IBM’s Enterprise Asset Management and industry solutions, such as Maximo, TRIRIGA, and Sterling, are mission-critical systems with complex licensing models. CIOs must navigate these licensing nuances to control costs and ensure compliance.
This playbook provides a strategic guide to managing IBM Maximo and related industry solution licenses. It covers common licensing models (from Processor Value Units to user-based licenses), how to optimize user license types for cost-efficiency, strategies for token-based licensing, tips for managing licenses in customized or integrated environments, and preparing for IBM audits.
The goal is to help CIOs and IT asset managers create a proactive licensing strategy that aligns with business needs and avoids costly compliance pitfalls.
IBM Licensing Models (Maximo, TRIRIGA, Sterling)
Navigating IBM’s Licensing Metrics:
IBM software products offer multiple licensing models. The two prevalent approaches are processor-based licensing and user-based licensing. Processor-based licensing often uses the Processor Value Unit (PVU) metric, a method that licenses software based on the CPU power of the servers on which it runs.
User-based licensing, in contrast, ties the license to human users, either as named users or concurrent users. CIOs need to understand both models, as IBM Maximo and other industry solutions, such as IBM TRIRIGA for facilities management or IBM Sterling for supply chain, may offer one or both licensing options.
PVU (Processor Value Unit) Licensing:
A PVU is a unit that IBM assigns to each processor core, based on hardware performance. IBM Maximo, TRIRIGA, and many other enterprise solutions can be licensed by purchasing a certain number of PVUs to cover the server’s processing capacity. This model is attractive for deployments with high or fluctuating user counts, because costs are tied to hardware capacity rather than individual logins.
For example, an organization might license Maximo by PVUs if it has thousands of occasional users or expects growth, thereby avoiding the need to license each user separately. However, PVU licensing demands careful capacity tracking. If your infrastructure grows, such as by adding more CPU cores or switching to faster processors, your PVU entitlement will need to be adjusted.
IBM requires the use of the IBM License Metric Tool (ILMT) to monitor PVU usage in virtualized environments. This tool helps ensure that you are only charged for the actual CPU capacity used (“sub-capacity” licensing), rather than the full server capacity.
The PVU model is common for high-volume systems. IBM Sterling, for instance, often uses PVU licensing because it handles backend processes where the cost correlates with processing power.
User-Based Licensing (Authorized vs Concurrent):
User-based models license the software per individual or simultaneous user. In IBM Maximo and similar products, an Authorized User (also referred to as a named user) license grants access to a specific person. No matter how often they use the system, each distinct person needs their license.
This model fits well if you have a known set of users, such as a maintenance team of 50 who regularly use Maximo. An alternative is the Concurrent User model, which IBM introduced more recently for Maximo and some other tools. Concurrent licensing allows a pool of users to share a limited number of licenses, with a license consumed only when a user is actively logged in.
For example, 30 maintenance technicians on different shifts might share 10 concurrent licenses if at most 10 are using Maximo at the same time. Concurrent licenses provide flexibility for shift work or global teams in different time zones.
However, they require monitoring peak usage—if more than the licensed number tries to use the system simultaneously, it’s a compliance issue (or the software may prevent additional logins).
Industry Solution Licensing Nuances:
IBM’s industry solutions, built on Maximo or related platforms (such as Maximo for Oil and Gas, Maximo for Utilities, or TRIRIGA for real estate), generally follow similar metrics, with some variations. Often, purchasing an industry solution license for a user includes the base platform entitlement; for example, a TRIRIGA authorized user license covers core platform usage.
But if a user accesses multiple IBM solutions, licenses for each may be required. It’s crucial to confirm whether each solution requires separate licenses or if combined licensing agreements, such as an Enterprise License Agreement, might simplify management across multiple IBM products.
Recommendations for CIOs:
- Map Products to Metrics: Identify which licensing model each IBM system in your portfolio uses, such as PVU, authorized user, concurrent user, etc. This clarity helps you align management efforts and toolsets (e.g., ILMT for PVU tracking).
- Choose the Right Model: When procuring or renewing, evaluate whether a PVU-based or user-based model is more cost-effective for your deployment. Consider user count stability, growth projections, and infrastructure changes.
