ITAM Review IBM & SAP HW Fisher IBM Presentations

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IBM Licence ManagementLondon 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

mailto:[email protected]

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Agenda of the day


IBM software portfolio and core licensing metrics overview

Understanding IBM licence ownershipESSO, PA and Legacy Contracts

Measuring IBM licence requirements correctly PVU vs Everything else

Sub-capacity and your toolsILMT and Third-party tools against contractual obligations

License Optimisation tipsCan 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 tacticsHow does audit work in real life, and how to manage every stage of the audit

An audit-free stateUnderstanding IBM License Management Option (LMO)

Self-Audit guidesWhere to start

Part 2 – IBM License Compliance AuditsUnderstand and take advantage

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IBM: License management knowledge, risks &

management advice


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Portfolio Overview


What are we dealing withIBM 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

ServerTivoli

• 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 nothingIBM 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) Virtualisati

on

5) User role & access

definition

4) Server role

definition

3) Multiplexi

ng

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

&

Serv

ices O

fferin

g

Agre

em

ent (E

SSO

)

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 upthen

What we

have bough

t?

PVU

Non-PVU

ILMT Deployment & Validation

Bundling, coverage & accuracy

Additional Information Required

Design Data Collection

Methodologyto measure usage

according to charge metrics

Manual Calculation

ILMT Update & Sign-

off

Effective Usage

i.e.

Licence Require

d

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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 documentswww-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 decom0 PVU

IBM Software: WebSphere Application ServerDeployment: 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

ScanDaily -

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 validatio

n

Factual accuracy discussio

n

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 AgreementUpon 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 AgreementClient 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 AgreementCustomer 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 AgreementIf 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 PositionBase 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

ITAM Review IBM & SAP HW Fisher IBM Presentations

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