Mastering IBM ILMT: IBM Sub-capacity Licensing

The IBM License Metric Tool (ILMT) is:

• A free tool provided by IBM for clients with Passport Advantage Agreements.
• Helps manage and report IBM software inventory.
• Required for sub-capacity (virtualized environment) licensing.
• Offers usage reports to ensure compliance with IBM licensing.
• Identifies over- or under-usage of software, aiding in cost management.
• Automates collection of usage data for various IBM products.

What is IBM ILMT?

IBM License Metric Tool (ILMT) is a powerful solution that helps organizations manage and track their IBM software licenses, particularly in virtualized environments. ILMT ensures compliance with IBM’s licensing policies and provides valuable insights into software usage, making it a cornerstone of effective software asset management (SAM).

Purpose of ILMT

ILMT’s primary purpose is to enable organizations to monitor and report software usage under IBM’s sub-capacity licensing model. This model allows businesses to license only the virtual resources allocated to IBM software rather than the full physical capacity of servers.

By doing so, organizations can achieve significant cost savings while remaining compliant.

Key Features of ILMT

• Customizable Reports: Offers detailed insights into software usage, enabling better decision-making and cost optimization.
• Automated Discovery: ILMT automatically identifies IBM software deployed across physical and virtual environments.
• Sub-capacity reporting calculates Processor Value Unit (PVU) usage for sub-capacity licensing compliance.
• Audit Readiness: ILMT generates audit-ready reports that meet IBM’s requirements, reducing the risk of penalties.
• Integration with Virtualized Environments: Supports popular virtualization platforms like VMware, Hyper-V, and PowerVM.

IBM ILMT and Software Inventory

IBM License Metric Tool (ILMT) is critical for managing IBM software licenses, especially in virtualized environments. It helps organizations monitor and manage their IBM software usage to ensure compliance with sub-capacity licensing rules.

Here’s how ILMT integrates with effective software inventory practices:

Purpose of ILMT

ILMT enables organizations to track IBM software deployed in virtualized infrastructures. It calculates the Processor Value Unit (PVU) usage for each product, ensuring that the organization complies with IBM’s sub-capacity licensing terms. Without ILMT, organizations may need to license their software fully, leading to significantly higher costs.

Key Features of ILMT

• Automated Discovery: ILMT automatically identifies and tracks IBM software across physical and virtual servers.
• PVU Calculation: It calculates PVU metrics for software running on virtualized environments, offering accurate sub-capacity reporting.
• Compliance Reporting: ILMT generates audit-ready reports demonstrating compliance with IBM’s licensing requirements.
• Integration with Inventory: The tool integrates with broader SAM practices, complementing existing software inventory data.
• Regular Updates: ILMT updates ensure new IBM products and licensing changes are accurately reflected in the tool.

Why ILMT Matters in Software Inventory

• Compliance Assurance: Using ILMT is mandatory for compliance with sub-capacity licensing. It provides the necessary documentation to satisfy IBM audits.
• Cost Savings: By leveraging sub-capacity licensing, organizations can license only the portion of server capacity used by IBM software, reducing costs.
• Centralized Management: ILMT integrates with software inventory systems to provide a unified view of IBM software deployment and usage.
• Audit Preparedness: ILMT ensures organizations are prepared for IBM audits by maintaining accurate and up-to-date usage records.

Best Practices for ILMT and Inventory Management

• Regular Scanning: Schedule regular scans to keep inventory data current and identify any changes in software usage.
• Integration with SAM Tools: Combine ILMT data with other SAM tools for a comprehensive inventory view.
• Training: Ensure IT staff are trained to operate ILMT and interpret its reports effectively.
• Document Retention: Maintain historical ILMT reports for at least two years, as IBM’s audit process requires.

IBM ILMT and robust software inventory practices work together to ensure organizations meet compliance requirements, avoid unnecessary costs, and maintain operational efficiency in their IBM software environments.

Read our article on how to install IBM ILMT.

