IBM License Negotiation Advisory

IBM License Negotiation Advisory

Executive Summary:

Negotiating IBM licenses is a complex yet high-impact endeavor for CIOs, CTOs, CFOs, and sourcing leaders.

By mastering IBM’s licensing models and negotiation tactics, enterprises can unlock significant cost savings, avoid compliance pitfalls, and secure future flexibility.

This advisory outlines practical strategies to navigate IBM software deals, from preparation through contract signing and renewal, to ensure you get maximum value without overpaying.

Understanding IBM’s Licensing Landscape

IBM’s sprawling product portfolio – spanning software, cloud services, and even legacy hardware – makes its licensing landscape uniquely challenging.

Over the past decade, IBM has acquired dozens of companies and technologies, each with its licensing model.

As a result, IBM license negotiations require an understanding of a patchwork of metrics and terms.

Key examples include:

• Licensing Models: IBM uses varied metrics such as Processor Value Units (PVUs, core-based licensing points for products like WebSphere and DB2), Resource Value Units (e.g., based on number of endpoints or transactions for tools like Tivoli or QRadar), per-user licensing (for analytics software like Cognos or SPSS), and newer Virtual Processor Core metrics for cloud-based bundles (IBM Cloud Paks on Red Hat). Each model can significantly impact costs, depending on your environment and usage.
• Perpetual vs. Subscription: Traditionally, IBM sold perpetual licenses, accompanied by an annual support fee. Today, IBM is shifting toward subscription and SaaS models – for example, offering term licenses or cloud services on a yearly or multi-year subscription. Subscriptions add flexibility (e.g,. 1-year commitments that can scale up or down), but mean you forego perpetual rights. This shift also locks customers into renewing to maintain access, giving IBM leverage unless you negotiate protections.
• Passport Advantage Program: Most IBM software is sold under Passport Advantage (PA), a framework that allows your purchases to earn points and volume discounts. Reaching higher PA tiers (such as Level H or J) can yield approximately 15–20% off list prices automatically. Beyond these standard tiers, IBM often provides special bid discounts for large deals – it’s not uncommon to see cuts of 30%, 50%, or even deeper for big enterprise agreements when competition or sales pressures are strong. The flip side: IBM’s list prices are high, and a large discount on paper doesn’t guarantee a good deal if you’re buying more than you need.

Understanding this landscape is the first step. A successful negotiator will map out which IBM products and licenses your business needs, how those are measured (e.g., cores, users), and what baseline costs to expect.

This knowledge will inform where you have negotiation leverage and where hidden costs might arise.

Key Cost Drivers and Contract Pitfalls

IBM contracts come with several cost drivers and potential pitfalls that enterprises must be aware of.

Negotiating effectively means identifying these early and addressing them head-on:

