IBM software licensing is notoriously complex. Even small IBM licensing mistakes can lead to costly compliance issues. Over years of managing IBM license compliance reviews, I’ve encountered several common pitfalls organizations face. This article shares the top 10 IBM licensing mistakes and provides actionable strategies to help IT service management (ITSM) professionals avoid them.
The Top 10 IBM Licensing Mistakes
1. Incorrect Configuration of IBM License Metric Tool (ILMT)
IBM sub-capacity licensing helps your organization minimize costs by licensing only the processors or cores it uses in a virtualized environment. However, the ILMT requires meticulous configuration to produce accurate reports. Common issues include improper handling of product bundling, disaster recovery servers, decommissioned machines, and failing to exclude false positives. This is one of the significant IBM licensing mistakes.
Recommendation: Engage an IBM licensing expert for the initial ILMT setup, particularly for environments with numerous products and servers. Post-configuration, designate a trained ILMT administrator for ongoing maintenance.
2. Neglecting ILMT Maintenance
IBM frequently updates ILMT, and falling behind on updates can lead to errors in license reporting. If ILMT is outdated by over a year, auditors might assess licenses at full capacity – a potentially significant financial risk. This is another one of the significant IBM licensing mistakes.
Recommendation: Schedule quarterly ILMT updates, including a detailed runbook for the process, and incorporate this task into your ITSM or IT asset management (ITAM) calendar.
3. Delayed Resolution of ILMT Errors
Agent failures, expired VM Manager credentials, and undeployed agents are common challenges in complex networks. While expected, these issues become problematic if not promptly resolved, as they can compound over time.
Recommendation: Set up a recurring task in your ITSM or ITAM tool to review ILMT monthly. Develop a runbook for resolving common ILMT errors and ensure it’s followed rigorously.
4. Insufficient Review of Quarterly Sub-Capacity Reports
Organizations utilizing sub-capacity licensing must generate and store quarterly ILMT reports. Failure to do so, or overlooking inaccuracies in these reports, can lead to non-compliance. IBM licensing mistakes can happen by cutting corners.
Recommendation: Generate audit snapshots monthly and thoroughly review them for discrepancies. Maintain a documented process for auditing and resolving report issues.
5. Assuming License Requirements Remain Unchanged After Product Upgrades
IBM product upgrades often include entitlement, supporting program, or use rights changes. New features may alter license requirements, potentially impacting ILMT configurations and license counts. IBM licensing mistakes love incorrect assumptions.
Recommendation: Before upgrading, compare the licensing terms of the current and new product versions. Verify that ILMT accurately reflects any changes post-upgrade.
6. Overlooking Licensing Impacts of Infrastructure Upgrades
Changes to server infrastructure, such as adding processors, cores, or nodes, directly impact processor-based licensing metrics (e.g., PVU, RVU, vCPU). Without proper oversight, unplanned licensing costs can arise.
Recommendation: Include the ITAM team in your change advisory board (CAB) if you have one. Ensure infrastructure changes undergo a licensing impact assessment before implementation.
7. Using Unsupported Operating Systems or Virtualization Technologies
Sub-capacity licensing eligibility depends on IBM’s approved operating systems and virtualization technologies list. As technologies are deprecated, they may lose eligibility, leading to unexpected licensing costs. This is another one of the significant IBM licensing mistakes.
Recommendation: Annually review IBM’s Eligible Virtualization Technology and Operating Systems list. Highlight unsupported systems and prioritize their upgrade in your ITSM or ITAM roadmap.
8. Deploying IBM Products Without ILMT Agents
In dynamic IT environments, particularly those using public cloud services, IBM software can be deployed on servers without corresponding ILMT agents, creating compliance gaps. Avoid this one of the IBM licensing mistakes.
Recommendation: Periodically reconcile ILMT data with other data sources, such as your configuration management database (CMDB), Active Directory, or DevOps tools, to help ensure all IBM hosts have agents deployed.
9. Failing to Manage Authorized User Licenses
IBM’s Authorized User licenses require active management to avoid exceeding entitlements. Many applications do not restrict user access, making regular audits essential.
Recommendation: Audit Active Directory security groups and application logs annually to confirm user counts align with license entitlements.
10. Lack of IBM License Training for Technical Teams
Technical staff – including system administrators, DBAs, and IT architects – often make changes that inadvertently affect licensing. A lack of foundational IBM licensing knowledge can lead to costly oversights caused by IBM licensing mistakes.
Recommendation: Provide annual training on IBM licensing basics, focusing on how infrastructure changes impact IBM license demand and the importance of ILMT maintenance.
Proactive Management is Key
Now you’re aware of these common IBM licensing mistakes, it’s time to take action. The solutions are often straightforward, and addressing these issues can save your organization significant costs while ensuring compliance.
These ten recommendations can help mitigate IBM licensing risks and create a robust foundation for IBM license management. If you need support, consider conducting a comprehensive IBM License Compliance Review to uncover hidden risks and opportunities for optimization.
If you need help, please reach out to 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.
