IBM Software Licensing for Cloud and Hybrid Environments

IBM Software Licensing Overview

• Licensing Models: Includes perpetual, subscription, and hybrid.
• Metrics: Common metrics include PVU, VPC, and user-based.
• Compliance: Requires adherence to specific terms and conditions.
• Tools: Use the IBM License Metric Tool (ILMT) for tracking.
• Flexibility: Licensing options tailored to various deployment environments.

Introduction to IBM Software Licensing

Understanding IBM software licensing is crucial for organizations to effectively manage their IT infrastructure and budgets. IBM offers various software products and services, each with licensing models and terms.

Navigating this complex landscape can be challenging, but having a solid grasp of the various licensing options is essential for making informed decisions and ensuring compliance.

• Diverse Licensing Options: IBM’s licensing models are designed to meet the unique needs of different organizations.
• Importance of Understanding: A thorough understanding of these models helps optimize software investments and avoid compliance issues.
• Flexibility with Complexity: While IBM offers flexibility, the variety of options adds complexity, making it crucial to understand the specifics of each model.

Overview of IBM Licensing Models

IBM provides several licensing models, each with distinct characteristics and benefits:

Perpetual Licensing

• One-Time Fee: Customers pay a one-time fee for the right to use the software indefinitely.
• Long-Term Use: This option is ideal for organizations that plan to use the software over the long term and have the budget for upfront costs.
• Ongoing Costs: Typically requires annual maintenance and support fees in addition to the initial purchase.

Subscription Licensing

• Recurring Fees: Customers pay a recurring fee (monthly, quarterly, or annually) for software access over a specific period.
• Flexibility: Suitable for organizations with variable software usage needs or those who prefer to spread out costs.
• Included Support: Subscription licenses often include access to updates and support during the subscription period.

Hybrid Licensing Models

• Combination Approach: Combines elements of both perpetual and subscription licensing.
• Flexible Options: This option allows organizations to purchase a perpetual license for the base software while subscribing to additional features or services.
• Customization: Tailored to fit specific business needs and budgets.

Key Considerations When Comparing Models

• Long-Term Costs: Evaluate the total cost of ownership (TCO), including upfront costs, recurring fees, and maintenance.
• Flexibility Needs: Consider the organization’s need for flexibility versus the predictability of perpetual licenses.
• Budget Constraints: Assess what fits within the organization’s current and future budget.
• Growth Plans: Ensure the chosen model can accommodate future business growth and software needs.

IBM Licensing Terms and Conditions

To use IBM software properly and remain compliant, it’s important to understand the key licensing terms and conditions:

International Program License Agreement (IPLA)

• Standard Agreement: This agreement outlines the terms for using IBM software, including license grants, ownership, warranties, and termination.
• Review Carefully: Organizations should carefully review the IPLA to understand their rights and obligations.

License Information Documents (LID)

• Product-Specific Terms: LIDs provide detailed information about the licensing terms for individual IBM software products.
• Key Details: Includes licensing metrics (e.g., Authorized User, Processor Value Unit), usage restrictions, and additional product-specific terms.

Passport Advantage Agreement

• Comprehensive Program: This program allows customers to acquire IBM software licenses, subscriptions and support, cloud services, and selected support for non-IBM products.
• Streamlined Management: Simplifies software acquisition and management through unified agreements and processes.

Key Definitions and Concepts

• Authorized User vs. Concurrent User: Understand the difference in selecting the right license type.
• Processor Value Units (PVUs): Know how PVUs are calculated to make informed licensing decisions.

Licensing for IBM Middleware Products

IBM Middleware products are crucial IT infrastructure components, helping businesses run critical applications efficiently. Understanding the licensing models for these products is essential for optimizing costs and ensuring compliance.

Here’s an overview of key IBM Middleware licensing options:

WebSphere Application Server Licensing

IBM offers several licensing models for WebSphere Application Server, tailored to meet different organizational needs:

• Subscription-Based Licensing:
  • Annual Fee: Includes access to software updates and support.
  • Flexibility: Suitable for organizations that need predictable annual expenses.
• Perpetual Licensing:
  • One-Time Cost: Allows indefinite use of a specific software version.
  • Stability: Ideal for organizations planning long-term use without frequent upgrades.
• Processor Value Unit (PVU) Licensing:
  • Based on Processing Power: Licensing is determined by the processing power of the servers where WebSphere is installed.
  • Scalable: Suitable for organizations with scalable processing needs.
• Virtual Processor Core (VPC) Licensing:
  • For Virtualized Environments: Licensing based on the number of virtual cores allocated.
  • Optimized for Virtualization: Ideal for environments that leverage virtual machines.
• User-Based Licensing:
  • Based on Number of Users: Charges depend on how many users access the software.
  • Flexible Access: Suitable for organizations with a known number of users requiring access.