• Maintenance (S&S) Fees: IBM’s annual Software Subscription & Support is typically about 20% of the license price per year, which compounds over time. Moreover, IBM often applies 5–10% annual uplifts to support fees by default, aiming to gradually move discounted clients back toward full list price. Over 3 years, even a “standard” 7% yearly increase means ~23% higher support costs. Negotiation Tip: Always cap maintenance increases in the contract (e.g., “no more than 3% per year” or tied to inflation) and ensure support fees are calculated on your negotiated net price, not some higher list price. Without these caps, you may find that your Year 2 or 3 costs are climbing steeply and eroding your initial savings.
• Bundled Shelfware: IBM often proposes bundling multiple products into an ELA (Enterprise License Agreement) or a large deal with an attractive overall discount. The risk is paying for software you don’t use – shelfware. For instance, IBM might offer 50% off a bundle of 10 products if you sign up in Q4, but perhaps your organization only truly needs 5 of those. The rest become unused licenses on the shelf, yet you’ll still pay 100% of their maintenance every year. Real-world example: One global manufacturer was offered a multi-product ELA at 50% off; half the bundle turned out to be non-essential. The CIO smartly refused the unnecessary half, insisting on line-item pricing for only the needed products. IBM warned the 50% discount would vanish if they dropped items – but facing a lost sale at quarter-end, IBM relented and kept the deep discount on the reduced scope. The company saved millions by avoiding years of support on unused software. Negotiation Tip: Scrutinize bundle proposals item by item. It’s better to get a slightly lower discount on what you’ll use than a huge discount on a bloated bundle. Remove or swap out components that don’t align with a clear business need, or negotiate the right to drop maintenance on unused components later.
• Complex License Metrics: IBM’s technical rules can create hidden cost surprises. A common trap is sub-capacity licensing. IBM allows licensing virtualized environments at a fraction of full machine capacity only if you deploy IBM’s License Metric Tool (ILMT) and follow its procedures. If you don’t, IBM’s policy may require licensing the entire physical server. For example, running an IBM middleware product on 2 VMs of a 32-core server without ILMT could oblige you to license all 32 cores – a massive, unforeseen cost. Negotiation Tip: Ensure you understand and comply with IBM’s tool requirements (like ILMT) or negotiate contract terms that clarify how virtualization is handled. Proactively document your virtual environment’s compliance to avoid nasty audit penalties.
• Withdrawn Volume Discounts: IBM’s pricing strategy is evolving. Notably, in recent years, IBM has eliminated many built-in volume discounts on traditional on-premises licenses to encourage customers to adopt its Cloud Pak bundles. This means if you were counting on an automatic discount at higher volumes, you might be surprised by higher prices on incremental purchases. A quantity of software that used to qualify for, say, 15% off might now be listed at the full price unless you adopt the new cloud-oriented licensing. Negotiation Tip: Never assume previous discount structures still apply – always get official quotes for any planned purchase, and use IBM’s cloud push to your advantage. For example, if you prefer not to move to Cloud Paks yet, point out that losing volume discounts raises your cost and insist on a custom discount to “stay whole.” Conversely, if you are open to cloud, leverage IBM’s desire by asking for a pilot or significant discount on a Cloud Pak in exchange for a longer commitment on current products.
• Audit and Compliance Risks: IBM is known for its strict compliance audits. Unbudgeted costs can arise if an audit reveals that you’ve exceeded usage or not adhered to license rules. Common issues include missing ILMT records (leading to paying for full capacity licensing) or using software beyond entitlements. An audit settlement can run into seven figures for large firms. Negotiation Tip: Always prepare for the possibility of an audit. Conduct internal self-audits and true-ups before major negotiations or renewals. If you suspect non-compliance, it can sometimes be addressed by quietly purchasing the necessary licenses at a discount during renewal rather than paying full penalty prices later. Some customers even negotiate audit-related clauses – while IBM won’t waive audit rights, large clients have secured agreements for provisions such as a “no audit for X years” period or using an independent auditor to validate compliance. At a minimum, being aware of your compliance position gives you confidence and removes a potential IBM bargaining chip.

Table: Overbuying vs. Right-Sizing – Why Bigger Isn’t Always Better

<small>*Assumes $1,000 list price per license for illustration. The overbuy scenario pays 30% of the list price ($300) due to a 70% discount, while the right-sized scenario pays 50% of the list price ($500) due to a 50% discount.

The overbuy deal spent more overall ($ 60,000 vs $ 50,000) and wasted $ 30,000 on unused licenses, plus incurred additional maintenance costs on those unused licenses each year.</small>

As the table shows, chasing a bigger discount by overbuying can backfire.

Although 70% off sounds better than 50% off, buying double the quantity resulted in a higher total spend and significant waste.

The IBM license negotiation lesson: only pay for what you truly need, and make sure every license in a deal has a purpose.

Preparation: Data, Benchmarks, and Strategy

The foundation of any successful IBM negotiation is thorough preparation.

Going in armed with data and a clear plan will greatly improve your bargaining position:

