Can Your Organization Defend Every Core, Contract, and Clause in an IBM Audit?

Eliminate compliance gaps, reduce licensing waste, and build a defensible IBM position before auditors arrive.

Whether under audit, approaching a renewal, or reevaluating ILMT readiness, LDS gives you full control over IBM licensing—ensuring compliance, cost-efficiency, and confidence in every report you submit.

Start Optimizing Your IBM Portfolio Today

Reduce Costs

Optimize licensing to eliminate unnecessary spending

25-40% Average Savings

Ensure Compliance

Avoid costly audit penalties and legal risks

100% Audit Readiness

Maximize ROI

Get the most value from your Microsoft investments

60%+ Enhanced Value

Book Consultation

The Compliance Challenge Every IBM Customer Faces

Managing IBM software entitlements is no small task. With hundreds of licensing metrics, evolving policies, and product-specific rules, organisations often struggle to maintain clarity over their rights and obligations. Many agreements are left untouched after purchase, leaving decision-makers uncertain whether they are fully compliant—or if they're paying more than necessary.

45% of IBM-audited organizations have incurred over $1 million in unplanned costs over the past three years. IBM's licensing framework is among the most complex in the industry, and audits are a fact of life. Yet, with the right insight, financial exposure can be avoided. Capacity-based models, such as PVU, RVU, or VPC, can deliver cost efficiency for organisations with changing workloads—but they also carry hidden compliance risks if not managed with precision.

Virtualisation changes, hardware upgrades, or misinterpretation of eligibility requirements can all tip an environment out of compliance. A single misconfiguration or oversight can result in significant financial penalties during an audit.

Where Organizations Lose Control — Fast

Even organizations with mature IT practices can face issues during IBM audits

⚠️ILMT misconfiguration

leading to full-capacity licensing charges

⚠️Inactive or orphaned users

increasing costs for user-based products

⚠️Cloud migration gaps

resulting in duplicate licensing or invalid transfers

⚠️Limited cross-team coordination

between IT, procurement, and compliance functions

How LDS turn Audit Anxiety into Advantage?

+

Turn Audit Anxiety into Strategic Advantage

Managing IBM software is not just a technical task — it’s a contractual and financial responsibility. At LDS, we combine former IBM auditor expertise with over 15 years of licensing experience to help organisations maintain compliance, optimise costs, and strengthen their position in every IBM engagement.

Our Expertise

End-to-end IBM licensing solutions

LDS provides end-to-end expertise in IBM software licensing, compliance, and audit defence. We believe that prevention is always more cost-effective than cure—addressing potential compliance risks before they escalate into formal audits or costly disputes.

• Our approach covers every stage of IBM licence management, including:

Strategic licensing guidance and ongoing optimisation of your IBM software environment.

Identifying opportunities to lower annual support and maintenance expenses.

Reducing exposure to unexpected legal or financial liabilities.

Managing and defending against IBM audit findings with evidence-based strategies.

Your Trusted Partner

With LDS, you gain a partner who not only understands IBM’s licensing rules inside out but also knows how to keep your organisation compliant, cost-efficient, and ready for any audit scenario.

Our IBM Licensing Services Include

Comprehensive IBM Compliance & Optimization

Baseline Compliance Assessment

A detailed review of your current IBM environment, existing tools, and entitlement records to establish a clear compliance position.

Entitlement & Deployment Mapping

Correlating your actual software usage against your licence rights, including sub-capacity and full-capacity scenarios.

Audit Preparation & Defence

Leveraging our audit experience to pre-empt non-compliance claims, challenge inaccurate findings, and negotiate fair resolutions.

Ongoing Monitoring & Reporting

Regular reporting on IBM deployments versus entitlements, highlighting over- or under-deployment risks before they escalate.

Contractual Guidance

Interpreting Passport Advantage terms, providing practical advice on how to meet IBM's obligations, and reducing legal exposure.

📊 PROVEN TRACK RECORD

Our Numbers Speak for Themselves

Proven results that demonstrate our expertise and commitment to excellence in IBM licensing

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0+

ENTERPRISE MICROSOFT CLIENTS

💰

0M

CLIENT SAVINGS

🏆

0+

MICROSOFT LICENSING EXPERTS

🌍

0+

YEARS OF MICROSOFT EXPERIENCE

🛡️

0%

AUDIT DEFENSE SUCCESS RATE

Key Benefits

Key Benefits of Choosing LDS for IBM Licensing Services

LDS enables organizations to confidently manage their IBM software licenses through expert analysis, proactive compliance strategies, and audit-ready support. Here's how your business benefits when you partner with LDS:

01

Full License & Entitlement Clarity

License Data

We begin by thoroughly reviewing your IBM software licenses, agreements, and usage records. This ensures you have a clear understanding of your entitlements — and any potential compliance gaps.

02

Accurate Usage vs. Entitlement Mapping

s

Actual Usage

s

Entitlements

LDS compares actual software deployments and usage against your licensing entitlements. This helps identify over- or under-licensing and ensures you're not exposed to unnecessary compliance risks or costs.