WebSphere Editions:

WebSphere Application Server is available in different editions, each with varying capabilities:

• Base Edition: Standard features for application deployment.
• Network Deployment: Advanced features for large-scale deployment and management.
• Liberty Edition: Lightweight and fast for cloud environments.
• Express Edition: Cost-effective option for small and medium businesses.
• z/OS Edition: Optimized for IBM’s z/OS mainframe environments.

IBM MQ Licensing

IBM MQ is a robust messaging middleware that facilitates communication between applications, systems, and services.

Here’s what you need to know about IBM MQ licensing:

• No License Keys Required: IBM MQ does not use software license keys, simplifying installation.
• License Agreement: During installation, you must accept the license agreement. Declining it cancels the installation.
• Version Management: Ensure the installed MQ version is still supported before upgrading the operating system or MQ itself.
• CPU-Based Licensing: For CPU-based MQ licensing, use IBM i “CPU Capping” to limit the number of licensed processors MQ uses.

Key Considerations:

• Track License Usage: Convert bundled license options into specific capability counts for better tracking.
• Security Settings: Define access to IBM MQ capabilities within the security settings of IBM administration consoles.
• Use of Groups and Roles: Simplify permission management by using groups and roles for secured functions and features.
• Regular Audits: Conduct license audits to ensure compliance and identify unlicensed components.

Other Middleware Product Licensing Considerations

IBM Middleware licensing involves several other key considerations to optimize usage and maintain compliance:

• Bundled License Translation: Convert any bundled license options presented during purchase into actual capability counts for tracking.
• Access Control: IBM administration consoles define and manage access to middleware capabilities.
• Groups and Roles: Utilize groups and roles to grant permissions to secured functions, making it easier to manage user access.
• Audit Regularly: Regularly audit licenses to ensure compliance and to identify any unlicensed components that may have been installed inadvertently.

IBM Product-Specific Licensing Guides

IBM offers detailed licensing guides for several of its major software products. Here’s a quick overview:

IBM Cognos Licensing Guide

IBM Cognos is a business intelligence and performance management tool. IBM Cognos licensing options include:

• Authorized User: Full access to all Cognos capabilities assigned to specific individuals.
• User License: Allows interaction with Cognos content and performs basic functions, also a named license.
• Viewer License: Read-only access to view Cognos reports without authoring capabilities.
• Processor Value Unit (PVU): This capacity-based licensing considers the Cognos servers’ processor cores ideal for enterprise deployments.

Optimization Tips:

• Regular Audits: Conduct regular audits to ensure effective license utilization and compliance.
• Reassign Unused Licenses: Reassign or downgrade unused licenses as appropriate.
• User Training: Provide training to maximize user productivity with their assigned license type.

IBM SPSS Licensing Guide

IBM SPSS is a predictive analytics software suite. IBM SPSS Licensing options include:

• Subscription-Based: Provides access to SPSS software for a specific period, typically monthly or annually.
• Perpetual Licensing: A one-time payment allows indefinite use, with additional costs for maintenance and support.
• Academic Licensing: Special discounted licenses for students, educators, and academic institutions.

IBM Rational Licensing Guide

IBM Rational is a suite of software development tools. IBM Rational Licensing includes:

• Authorized User Licenses: Tied to specific named users, providing exclusive access.
• Floating User Licenses: Allows a maximum number of concurrent users managed by a central license server.
• Token-Based Licensing: Uses a pool of tokens instead of licenses, providing flexibility across multiple products.

IBM License Key Centers

The IBM License Key Center is crucial for generating and managing the license keys required to activate and use IBM software products.

Here’s what you need to know:

Purpose and Functionality:

• Central Hub: The IBM License Key Center is the central place for generating and managing license keys.
• Ensures Compliance: Helps ensure that your software operates legally and within the terms of your license agreement.

