Case Study: IBM Licensing Review for a US Manufacturer Based in Chicago
Challenge
A US-based manufacturing company headquartered in Chicago with operations spanning multiple states engaged Redress Compliance to conduct an IBM licensing review. The company’s IT infrastructure supported critical manufacturing systems, supply chain management, and customer platforms. The company sought to ensure compliance with IBM’s licensing terms, reduce financial exposure, and identify cost-saving opportunities by optimizing unused or unnecessary licenses. With a complex IT environment involving cloud and on-premise deployments, the company required expert guidance to navigate IBM’s intricate licensing policies.
The Process
- Comprehensive Licensing Review: • Redress Compliance thoroughly analyzed the company’s IBM licensing agreements and entitlement records. • Reviewed software deployments across cloud platforms, virtualized environments, and physical servers to ensure accurate entitlement mapping.
- Identification of Non-Compliance: • Validated usage data to identify discrepancies and areas of potential non-compliance. • Discovered misconfigured sub-capacity licensing setups and over-utilized entitlements.
- Optimization and Cost Savings: • Identified underutilized licenses and redundant IBM products, creating opportunities for significant cost reductions. • Reallocated existing licenses to align with actual usage, eliminating the need for additional purchases. • Recommended decommissioning unused products and streamlining the company’s software portfolio.
- Implementation of Governance Practices: • Developed a compliance framework with automated monitoring tools to ensure ongoing adherence to IBM’s licensing terms. • Delivered training sessions for IT and procurement teams to enhance their understanding of IBM’s licensing policies.
Results
- Reduction in Non-Compliance Exposure: • Initial financial exposure due to non-compliance: $12 million. • Final exposure after remediation: $0.
- Cost Savings Achieved: • Annual savings from eliminating unused licenses: $1.8 million. • Additional savings from decommissioning redundant products: $750,000. • Total savings achieved: $2.55 million annually.
- Optimization Outcomes: • 20% reduction in total IBM licensing costs. • Reallocated over 15,000 processor value units (PVUs) to meet current needs. • Streamlined product portfolio by removing three redundant IBM solutions.
Quote from the CIO:
“Redress Compliance’s IBM licensing review ensured we were fully compliant and delivered significant cost savings. Their expert guidance allowed us to optimize our licensing strategy, freeing up resources for critical initiatives. They are an invaluable partner.”
Key Results:
- Initial Exposure: $12 million.
- Savings Achieved: $2.55 million annually.
- Compliance Enhanced: Fully compliant with IBM’s licensing terms.
- Operational Efficiency: Streamlined licensing portfolio and reduced overhead.
This case demonstrates Redress Compliance’s ability to deliver financial and operational benefits through detailed IBM licensing reviews, helping organizations achieve compliance and cost efficiency.
