Sub capacity licenses IBM software to the cores it uses, not the whole server. Here is how the ILMT rules work, what IBM accepts, and how to keep the saving.
Sub capacity licensing lets you license IBM software to the virtual cores it uses, not the whole server. The saving is large, and it disappears the moment ILMT lapses.
This pillar is for license managers and infrastructure teams running IBM PVU based software on virtualized hardware. Read it with the IBM PVU table guide and the IBM ILMT deployment guide.
Sub capacity is the single largest lever on an IBM software bill for most estates. It is also the one most often lost on a technicality, because the tooling has to be perfect, not merely present.
Sub capacity licensing lets you license an IBM product to the virtual cores it actually uses inside a partition or virtual machine, rather than every core in the physical server. On a large host, the difference is dramatic.
Full capacity counts every activated core in the server. Sub capacity counts only the virtual cores the software can use. The IBM sub capacity licensing page defines the terms.
On a 48 core host running a product in an 8 core partition, sub capacity licenses 8 cores rather than 48. That is the scale of saving sub capacity protects, and the scale of exposure if it lapses.
The IBM License Metric Tool is the gatekeeper. IBM only accepts sub capacity counts that ILMT produces under specific conditions, and missing any one of them defaults the product to full capacity.
ILMT must be installed within ninety days of the first sub capacity eligible deployment, scan at least every thirty minutes, and retain reports for two years. The IBM License Metric Tool documentation sets the technical baseline.
If ILMT is missing, late, or misconfigured, IBM treats the product as licensed at full capacity. The virtual saving vanishes and the bill reverts to every core in the server. The default is never in your favor.
Full capacity versus sub capacity on a 48 core host
| Scenario | Cores licensed | ILMT required |
|---|---|---|
| Full capacity | 48 cores | No |
| Sub capacity, 8 core partition | 8 cores | Yes |
| Sub capacity, ILMT lapsed | 48 cores | Reverts to full |
| Product not eligible | 48 cores | Not applicable |
Sub capacity is not universal. IBM publishes the eligible products, virtualization technologies, and processor types. Assuming eligibility without checking is a frequent and costly error.
IBM lists the approved hypervisors and partitioning technologies, including common VMware, IBM Power, and other platforms. A technology not on the list does not support sub capacity, regardless of how it caps cores.
Check the product against the IBM sub capacity eligibility list before relying on a reduced count. Some products are full capacity only, and licensing them as sub capacity creates a gap that surfaces in an audit.
The standard reseller line is that deploying ILMT is enough to secure sub capacity. We disagree.
In roughly 1 in 3 IBM estates we reviewed, ILMT was present but had a reporting gap, a missed scan window, or a retention shortfall that defaulted products to full capacity.
The buyer side move is to run ILMT as a monitored production control with a named owner and failure alerts, not as a checkbox. Present but broken is the same as absent in an audit.
Source: Redress Compliance advisory engagement file, 2024 to 2025.
Sub capacity is the largest lever on most IBM bills, and the easiest to lose. The tooling has to be perfect, not merely present.
The ILMT reports are the proof. In an audit, IBM asks for the historical reports, and their absence ends the sub capacity claim immediately.
IBM accepts the ILMT generated reports covering the audited period, showing the peak virtual core use per product. Manual spreadsheets and screenshots do not substitute for the tool's own output.
A gap in the report history is a gap in your defense. A month with no data can push that month to full capacity. Treat ILMT as a continuously running control, not a tool you start before an audit.
The moves are discipline around tooling, eligibility, and evidence. The saving is built into the design, so protecting it is about not losing it on a technicality.
ILMT that runs continuously and is monitored for failures keeps the saving safe. Owning it like any other production system, with alerts and a named owner, prevents the silent lapse that converts to full capacity.
Confirm each product and platform against the current IBM eligibility list before claiming sub capacity. Where a product is full capacity only, plan the deployment to limit physical cores instead.
Sub capacity licensing lets you license an IBM PVU product to the virtual cores it uses inside a partition rather than every physical core in the server. On large hosts it can cut the count by half or more.
Yes, the IBM License Metric Tool is mandatory to claim sub capacity. Without a compliant ILMT deployment, IBM licenses the product at full capacity, counting every core in the physical server.
ILMT must scan at least every thirty minutes and retain its reports for at least two years. It must also be installed within ninety days of the first sub capacity eligible deployment to qualify.
If ILMT is missing, installed late, or misconfigured, IBM reverts the product to full capacity. The virtual core saving disappears and the entitlement reverts to every core in the server.
On virtualized estates, sub capacity often cuts the PVU count by half or more. A product running in an 8 core partition on a 48 core host licenses 8 cores instead of 48 when ILMT is compliant.
No, IBM publishes a list of eligible products, virtualization technologies, and processor types. Some products are full capacity only, so confirm eligibility before relying on a reduced count.
IBM accepts the ILMT generated reports covering the audited period, showing peak virtual core use per product. Manual spreadsheets and screenshots do not substitute for the tool's own output.
A gap in the ILMT report history is a gap in your defense. A month with no data can be pushed to full capacity, so ILMT should run continuously as a monitored production control.
IBM PVU sub capacity rules, ILMT posture, Passport Advantage levers, and the buyer side moves across the full IBM software estate.
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We have watched estates lose a seven figure sub capacity saving over a single month where ILMT stopped reporting.
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