Types of License Keys:

• Authorized User: Grants access to software functionality for a specific named user.
• Floating User: Allows a set number of concurrent users to access the software.
• Capacity-Based: Keys based on processor value units or other capacity metrics, unlocking software functionality up to a certain level.

Best Practices for License Key Management:

• Maintain Records: Keep detailed records of all license keys, their allocation, and usage.
• Secure Storage: Ensure all software is properly licensed with keys securely stored and accessible.
• Utilize Tools: License management tools track key assignments and compliance.
• Stay Updated: Stay informed of changes to IBM’s key generation and management procedures.

Organizations can manage their IBM software assets more effectively by understanding the nuances of IBM’s middleware, product-specific licensing, and the role of the License Key Center.

Implementing best practices around license allocation, tracking, and auditing helps optimize utilization and ensures compliance with IBM’s licensing terms.

IBM Licensing for Cloud Pak

Overview of IBM Cloud Pak

IBM Cloud Paks are comprehensive, AI-powered software solutions that help enterprises develop, modernize, and manage applications across hybrid cloud environments.

Built on the Red Hat OpenShift platform, Cloud Paks comes with pre-integrated data, automation, and security capabilities, enabling organizations to accelerate their digital transformation efforts.

Key Features:

• AI-Powered: Leverages AI to optimize application development and management.
• Hybrid Cloud: Supports deployment across various cloud environments, including on-premises, public, and private clouds.
• Built on OpenShift: Ensures compatibility and flexibility with Kubernetes-based container orchestration.

Licensing Models for Cloud Pak

IBM Cloud Paks are licensed using the Virtual Processor Core (VPC) metric, which measures the number of virtual cores allocated to the Cloud Pak instance.

The VPC licensing model offers flexibility, allowing customers to tailor their usage based on the specific needs of each component within the Cloud Pak.

• VPC Metric: Based on the number of virtual cores allocated.
• Flexible Usage: Customers can adjust their usage across different components within the Cloud Pak.
• Scalable Licensing: Easily adapts to growing or changing workloads.

Considerations for Deploying Cloud Pak in Different Environments

When deploying IBM Cloud Paks, it’s essential to consider the specific environment in which they will be used:

• Traditional Virtual Environments:
  • Monitor Entitlement: Carefully track how each component contributes to the overall Cloud Pak entitlement.
• Kubernetes-Orchestrated Container Environments:
  • Aggregate VPC Requirements: Sum the VPC requirements of each bundled program, applying the appropriate conversion ratios.
• License Mixing Rules:
  • Compliance Check: If you’re using existing Processor Value Unit (PVU) licenses for a program included in a Cloud Pak, ensure you review the license mixing rules to maintain compliance.

IBM Aspera Licensing

Aspera Product Overview

IBM Aspera is a high-speed data transfer software suite that enables the rapid, secure movement of large files and datasets over wide area networks (WANs).

Powered by Aspera’s patented FASP® technology, it overcomes the limitations of traditional transfer protocols, ensuring fast and reliable transfers regardless of network conditions or distance.

Key Features:

• High-Speed Transfers: Enables fast movement of large files across networks.
• Security: Ensures secure data transfers, crucial for sensitive data.
• Reliability: Consistent performance even under challenging network conditions.

Licensing Models for Aspera

IBM Aspera offers both subscription and perpetual licensing models, allowing flexibility depending on organizational needs:

• Subscription Licensing:
  • Aspera on Cloud: Provides consumption-based pricing with annual transfer volume commitments starting at 1 TB.
• Perpetual Licensing:
  • On-Premises Deployment: Traditional perpetual licenses for Aspera’s transfer server and client software, ideal for organizations with stable, long-term needs.
• Bring-Your-Own-License (BYOL):
  • Cloud Deployment: Aspera supports BYOL options for deploying its software on major cloud platforms, offering flexibility for hybrid or multi-cloud strategies.

Aspera License Management and Reporting

Managing and reporting Aspera licenses is streamlined through the Aspera Console, which provides centralized control and visibility:

• Centralized Management: Offers real-time monitoring of transfers and user activity.
• User Management: Allows for easy management of users and their access levels.
• Detailed Reporting: Generates usage reports to help optimize license allocation and ensure compliance.

