IBM License Metric Tool (ILMT): Reduce Licensing Costs and Mitigate Compliance Risks

In recent years, IBM software prices have risen enormously. As a result, IBM customers are making various efforts to counteract the associated cost increases. Due to the complicated and sometimes opaque pricing and contract policies, this is not always straightforward. A logical and widely used instrument for cost reduction is the so-called Sub-Capacity Licensing of IBM Open Systems Software (PA Software). This can be particularly applied to processor core-based licence models such as PVU, VPC and RVU.

Simply put, this approach only requires licences for the virtual environment in which the relevant products are used, rather than for the entire physical server. This enables a cost-effective reduction in the number of licences required. However, IBM ties this to a few additional requirements. Perhaps the most demanding is the use of an IBM-approved tool to track licence consumption. The free IBM Licence Metric Tool (ILMT) is typically used as the standard solution.

Many companies rely on virtualisation technologies to optimise the capacities of their on-premises environments. It makes sense to manage licence usage at this level as well.

Full-Capacity licensing represents the standard and maximum case for determining the required licences. To be eligible for the licence savings provided by Sub-Capacity licensing of virtual environments, several requirements must be fulfilled:

 

• Implementation of the IBM Licence Metric Tool (or an IBM-approved alternative)
• Classification (assignment) of discovered IBM software components to the correct licence products
• Creation of quarterly reports (documentation of the past 8 quarters)

 

The ILMT tool provides the functionalities needed to implement the requirements for Sub-Capacity licensing. However, the responsibility for correct implementation lies with the customer. This creates know-how requirements for technical operation, usage, and particularly understanding IBM licence conditions.

The goal is clearly defined: efficient and technically correct ILMT management to significantly reduce both licence costs and compliance risks for IBM software.

Meeting the requirements for using ILMT is complex, which also creates risks. In the worst case, an audit may require retrospective licensing up to the Full-Capacity scenario.

Creating Transparency

 

It makes sense to consolidate and evaluate the Sub-Capacity licence data determined by ILMT together with Full-Capacity data in a central licence management system. This allows licence management to function as a "single point of truth" for IBM licensing. This enables a continuous overview of inventory and consumption.

 

Building Know-How

 

IBM's licence provisions are complex and diverse. Creating a central authority with the necessary know-how can help to oversee and evaluate the current compliance situation.

 

Stakeholder Management

 

The central contact person advises other stakeholders (including product owners) on rights and obligations regarding changes to their infrastructure. To accomplish this, it is worthwhile to establish a basic understanding of licence metrics among all involved stakeholders.

 

Regular Checks for Changes to the ILMT Application

 

IBM publishes announcements about adjustments to the ILMT application approximately four times a year. Checking these regularly allows timely reactions to changes. This often helps avoid expensive retrospective licence purchases or at least reduces them.

When using Sub-Capacity licensing, a licence report must be prepared quarterly to meet IBM's requirements. However, more frequent reporting can have advantages for licence management:

The enormous savings potential makes ILMT an integral component of most larger IT infrastructures with IBM software products. However, fully implementing the complex requirements is often difficult. The obligation to maintain licence data and document ILMT data lies with the licensee. The data collected can also be used to realise additional benefits:

 

1. Increasing Traceability for Future Planning
   The licence data collected in ILMT is completely recorded along with its history. This allows changes to be viewed quickly and easily. Exchanging information about consumption, peaks and future needs with a licence management operating on current data is of high value for planning future licence requirements.

    

2. Avoiding Licence Costs by Meeting Deadlines
   In certain situations (e.g., migration to new servers), the customer has a time-limited right to increase their licence consumption. The deadlines here are typically tighter than the contractual obligation to create the quarterly report. By creating regular ILMT reports, consumption can be examined and monitored more precisely. This can avoid additional purchases after the deadline expires.

    

3. Cost Savings Through Optimising Licence Usage
   An overview of the server environments used and billable installations can significantly support licence optimisation efforts. Often, even product and server owners are not clear about how many licences are consumed by individual servers. Creating visibility allows these stakeholders to optimise their environments and thereby save licence costs.

    

4. Concretisation of Licence Data in Contract Negotiations
   IBM software contracts are often concluded for several years to ensure both planning and cost security. ILMT data in preparation for negotiations serves as a data basis for assessing future needs. This allows for a hardening of the related quantity structures and facilitates budget planning.