IBM License management

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IBM Licence Management London Seminar

April 2015

ITAM Review IBM & SAP Seminar, London 28th April 2015

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The Speaker


§  Ex-licence audit manager at Deloitte, 200+ enterprise audits for IBM

§  Now leads FIAC, and is the Centre of Excellence on IBM matters

Eric Chiu

§  Part of HW Fisher, an 80-year old, top 30 accountancy in London.

§  Over 20 years experience in licence audit and advisory.

§  IBM Audit Defence, Internal Baseline and IBM LMO (License Management Options) amongst most popular services FIAC offers.

Fisher IT Asset Consulting

Hwfisher.co.uk/fiac | [email protected] | @auditdefence

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Agenda of the day


§  IBM software portfolio and core licensing metrics overview

§  Understanding IBM licence ownership ESSO, PA and Legacy Contracts

§  Measuring IBM licence requirements correctly PVU vs Everything else

§  Sub-capacity and your tools ILMT and Third-party tools against contractual obligations

§  License Optimisation tips Can money be saved?

Part 1 - IBM License Management Knowledge, risks and management advice

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Agenda of the day


§  Global license compliance operation overview

§  Audit case studies What happens when things go wrong

§  Audit workflow and defence tactics How does audit work in real life, and how to manage every stage of the audit

§  An audit-free state Understanding IBM License Management Option (LMO)

§  Self-Audit guides Where to start

Part 2 – IBM License Compliance Audits Understand and take advantage

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IBM: License management knowledge, risks & management

advice


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Portfolio Overview


What are we dealing with

IBM offers over 31,000 application titles as of March 2015. Most of these can be categorised into 5 main categories as below:

Information Management • Data & Content Management: Cognos, SPSS, DB2, FileNet, Informix, InfoSphere

Lotus • Communication & Collaboration: Domino, Sametime, Notes, Quickr, CEO

Rational • Software & system development: Rational Application developer, IBM Rational Test Virtualization Server

Tivoli • Service management: Tivoli Storage Manager, Composite Application Manager, TotalStorage,

Workload Scheduler

WebSphere • System integration: WebSphere Application Server, WebSphere MQ, WebSphere Business Broker, Portal

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Charge Metric Overview


Now you see why Discovery is nothing

IBM has 143 active licence metrics (charge metrics) as of March 2015. By including legacy metrics the figure goes beyond 200.

Processor based • Processor –> Core –> Processor Value Unit

User based • Role based user: admin / advance / basic / limited use • Tier based user -> Authorised User Value Unit (AUVU), EUVU

Concurrency based • Concurrent users / sessions

Capacity based • Terabytes

Device rating based • Resource value unit

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Top 6 Compliance Risks


What get you in trouble

6) Virtualisation

5) User role & access definition

4) Server role definition

3) Multiplexin

g

2) Application

specific restrictions

§  “These are our Test/Dev

servers…”

§  “These servers are ran by our

service provider(s)…”

§  “I know how to count PVUs

so why ILMT”

§  “Computer says…”

Winner

The ‘But’

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Is it fair to call IBM a Bully?


Debatable perhaps

Better price discrimination

Built-in Licence Control

Virtualisation Discount

Windows

Vs.

Vs.

Vs.

Vs.

Easy Licensing

DR Capability & Security

Administrative overhead

Unix

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Contract & Licence Structure


Passport Advantage Agreement

Passport Advantage Express

Legacy Agreements

Ente

rprise

Softw

are

&

Servic

es O

fferin

g

Ag

ree

me

nt (ESSO

)

Contract Structure Licence Structure

Base Licence with 12

months S&S

S&S Renewals

S&S Renewals

S&S Renewals

S&S Renewals

! §  Base vs S&S count §  Metric conversions §  Trade-ups §  Re-instatements §  Legacy licences

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Raw Transaction


What you (can) have

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Entitlement Position


What you need

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Measuring Usage


Think Strategically

Let’s start by scanning desktops and servers, maybe with ILMT, and find out where my IBM applications are installed, then go from there.

Let’s start by consolidating our license records to understand what titles we have bought and under which charge metrics, then determine the reporting responsibilities and the associated data requirements accordingly.

Because IBM installation counts rarely relate to actual licence requirement

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Measuring Usage


Top Down

Bottom up then

What we

have bought

?

PVU

Non-

PVU

ILMT Deployment & Validation Bundling, coverage & accuracy

Additional Information Required

Design Data Collection

Methodology to measure usage

according to charge metrics

Manual Calculation

ILMT Update & Sign-

off Effective Usage

i.e.

