What information we need to monitor to be compliant
IBM is one of the world's largest providers of infrastructure and software, and its intense R&D and acquisitions (think Red Hat,leader in the open source solutions market) have led it over time to a very broad and diverse product portfolio, which is also matched by a growing profit ($927 million in the first quarter according to Wall Street).
IBM's licensing is also very complicated by virtue of these numbers: more than 18,000 products and more than 32,000 "part numbers", or the different types of offerings that involve a combination of products (and metrics) into which the various software components fit.
Adding complexity is also the constant evolution of this portfolio: even if you have a clear idea of the edition and version of the products purchased, these are not immutable.
Their licenses, in fact, can change, and the news is given in the so-called "announcement letters" because IBM keeps doing extraordinary operations (e.g., HCL or Red Hat), launching new products, and there can be renaming or new bundling so that you have hundreds of thousands of different ways of bundling different products, all with different licensing rules.
We have seen in another article (go here to read it), that IBM has introduced from the 1st of May 2023, an annual obligation for the creation of usage reports for all software contained in the Passport Advantage to be provided to the vendor within 30 days of the request. They will have to be prepared in the format required by IBM.
We do not have the format available yet (it will be published by the end of the year), but we do know what information IBM will focus its audits on. To understand them, let's try to put the complicated IBM licensing landscape in order. Let's start with agreements.
Usually when we refer to IBM licensing agreements, we have to take into account three levels that give us an overview:
In the Basic Agreements, we find the IPLA (International Program License Agreement), which is nothing more than the standard agreement that IBM customers accept when they download, install, or purchase any IBM product. It contains hyperlinks to a number of embedded documents: the most important are the License Information (LI) and Policies .
The License Information establishes the detailed license terms that apply to each individual program: they are different for each product and version (so if you upgrade the version, the LIs change and so do the terms of the conditions). So you have to be careful whenever there is a change on one of those products. Generally inside we find this information:
Here we can see an example of License Information (LI) for Cognos, one of IBM's most popular programs.
We now come to Passport Advantage (PA), which is the contract that concerns us: it falls under commercial agreements, along with Passport Advantage Express (PAX) and Embedded Software Agreements (ESA),, which are focused on business partners. PA is the agreement that manages volume purchases of IBM licenses. Unlike PAX, which is purely transactional and designed primarily for targeted purchases or small orders, it has a lot of flexibility and allows points to be accumulated for discounts.
Within it, we can find hyperlinks to other documents (e.g., Terms&Conditions, Policies, Relationship Suggested Volume Pricing (RSVP), Sub Cap Terms and PVU Calcolator covering sub-capacity terms, Notification, Lifecycle on software lifecycle).
In the IPLA, IBM refers to the audit clauses (i.e., it enshrines the vendor's right to audit), but it is the PA that provides details on how it will be managed (and we have also seen this with the 4.1 amendment).
At the heart of the PA is the Access Portal, which is the entry point for administering licenses and understanding what user rights are.
Registration is free, but to access you need an IBM ID to which a customer number is linked (it changes in the case of corporate transfers). Since organizations are complex structures, there may be multiple PA sites with respective individual numbers, which are treated as separate arrangements in the event of an audit.
Within a PA site, you can keep track of migration histories (e.g., from one PA site to another, in a scenario of acquisitions, disposals, etc.), orders, downloads, and D&E "part numbers" related to products ("D" represents License Entitlements, while "E" Support and Subscription).
The PA also allows retrieval of the various Proof of Entitlement (PoE), which are certificates that IBM sends to customers who purchase software products. The PoE confirms eligible products and the level of use for which you are authorized. It includes important information about the order, such as IBM customer number, IBM site number, and IBM order number.
Finally, the last type of IBM agreements involve enterprise agreements: enterprise license agreements (ELAs), which are mechanisms for purchasing large volumes in favor of a price freeze. They are usually standardized, but should be checked because special conditions may have been included in the negotiation phase (e.g., clauses, exemptions) because they provide maximum flexibility from a negotiation standpoint.
As stated in the March 31, 2023 announcement, audit topics in the report will cover:
For each individual program, it will be necessary to indicate:
In addition to this, the PA site number and business entity corresponding to the installation should be indicated, along with a cross-reference for each program to relevant records, system tool outputs and system information, and other supporting documentation from which the deployment counts (Deployment Data) are derived.
Responsibility that deployments are counted using the correct methodologies rests with the customer.
We have seen that for each individual program we need to indicate the metrics, license type, bundling, deployment mode, and the presence or absence of additional support services (the S&S, which is a complete solution of product updates and technical support).
There are four variables to consider when we talk about licensing:
The licensing metrics in IBM are many (more than 100) and can change continuously as products and bundles evolve. IBM itself specifies:
The same metric name may have different definitions from version to version of the same IBM program or across different IBM programs. The definition in the License Information document and Announcement Letter for the specific version you have deployed is the authoritative source.
Metrics are categorized according to the deployment model used (On-premise, Cloud, Mainframe). Generally, the most common ones fall into three macro-groups:
Here we can find an overview of IBM metrics . The authoritative sources for verifying metrics related to programs and bundles are always the LI document and related Announcements. However, in the PA we find additional terms for measuring them and any conversion tables.
As you may have seen, the information to be monitored really numerous and the short time (30 days) required by the vendor to provide a report certifying compliance verification requires both skills and automation to quickly find this data.
IBM provides tools for measuring usage, to be installed and configured on its infrastructure to produce quarterly reports and store them appropriately to be kept on-demand in the event of an audit: this is the case with the ILMT - IBM License Metric Tool, which is mainly used to verify compliance of sub-capacity licenses. Another tool is the License Service, which is specific for managing Cloud Paks and their embedded software.
However, with the new Passport Advantage clause, they are not sufficienlty complete, since the change affects all programs (and their respective metrics). The ILMT, in fact, is limited to a few metrics (as you read here, the metrics monitored are Authorized User, Install, PVU, RVU) and not all environments are being measured (and here we will have to provide for a migration plan, as requested by IBM in the new clause).
Viste le difficoltà legate alla verifica della compliance di tutti i programmi IBM e al recupero delle informazioni relative ai singoli applicativi e al riconoscimento dei bundle e alla riconciliazione con i diritti di utilizzo, il 18 maggio alle 14.30 abbiamo tenuto il webinar “How to prepare for the IBM compliance crackdown” dove approfondiremo nel dettaglio questi elementi alla luce delle novità introdotte dalla clausola 4.1. del Passport Advantage.
We will provide our expertise to help you identify solutions that can quickly and accurately ensure IBM compliance, so you are prepared for vendor requirements!
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