Imagine that your organization has been notified of an IBM license audit but needs more preparation time. Being unprepared is not a legitimate reason for delaying the audit. However, all is not lost if any of the ten commonly accepted reasons for delaying an IBM license audit can be demonstrated.
While this list is not exhaustive, it provides key considerations for your IT asset management (ITAM) and IT service management (ITSM) staff when negotiating an audit timeline (and delay) with IBM.
1. Legal Department’s Review of IBM License Audit Terms
Your legal team may require additional time to analyze IBM’s audit clauses. This includes reviewing:
- The scope of the IBM license audit
- Affected entities
- Geographical coverage, and
- The specific IBM products involved.
Ensuring a thorough legal assessment of the audit terms is critical to protecting your organization’s interests.
2. NDA Requirements for the IBM License Audit
IBM and its auditors may already have general non-disclosure agreements (NDAs) in place with your organization. However, an IBM license audit often requires a more specific NDA tailored to audit-related data sharing.
Drafting, reviewing, and approving such an agreement can take time (and cause a delay).
3. Avoiding Business Disruption
IBM license audits can be disruptive, especially if initiated during critical business periods. Organizations often legitimately seek delays if an IBM license audit overlaps:
- Their financial year-end
- Major product launches, or
- Peak business periods such as holiday seasons.
4. Key Staff Unavailability
An IBM license audit requires specialized IT, procurement, and legal personnel. If key people resources are unavailable (perhaps due to project commitments, scheduled leave, or outsourcing constraints), delaying the IBM license audit ensures the right expertise is available for compliance and risk assessment.
5. Extraordinary Circumstances
Unforeseen business events such as mergers, acquisitions, security breaches, or natural disasters may require an audit delay.
If your organization is undergoing significant changes or crisis management, an IBM license audit should not take priority, with a delay the sensible option.
6. Internal Review of Requested Data
IBM auditors typically request detailed deployment and licensing data. This information must be reviewed internally to identify sensitive content, ensure compliance with internal policies, and assess whether script-based data collection methods require additional authorization.
7. GDPR and Personal Data Restrictions
If the IBM license audit requires data that includes personally identifiable information (PII), your organization must ensure compliance with data protection regulations such as the General Data Protection Regulation (GDPR) over audit timescales.
Reviewing and implementing anonymization procedures can introduce necessary audit delays.
8. Conflict of Interest with Auditors
If the selected IBM audit firm has an existing business relationship with your organization – such as providing consulting or software services – this could present a conflict of interest.
Evaluating and resolving these concerns before starting the IBM license audit is a valid reason for delay or postponement.
9. Procurement Policy Compliance
Vendor license audits can affect procurement policies and bid processes, particularly if they influence competitive negotiations.
Your procurement team may require extra time to review and adjust their policies to ensure vendor neutrality and compliance with internal governance.
10. Organizational Process Delays
Obtaining approvals, scheduling internal resources, and aligning multiple departments takes time. This is especially true when an IBM license audit involves multiple business units or international operations that require coordination across different regulatory environments.
Managing an IBM License Audit Timeline
An IBM license audit is a significant undertaking, so your organization should not feel pressured to commence without proper preparation. While IBM sets an initial audit timeline, your organization ultimately retains a degree of control over its execution.
ITAM and ITSM professionals should communicate openly with the appointed IBM auditors, provide justifiable reasons for any requested delays, and demonstrate proactive efforts in preparing for the IBM license audit. In my experience, IBM auditors are generally willing to accommodate reasonable delays if there is transparency and demonstrable progress.
If your organization needs help with an IBM license audit, please contact LicenseHawk.
Piaras MacDonnell
Piaras is an internationally recognized expert in IBM licensing. He has delivered over 100 licensing projects, including audit defenses, enterprise license agreement renewals, compliance health checks, and license optimization, resulting in millions of dollars and euros in savings for his clients.