Licence Required

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Measuring Usage


What ILMT doesn’t tell you

Install Limitation The total amount of resources allocated to a given Informix Install, including all database instances managed by the Install, cannot exceed: Processor Limit The Program allows a maximum of sixteen (16) Informix CPU Virtual Processors (as reflected in the NUMCPUVPS tunable parameter of the Program) per Install. Memory Allocation Limit The Program allows a total of sixteen (16) Gigabytes of memory allocated (as reflected in the SHMTOTAL tunable parameters of the Program) to support use of all instances of the Program on a single Install, regardless of the amount of physical memory in the physical server. Licensee may use the Program up to a total of two (2) Secondary Install nodes, in any combination using: High-availability Data Replication (HDR), Remote Secondary Server (RSS) or Shared Disk Secondary (SDS).

Source: IBM License Information documents www-03.ibm.com/software/sla/sladb.nsf/lilookup/461F2F1336373573852577B900760678?OpenDocument

Example: Informix Growth Edition | Concurrent Session | Licence Restrictions

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Measuring Usage


Example: Informix Growth Edition | Concurrent Session | Data Requirements

What ILMT doesn’t tell you

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Sub-Capacity & ILMT


What’s the PVU requirement for WAS?

Q1 Q2 Q3

400 PVU

800 PVU

200 PVU

Q4

Time

LPAR decom 0 PVU

IBM Software: WebSphere Application Server Deployment: 1 x VM, on a 1,000 PVU Physical Host

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Sub-Capacity & ILMT


How ILMT works

Hardware (PVU) Scan

Every 30 mins

Software Signature

Scan Daily -

Monthly

Database of ALL records

from the beginning of

time

Reporting Process

Today

CPU Lib

Signature Lib

Calculate Peak PVU

For Time Range specified by USER

Apply Bundling Rules

Guessed by ILMT & Confirmed by USER

Bundling Lib

Product Level PVU

Reports

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Optimisation


Or just call it money saving

£$€ Saved

Unused software

Penalty Avoidance

Cheaper licensing options

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Just to give you an idea


This alone was a €20 million euro saving

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A Quick Summary


§  IBM has a huge software portfolio and highly complex licensing metrics, causing challenges in effective licence management

§  Understand your ownership of IBM licences should always be your first step, and it can be harder than it looks

§  When measuring IBM licence requirement, you need to cover both PVU based software via ILMT, and Non-PVU based software manually.

§  It is important to know ILMT's limits and understand how it integrates with other SAM solutions.

§  If you get things right, a lot of money can be saved!

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IBM License Compliance Audits: Understand and Take

Advantage


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How audit works?


Selection Notification Scoping & Initiation

Data collection

Data analytics

and validation

Factual accuracy discussion

3-way hand-over

Settlement discussions

How to stay

under the radar?

How to buy some

time or come clean?

What to include

and when

What to share / submit?

How to avoid

unnecessary work?

How to validate an audit report?

What “facts” to agree to?

How much to

liability to accept?

And what you can do to manage it

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Audit Clause – Key Update 1


Old Agreement Upon reasonable notice, IBM may verify Customer’s compliance… Such verification will be conducted in a manner that minimizes disruption to Customer’s business … during normal business hours. IBM may use an independent auditor to assist with such verification, provided IBM has a written confidentiality agreement in place with such auditor.

New Agreement Client will maintain, and provide upon request, records and system tools output, and access to Client’s premises, as reasonably necessary for IBM and its independent auditor to verify Client’s compliance with this Agreement.

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Audit Clause - Key Update 2


Old Agreement Customer agrees to promptly pay directly … software subscription and support for such excess use for the lesser of the duration of such excess use or two years

New Agreement If Client's records are inadequate to determine IBM Subscription and Support or Selected Support charges, IBM's charges for any excess usage will include two years of associated maintenance and IBM Subscription and Support or Selected Support.

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What do these changes mean?


§  IBM now stands on stronger legal grounds when conducting audits against its customers

§  It will be harder to ‘buy-time’ and ‘clean up’ by deploying some classic stalling tactics against audit request

§  Identifying over-usage before audit becomes a lot more valuable – for at least a 40% saving on cost.

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License Management Option


The only way to keep audits away

§  Demonstrate to IBM that you have a mature SAM process that satisfies IBM Licence Management requirements

§  You may be asked to facilitate a limited-scope audit

§  Quarterly self-audited compliance reporting to IBM

Pros Cons

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DIY your first ELP


§  Scope (organisational), Scope (3rd party) and Scope (Product)

§  Create your Effective Entitlement Position Base licence quantity + S&S quantity + licence metric + licence restrictions from Ts&Cs

§  Create a project plan, identify product owners for each IBM application

1. Planning

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DIY your first ELP


§  Validate ILMT/TAD4D deployment coverage and bundling accuracy

§  Generate and sign all ILMT reports

§  If you have a SAM tool, make sure only the right stuff from ILMT get’s pull in. Remember it is all about peak over time, rather than a snapshot of point-in-time.

2. PVU product usage work stream

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The Next Step


§  Read the Ts&Cs in the Licence Document for each title that is NOT licensed under PVU metric

§  Define a data collection methodology for each title

§  Instruct product owners to generate data accordingly

3. Non-PVU product usage work stream