- Educate Stakeholders: Ensure your IT operations and asset management teams understand the licensing terms for each system. Misunderstanding metrics, such as PVUs or named users, can lead to inadvertent compliance breaches.
- Leverage IBM Agreements: If you have multiple IBM industry solutions, explore enterprise agreements or bundled licensing options. Engaging IBM reps about flexible licensing across products can sometimes yield cost savings or simplified terms.
Optimizing User License Types in Maximo
Maximo User Roles and License Types:
IBM Maximo offers a tiered structure of user licenses to fit different usage levels. Not every user needs a full-power (and high-cost) license.
The common Maximo user license types include Authorized User, Limited Use, Express, and Self-Service.
Each comes with specific access rights and cost, allowing CIOs to mix and match licenses according to user roles.
- Authorized User (Full) – This is the full-access license. An authorized user can use all Maximo modules and functionality. You’ll assign this to power users, such as system administrators, asset managers, or others who need comprehensive access. It’s the most expensive per user, so only grant it where broad access is essential.
- Limited Use Authorized User – A cost-reduced license for users who only need a subset of Maximo. IBM typically limits a “Limited” user to a maximum of three modules, such as work orders, assets, and inventory. They are blocked from core administrative modules, such as system configuration or security. Limited users are ideal for operational staff who work in a defined area of the system. Because they cost less, they can significantly lower license spend if used appropriately. IBM’s terms require a ratio of full licenses to limited ones (historically, at least 1 Full Authorized User for every 3 Limited Users), ensuring companies maintain a baseline of full licenses.
- Express User – A lighter user type introduced for those who primarily need read-only or approval access. Express users can run and view reports, read records, change the status of items, and approve or review work orders or purchase orders assigned to them. They generally cannot create new records, except for very limited actions, such as updating a work order assigned to them. Express licenses are priced much lower. IBM often allows a large ratio of express users to full users (for example, up to 25 express users per one authorized user). These are great for managers or supervisors who need oversight and approval capability in Maximo but are not daily hands-on users.
- Self-Service User – IBM grants unlimited self-service usage with at least one full license in place. These are users (often outside of IT or maintenance, such as any employee in the company) who can perform self-service functions, such as submitting service requests, initiating a help ticket, checking the status of their requests, or creating simple requisitions. Self-service users do not consume paid licenses, but their capabilities are strictly limited to those basic requests and views. CIOs should ensure that anyone who only needs to file a request (e.g., request maintenance or report an issue) is categorized under this free tier, rather than using a paid license.
Cost Efficiency Through Role Alignment:
Optimizing license types is about aligning each user’s role with the appropriate license. Conduct an analysis of Maximo user accounts and their actual usage patterns. Often, organizations find that some users with expensive authorized licenses only ever use a couple of modules – those could potentially be downgraded to limited licenses. C
Conversely, be cautious not to under-license a heavy user with a limited license if they need broader access; that would break compliance and possibly hinder their work. Regularly review new user requests to decide which category they fall into. IBM’s Maximo allows administrators to assign a user type in the system; maintain this diligently and audit it periodically.
Maintain License Ratios and Compliance:
When optimizing, remember IBM’s ratio rules. If you aggressively expand limited or express user counts, ensure you also have the required number of full authorized users. The license management plan should include monitoring these ratios.
Additionally, update training for managers and the IT support team on what each user type can and cannot do. This avoids scenarios where, for example, a limited user tries to access an unauthorized module due to a new responsibility—if that happens, you should upgrade their license beforehand.
Recommendations for CIOs:
- Inventory User Access: Regularly review and update all Maximo user accounts. Categorize them by license type and validate that their business role matches the license’s capabilities.
- Optimize License Allocation: Run usage reports (Maximo’s License Usage Monitor or similar tools) to identify users who could be downgraded to a cheaper license type without impacting their work. Similarly, flag any limited users who show access attempts beyond their allowance.
- Enforce Policies for New Users: Create a provisioning checklist that assigns the minimum necessary license type to each new Maximo user. For example, default most users to limited or express unless a strong case for full access is approved.