Licensing for IBM Db2

Db2 Product Family Overview

IBM Db2 is a family of database management products designed to handle a variety of data management needs, from transactional processing to analytics and big data:

• Db2 Database: A relational database optimized for transactional workloads.
• Db2 Warehouse: A data warehouse solution tailored for analytics and business intelligence.
• Db2 Big SQL: A SQL engine built to handle queries on Hadoop.
• Db2 Event Store: A specialized data management solution for streaming data and real-time analytics.

Db2 Licensing Metrics

IBM Db2 products are licensed using different metrics depending on the edition and deployment model:

• Processor Value Unit (PVU):
  • Core-Based Licensing: Licensing is based on the processor cores and types commonly used for Db2 Database and Warehouse.
• Authorized User:
  • Named User Licensing: Licenses are assigned to specific users and are suitable for Db2 Database and Warehouse editions with limited user counts.
• Virtual Processor Core (VPC):
  • Virtualization-Friendly: Ideal for deploying Db2 in virtualized environments or on cloud platforms.

Db2 Licensing in Virtual Environments

When licensing Db2 for virtual environments, several factors influence the number of licenses required:

• Processor Technology: The type of processors used in the virtual environment.
• Number of Virtual Cores: The total number of virtual cores allocated to Db2 instances.
• Db2 Edition: The specific Db2 edition can also affect licensing requirements.

Tools for Licensing Calculation:

• Processor Value Unit Converter: IBM provides tools like the Processor Value Unit Converter to help organizations accurately calculate the licenses required for virtualized Db2 deployments.

IBM Spectrum Protect Licensing

Spectrum Protect Product Overview

IBM Spectrum Protect, previously known as Tivoli Storage Manager, is a comprehensive data protection platform designed to provide backup, archive, and disaster recovery solutions across physical, virtual, and cloud environments.

Key features of Spectrum Protect include:

• Incremental Forever Backups: Reduces backup time by only capturing changes since the last backup.
• Data Deduplication and Compression: Minimizes storage requirements by eliminating redundant data and compressing files.
• Encryption: Ensures data security during storage and transfer.

Licensing Metrics for Spectrum Protect

IBM Spectrum Protect uses capacity-based licensing, which is determined by the amount of protected data.

The two primary licensing metrics are:

• Front-End Terabyte (TB):
  • Definition: Measured based on the amount of protected data before applying data reduction techniques like compression or deduplication.
  • Usage: This metric represents the raw data size that needs protection.
• Back-End Terabyte (TB):
  • Definition: Calculated based on the amount of data stored in the Spectrum Protect server after applying data reduction techniques.
  • Usage: This metric accounts for the storage used after deduplication and compression.

Capacity-Based Licensing Considerations

When managing IBM Spectrum Protect with capacity-based metrics, keep the following in mind:

• Monitor Data Usage: Regularly track the amount of data being protected to ensure it stays within the licensed capacity limits.
• Tools for Tracking: Use the IBM Spectrum Protect Operations Center or administrative commands like QUERY STATUS to monitor front-end and back-end TB usage.
• Sub-Capacity Licensing: Understand sub-capacity licensing rules, especially in virtualized or cloud environments.
• Data Growth Impact: Consider how data growth and retention policies affect future capacity requirements and licensing costs.

IBM Maximo Licensing

Maximo Product Overview

IBM Maximo is an enterprise asset management (EAM) platform designed to help organizations efficiently manage and optimize their physical assets and maintenance operations.

Key modules in Maximo include:

• Asset Management: Tracks and manages asset performance and lifecycle.
• Work Management: Oversees work orders, scheduling, and task management.
• Inventory Management: Manages inventory levels, reorder points, and parts availability.
• Procurement: Handles the procurement process from requisition to purchase order.
• Service Management: Manages service requests and customer interactions.

Maximo Licensing Models

IBM Maximo licensing is user-based, with the cost dependent on the number and type of users accessing the system. The main licensing models are:

• Authorized User:
  • Access: Grants a specific individual access to the Maximo system.
  • Licensing: Each Authorized User requires a separate license.
• Limited Use Authorized User:
  • Access: Provides restricted access to specific Maximo modules or functions.
  • Usage: Ideal for users who only need limited functionality.
• Express User:
  • Access: A lower-cost option for users who only need self-service functionality, such as submitting service requests or viewing knowledge articles.
  • Usage: Suitable for users with minimal interaction with the system.

