Article Mastering IBM Software Cost Efficiency: Strategies for Optimizing and Cost Management
Mastering IBM Software Cost Efficiency: Strategies for Optimising and Cost Management
By Insight UK / 27 Jan 2025 / Topics: Cloud IT optimization
This article provides an overview of how to best manage your IBM licensing estate and some takeaway tips you can implement in your organisation. We will go over best practices for managing IBM licensing costs, how organisations can effectively control expenses, optimise software investments, and ensure compliance with licensing agreements. With a proactive approach to license management and cost optimisation, businesses can maximise the value derived from IBM software solutions while minimising unnecessary expenditures.
5 Step Approach
To help businesses navigate this complexity and optimise their software expenses, it is essential to implement effective strategies for managing IBM licensing costs. Here are 5 steps to consider:
1. Conduct a Comprehensive Software Inventory: Before addressing IBM licensing costs, it is crucial to have a clear understanding of the software assets deployed across the organisation. Conduct a thorough software inventory to identify all IBM products in use, including licenses, versions, and usage levels. This inventory serves as the foundation for effective license management and cost optimisation.
2. Understand IBM Licensing Models: IBM offers a variety of licensing models, each with its own terms and conditions. It is essential to understand the licensing agreements associated with IBM products to ensure compliance and avoid unexpected costs. Familiarise yourself with concepts such as user-based licensing, processor-based licensing, and subscription models to make informed decisions about licensing options.
3. Optimise License Utilisation: This is a crucial strategy for effectively managing IBM licensing costs and maximising the return on software investments. By identifying underutilised licenses or instances of shelfware (unused software) within your organisation, you can reallocate them to areas where they are needed or consider reducing software maintenance upon the next renewal. This proactive approach not only helps in reducing unnecessary expenses but also enhances the overall ROI on software investments.
In line with clause 8.1.g of the IBM Passport Advantage Agreement, which pertains to Software maintenance renewals (Subscription and Support/S&S), organisations seeking to reduce the number of licenses under support must demonstrate a reduction in software usage at least 30 days before the renewal date. It is essential to prepare and optimise in advance to ensure that your organisation is well-positioned to manage license renewals effectively and efficiently. This proactive approach can help streamline the renewal process and align software resources with actual usage, ultimately leading to cost savings and improved license management practices.
4. Implement License Compliance Practices: Maintaining license compliance is critical to avoiding penalties and fines associated with non-compliance. Establish robust license management practices, including regular internal audits, tracking license usage, and ensuring adherence to licensing agreements. By proactively managing license compliance, organisations can mitigate risks and control costs effectively.
5. Consider Cloud and Subscription Models: IBM offers cloud-based and subscription licensing models that provide flexibility and scalability for businesses. Consider transitioning certain workloads to cloud environments or opting for subscription-based licensing to align costs with usage and avoid upfront capital expenditures. These models offer cost-effective alternatives for organisations looking to optimise their IBM licensing costs. However, understand the implications in the long term before making the move.
Conclusion:
Managing IBM licensing costs can be a significant challenge for organisations, especially as software environments grow in complexity and scale. By implementing the above strategies and best practices for managing IBM licensing costs, organisations can effectively control expenses, optimise software investments, and ensure compliance with licensing agreements. With a proactive approach to license management and cost optimisation, businesses can maximise the value derived from IBM software solutions while minimising unnecessary expenditures.
How Insight can help:
By partnering with Insight, your organisations can access expert SAM services delivered by SEMs across a broader range of expertise; ensuring compliance, reducing costs, and optimising software usage. Engage with our IBM Licensing Experts: When in doubt or facing complex licensing scenarios, consider engaging with IBM licensing experts or consultants. Insight can provide guidance on licensing optimisation strategies, negotiate favourable terms with IBM, and help navigate the complexities of software licensing to achieve cost savings and compliance.
Reach out to us for a complimentary 30-minute consultation to see how we can best help your organisation to evolve with the latest changes within the IBM landscape.
