IBM announced changes to their Passport Advantage Agreement affecting all customers in the process of audits, as well as all customers sharing IBM License Metric Tool (ILMT) reports. These licensing changes will apply to existing clients on February 1, 2018. Changes will apply to new clients on November 1, 2018.
IBM Passport Advantage Agreement (PA) currently allows all IBM customers to purchase and renew technical support, subscribe to IBM SaaS offerings, acquire IBM appliances and regulates audit rights and client responsibilities.
- Clients must agree to keep accurate records regarding their ILMT reports in addition to ILMT being installed and working. Clients must also agree not to alter or delete records for any reason.
- Clients have 30 days to share their ILMT reports if requested by IBM.
- Clients must agree in writing within 60 days of an audit request from IBM. This is to accommodate for any necessary confidentiality agreements.
- Non-compliance will deem the customer ineligible for sub-capacity licensing. These customers will be charged for full capacity.
- Clients are required to subscribe to IBM support notifications for ILMT updates to ensure usage of the most current version of ILMT.
- An audit can always be executed “at all sites and for all environments in which client uses their PA software.”
- Client agrees to promptly pay directly to IBM the charges that IBM specifies in an invoice for 1) any such excess use, 2) IBM Software Subscription and Support and Selected Support for such excess use for the lesser of the duration of such excess use or two years, and 3) any additional charges and other liabilities determined as a result of such verification.
- If a client is moving or transferring a license across a border and an authority imposes a tax, the client agrees to pay the tax.
- Support benefits are no longer applicable when support agreements expire.
Why is this important?
ILMT can save IBM users millions of dollars, but without proper management it can also create a large financial risk. Proper IBM compliance processes must be in place to ensure reduction of financial risk. Without proper processes, clients are at high risk of violating sub-capacity terms, which can result in substantially greater charges for their entire physical environment.
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