Maximo Licensing in Cloud Environments

When deploying IBM Maximo in a cloud environment, consider the following licensing aspects:

• Maximo SaaS (Software as a Service):
  • Subscription-Based: Licenses typically include hosting, maintenance, and support costs.
• Maximo Managed Services:
  • License Options: Licenses may be purchased separately or bundled with the managed services agreement.
• BYOL (Bring Your Own License):
  • Cloud Deployment: This option allows using existing Maximo licenses in a cloud environment, subject to specific terms and conditions.

Licensing for IBM WebSphere

WebSphere Product Family Overview

IBM WebSphere is a comprehensive family of products designed to help organizations build, deploy, and manage web applications and services.

The WebSphere product family includes:

• WebSphere Application Server: A Java EE application server for deploying and managing web applications.
• WebSphere Liberty: A lightweight, modular application server optimized for microservices and cloud-native applications.
• WebSphere MQ: Messaging middleware that ensures reliable and secure communication between applications.
• WebSphere Portal: A platform for building and managing web portals and digital experiences.

WebSphere Application Server Licensing

Licensing for IBM WebSphere Application Server is primarily based on the number of Processor Value Units (PVUs) required to deploy the software. PVUs are calculated based on the processor cores and architecture of the underlying hardware.

Other licensing options include:

• Authorized User Single Install:
  • Access: Allows a specific user to install and use the software on a single machine.
• Processor License:
  • Access: Allows unlimited installations and users on a specific processor core.

WebSphere MQ Licensing

WebSphere MQ licensing also uses the PVU model, but additional options include:

• Client Device License:
  • Access: Allows a specific device to connect to a WebSphere MQ server.
• Authorized User License:
  • Access: Grants a specific user access to a WebSphere MQ server.

Other WebSphere Product Licensing Considerations

• WebSphere Portal Licensing:
  • Metrics: Licensing can be based on the number of Authorized Users or PVUs.
• Licensing Options:
  • Perpetual vs. Subscription: Many WebSphere products offer perpetual and term (subscription) licensing options.
• Virtualization and Cloud Deployment:
  • Sub-Capacity Licensing: Consider the impact of virtualization and cloud deployment on licensing, as sub-capacity or BYOL options may be available.

IBM Licensing for Analytics Solutions

Overview of IBM Analytics Products

IBM provides a robust suite of analytics solutions to help organizations unlock valuable insights from their data.

These products cater to various analytics needs, from business intelligence to predictive modeling and planning. Key IBM analytics products include:

• IBM Cognos Analytics: An AI-powered business intelligence platform offering self-service analytics, dashboarding, and reporting capabilities.
• IBM SPSS: A comprehensive family of statistical software for data mining, text analytics, and predictive modeling, including products like SPSS Statistics, SPSS Modeler, and SPSS Text Analytics.
• IBM Planning Analytics: A collaborative planning and budgeting solution that integrates AI to support continuous planning workflows.

Licensing Models for Analytics Solutions

IBM offers flexible licensing models for its analytics products, allowing organizations to choose the best option based on their needs:

• User-Based Licensing:
  • Assigned to Individuals: Licenses are assigned to specific users with different roles, such as Authorized User, Viewer, and Analyst.
  • Common Use: Frequently used for IBM Cognos Analytics and IBM Planning Analytics.
• Capacity-Based Licensing:
  • Based on Computing Power: Licenses are calculated using metrics such as Processor Value Units (PVUs) or Virtual Processor Cores (VPCs).
  • Server Deployments: Often used for server-based analytics deployments.
• Subscription Licensing:
  • Term-Based: Licenses are purchased for a specific duration (monthly, quarterly, or annually) and include software access and support.
  • Flexibility: Ideal for organizations that prefer predictable costs over time.

Analytics Licensing in Cloud and Hybrid Environments

IBM analytics products can be deployed across various environments, each requiring different licensing considerations:

• Cloud:
  • SaaS Model: With subscription-based licensing, IBM offers analytics products as Software as a Service (SaaS) on the IBM Cloud. Different tiers are available based on features and capacity.
• Hybrid:
  • Mixed Deployment: Analytics products can be deployed in a hybrid model, combining on-premises and cloud components. Licensing may involve a mix of perpetual, subscription, and capacity-based models.
• Public Cloud:
  • Bring Your Own License (BYOL): When deploying IBM analytics software on public clouds like AWS or Azure, existing licenses can be applied to cloud instances. Specific terms and conditions must be followed to ensure compliance.