03

Proactive Internal Compliance Audits

s

75%

Compliance Score

Our team supports regular internal audits, allowing you to stay ahead of any licensing issues. This proactive compliance monitoring helps resolve discrepancies before they escalate into larger problems.

04

Complete IBM Audit Readiness

Audit Ready

When facing an IBM audit, LDS ensures you're fully prepared. We guide you through the process and help compile the required documentation — including software entitlements, deployment records, and agreements.

05

Ongoing Software Record Management

s

Auto-Organized

We help you maintain clean, current, and auditable licensing records through routine reviews and updates. With LDS, you're always ready — no surprises.

What We Review

Comprehensive IBM Software Review

Our IBM Software Optimization Service provides complete visibility into your software environment. We analyze every critical area to ensure compliance, reduce costs, and prepare your business for the future.

IBM Server Deployment Baseline

Detailed inventory of IBM software across your physical, virtual, and cloud environments.

Physical server mapping

Virtual environment audit

Cloud deployment tracking

Complete software inventory

User-Based Product Assessment

Usage review of key IBM solutions like Cognos, Maximo, Sterling, and others to ensure proper licensing alignment.

Cognos usage analysis

Maximo deployment review

Sterling implementation audit

User access validation

Mainframe Software Baseline

Analysis of IBM software running on mainframe systems, ensuring full visibility and entitlement mapping.

Mainframe inventory

MIPS calculation

License mapping

Entitlement validation

ILMT Health Check

A technical review of your IBM License Metric Tool (ILMT) setup to validate data accuracy and compliance tracking.

ILMT configuration review

Data accuracy validation

Compliance tracking

Tool optimization

IBM Audit Defense Readiness

Audit preparedness assessment with recommendations and documentation support to respond confidently to IBM reviews.

Audit preparation

Documentation review

Response strategy

Risk assessment

License Cost Impact Simulation

Financial modeling of future IBM licensing scenarios—including annual true-ups—to help you forecast and budget accurately.

Cost modeling

True-up simulation

Budget forecasting

Scenario planning

Third-Party Support Evaluation

Analysis of potential cost savings through qualified third-party IBM support options, without compromising compliance.

Support option analysis

Cost comparison

Compliance validation

Risk assessment

What You'll Receive

Actionable Insights & A Clear Path Forward

After the review, you'll get a detailed, executive-ready report that outlines our findings and provides clear, independent recommendations tailored to your business goals.

0%

Audit Ready

IBM Effective Licensing Position (ELP)

A complete, audit-ready snapshot of your current license entitlements versus actual usage.

Complete entitlement mapping

Actual usage analysis

Compliance gap identification

Audit-ready documentation

0%

Avg Cost Savings

Licensing Optimization Recommendations

Actionable suggestions for cost reduction, license reallocation, and more efficient licensing models.

Cost reduction strategies

License reallocation plans

Efficiency improvements

ROI optimization

0-5

Year Roadmap

Strategic Licensing Roadmap

A forward-looking plan to manage IBM software smarter—supporting growth, budget planning, cloud transitions, and vendor negotiations.

Future growth planning

Budget forecasting

Cloud transition strategy

Negotiation positioning

LDS PVU and Non-PVU Assessment

Comprehensive IBM Licensing Assessment

IBM's licensing spans multiple metrics — from Processor Value Units (PVUs) to user-, resource-, and data-based models. LDS ensures you're licensed accurately, cost-effectively, and audit-ready across all these scenarios.

PVU Licensing

Processor Value Unit Assessment

We collect detailed hardware specifications, consult IBM's official PVU tables, and calculate the exact entitlement requirements — factoring in sub-capacity rules for virtualised environments.

Deliverable

Results are documented in an Effective License Position (ELP) report, giving you a clear, defensible view of usage.

PVU

Assessment

Non-PVU Licensing Models

IBM also uses other metrics depending on the product. LDS optimizes across all licensing models:

UVU

Named users

LDS Role in Optimization

Map user types, align entitlements to access needs.

VPC

vCPU per VM

LDS Role in Optimization

Assess cloud/VM workloads, choose most efficient metric.

RVU

Memory or storage usage

LDS Role in Optimization

Track resource consumption, right-size licensing.

Install/Server

Per install or server

LDS Role in Optimization

Identify deployments, avoid unlicensed instances.

MLC

Peak mainframe usage

LDS Role in Optimization

Analyse MSU trends, optimise subscription costs.

Cloud & BYOSL

Bring Your Own Software License Optimization

For migrations, we evaluate PVU vs VPC licensing, leverage Bring Your Own Software License (BYOSL) options, and align entitlements with AWS, Azure, or other approved platforms to prevent overspend.

Evaluate PVU vs VPC licensing models

Leverage BYOSL optimization opportunities

Align with AWS, Azure, and approved platforms

BYOSL

Optimization

LDS Two-Phase Approach to IBM Licensing

When organizations engage LDS to address their IBM licensing position, we approach it as a two-phase operation — a deep-dive review followed by strategic optimization.

