IBM User-Based Licensing:
- Cost Based on Users: Charges are tied to the number of users accessing the software.
- Flexible Metrics: Includes Authorized User, Concurrent User, and User Value Unit (UVU).
- Ideal for Varying Access Needs: Best for organizations where software value is tied to individual user access rather than computing resources.
What Is IBM User Based Licensing?
IBM User-Based Licensing calculates software costs based on the number of users rather than the resources consumed.
This model is ideal for organizations that derive value from individual user access. It offers a way to align IBM software costs with actual usage.
- Cost Based on Users: Software expenses are directly linked to the number of users who need access, making it easier to manage budgets and align spending with business needs.
- Flexible Licensing Metrics: IBM offers various metrics to suit different organizational needs, providing flexibility in how licenses are allocated and used.
Different User-Based License Metrics
IBM provides several license metrics for user-based licensing, each tailored to specific usage patterns and business requirements. Understanding these metrics is crucial for selecting the right licensing model.
Authorized User (AU)
- Definition: An Authorized User is an individual who is granted access to the software. Each Authorized User requires a unique license tied to that user regardless of their activity level.
- Use Case: Ideal for environments where specific individuals need guaranteed access to the software at any time.
- Example: If a company has 100 employees who need access to IBM Lotus Notes, they would need to purchase 100 Authorized User licenses, one for each employee.
Concurrent User (CU)
- Definition: Concurrent User licensing is based on the maximum number of users accessing the software simultaneously. The number of licenses required corresponds to the peak number of concurrent users, not the total number of potential users.
- Use Case: This solution is suitable for environments where many users require occasional access, but not all at once.
- Example: A company with 500 employees, of whom only 50 are expected to use IBM SPSS Statistics simultaneously, would need to purchase 50 Concurrent User licenses.
Floating User (FU)
- Definition: Floating User licenses are shared among a pool of users. When a user finishes using the software, their license is returned to the pool for another user to access.
- Use Case: This is best for organizations where multiple users need access at different times, but only a few need access simultaneously.
- Example: Similar to Concurrent User licensing, but with added flexibility in how licenses are allocated across different users.
User Value Unit (UVU)
- Definition: User Value Unit licensing assigns users different weights (UVUs) based on their role or access level. The total licensing requirement is calculated by summing the UVUs for all users.
- Use Case: Ideal for organizations with diverse user roles and access needs, allowing for a more nuanced approach to licensing.
- Example: A company using IBM Rational DOORS might have 50 users with full read-write access (1 UVU each) and 200 users with read-only access (0.5 UVUs each). The licensing requirement would be 50 * 1 + 200 * 0.5 = 150 UVUs.
Examples of User-Based Licensing Calculations
Calculating user-based licenses is essential for optimizing software costs and ensuring compliance.
Below are some detailed examples:
Authorized User Calculation Example
- Scenario: A company needs to provide IBM Lotus Notes access to 200 employees.
- Calculation: Since each Authorized User requires a unique license, the company would need to purchase 200 Authorized User licenses.
- Outcome: This model provides guaranteed access to the software for each of the 200 employees, regardless of when or how often they use it.
Concurrent User Calculation Example
- Scenario: A company with 1,000 employees but only 100 needs to use IBM SPSS Statistics simultaneously.
- Calculation: The company would only need 100 Concurrent User licenses, matching the peak number of simultaneous users.
- Outcome: This approach is more cost-effective for organizations where not all users can access the software simultaneously.
User Value Unit Calculation Example
- Scenario: An engineering firm uses IBM Rational DOORS, with 30 users full access and 150 users limited, read-only access.
- Calculation: The full-access users require 30 UVUs (30 users * 1 UVU each), and the read-only users require 75 UVUs (150 users * 0.5 UVUs each), totaling 105 UVUs.
- Outcome: This method allows the company to align licensing costs more closely with the specific needs of different user groups.
IBM Products and Their User-Based License Metrics
IBM offers various user-based licensing options across its product range, allowing organizations to choose the best fit for their needs.
Here are some examples:
- IBM Lotus Notes: Typically licensed on an Authorized User basis, making it ideal for environments where each user needs dedicated access.
- IBM Rational DOORS: Offers flexibility with Authorized User, Floating User, and User Value Unit licensing options, catering to different usage scenarios within an organization.