How to Buy IBM Software Licenses

IBM Passport Advantage Program

Passport Advantage is IBM’s comprehensive licensing program designed for larger enterprises. It offers several key benefits:

• Streamlined Procurement: Simplifies purchasing IBM software licenses, subscriptions, and support.
• Volume Discounts: Provides discounts based on the volume of purchases, with points accrued from each purchase contributing to higher discounts.
• Centralized License Management: Facilitates centralized management of licenses across the organization.

IBM Passport Advantage Express

Passport Advantage Express is tailored for smaller organizations with simpler licensing needs. It differs from Passport Advantage in several ways:

• Transactional Model: Operates on a per-transaction basis without volume discounting.
• Single-Site Deployments: Ideal for organizations with a single site and straightforward deployment needs.
• No Minimum Purchase Requirements: Unlike Passport Advantage, no minimum purchase thresholds exist.

Purchasing Through IBM Business Partners

IBM has a vast network of authorized Business Partners who can assist with:

• Value-Added Services: Offering implementation, customization, and support services.
• Special Pricing: Providing competitive pricing and terms based on their relationship with IBM.

Volume Discounts and Pricing Considerations

IBM offers various pricing incentives to encourage volume purchasing and long-term commitments:

• Relationship Suggested Volume Pricing (RSVP): Rewards customers for their total IBM software spend with progressively higher discounts.
• Enterprise License Agreements (ELAs): Provide a single, discounted price for unlimited use of selected products across the enterprise.
• Competitive and Special Bid Pricing: May be available on a case-by-case basis, depending on specific business needs.

IBM Licensing and Virtual Servers

Licensing Considerations for Virtualized Environments

When deploying IBM software in virtualized environments, licensing requirements depend on the virtualization technology and the chosen licensing model:

• Processor-Based Licenses (PVU):
  • Definition of a Processor: IBM defines a processor as a physical or virtual core.
  • Sub-Capacity Licensing: Allows software to run in partitions with fewer processors than the server’s full capacity, potentially reducing licensing costs.
• Virtualization Rights: Some IBM products have specific rights and restrictions detailed in their License Information documents.

Sub-Capacity Licensing Using IBM License Metric Tool (ILMT)

The IBM License Metric Tool (ILMT) is a free tool that helps organizations manage sub-capacity licensing in virtualized environments:

• Tracks Processor Use: ILMT measures peak processor use by IBM software on virtual servers.
• Ensures Compliance: Generates reports to ensure compliance with sub-capacity licensing terms.
• Requirement: ILMT or a similar tool must be used to benefit from sub-capacity licensing; otherwise, full-capacity licensing applies.

Licensing for IBM Software in Public Cloud Environments

When running IBM software on public cloud infrastructure, licensing typically follows the Bring Your Own Software and License (BYOSL) model:

• Reuse Existing Licenses: Existing IBM licenses can be applied to the cloud environment.
• Separate Licensing: Licenses must be obtained separately from the cloud provider’s services.
• Tracking License Consumption: ILMT or other approved tools must be used to monitor license usage in the cloud.
• Specific Rules: Some IBM products have specific licensing rules and restrictions for public cloud use, detailed in their License Information documents.

IBM Software License Transfers

Transfer of IBM Software Licenses

IBM software licenses can be transferred between organizations, but this process involves specific restrictions and conditions. Such transfers are particularly relevant during acquisitions or divestitures, where careful management is essential to ensure compliance with IBM’s licensing terms.

Conditions and Limitations for License Transfers

IBM imposes several conditions and limitations on the transfer of software licenses:

• Legal Entity Restrictions: Licenses cannot be freely transferred between separate legal entities.
• Approval Required: IBM must approve transfers; additional documentation may be necessary.
• Special Agreements: Licenses under agreements like Enterprise License Agreements (ELAs) may have specific transfer conditions.
• Temporary Transfers: These may be permitted for transitional services during acquisitions or divestitures.

Process for Transferring IBM Software Licenses

Transferring IBM software licenses typically involves several key steps:

• Obtain IBM Approval: Seek approval from IBM to transfer licenses to the acquiring or divested entity.
• Update Records: Ensure relevant sites are updated in IBM’s records to reflect the transfer.
• Adjust License Requirements: Evaluate and adjust license requirements based on new usage scenarios.
• Manage License Terms: Identify and address any differences in applicable license terms between the entities involved.
• Document Retention: Secure and maintain all necessary license entitlement documentation for the transferred licenses.