Full Capacity vs Sub-Capacity Licensing

Understanding the difference between full capacity and sub-capacity licensing is crucial for managing IBM software in virtualized environments.

These licensing models determine how organizations calculate the required Processor Value Units (PVUs) for IBM software deployments, directly impacting costs and compliance.

What is Full Capacity Licensing?

Full capacity licensing requires organizations to license all physical cores on the server where IBM software is installed, regardless of how many cores the software uses.

This approach is straightforward but can lead to significant costs in virtualized environments where software may only use a portion of the server’s total capacity.

Key Characteristics of Full Capacity Licensing:

• Applies to Physical Infrastructure: All server cores are licensed, regardless of utilization.
• Higher Costs: Licensing all cores can increase expenses, especially for large servers.
• Simpler Compliance: No need for advanced tracking tools, as the licensing model is straightforward.

Example: If IBM DB2 is installed on a server with 32 cores, full capacity licensing requires licenses for all 32 cores, even if only eight cores are used.

What is Sub-Capacity Licensing?

Sub-capacity licensing allows organizations to license only the virtual cores or processors allocated to IBM software in a virtualized environment. This approach offers significant cost savings but comes with additional compliance requirements.

Key Characteristics of Sub-Capacity Licensing:

• Applies to Virtualized Environments: Licensing is based on virtual cores or partitions assigned to the software.
• Cost-Effective: Organizations pay only for the resources used by the software.
• Mandatory ILMT Usage: IBM requires using the IBM License Metric Tool (ILMT) to track and report sub-capacity usage.

Example: If IBM WebSphere is allocated eight virtual cores on a server with 32 physical cores, sub-capacity licensing requires licenses for only those eight cores.

Key Differences Between Full and Sub-Capacity Licensing

• Applicability: Full capacity applies to physical infrastructure, while sub-capacity is designed for virtualized environments.ng.
• Cost Implications: Full capacity often leads to higher costs as all server cores must be licensed, while sub-capacity aligns licensing costs with actual usage.
• Compliance Requirements: Sub-capacity requires ILMT or an equivalent tool for tracking, whereas full capacity has simpler compliance processes.

IBM ILMT and BigFix

IBM ILMT and BigFix are closely related tools that enhance software asset management.

• BigFix is an IBM systems-management software product that provides patch management, distribution, operating system deployment, and remote control functions.
• IBM ILMT: On the other hand, focuses specifically on tracking and managing IBM software licenses.

IBM ILMT and BigFix have a symbiotic relationship. BigFix provides the infrastructure scanning capabilities that IBM ILMT relies on to track software usage.

In return, IBM ILMT enhances the functionality of BigFix by adding detailed software license tracking and management capabilities.

What is Processor Value Units (PVU)

IBM calculates the licensing cost of its software using the Processor Value Unit (PVU). Each processor (or core) on a server is assigned a PVU value, which is then used to determine the total cost of the software license.

• PVU Calculation: A processor’s PVU value is determined by its type and speed. More powerful processors have higher PVU values.

IBM ILMT helps view and manage PVU by providing detailed reports on the PVU values of the processors in an organization’s infrastructure.

This allows organizations to accurately calculate their licensing costs and ensure they comply with their licensing agreements.

It also provides the data needed to optimize software deployment and reduce costs by identifying opportunities to move the software to less powerful (and, therefore, less expensive) processors.

Is the IBM ILMt Free?

The answer to this question is both yes and no. IBM ILMt is free to download and use, but some costs are associated with its deployment and ongoing maintenance.

The costs associated with deploying and maintaining IBM ILMt can vary depending on the size and complexity of an organization’s IT infrastructure.

Some costs associated with using ILMt include:

• Hardware costs.
  ILMt requires hardware resources to run, which may require additional investments.
• Software costs.
  ILMt may require additional software licenses, such as a database management system.
• Consulting fees.
  Organizations may need to hire consultants to help with the deployment and configuration of ILMt.
• Ongoing maintenance costs.
  There may be ongoing costs associated with maintaining and upgrading ILMT.