• Inventory Your Needs: Start by auditing your current IBM licenses and usage. Establish a baseline of what you own versus what’s deployed. Identify under-utilized licenses (shelfware) and any areas where you might be under-licensed. This internal analysis tells you what to cut, what to keep, and what new licenses you truly need going forward. CIOs who do this homework can approach IBM with confidence and avoid “buying blind.”
• Review Past Deals: Gather your historical IBM contracts, purchase orders, and any discounts previously received. Understanding what pricing and terms you achieved in the past provides a benchmark for new negotiations. For example, if you know you got a 40% discount on a certain software last renewal, that’s your baseline target (or better) this time. Also check for any price hold clauses or special terms in those contracts – ensure IBM honors them, or be ready to enforce or renegotiate them.
• Consult Market Benchmarks: Tap into industry knowledge about IBM’s pricing. This can involve consulting analysts or engaging third-party licensing experts who have insight into what similar enterprises are paying. Knowing the “market rate” or typical discount range for a given IBM product and volume can set realistic goals. For instance, if industry peers of your size typically get 50% off on a big Cloud Pak deal, you’ll know to push in that neighborhood. Benchmarking prevents you from accepting an offer that’s significantly worse than what others receive.
• Explore Alternatives: One of your strongest sources of leverage is the option to walk away or switch. Even if you don’t plan to rip out IBM solutions, research competitive products and cloud alternatives. Could AWS, Microsoft, or Oracle fulfill some of the same needs? Have at least a credible story that you’re considering moving workload X to another platform or using a third-party support provider. IBM sales reps know they must compete for your budget – if they sense you have viable alternatives, they’re more likely to concede on price and terms. Internally, build a cost-benefit case for switching versus staying – this not only helps with negotiation, but also ensures you only stick with IBM where it makes business sense.
• Set Clear Objectives: Define what a “win” looks like for your organization. Is it a target savings amount? A certain discount percentage? Flexible terms like the ability to reduce licenses later? Outline your must-haves and nice-to-haves before you start talks. Also, understand IBM’s likely objectives – for example, they may be introducing a new product or trying to meet a target by the end of the quarter. If you know they have a sales incentive (say, cloud subscriptions or a new analytics tool), you might trade interest in that for concessions elsewhere. Establishing your walk-away points and priorities upfront will guide your strategy as negotiations intensify.

Finally, assemble the right team and ensure alignment internally. Bring in IT, finance, procurement, and any business unit leaders who will be affected by the IBM contract. Make sure everyone agrees on the plan and messaging.

Mixed signals or last-minute internal objections can undercut your negotiation. With solid data and a united front, you’ll negotiate from a position of strength instead of reacting on the back foot.

Negotiation Strategies and Tactics with IBM

When it’s time to engage with IBM, approach the negotiation as a structured, strategic campaign.

Here are proven tactics and insights to drive a better outcome:

• Time Your Negotiations: Leverage IBM’s financial calendar to your advantage. IBM, like many vendors, has quarterly and annual sales targets. Deals pushed through at quarter-end (especially Q4, which for IBM is often year-end) are more likely to receive aggressive discounts. Sales representatives under pressure to meet quotas will seek management approval to drop prices or add incentives. As a tactic, some CIOs will conduct discussions throughout the quarter but hold off on final decisions until the last weeks, when IBM “sweats” and improves the offer rather than losing the sale. Be cautious not to overplay this, but timing is a powerful card. Key tip: make sure any internal approvals on your side are ready so you can sign quickly if IBM meets your terms at quarter-end.
• Bundle Demand (Smartly): Consolidate your needs into a single negotiation event whenever possible. If you know that over the next year you’ll need various IBM products or expansions, try to negotiate them together rather than piecemeal. A larger deal can move you into a higher Passport Advantage band or qualify for a special discount. However, as discussed, bundle smart – include only what you genuinely plan to use. Let IBM know you’re aiming to eliminate shelfware. By bundling demand, you show IBM a bigger immediate opportunity (which they’ll reward with better pricing), but by keeping it focused on real needs, you avoid waste. It’s a balancing act: maximize your volume leverage without succumbing to the temptation of “overbuying”.
• Insist on Transparency: During the negotiation, request detailed quotes with line-item pricing for each product or component. Do not accept vague proposals, such as “60% off list for the whole bundle,” without specific details. Each item should show list price, discount, and net price. This transparency prevents IBM from hiding higher margins on some components. It also empowers you to decide which items to drop or adjust. Moreover, having those line-item details in the final contract is critical for enforcement. If you need 50 more licenses of a certain product later, a clear quote ensures you receive them at the same discounted unit rate. Always negotiate price hold clauses: e.g., “Customer may purchase additional units of Product X at the same unit price ($Y) through December 2026.” This guards against IBM reverting to list prices for future add-ons once the initial deal is done.
• Use Competitive Leverage: As part of your negotiation dialogue, subtly remind IBM that you have options. Without turning adversarial, you can mention that your company is evaluating other solutions or cloud migrations for certain workloads. Even internal optimization can be leveraged – for example, “We’re considering consolidating and might eliminate some IBM tools.” This signals that IBM must earn your business. If you’ve obtained bids from competitors or third-party support providers, you don’t necessarily share those numbers with IBM, but you can use them to justify your stance. “We’ll need a better price to make this renewal worthwhile; otherwise, higher-ups are looking at other vendors,” is a message that gets attention. IBM would rather drop the price than lose the account or see a reduced footprint.
• Maintain a Collaborative, Firm Tone: Successful negotiators treat IBM as a long-term partner – but one that needs to deliver fair value. Be professional and fact-based in communications. Convey your requirements (including budget limits, technical needs, and timeline) and adhere to them. If IBM makes an offer that doesn’t meet your key objectives, calmly explain why it falls short. For example, “This price is above our budget, and frankly above market benchmarks we’ve seen. We need more movement, especially on the middleware licenses, to get this done.” By providing a rationale, you invite IBM to collaborate with you to solve the problem. At the same time, be prepared to say no and walk away if needed. Having internal executive support for a Plan B (like deferring a project or using an alternative) gives you credible negotiating power. The tone should be: We value IBM’s technology, but the deal must make business sense. This balanced approach keeps negotiations constructive but firmly steers towards your goals.
• Multiple Rounds and Patience: Don’t expect IBM’s first offer to be the final or best. Complex software deals often go through several rounds of proposals and counter-proposals. Plan for this. Avoid showing desperation to close quickly – if IBM senses urgency on your side, they may harden on price. Conversely, if you take your time (within the limits of quarter-end timing), IBM knows you’re not a quick pushover. Each round, reiterate your key points: “We need to reach X price or include Y term to move forward.” Use each iteration to chip away at costs or improve terms. Record everything in writing (emails or updated quote documents) to minimize misunderstandings. By the final round, you should have wrung out as much value as possible and ensured all important terms are captured in the draft agreement.

