rather than waiting for IBM to initiate an audit. Samsung engaged Redress Compliance to lead a comprehensive IBM licence assessment and cost reduction strategy. The result: $23 million in realised and contractually secured savings through licence optimisation, entitlement reallocation, ILMT remediation, and commercial contract restructuring.
Global Entitlement Reconstruction
IBM licences mapped across 80+ countries and multiple contract generations, creating a unified baseline for the first time
ILMT Remediation
Sub-capacity compliance gaps identified and corrected across virtualised environments
Deployment Rightsizing
Over-provisioned WebSphere and DB2 deployments adjusted to actual workload; idle licences retired
Contract Restructuring
Legacy contracts consolidated, bundled products removed, renewal terms renegotiated on optimised baseline
Background & Context
One of the largest enterprise IBM deployments outside financial services
Samsung’s IBM software estate was one of the largest and most geographically distributed enterprise IBM deployments outside the financial services sector. IBM WebSphere Application Server served as the middleware layer for hundreds of applications. IBM DB2 provided the database layer for manufacturing execution, supply chain management, and financial reporting. IBM Tivoli products had been deployed for infrastructure management. IBM MQ Series provided message queuing between manufacturing, logistics, and ERP systems. IBM Maximo supported asset management across manufacturing facilities.
Software was licensed under multiple contracts, some regional, some global, some tied to specific subsidiaries, with differing terms, legacy licensing metrics, and bundled product packages. Many entitlements were associated with older hardware configurations and business units that had been reorganised. For more on IBM’s licensing complexities, see our IBM Tivoli licensing risks guide.
The Challenges
Five interconnected issues across Samsung’s global IBM estate
Fragmented Global Licensing Records
IBM entitlements distributed across dozens of contracts: regional agreements, global enterprise agreements, legacy contracts from acquisitions, and individual purchase orders spanning more than a decade. No single, consolidated view of Samsung’s total IBM licensing position existed. Different regional IT teams maintained their own records, or in some cases, maintained no records at all.
Significant Over-Provisioning
IBM licences had been purchased with substantial headroom, a “just in case” approach that prioritised deployment flexibility over cost efficiency. Particularly pronounced in WebSphere ND clusters and DB2 deployments. Compounded by environments established for specific projects but never decommissioned when projects concluded.
Sub-Capacity Compliance Gaps
IBM software deployed in virtualised environments across Samsung’s global infrastructure, but in multiple regions, ILMT was either not deployed, not on all relevant servers, or not configured correctly. These gaps exposed Samsung to full-capacity licensing claims. The difference between sub-capacity and full-capacity licensing measured in millions of dollars per environment. For our assessment methodology, see our IBM licensing assessment service.
Unmonitored Shadow Deployments
Business units and project teams had deployed additional IBM software instances outside the scope of original licence agreements. Not malicious, but the natural consequence of technology teams responding to business needs without visibility into licensing implications. Introduced genuine compliance risk across Samsung’s global infrastructure.
Rigid Legacy Contracts and IBM Commercial Pressure
Existing contracts included long-term commitments, bundled product packages, and support arrangements reflecting historical positions rather than current needs. Several included products Samsung no longer used. IBM was pushing Samsung toward long-term cloud transformation commitments that would increase IBM’s recurring revenue without addressing existing inefficiencies.
Managing a Global IBM Software Estate?
If your IBM licensing records are fragmented across regions and contracts, you are almost certainly over-licensed, under-licensed, or both. See our IBM licensing assessment service.
IBM Licensing Assessment →Redress Compliance’s Approach
Five-phase engagement over 14 weeks
Global Entitlement Reconstruction & Contract Analysis
Collected and reviewed every IBM licence entitlement across Samsung’s global IT estate. Gathered contracts, purchase orders, and entitlement records from regional IT teams, procurement departments, and subsidiary organisations across 80+ countries. Mapped licensing across all contracts, business units, and regional teams. Identified inconsistencies in licensing metrics (PVUs, RVUs, user-based models), licence scopes, and product editions. Flagged outdated contract terms, support renewals tied to products no longer deployed, and entitlements purchased but never allocated. Created the first unified global licensing baseline Samsung had ever possessed.
Global Deployment Discovery & ILMT Remediation
Conducted comprehensive discovery of all active IBM software deployments across cloud, on-premises, and virtualised environments. Identified every IBM product installation, its version and edition, server and processor configuration, and whether ILMT was correctly deployed and reporting. Remediated ILMT gaps, deploying agents to missed servers, correcting virtual-to-physical host mappings, and ensuring sub-capacity data capture. Surfaced underutilised WebSphere ND clusters, legacy DB2 servers with migrated databases but active installations, and shadow deployments provisioned without procurement involvement.
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Request Your Free Assessment →Licence-to-Deployment Reconciliation
Mapped every IBM software deployment to its corresponding licence entitlement. Identified three categories: over-licensed products (immediate cost reduction through retirement or support cancellation), correctly licensed products (no action required), and under-licensed products (compliance risks requiring licensing, migration, or decommissioning). Quantified the precise financial value of each category, enabling Samsung’s procurement team to see exactly where savings existed and where remediation investment was required. For more on how we manage IBM negotiations, see our IBM negotiations service.
