Case Study: IBM Licensing Review for a Global Retailer
Challenge
One of the largest retailers in the world, employing over 300,000 people and headquartered in the United States, engaged Redress Compliance to conduct an IBM licensing review. The retailer’s IT infrastructure supported various operations, including supply chain logistics, inventory management, and e-commerce platforms. With such a vast and complex system, the company sought to ensure compliance with IBM’s licensing terms, reduce non-compliance risks, and identify significant cost-saving opportunities. Navigating the intricate licensing environment required expert assistance to optimize resources effectively.
The Process
- Comprehensive Licensing Analysis: • Redress Compliance performed an in-depth review of IBM licensing agreements and entitlement data. • Evaluated deployments across global cloud environments, virtualized systems, and on-premise servers to ensure accurate entitlement mapping.
- Non-Compliance Identification: • Validated software usage data to pinpoint areas of potential non-compliance. • Identified misconfigured sub-capacity licensing setups and over-utilized entitlements.
- Optimization and Cost Reduction: • Identified underutilized licenses and redundant IBM products, creating significant cost-saving opportunities. • Reallocated existing licenses to match current usage patterns, eliminating the need for additional purchases. • Recommended decommissioning five redundant IBM solutions to streamline the company’s software portfolio.
- Governance and Long-Term Compliance: • Developed a governance framework integrating automated monitoring tools and regular internal audits to ensure future compliance. • Conducted tailored training sessions for IT and procurement teams to improve understanding of IBM’s licensing policies and reduce risks.
Results
- Reduction in Non-Compliance Exposure: • Initial financial exposure due to non-compliance: $30 million. • Final exposure after remediation: $0.
- Cost Savings Achieved: • Annual savings from eliminating unused licenses: $6.5 million. • Additional savings from retiring redundant products: $2.3 million. • Total savings achieved: $8.8 million annually.
- Optimization Outcomes: • 30% reduction in total IBM licensing costs. • Reallocated over 25,000 processor value units (PVUs) to meet actual needs. • Streamlined product portfolio, improving operational efficiency.
Quote from the CIO:
“Redress Compliance’s expertise was a game-changer for us. Their IBM licensing review ensured compliance and unlocked significant cost savings. Their strategic guidance has positioned us for greater efficiency and scalability. We couldn’t have done it without them.”
Key Results:
- Initial Exposure: $30 million.
- Savings Achieved: $8.8 million annually.
- Compliance Enhanced: Fully compliant with IBM licensing terms.
- Operational Efficiency: Optimized software portfolio and reduced overhead.
This case demonstrates Redress Compliance’s ability to deliver substantial financial and operational benefits to global organizations, ensuring compliance and optimizing resources in complex IBM licensing environments.