IBM ILMT and Passport Advantage

IBM License Metric Tool (ILMT) and Passport Advantage are closely related components of IBM’s software licensing and management framework.

Together, they help organizations manage their IBM software licenses effectively while ensuring compliance and cost optimization.

What is Passport Advantage?

Passport Advantage is IBM’s licensing and software management program that provides organizations access to IBM software, support, and updates. It offers a centralized platform for managing software entitlements and purchasing IBM products.

Key Features of Passport Advantage:

• License Management: Provides a clear overview of software entitlements and license agreements.
• Software Downloads: Offers access to IBM software and updates directly from the platform.
• Support Entitlements: Includes technical support and subscription benefits for eligible software.
• Renewal Management: Helps organizations track and manage license renewals.
• Flexible Pricing: Offers volume-based pricing discounts for larger purchases.

How ILMT Complements Passport Advantage

ILMT and Passport Advantage collaborate to help organizations efficiently manage IBM software licenses, particularly in sub-capacity licensing environments.

ILMT ensures compliance with IBM’s licensing requirements, while Passport Advantage provides the infrastructure to manage entitlements and renewals.

Key Integration Points:

• License Tracking: ILMT tracks usage metrics such as Processor Value Units (PVUs) and integrates these with the entitlements managed in Passport Advantage.
• Sub-Capacity Compliance: ILMT’s reports are necessary to comply with IBM’s sub-capacity licensing terms under Passport Advantage agreements.
• Audit Readiness: Passport Advantage provides the official records of entitlements, while ILMT provides the usage data needed for audit preparation.
• Renewal Management: Usage data from ILMT can help organizations plan renewals and ensure they align with actual usage.

What are the Benefits of Using IBM ILMt

Using the IBM License Metric Tool offers several benefits for organizations.

Some of the benefits include:

• License compliance.
  ILMt helps organizations ensure they are using their purchased licenses and comply with software vendors’ licensing agreements.
• Cost optimization.
  ILMt helps organizations optimize their license usage, reducing the need to purchase additional licenses.
• Risk management.
  ILMt helps organizations identify license compliance risks and take actions to mitigate them.
• Improved decision-making.
  ILMt provides detailed reports to help organizations make informed decisions about their software license usage.

Read about IBM License Transfers.

IBM ILMt – Frequently Asked Questions

Best practices for managing IBM ILMT

1. Software Discovery and Identification: Regularly scan your infrastructure to determine the software installed on the monitored computers. This will help you maintain an up-to-date inventory of your IBM software assets.
2. Signature Discovery: Use the catalog of your software products and a set of rules called signatures provided by ILMT. The signatures are matched against the scan results to build a complete overview of the software installed in your infrastructure.
3. Reporting: Regularly view the reports provided by ILMT. These reports contain detailed information about the computers in your infrastructure and the software items that are installed on the computers. By viewing the reports, you can check whether actual installations reflect the software inventory information and ensure that the capacity values are assigned to products correctly.
4. IBM License Compliance: Use ILMT to provide the information needed to ensure compliance with processor value units (PVU) and resource value units (RVU MAPC) audit reports for licensing terms. ILMT calculates the maximum core capacity of the server that is available to the installed IBM software. The application also determines the number of required PVUs or processor-core entitlements. If you deploy a supported virtualization technology, the tool provides processor core capacity information for the whole virtualized environment.
5. IBM License Usage Monitoring: Regularly generate PVU and RVU MAPC audit reports showing product and processor value units. The audit reports can be printed or viewed in the application.
6. Tagging for PVU Licenses: If you select Processor Value Unit (PVU) for your license at installation time, the content of the Software Identification (SWID) tag is determined by your license type and deployment environment. You see the SWID tag only after you deploy to the Decision Center and Rule Execution Server. For the SWID tag to be detected by ILMT, you must deploy it as a decompressed archive.
7. Modifying Tagging for PVU Licenses: To modify the Software Identification (SWID) tags, you can run the Ant script update_ilmt_ear.8.10.x.xml available in the <InstallDir>/shared/ilmt directory. Open the file for detailed usage instructions. For the new tag to be detected, you must either deploy the archive or copy the tag manually.

