Case Study: IBM Licensing Review for a Technology Company in San Francisco
Challenge
A San Francisco-based technology company renowned for its innovative software solutions and cloud services engaged Redress Compliance for an IBM licensing review. The company’s IT infrastructure supported diverse services, including software development, customer management, and data analytics platforms. With rapid growth and complex licensing requirements across hybrid environments, the company aimed to ensure compliance, reduce financial risks, and identify cost-saving opportunities. The intricate nature of IBM’s licensing policies required expert analysis to optimize their license usage and identify areas for improvement.
The Process
- Comprehensive Licensing Review: • Redress Compliance conducted an exhaustive review of the company’s IBM licensing agreements and entitlement data. • Evaluated deployments across cloud platforms, virtualized environments, and on-premise servers to ensure accurate entitlement mapping.
- Non-Compliance Identification: • Validated usage data to pinpoint discrepancies and potential non-compliance risks. • Discovered misaligned entitlements and misconfigured sub-capacity licensing setups.
- Optimization and Savings Identification: • Identified underutilized licenses and redundant IBM products that offered opportunities for cost reductions. • Reallocated existing licenses to align with actual usage, eliminating unnecessary purchases. • Recommended the decommissioning of three redundant IBM solutions to streamline the company’s product portfolio.
- Governance and Compliance Practices: • Developed a governance framework incorporating automated compliance monitoring tools and periodic internal audits. • Provided training sessions to IT and procurement teams to improve understanding of IBM’s licensing terms and ensure long-term adherence.
Results
- Reduction in Non-Compliance Exposure: • Initial financial exposure due to non-compliance: $10 million. • Final exposure after remediation: $0.
- Cost Savings Achieved: • Annual savings from removing redundant licenses: $1.2 million. • Additional savings from decommissioned products: $800,000. • Total savings achieved: $2 million annually.
- Optimization Outcomes: • 25% reduction in overall IBM licensing costs. • Reallocated over 10,000 processor value units (PVUs) to support growth and scalability. • Streamlined software portfolio, enhancing operational efficiency.
Quote from the CTO:
“Redress Compliance’s licensing review was transformative. Their expertise ensured our compliance, optimized our license usage, and unlocked significant cost savings. Their guidance was invaluable to our growth strategy and operational efficiency.”
Key Results:
- Initial Exposure: $10 million.
- Savings Achieved: $2 million annually.
- Compliance Enhanced: Fully compliant with IBM’s licensing policies.
- Operational Efficiency: Streamlined licensing portfolio and reduced overhead costs.
This case highlights Redress Compliance’s ability to deliver substantial financial and operational benefits through expert IBM licensing reviews, enabling technology companies to focus on innovation and growth.