- Communicate and Train: Educate department heads on these license types so they request the correct access for their team members. Transparency on the cost differences encourages cooperation in controlling license expenses.
Leveraging Token-Based Licensing in IBM Environments
Token Licensing Concepts:
IBM has introduced token-based licensing models to provide flexibility across its software portfolio. Token licensing is essentially a consumption-based approach: you purchase a pool of license tokens (or “credits”) that can be dynamically allocated to different products or users as needed.
In the context of IBM Maximo and its related solutions, token licensing was made available in later versions of Maximo 7.6. Under this scheme, instead of buying a fixed number of user or PVU licenses, an organization can buy a block of tokens.
Each active user or module usage will consume a certain number of tokens from the pool. For instance, one authorized Maximo user might consume X tokens per day, while a limited user might consume fewer tokens.
The flexibility lies in the ability to reassign tokens. If user counts drop, those tokens can be used elsewhere, even for other IBM software that participates in the token program, depending on IBM’s policies.
When Tokens Make Sense:
Token-based licensing can be advantageous if your usage patterns are highly variable or you utilize multiple IBM products. For example, imagine a scenario where a company uses Maximo Asset Management, an industry solution like Maximo for Transportation, and perhaps IBM TRIRIGA. With traditional licensing, you would have to buy separate entitlements for each product, as some users need both Maximo and TRIRIGA licenses.
With a token model, a shared token pool could cover all, allocating tokens to whichever product is in use at a given time. This can reduce the total number of licenses needed if not all systems are used simultaneously at peak. It also simplifies budgeting to a single subscription for tokens.
IBM’s token licensing is often time-bound (tokens may be part of a subscription that renews annually) and requires running a License Server, such as IBM’s Rational License Key Server, to issue and reclaim tokens as users log in and out.
Evolving Token Models (Maximo Application Suite):
IBM’s strategy is moving toward unified licensing for some products. The IBM Maximo Application Suite (MAS) is a new integrated offering that uses a form of token licensing called “AppPoints”. In MAS, you purchase a quantity of AppPoints, which are consumed by various applications, such as Maximo Manage, Monitor, and Health, based on usage.
This is similar in concept to tokens, allowing for the fluid use of different capabilities without requiring separate licenses for each module. For CIOs, such developments mean future licensing might increasingly be consumption-based.
It’s important to assess if your environment can adopt these models. New deployments might consider MAS tokens if starting from scratch, whereas existing Maximo 7.6 users can stick with traditional licensing or migrate if the value is seen.
Caution and Monitoring:
If you leverage token licensing, robust monitoring is crucial. Unlike fixed licenses, a token pool can be exhausted unexpectedly if usage spikes. Implement real-time monitoring on the token license server to alert if the token pool is nearing full consumption.
Another consideration is that IBM’s token model for Maximo (in the 7.6. x era) cannot be mixed with regular licenses on the same instance – you must choose one method or the other.
Also, note that IBM’s token offerings have changed over time. Ensure that any token program you use is still offered and supported for your version, as IBM has phased out some older token programs in favor of the new AppPoints model.
Recommendations for CIOs:
- Evaluate Fit for Tokens: Analyze your usage variability and use across multiple products. If you have multiple IBM products or experience high user counts that fluctuate frequently, consider asking IBM about token-based licensing options or the Maximo Application Suite. The flexibility could save costs if managed well.
- Pilot First: If possible, run a pilot or proof of concept with token licensing for a subset of users or in a non-production environment. This will reveal the practical consumption rates and any management overhead before a full switch.
- Implement Monitoring Tools: Use IBM’s Rational License Key Server reports or third-party tools to track token consumption. Set thresholds to alert the IT team when token usage is high, so you can proactively purchase more or curtail usage to stay within limits.
- Stay Current on IBM Offerings: Token models and licensing programs evolve. Maintain communication with your IBM account manager or licensing partner to stay up-to-date on the latest options, such as IBM’s Cloud Paks or AppPoints systems, that may benefit your organization.
Managing Licensing in Customized or Integrated Deployments
Complex Environments, Complex Licensing:
Many enterprises heavily customize Maximo or integrate it with other systems, such as ERP, supply chain, and mobile apps. Customizations and integrations can complicate license tracking because they often extend the ways the software is used.