Licensing for IBM Mainframe Software

Overview of IBM Mainframe Software Products

IBM offers a broad range of software products for its mainframe platforms, including:

• z/OS Operating System: The primary operating system for IBM mainframes.
• Db2 Database: A relational database for transactional workloads.
• CICS: Transaction processing software for high-volume, high-availability environments.
• IMS: A database and transaction management system.
• Development and Management Tools: Various development, monitoring, and management tools.

Mainframe Licensing Metrics

IBM mainframe software licensing is typically based on specific metrics that reflect the processing capacity and usage:

• Million Service Units (MSU): A measure of processing capacity used, depending on the type and model of the mainframe processor.
• zIIP/zAAP Usage: Specialty processors (z Integrated Information Processor and z Application Assist Processor) that run eligible workloads at a lower license cost.

Mainframe Software Pricing and Licensing Considerations

Licensing IBM mainframe software involves several pricing models and considerations:

• Monthly License Charge (MLC) vs. One-Time Charge (OTC): MLC involves ongoing fees, while OTC is a single upfront payment.
• Tiered Pricing: Pricing may vary based on MSU usage levels.
• Workload License Charges (WLC): Offers reduced costs for eligible workloads shifted to specialty processors.
• Advanced Entry Workload License Charges (AEWLC): Designed to consolidate workloads on smaller mainframe models.

IBM Licensing for AI Solutions

Overview of IBM AI Products

IBM’s AI solutions are designed to help enterprises leverage artificial intelligence for various applications.

Key products include:

• Watson: A suite of enterprise-ready AI services and applications.
• Cloud Pak for Data: An integrated data and AI platform that includes Watson Studio and Machine Learning.
• AutoAI: Automated machine learning tools for building and deploying AI models.

Licensing Models for AI Solutions

IBM AI products are typically licensed through the following models:

• User-Based Licensing: Includes Authorized User or Concurrent User licenses for products like Watson Studio.
• Capacity-Based Licensing: This type of licensing uses metrics like Virtual Processor Core (VPC) or Capacity Unit licensing for cloud or container deployments.
• Subscription-Based Licensing: Licenses, including software access and support, are provided monthly or annually.

AI Licensing in Cloud and Hybrid Environments

Deploying IBM AI solutions in cloud or hybrid environments requires careful consideration of licensing options:

• Bring Your Own License (BYOL): This option allows existing licenses with specific terms to be used in the cloud environment.
• Cloud Pak Deployments: Utilize VPC licensing, which is compatible with Red Hat OpenShift and IBM Cloud.
• License Management: Track and manage licenses using tools like IBM License Metric Tool (ILMT) or IBM License Service.

IBM Open Source Software Licensing

IBM’s Approach to Open Source Software

IBM strongly advocates open-source software and contributes to various open-source projects. Many IBM products incorporate open-source components with their licensing terms.

Licensing Considerations for IBM Open Source Products

When using IBM products with open-source components, it’s important to understand the relevant open-source licenses:

• Permissive Licenses (e.g., Apache, MIT): These licenses have minimal restrictions on usage and distribution.
• Copyleft Licenses (e.g., GPL) require that any derived works be distributed under the same license terms.
• Notices and Attributions: IBM provides the necessary notices and attributions for the open-source components used in its products.

Interaction Between Open Source and Commercial Licenses

There can be interactions or conflicts between open-source licenses and IBM’s commercial license terms:

• Commercial Terms Supersede: IBM’s commercial license terms typically override any conflicting open-source license terms.
• License Compatibility: Some open-source licenses may restrict the combination of open-source components with proprietary software or impact the licensing of derived works.
• Review and Understanding: It is essential to review and understand the specific open-source licenses that apply to each IBM product or component.

Managing IBM License Renewals

IBM Software Support and Subscription Renewal Process

IBM software licenses often include support and subscription services that require periodic renewal.

