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What You Need to Know: IBM’s Revised Passport Advantage Agreement

What is IBM’s Passport Advantage Agreement?

IBM’s Passport Advantage Agreement (PA) is the agreement that all IBM customers are using. The PA enables you to buy and renew technical support, subscribe to IBM SaaS offerings, acquire IBM appliances and regulates audit rights and client responsibilities. IBM has announced revisions to their Passport Advantage Agreement that will affect the process of audits and sharing IBM License Metric Tool (ILMT) reports (paragraphs 1.12-1.14). These licensing changes will apply to:

– Existing customers beginning on February 1st, 2018 (Once they place a new order or renewal)

– New Passport Advantage customers beginning on November 1st, 2018

What is changing?

ILMT Accuracy

Before now, IBM required clients to have ILMT installed and working. From now on, ILMT must be working and clients must agree to keep accurate records regarding their ILMT reports. Section 1.12

Potential New Costs for Audits

A new phrase was added regarding invoices. “Client agrees to promptly pay directly to IBM the charges that IBM specifies in an invoice for 1) any such excess use, 2) IBM Software Subscription and Support and Selected Support for such excess use for the lesser of the duration of such excess use or two years, and 3) any additional charges and other liabilities determined as a result of such verification.”Section 1.12

Timelines of Audit Requests and Results of ILMT Noncompliance

– From now on, clients have 30 days to share their ILMT reports if requested by IBM. Section 1.13

– A paragraph has been added stating that IBM clients need to agree in writing with the IBM/auditor within 60 days of an audit request in case they need an alternate confidentiality agreement. Section 1.12

– If clients are unable to deliver, they won’t be eligible for Sub-capacity licensing and will be charged for the full capacity. Section 1.13

IBM has also reworded and added clarification in several paragraphs.

– If a client is moving or transferring a license across a border and an authority imposes a tax the client agrees to pay the tax. Section 1.3

– An audit can always be executed “at all sites and for all environments in which client uses their PA software.” Section 1.12

– As well as, clients need to provide accurate ILMT reports and agree not to alter or delete them for any purposes. Section 1.14

– Support benefits are no longer applicable when support agreements expire. Section 3.8

Subscribe to Keep Updated

Clients are now required to subscribe to IBM support notifications to receive notifications when ILMT updates become available. This ensures that clients are always notified of changes and always using the most updated version of ILMT. Section 1.14

Why is this significant?

Our experience shows that only 60% of the automated software bundling is correct, meaning approximately 40% of the software assignments need to be adjusted manually. Because proper software bundling take time, these changes require clients to always have their ILMT environment and reports ready.

How does this affect you?

ILMT is a tool that can save IBM users millions of dollars but can also put a client at a huge financial risk if not managed properly. Users must implement proper IBM compliance processes to reduce their financial risk. Without these processes, clients are at high risk of violating sub-capacity terms, which would result in large charges for their whole physical environment.

What should you do?

Anglepoint helps organizations ensure proper compliance processes are implemented, with the purpose of decreasing financial risk. In 95% of our projects, the costs of services we provide are less than the savings that we generate for our customers. Contact Anglepoint today for more information about how our team of IBM experts can help you navigate the changes to the Passport Advantage Agreement.