A heavily customized Maximo may have additional modules or screens, or it may be embedded into other workflows, making it less obvious when a license is being used.
Similarly, an integration (for example, Maximo linked with SAP or a mobile workforce application) might use a single system account to handle many behind-the-scenes transactions. CIOs must ensure that such usage remains within the bounds of the licenses – an integration account might need an authorized user license if it makes calls equivalent to a user’s actions. If that integration dramatically increases transaction volume, your PVU usage may also increase.
License Tracking Tools and Techniques:
First, leverage any out-of-the-box tools. In Maximo, IBM provides the License Usage Monitor application, introduced in version 7.6.0.6, which tracks the number of users using each license type and reports on usage versus entitlements. Ensure this is enabled and configured in your production environment.
It won’t stop users from exceeding licenses, but it will give you data to identify potential compliance issues before an audit does. For processor-based licenses, deploy the IBM License Metric Tool (ILMT) on all relevant servers.
ILMT will automatically scan and calculate PVU consumption of IBM software in a virtualized environment, which is critical for staying compliant with sub-capacity (partial CPU) licensing agreements. Ensure ILMT reports are reviewed quarterly and retained—IBM audits often request 2 years of ILMT data.
Customized Functionality and License Implications:
When developing custom features or integrating new systems, always consider the licensing impact during the design review. For instance, if you build a custom Maximo module for a specific business need, check if it falls under your existing Maximo licenses or if it inadvertently triggers the need for an add-on license.
IBM’s terms for Maximo add-ons, such as industry solutions, mobile add-ons, or analytics extensions, may license those components separately.
A common oversight is using a feature of Maximo that wasn’t originally purchased – for example, using Maximo Scheduler (an add-on) without having that license. Regularly audit the system’s modules and features in use and cross-check with your entitlements.
Integrated Systems and User Counts:
If Maximo is integrated with external applications (e.g., a web portal where users submit requests that are then entered into Maximo), be clear about how those external users are counted. Often, a service account in Maximo handles those transactions, which is fine.
Still, suppose the integration effectively allows hundreds of people to indirectly interact with Maximo data. In that case, you need to assess if each should have a license or if the volume necessitates a different license model. IBM’s rules can be strict about “multiplexing” (many users funneling through one account).
Typically, they state that if an external system enables multiple individuals to use IBM software’s functionality, each individual might require a license. As a CIO, ensure that such integrations are documented and discuss with IBM if you’re uncertain – it’s better to clarify than to be surprised in an audit.
Environment Management:
Heavily customized deployments often span multiple environments, including development, testing, training, and production. IBM usually allows non-production environments to be covered under your production license at no extra cost, but only if they are used solely for testing and QA and not in production operations.
Keep non-prod systems properly tagged and separated to avoid them being counted incorrectly. And if you clone production data for testing, ensure any license monitoring tools don’t double-count those users or PVUs.
Recommendations for CIOs:
- Embed License Checks in Change Management: Whenever a new customization or integration is proposed, require a licensing impact assessment as part of the project checklist. This prevents surprises where a technical enhancement leads to compliance issues.
- Use Automation for Tracking: Configure automated reports from Maximo’s License Monitor and IBM’s ILMT. Receive these reports regularly and review any anomalies, such as a sudden increase in user count or PVU usage after a new integration.
- Document All Integrations: Maintain up-to-date documentation of which external systems and interfaces connect to Maximo (or TRIRIGA/Sterling). For each, note how the data flows and whether it indirectly introduces new users. Use this to determine if additional licenses or a different model, such as PVU instead of user, is warranted.
- Audit Your License Usage Internally: Don’t wait for IBM to do it. Periodically conduct internal audits or engage a third-party licensing specialist to review your Maximo and related deployments. They can safely identify areas of non-compliance, allowing you to correct course proactively.
Preparing for IBM License Audits
IBM Audits: An Inevitable Event?
IBM, like most large software vendors, conducts regular license compliance audits. High-value enterprise systems, such as IBM Maximo, TRIRIGA, and IBM’s supply chain solutions, are frequent targets because non-compliance can result in significant license revenue for IBM.