- IBM Rational Rhapsody: Available with Authorized User and Concurrent User licensing, providing options based on how often users need access to the software.
- IBM SPSS Statistics: It can be licensed as either an authorized user or a concurrent user, allowing it to adapt to different levels of usage intensity.
- IBM Maximo: Supports Authorized User, Concurrent User, and User Value Unit licensing, offering flexibility in how the software is deployed across an organization.
- IBM Tivoli Storage Manager: Like IBM Maximo, it supports multiple licensing metrics, allowing organizations to choose the best fit for their storage management needs.
Benefits of IBM User-Based Licensing
IBM User-Based Licensing offers several advantages, making it an attractive option for many organizations:
- Predictable Costs: By aligning software costs with the number of users, organizations can forecast expenses more accurately and avoid unexpected licensing costs.
- Flexibility: With multiple licensing metrics available, organizations can choose the model that best fits their usage patterns, whether consistent access for all users or varied access across different roles.
- Scalability: As organizations grow or their needs change, user-based licensing models—especially UVU and Floating User—allow for easy scaling without significant cost increases.
FAQs
What is IBM User-Based Licensing?
IBM User-Based Licensing is a model in which software costs are tied to the number of users who have access to the software. The cost is based on how many individuals or roles require access rather than the amount of computing resources used.
How does IBM User-Based Licensing work?
Under this model, each user needing software access requires a license. The licensing cost is determined by the number of users and the type of access they need. Depending on the product, different metrics like Authorized User, Concurrent User, or User Value Unit may be used.
What is an Authorized User in IBM User-Based Licensing?
An Authorized User is an individual who is granted access to the software. Each Authorized User requires a unique license, regardless of whether they are actively using the software.
What is a Concurrent User license?
A Concurrent User license allows a certain number of users to access the software simultaneously. The license count is based on the peak number of users expected to use the software simultaneously, not the total number of potential users.
What is a Floating User license?
A Floating User license is shared among a pool of users. When one user finishes their session, the license is returned to the pool for another user to access. This model is similar to Concurrent User licensing but offers more flexibility.
What is a User Value Unit (UVU) in IBM licensing?
User Value Unit (UVU) is a metric where users are assigned different weights based on their role or access level. For example, a user with full access might count as one UVU, while a read-only user might count as 0.5 UVU. The total number of licenses required is the sum of all UVUs.
How do I calculate the number of user-based licenses needed?
The calculation depends on the type of user-based licensing model you choose. For Authorized Users, you need a license for each individual. For Concurrent or Floating Users, you calculate based on peak simultaneous users. For UVU, you sum the UVUs assigned to each user.
Which IBM products use User-Based Licensing?
IBM products, including IBM Lotus Notes, IBM Rational DOORS, IBM Rational Rhapsody, IBM SPSS Statistics, IBM Maximo, and IBM Tivoli Storage Manager, often use user-based licensing. The specific licensing model may vary depending on the product.
What are the benefits of IBM User-Based Licensing?
User-based licensing allows organizations to align software costs with actual user access. It provides flexibility in how licenses are allocated and helps ensure that costs are proportional to the value derived from the software.
Can I switch between different user-based licensing models?
Depending on the product and your licensing agreement with IBM, switching between licensing models may be possible. It’s best to consult with IBM or your licensing representative to understand your options.
Is IBM User-Based Licensing more cost-effective than resource-based licensing?
This can be especially true if your organization’s value from the software is tied more closely to user access than resource consumption. User-based licensing can help avoid paying for unused capacity and focus costs on active users instead.
What should I consider when choosing a user-based licensing model?
Consider how the software will be used, how many users need access, and whether access will be continuous or intermittent. Also, think about the roles of different users and whether some require full access while others need limited functionality.
How does IBM handle compliance with User-Based Licensing?
IBM may conduct audits to ensure the number of users and access levels match the licensing agreement. Tracking and documenting user access is important to stay compliant and avoid potential penalties.
Can User-Based Licensing be combined with other licensing models?
Many IBM products offer a mix of licensing options, including user-based, resource-based, and subscription models. Combining these can provide a tailored solution that meets various organizational needs.
When is User-Based Licensing the best choice?
User-based licensing is best when the software’s value is linked directly to the number of users needing access. It’s particularly useful for organizations that clearly understand who will use the software and how often they will need access.