Managing Multi-Year Contracts and Renewals

Achieving a great initial deal is only half the battle. You must also protect that value over the life of the contract and into renewals.

IBM’s default contract terms often favor itself when it comes to renewal time, so savvy customers negotiate safeguards upfront:

• Lock in Discounts for the Future: If you negotiated, say, a 50% discount on license and support fees in Year 1, ensure the contract says that discount (or fixed price) carries forward. Without this, IBM might try to charge the full list price at renewal – effectively undoing your discount after the first term. Include a discount preservation clause such as: “discount percentages off list for licenses and support shall apply to all renewals.” This guarantees you don’t suddenly pay more later.
• Cap Renewal Rates: As noted, IBM typically escalates support fees annually. Negotiate explicit caps on support renewal increases beyond the initial term. For example, “Support fees shall not increase by more than 5% annually in years 2 and 3,” or a multi-year cap like “no more than 10% total increase over a 3-year renewal period.” If you’re signing a three-year ELA, also address what happens after it expires: e.g., an option to extend for 1-2 years at a predefined price or limited increase. The goal is to prevent a huge jump in year 4 when IBM has a free hand. Without caps, you’re exposed to whatever “then-current pricing” IBM sets.
• Ensure Flexibility Clauses: Over the long term, your business may undergo changes – such as divestitures, mergers, or strategic shifts – and you may need fewer licenses or different products. Try to bake in some flexibility. For instance, a clause to allow exchanging some licenses for other equivalent IBM products, or the right to reduce quantities at renewal if usage is lower. IBM may resist allowing reductions, but some clients succeed in negotiating the ability to cut a certain percentage of licenses at each renewal without penalty. At a minimum, avoid any contract language that locks you into automatic renewals of all licenses. You want the choice to drop or downsize parts of the agreement if they no longer provide value.
• Plan Renewal Negotiations as New Deals: Treat a major renewal like a new negotiation campaign – start planning it 6–12 months in advance. Review what you’re using and not using. If some software turns out to be shelfware, consider not renewing its support (or drastically reducing the number of licenses). Prepare justification for any reductions: usage data, business changes, and alternative solutions considered. When you approach IBM, don’t simply sign their renewal quote. Counter it: “We need to adjust these three products due to low utilization, and we expect a price decrease accordingly.” Remember, once you’re an installed customer, IBM’s sales focus may shift to hunting new deals. They might present a high renewal quote, assuming you won’t bother to fight it. Prove them wrong by coming to the table with a critical eye. You can often negotiate better renewal pricing or concessions (e.g., free extensions, services, or credits) if IBM knows you might otherwise switch or cancel.
• Manage the Relationship: In multi-year engagements, maintain open lines of communication with IBM account managers, even outside of active negotiations. If issues arise – for example, a product not delivering expected value – bring it up early. Sometimes IBM can offer extra consulting, training, or even license adjustments mid-term to keep you satisfied (and loyal). Conversely, if you’re generally happy but want to avoid complacency, periodically remind IBM that you expect to see continuous value. A collaborative tone can set the stage for smoother renegotiations later, but always back it up with a clear business rationale and a willingness to make tough decisions if needed.