CIOs should assume that an audit will happen at some point and prepare continuously. Preparation not only avoids financial penalties but also reduces disruption when an audit is requested.
Know Your Entitlements:
The first step in audit readiness is having meticulous records of what you’ve purchased. Keep a License Entitlement Register – an up-to-date inventory of all IBM software entitlements your organization owns.
This should include license certificate details, metrics (e.g., 100 Authorized Users for Maximo, or 500 PVUs for WebSphere if it underpins Maximo), the purchase dates, and current support status. In an audit, you’ll be asked to provide proof of entitlements, so having them organized will save you time. Additionally, track any changes, such as transfers or special licensing terms granted by IBM in writing.
Continuous Compliance Monitoring:
Adopt a continuous monitoring mindset rather than a one-time true-up approach. Use tools to track license consumption (user counts, PVU usage) on a month-by-month basis. This way, if you exceed your entitlements, you catch it early.
You can take corrective action, such as purchasing additional licenses or scaling back usage, before an official audit flags the issue. Many CIOs integrate license compliance checks into IT operational dashboards – for example, a quarterly review in IT governance meetings on software compliance status.
Audit Simulation and Internal Reviews
Conducting periodic internal audits or “mock audits” can be immensely helpful. This could involve your internal software asset management team or an external consultant mimicking the process of an IBM audit, such as gathering user lists, pulling ILMT reports, and verifying deployments against entitlements.
This exercise often uncovers things like dormant accounts (e.g., ex-employees who are still enabled in Maximo and technically count against licenses) or overlooked servers. It’s far better to discover these yourself than have IBM’s auditors do so. If issues are found, remediate them immediately – troubleshoot the usage or purchase the necessary licenses – and document the fix.
Key Audit Areas for Maximo & Industry Solutions:
Be aware of what IBM auditors typically scrutinize for these products. For user-based licenses, they will likely request a list of all user accounts in the system, along with their assigned license type. They may compare that with your purchase records.
Make sure inactive or service accounts are identified. Also, ensure that no user is misclassified (e.g., someone using more modules than their license allows).
For PVU-based licenses, auditors will require evidence of your deployed environment’s CPU configuration and ILMT reports if you claim sub-capacity. If ILMT is not running and configured correctly, IBM may assume full-capacity (worst-case) CPU usage, which can significantly inflate license requirements.
Another area is add-ons or industry modules: auditors will check if you have enabled any Maximo industry solution or add-on without the corresponding entitlement. Keep records of which add-ons are installed and in use.
During an Audit:
When an official audit notice arrives, engage your stakeholders. Typically, IBM gives notice and assigns a third-party auditor to collect data. Involve legal and procurement teams to review the audit scope and communications.
Always share data with auditors in a controlled manner – provide what is asked, nothing more, and ensure it’s accurate. It helps to have a single point of contact, such as an IT asset manager, to coordinate responses.
Because you’ve prepared, this process should be a matter of pulling existing reports and documentation rather than a frantic scramble.
Recommendations for CIOs:
- Maintain Audit Readiness Documentation: Keep an easily accessible repository of all IBM license entitlements and up-to-date usage reports. Update it whenever you make changes (such as new purchases, changes to user count, or changes to the environment).
- Run ILMT and Archive Reports: Ensure that ILMT (or an equivalent tool) is running for all applicable IBM software. Archive the quarterly reports; they are your evidence in case of an audit to show compliance with PVU licensing.
- Clean Up User Accounts Regularly: Implement an offboarding process that includes deactivating or deleting Maximo/TRIRIGA user accounts when staff leave or change roles. Fewer dormant accounts means a clearer compliance position.
- Engage with IBM Proactively: If you anticipate a change that may affect licensing (e.g., a merger that increases users or a shift to cloud infrastructure), inform IBM and discuss the licensing implications. Being proactive can sometimes lead to more favorable terms or, at the very least, prevent adversarial audit findings later.
- Budget for True-ups: Set aside a reserve budget for software updates. Despite best efforts, you might discover during an internal review that you are under-licensed. Having a budget set aside to quickly purchase additional licenses or subscriptions ensures compliance can be restored swiftly without operational impact.
