New Year’s Eve marks more than just the end of the calendar year in the world of software asset management. December 31st is also the fiscal year-end for IBM.
As this magical date quickly approaches, the coming days and weeks are likely to be some of the busiest of the year for IT procurement managers and budget owners whose businesses have invested heavily in IBM technology through enterprise-level licensing agreements.
These large and complex IBM enterprise licensing agreements are often known as ESSO (IBM Enterprise Software and Services Offerings), or SSSO (“Triple es o” – Software and Services Special Options) – and quite a lot of them are signed or renewed on the very last day of the year.
To make it easy for you this December, we have compiled a must-do check-list for anyone that is dealing with a IBM renewal this month.
Your Essential IBM Contract Renewal Check List
1. Do one last fact check: Ask for an up-to-date “Audit Snapshot” report from your colleagues managing the IBM License Metric Tool (ILMT) – deployment levels captured from this report can be used to quickly validate the Bill of Materials both for volume and (application) titles.
2. Check your unspent contract credits: Leverage unconsumed Cross-brand Allotment (CBA) credits in your ESSO/SSSO renewal negotiations (we often see this unspent credit that can be worth millions). Consider negotiating a wider scope for the next CBA coverage. If you have a Substitution Clause, swap out any unused licenses for planned growth.
3. Unlimited use agreement: At a time of the continued inflation uncertainty, especially after the recent IBM announcement of its 24% price up lift in UK and EU across all price bands, it’s a lot more attractive to consider a product-level unlimited use deal than before.
4. Don’t glide over the Cloud Paks: While Cloud Paks can be attractive both in terms of added flexibility and volume, it is important to validate the conversion mechanisms and ensure that Cloud Pak consumption – which is often complex – can be tracked by your organisation effectively to avoid future compliance risks.
5. Address any pending compliance issues: If your organisation still has an unsettled audit with IBM, try to negotiate the settlement as part of your renewals – so that the extra incentives from IBM this month can be leveraged for additional waivers and discounts.
In addition to the top 5 tips above, if you would like a 1-hour complementary consultation from one of Anglepoint/FisherITS IBM ESSO SMEs then please reach out to our IBM team at contact@fisherITS.com