By embedding these protections into your contracts, you prevent unpleasant surprises and “gotchas” in the years to come.

The result is a more predictable IT spend and the assurance that the savings you worked hard to negotiate won’t vanish after the ink is dry. Remember: the best defense against future cost creep is a well-crafted contract today.

Recommendations (Practical Tips for Negotiation Success)

• Do Your Homework: Enter IBM negotiations armed with data – a clear picture of your current usage, entitlements, and needs. An informed customer can counter any quote with facts and avoid overbuying.
• Leverage Timing: Plan major negotiations around IBM’s quarter-end or fiscal year-end. The added pressure on IBM’s sales team can translate into extra discount points or concessions in your favor.
• Push for Transparency: Don’t Accept Opaque Bundled Pricing. Require IBM to break out the costs for each component and include those details in the contract. This prevents hidden markups and simplifies future true-ups or expansions.
• Cap the Escalators: Nail down caps on annual support increases and carry your initial discounts into renewals. For example, stipulate that maintenance will rise at no more than 5% per year and that your discounted prices remain in effect for at least X years.
• Avoid Shelfware: Be ruthless about cutting unused software from any deal. A “great deal” on paper is not great if half the products sit idle. Only pay for what brings value to your enterprise, and negotiate rights to drop or swap unused licenses later.
• Use Benchmarks and Alternatives: Cite industry benchmark prices and have competitive options readily available. Whether it’s considering a move to AWS or just a credible quote from a third-party support provider, alternatives give you negotiating leverage to secure a better IBM offer.
• Document Price Holds: If there’s a chance you’ll need additional licenses in the future, negotiate the ability to buy more at the same negotiated rate. It saves you from re-negotiating (or paying the list) later when you’re in a weaker position.
• Engage Expertise if Needed: If IBM licensing isn’t a core skill on your team, consider using experienced software contract consultants or analysts. They can bring insights on deal benchmarks and help avoid traps, often paying for themselves via the savings they uncover.
• Stay Professional but Firm: Build a respectful relationship with IBM representatives, but don’t hesitate to assert your requirements. Make it clear you’re prepared to walk away from a deal that doesn’t meet critical needs. A confident, fact-based stance often earns respect and results.
• Think Long Term: Structure agreements with the full contract lifecycle in mind – from initial purchase to renewal to potential exit. Negotiating flexibility and protections now will save headaches and costs down the road.

Checklist: 5 Actions to Take

1. Audit Your IBM Environment: Gather all IBM license agreements and current usage data. Identify what you have, what you use, and where gaps or surpluses exist. This baseline will spotlight immediate savings (unused licenses to drop) and needs (areas to expand or ensure compliance).
2. Align Stakeholders & Goals: Convene IT, finance, and procurement to set clear objectives for the IBM negotiation. Decide your budget limits, priority outcomes (e.g. cost savings, cloud flexibility, etc.), and fallback options if negotiations stall. Ensure leadership is on board with potential trade-offs, like removing certain tools or delaying a project if IBM’s offer isn’t acceptable.
3. Research and Benchmark: Before engaging IBM, research typical pricing and alternatives. Consult industry sources or experts to determine the achievable discounts for your size and spending. Also get quotes or information from alternative vendors (or third-party support) for comparable solutions. This will form your negotiation reference point and BATNA (Best Alternative to a Negotiated Agreement).
4. Engage IBM with Your Plan: Initiate the negotiation with a data-driven proposal or RFP. Clearly outline what you want to buy (or renew), the volume, and even the target price/terms you expect based on your research. By setting the anchor, you frame the discussion. During talks, apply the tactics: time your responses, insist on detail, and iterate towards better pricing. Keep notes of all promises and ensure they are included in the draft contract.
5. Finalize and Future-Proof the Contract: Before signing, double-check that the agreement reflects all negotiated items. Verify that pricing, discounts, and caps are explicitly written. Look for any vague language around renewal or “future pricing” and clarify it. If something discussed is missing, get it added now – it’s nearly impossible to fix later. Once signed, continue internal license management (monitor usage, keep records via ILMT, etc.) so you remain in control and ready for the next renewal or audit on your terms.

