Tips for Optimizing Software License Contracts

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Sub-Capacity Licensing

Be aware of the granular detail of sub-capacity licensing.

For example, even though they are not permitted according to IBM standard licensing, there are sometimes deals made for sub-capacity licensing if a customer has requested it specifically. In this instance, it is important to make sure that the IBM License Metric Tool is also implemented so that when it comes to audit, it is easier to outline how many IBM products are implemented and on how many servers. With any tool other than ILMT, there is a risk that IBM will have less of a picture and if you can't present them with the information they require from ILMT, you could risk being charged as if you need a full-capacity license.

Licensing and vendor management can be a very complex task, especially when dealing with multiple providers for multiple services in changing markets, such as cloud and mobility. It's critical for organizations to develop improved strategies for both license and vendor management, and to truly understand the many implications involved in a licensing agreement.

Martin Prendergast, CEO and co-founder of Concorde, explained: "There has often been a misconception that software asset management is simply about having the deep-seated knowledge about the quantity of licenses within the enterprise. However, over the years this has changed immensely with cloud computing and mobility, and it's becoming increasingly important to know how to work with vendors closely, and not to overlook important complexities when interpreting and managing software contracts."

He continued: "Large vendors such as IBM and Oracle, which have been on the acquisition trail in recent years, supply invaluable technology to huge numbers of global organizations to manage critical aspects of their business. But because of this, licensing is often complex, and many end user licensing teams are ill equipped to understand which products are aligned with existing technology, and which are not. It's time to get ahead of the game, get expert help, and plan the IT estate structure for the future in order to retain control over planned and unplanned change in software licensing."

In this slideshow, Prendergast has identified tips to help organizations optimize their software license contracts.

 

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