The IBM license renewal process generally involves the following steps:

• Review Current Licenses: Assess the current licenses and support agreements to identify renewal dates and requirements.
• Evaluate Changes: Determine if software usage or deployment changes impact the renewal.
• Obtain Renewal Quotes: Request quotes from IBM or authorized resellers for the renewal.
• Negotiate Terms: Discuss any necessary terms, pricing, or entitlements changes.
• Execute Renewal Agreement: Finalize the agreement and ensure the activation of support and subscription services.

Renewal Pricing and Negotiation Strategies

Several strategies can help secure favorable pricing during IBM software renewals:

• Volume Discounts: Leverage available volume discounts or enterprise license agreements.
• Bundling Products: Combine multiple products or services to achieve better overall pricing.
• Long-Term Commitments: Consider longer-term renewals or multi-year agreements for additional discounts.
• Competitive Quotes: Engage multiple authorized resellers to obtain competitive pricing.

Best Practices for Managing IBM License Renewals

Effective management of IBM license renewals involves the following best practices:

• Maintain Accurate Inventory: Keep an up-to-date inventory of all IBM software licenses and their renewal dates.
• Monitor Usage: Track software usage and deployment to identify changes impacting renewals.
• Early Engagement: Start discussions with IBM licensing experts early.
• Review Terms Carefully: Ensure renewal terms align with organizational requirements and budget.
• Centralized Management: Establish a centralized process for managing and approving IBM license renewals to ensure consistency and avoid coverage lapses.

By proactively managing IBM license renewals, organizations can ensure continuous access to software support and subscription services while optimizing licensing costs and maintaining compliance.

FAQs

What are the primary types of IBM software licenses?
IBM offers several licensing models, including perpetual, subscription-based, and hybrid models. Based on usage patterns and deployment environments, these licenses can be tailored to fit an organization’s specific needs.

How does perpetual licensing work?
Perpetual licensing involves a one-time purchase that allows the software to be used indefinitely. However, ongoing costs for maintenance and support are usually required to receive updates and technical assistance.

What is subscription-based licensing?
Subscription-based licensing involves paying a recurring fee, either monthly, quarterly, or annually, to use the software. This model often includes access to updates and support for the duration of the subscription.

Can IBM licenses be transferred between organizations?
IBM licenses can be transferred under certain conditions, such as during mergers or acquisitions. Approval from IBM is required, and specific terms and documentation must be met.

What are Processor Value Units (PVUs)?
PVUs are a metric IBM uses to measure processing power for licensing purposes. The number of PVUs required depends on the processor type and the number of cores used by the software.

What is Virtual Processor Core (VPC) licensing?
VPC licensing is used for virtualized environments. It measures the number of virtual processor cores allocated to the software, providing flexibility in cloud and hybrid deployments.

How does user-based licensing work?
User-based licensing assigns licenses to specific individuals. Different roles, such as Authorized User and Concurrent User, define the level of access each user has to the software.

What is Bring Your Own License (BYOL)?
BYOL allows organizations to use their existing IBM licenses in cloud environments. This model is particularly useful for hybrid deployments where some components are on-premises and others are in the cloud.

What tools are available to manage IBM licenses?
IBM provides tools like the IBM License Metric Tool (ILMT) to help organizations track and report license usage and ensure compliance with IBM’s licensing terms.

How are IBM software licenses priced?
Pricing depends on the licensing model chosen—perpetual licenses have a higher upfront cost, while subscription licenses spread the cost over time. Additional factors include the number of users, processing power, and the specific IBM products.

What is sub-capacity licensing?
Sub-capacity licensing allows organizations to license software based on actual usage in virtualized environments rather than the full capacity of the physical servers. This can reduce licensing costs.

Can IBM software be licensed for use in public cloud environments?
Yes, IBM offers licensing options for public cloud environments, often through the BYOL model. Specific licensing rules apply, and tools like ILMT are recommended to track usage.

What happens if I exceed my licensed capacity?
Exceeding licensed capacity can result in non-compliance with IBM’s terms, which may lead to financial penalties or the need to purchase additional licenses retroactively.

How do I renew IBM software licenses?
IBM software licenses are typically renewed annually. The renewal process involves reviewing current usage, negotiating terms, and obtaining updated quotes from IBM or authorized resellers.

What should I consider when choosing an IBM license type?
When selecting a license type, consider factors such as your organization’s budget, the expected duration of software use, the deployment environment, and the need for flexibility. The total cost of ownership and future scalability should also be evaluated.

Do you want to know more about our IBM License Management Services?