FAQ

Q1: When should we start preparing for an IBM license renewal or negotiation?
A: Start early – ideally 6 to 12 months before your IBM agreement expires (or a new purchase is needed). Large enterprises benefit from a long runway to gather data, align internally, and engage IBM at a measured pace. IBM negotiations can be time-consuming, and you’ll want to sync with budgeting cycles and IBM’s quarter-end timing. Early preparation also gives you time to explore alternatives and won’t leave you scrambling if talks get contentious or complex.

Q2: How much of a discount is realistic to expect in an IBM deal?
A: It varies by product and situation, but broadly: through IBM’s standard volume pricing tiers, you might get up to ~20% off list price automatically for substantial purchases. With further negotiation, enterprises frequently achieve significantly larger discounts – 30-50% off is common in competitive or large deals, and even higher discounts (60%+ off) can occur if IBM is particularly eager to win or retain your business. The key is to benchmark against similar deals. If you’re a Fortune 500 company spending millions on IBM software, you should be pushing for major concessions. Always evaluate the discount in context: 50% off a bloated bundle isn’t good value, whereas 15% off a lean, exactly-right set of licenses might be a great outcome. Focus on the overall value and cost, not just the headline discount percentage.

Q3: Can we renegotiate an IBM license agreement mid-contract if our needs change?
A: Generally, once you sign a contract, you’re locked in for that term. IBM is not obligated to reduce your committed spend or swap products until the renewal or expiration, unless you negotiated flexibility clauses. However, if your needs change drastically (e.g., a division is sold off or you’re moving to the cloud faster than expected), it’s worth discussing with IBM even mid-contract. In some cases, IBM may accommodate changes like swapping one product for another or adding more of something in exchange for less of another (especially if it leads to additional sales or extends commitments). Any mid-term adjustment will usually require a contract amendment and likely some concession from your side (like extending the term or adding a new product). It’s not guaranteed, so the better approach is to build flexibility into the original negotiation. At renewal time, you have much more freedom to reshuffle and renegotiate the entire deal.

Q4: How do IBM software audits affect the negotiation process?
A: An IBM audit can significantly impact negotiations. Suppose you’re under audit while negotiating a renewal or new deal. In that case, the audit findings (potential compliance gaps) become leverage for IBM – they may demand you purchase additional licenses or pay back support fees to settle the compliance issue. To avoid being on the back foot, try to resolve any audit issues before finalizing a new contract. You could negotiate the audit settlement as part of a larger deal (for example, IBM drops some penalties if you commit to a new purchase). It’s a delicate dance – you want to address compliance, but you don’t want an audit surprise to consume your whole budget. That’s why proactive internal audits are so important. Also, be aware that IBM might time audits tactically around renewals. If you receive an audit notice and you’re due for a renewal, coordinate your legal and procurement strategy to handle both in concert. If needed, seek expert help to navigate the audit – it’s part of the negotiation with IBM, and everything is on the table.

Q5: Is it worth considering third-party support or non-IBM solutions to save costs?
A: It can be. Third-party support providers (like some specialized firms) sometimes offer maintenance for IBM software at a fraction (perhaps 50%) of IBM’s price, albeit without upgrades to new versions. Moving some legacy or less critical IBM products to third-party support can be a cost-saving strategy, and the mere option gives you negotiating leverage with IBM (“We have a quote to support these systems for half the cost.”). Non-IBM solutions (open source, cloud services, other vendors) might replace portions of IBM’s portfolio in your organization. While switching has its costs and risks, the threat of migrating to a competitor can motivate IBM to offer better terms to keep your business. Ultimately, any alternative should be evaluated on its merits (performance, compatibility, support). But from a negotiation standpoint, having viable alternatives in your back pocket is extremely valuable. Many enterprises use a dual approach: negotiate hard with IBM for core systems they’ll keep, while actively replacing or dropping the pieces that no longer justify their cost. This keeps IBM on notice that you won’t simply renew everything by default.

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