IBM Audits and ILMT

IBM operates a worldwide licensing verification program to ensure that clients are compliant with the license terms governing the IBM programs they use.

This verification typically takes the form of an audit conducted by an independent auditor. The audit has two key objectives:

1. To measure your consumption of licenses and Software and support (S&S) for deployed IBM programs and check that this is within your licensed limits.
2. Check that your use of IBM programs complies with IBM’s software licensing terms and policies.

IBM uses the IBM License Metric Tool (ILMT) to measure the consumption of specific IBM software metrics. ILMT or HCL BigFix Inventory is one of the eligibility requirements for Sub-Capacity licensing.

What IBM Auditors Look For

IBM auditors seek compliance with IBM’s software licensing terms and policies. They measure license and S&S consumption for deployed IBM programs and check that it is within the client’s licensed limits.

They also verify the use of IBM programs and ensure the client complies with IBM’s software licensing terms and policies.

The Importance of ILMT in IBM Audits

ILMT plays a crucial role in IBM audits, measuring the consumption of specific IBM software metrics. The use of ILMT or HCL BigFix Inventory is one of the eligibility requirements for Sub-Capacity licensing.

If clients wish to use Sub-Capacity licensing, they must have ILMT, or HCL BigFix Inventory installed and operational.

Consequences of Not Maintaining ILMT

If a client does not maintain ILMT or HCL BigFix Inventory, they may not be eligible for Sub-Capacity licensing.

This could result in non-compliance with IBM’s software licensing terms and policies, which could result in penalties during an IBM audit.

Therefore, clients must maintain the ILMT or HCL BigFix Inventory to ensure compliance with IBM’s licensing terms and to avoid potential penalties during an audit.

How organizations must save ILMT reports in case there is an audit

1. Create Audit Snapshots: Audit snapshots are records of your enterprise’s metric license utilization over time. They are generated on the All Metrics report and should be created quarterly.
2. Store Audit Snapshots: Once created, these snapshots should be stored as a record of your enterprise’s metric license utilization. This will prove your organization’s compliance with IBM’s licensing terms during an audit.
3. Retention Period: These reports must be retained for two years. IBM auditors may request that they be reviewed for two years during an audit.
4. Provide Reports Upon Request: If IBM or its auditors request to see these reports, you must be able to provide them. Failure to do so or providing inaccurate or incomplete reports could lead to penalties during an audit.
5. Maintain Complete and Accurate Records: You are responsible for creating, retaining, and providing complete and accurate records of your organization’s software usage. This includes the audit snapshots and any other relevant documentation or records.
6. Regularly Update Reports: Since capacity scans are stored for up to 5 days, and software scans are stored until the following software scans are conducted, it’s essential to regularly update your reports to ensure they reflect the most current data.

Remember, the purpose of these reports is to demonstrate your organization’s compliance with IBM’s licensing terms.

Properly saving and maintaining these reports can help ensure a smooth audit process and avoid potential penalties.

IBM IASP Program and ILMT

The IBM Authorized SAM Provider (IASP) Program is an alternative to traditional software license verification audits.

Under the Program terms, clients who contract with an IBM Authorized SAM Provider can independently report their use of IBM software. They will be exempt from audits if they actively participate in the IASP Program.

Reporting Requirements

IASP baseline or periodic reports must use the latest version of the standard IASP reporting template, as published by IBM.

Regular reports must be submitted promptly according to the frequency set out in the client’s contract and represent an accurate and complete calculation of the client’s Effective Licensing Position.

The IBM License Metric Tool (ILMT) is crucial in this process. The tool is used to measure the consumption of specific IBM software metrics, and its use is one of the eligibility requirements for Sub-Capacity licensing.

If clients wish to take advantage of Sub-Capacity licensing, they must have ILMT installed and operational.

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

Please enable JavaScript in your browser to complete this form.

Name *

Email *

Company

Message *

Submit