Multi-Track Optimisation Roadmap
Developed a comprehensive roadmap with multiple parallel workstreams. Rightsizing: Over-provisioned WebSphere ND and DB2 deployments adjusted to match actual workload. Entitlement reallocation: Licences from business units that no longer needed them reassigned to units with genuine requirements. Idle licence retirement: Licences associated with decommissioned environments removed from support. Shadow deployment remediation: Unlicensed installations addressed through licensing, migration, or decommissioning. Metric optimisation: Deployments shifted to more favourable licensing metrics where applicable.
Contract Restructuring & IBM Renewal Negotiation
Supported Samsung’s procurement and legal teams in restructuring the IBM commercial relationship. Consolidated fragmented regional contracts into a more efficient global structure. Removed bundled products no longer in use. Reduced support commitments to match the optimised deployment profile. Secured improved pricing terms based on the verified, reduced consumption baseline. IBM’s cloud transformation proposals assessed independently on their own merits. For ongoing advisory, see our IBM ELA renewal service.
Savings Breakdown
$23 million in realised and contractually secured savings
| Optimisation Strategy | Verified Savings | Method |
|---|---|---|
| Deployment Rightsizing | ~$8M | Over-provisioned WebSphere ND and DB2 adjusted to actual workload; PVU count reduced |
| Idle Licence Retirement | ~$5M | Dormant environment licences retired; support contracts cancelled |
| Contract Restructuring | ~$4.5M | Regional contracts consolidated; bundled products removed; renewal terms renegotiated |
| Entitlement Reallocation | ~$3M | Existing licences reassigned from inactive to active business units |
| Shadow Deployment Remediation | ~$1.5M | Unlicensed installations addressed proactively; audit penalties avoided |
| Tivoli Portfolio Cleanup | ~$1M | Superseded Tivoli products decommissioned and removed from support |
| Total Verified Savings | $23M | Realised and contractually secured |
Before Redress
- Fragmented licensing across 80+ countries
- Significant over-provisioning (WebSphere, DB2)
- ILMT gaps creating full-capacity exposure
- Shadow deployments across business units
- Dormant licences consuming support budget
- Rigid, bundled legacy contracts
After Redress
- Unified global licensing baseline
- $23M in verified savings
- ILMT compliant across all environments
- All shadow deployments remediated
- Idle licences retired, support cancelled
- Restructured, optimised IBM contracts
We knew our IBM licensing estate had grown beyond our ability to manage it effectively, but we did not know the scale of the optimisation opportunity. Redress Compliance gave us something we had never had: a complete, verified picture of our IBM licensing position across the entire global enterprise. The $23 million in savings was substantial, but equally valuable is the governance framework and audit-defensible baseline that ensures we never return to the position we were in before.— Vice President, Global Procurement, Samsung
Samsung’s proactive approach demonstrates the most important principle in enterprise IBM licensing management: the best time to assess your IBM position is before IBM asks to see it. The $23 million in savings was achieved because Samsung chose to act on its own terms, not under the pressure of an IBM audit. Every compliance gap was remediated, every over-provisioned deployment was rightsized, and every dormant licence was retired before IBM had any opportunity to discover them.— Fredrik Filipsson, Co-Founder, Redress Compliance
Lessons Learned
Best practices from this engagement
Proactive assessment beats reactive audit defence, every time.
Every compliance gap remediated before an audit carries zero financial consequence; the same gap discovered during an audit becomes IBM’s negotiation leverage. The $23 million in savings was achieved on Samsung’s terms and timeline without pressure, time constraints, or adversarial dynamics.
Global entitlement reconstruction is the foundation.
Without a consolidated, verified view of all IBM entitlements, optimisation is impossible. Samsung’s fragmented records meant the company could not determine whether it was over-licensed or under-licensed. The entitlement reconstruction enabled every subsequent optimisation activity. For more on how we approach this, see our IBM audit defence service.
Over-provisioning is the silent killer of IBM budgets.
The “just in case” approach to IBM licensing is rational at the individual deployment level but devastating at enterprise scale. Across Samsung’s hundreds of business units, cumulative over-provisioning represented millions in unnecessary annual cost. Systematic rightsizing, matching licence obligations to actual workload utilisation, is the most reliable savings source.
Tivoli and legacy products are low-hanging fruit.
IBM’s Tivoli product family and other legacy middleware products are frequently found in enterprise environments long after they have been functionally replaced. These products continue to incur licensing and support costs despite delivering no business value. Samsung saved $1 million from Tivoli cleanup alone.
Optimise first, negotiate second.
Contract restructuring yielded $4.5 million, but those savings were only possible because preceding optimisation had established a demonstrably reduced consumption baseline. Negotiating an IBM renewal without first optimising is negotiating against yourself: IBM will use the inflated baseline as the starting point. Optimising first reduces the starting point; negotiating second reduces it further. See our IBM licence consulting services.