On Demand Session  |  Negotiating the Big 50

Negotiating with IBM

The vendor where the negotiation and the audit are the same conversation, whether or not anybody says so. An eighteen minute session on capacity licensing, the reporting control that decides whether your sub capacity savings survive, what an enterprise agreement really costs, and the six clauses that matter.

17:57 minutes9 chaptersDaniel, Senior Advisor and Claire, Expert AnalystFree, no registration

About this session

IBM licensing is measurement based. Most software is licensed by capacity rather than by user, and the number you owe is a function of the hardware the software could run on rather than what you actually use. Install a product on a large virtualised cluster and your default liability is the whole cluster. Which means your compliance position and your negotiating position are the same number viewed from two directions, and a customer who cannot produce that calculation walks in without knowing what they are entitled to argue for.

The single largest financial exposure in IBM licensing is not over deployment. It is a reporting control that nobody owned. Sub capacity licensing is conditional on running the licence metric tool, keeping it current, and retaining quarterly reports. Where that tooling is absent, incomplete, or producing reports nobody kept, the assessment reverts to full capacity, which can be several times actual usage and is applied retrospectively across the period.

The session also covers the enterprise agreement and the trap inside it: relief from counting is genuinely valuable and IBM knows how valuable, but at the end of the term you certify your deployment, and three years of unconstrained growth becomes the baseline that sets your exit price and your renewal. The freedom was real and it was borrowed. Plus the six clauses that matter, most of which concern the end of the agreement rather than the beginning, and the two dates that decide your leverage.

Session agenda

Every line jumps the player to that point.

  • 0:00 Welcome, and what this session coversWhy the negotiation and the audit are the same conversation.
  • 1:28 How the licensing worksCapacity rather than users, and what full capacity would actually cost you.
  • 3:30 Sub capacity and the toolingReporting integrity, not licence counts, decides whether your savings survive.
  • 6:38 The enterprise agreementWhat relief from counting buys, and what the certified count costs.
  • 10:07 Audits and renewalsNever let the first number in the room be theirs.
  • 12:32 The clausesProduct list, certification, swap rights, M and A, the renewal cap and the exit price.
  • 14:33 TimingTheir year end, your Passport Advantage anniversary, and one free administrative win.
  • 16:26 The numbersFour to hold on to.
  • 17:02 The bottom lineFix the tooling, measure your own position, then negotiate.

The model. Redress Compliance works on contingency. You negotiate with the vendor first. When you have gotten everything you can get, bring the deal to Redress and we take 25 percent of what we save you beyond your best number. Nothing saved, nothing paid. Talk to us.

Chapters

  • 0:00Welcome, and what this session covers
  • 1:28How the licensing works
  • 3:30Sub capacity and the tooling
  • 6:38The enterprise agreement
  • 10:07Audits and renewals
  • 12:32The clauses
  • 14:33Timing
  • 16:26The numbers
  • 17:02The bottom line

More from the series

Browse all episodes →