This is not just a routine check-up; in many cases, LDS steps in just in time to prevent massive, unexpected IBM audit penalties that could cripple IT budgets for years.

1

Phase One – The Review Phase

LDS begins with a forensic-level review of the organization's IBM licensing environment. The objective is simple: see what IBM would see in an audit — and fix the problems before they can be used against you.

2

Phase Two – The Optimization Phase

Once LDS has eliminated the compliance landmines, the focus shifts to making IBM licensing work for you, not against you.

Phase One – The Review Phase

This phase covers three key areas to create an airtight entitlement library that IBM can't poke holes in.

Review Phase

Entitlements Review

• Passport Advantage Review
• Proof of Entitlement (POE) consolidation & currency evaluation
• Client specific Metrics & Measurement analysis
• IBM product specific usage definition

→

Architectural Review

• Inspection of IT Architecture for IBM footprint
• Review & understand server naming, sizing & environment classification
• Cloud review
• Assess virtualisation strategy in context of IBM licensing policy
• Check for use of Kubernetes and Containerisation

→

IBM SAM Capability Review

• Assess the current tooling in place & how fit for purpose it is
• Review reporting outputs vs. entitlements
• Check existence & versions of any administration consoles for IBM Software
• ILMT (if present) health check

Phase Two – The Optimization Phase

Strategic optimization to make IBM licensing work efficiently and cost-effectively for your organization.

Step 1

Model Optimization

LDS analyzes your licensing metrics and deployment architecture to find the most cost-effective configuration without breaching IBM's rules. This could involve:

Moving workloads to lower-cost licensing tiers
Consolidating servers or workloads to reduce PVU/VPC counts
Retiring underused products and reallocating licenses where needed

Step 2

Strategic Audit Defence

If an IBM audit is active or anticipated, LDS prepares the defense package:

We present IBM with exactly what they need to see — no more, no less — in a format that protects the organization's position
Every figure is backed with documented proof, preventing IBM from making inflated claims
LDS handles negotiations to ensure that any adjustments are based on verified data, not speculative findings

Step 3

ILMT-as-a-Service – Permanent Compliance Assurance

For organizations that don't want to live in fear of the next IBM audit, LDS offers to manage ILMT on their behalf:

Continuous monitoring of ILMT health and accuracy
Regular compliance snapshots and alerts
Proactive recommendations before licensing issues can grow into costly breaches

Ready to Transform Your IBM Licensing Position?

LDS LicenseOptics

Deep ELP & IBM License Optimization

At LDS, optimization is not an afterthought—it's an integrated part of our IBM licensing services. We conduct a deep-dive Effective License Position (ELP) to uncover hidden risks, inefficiencies, and cost-saving opportunities across your IBM estate.

01

Usage Verification

We analyze real-time usage data from system logs, Active Directory, and application reports to assess who is using what, when, and how.

02

Entitlement Matching

For each IBM product, we determine the correct metric and map it against actual deployment. We validate your PoE and compare with usage to identify gaps or surplus.

03

Inactive & Dormant User Cleanup

We examine Active Directory for dormant or duplicate accounts—users who haven't logged in for 90 days—and flag these for removal or reassignment.

04

License Right-Sizing

We identify users who are over-licensed or underutilizing assigned products and recommend tier downgrades or reallocation.

05

Metric Optimization

If a product supports multiple metrics, we analyze usage trends to determine the most cost-effective licensing model.

06

Redundant Software Identification

We detect unused installations or shelfware consuming maintenance costs and advise on retirement or consolidation.

LDS CloudPakIQ

Smarter IBM Cloud Pak Licensing & Cost Control

Bundle smarter. Spend less. Simplify compliance.

At LDS, we help organizations evaluate, model, and optimize IBM licensing across on-prem and cloud environments—with a focus on cost reduction, license efficiency, and modernization readiness.

0%

Avg Cost Reduction

Through Cloud Pak optimization

0%

License Efficiency

Improved through bundling

0%

Compliance Rate

Maintained during transition

IBM Cloud vs On-Premises Strategy Evaluation

We assess whether your current IBM workloads are better suited for the cloud or should remain on-prem, including opportunities to migrate to IBM SaaS solutions.

Cloud vs on-prem workload assessment

IBM SaaS migration opportunities

BYOSL program leverage analysis

TCO comparison modeling

IBM Cloud Pak Licensing Advisory

We analyze your use of individual IBM products and assess whether bundling them into a Cloud Pak can significantly reduce license costs.

Individual product usage analysis

Cloud Pak bundling opportunities

VPC-based license optimization

Capacity sharing strategies

LDS Audit Advisory Services

Expert Guidance Through Every Phase of Your IBM Software Audit

Expert guidance through every phase of your IBM software audit.

At LDS, we proactively guide organizations through the full lifecycle of IBM software audits—from preparation to negotiation—ensuring compliance while minimizing risk and financial exposure.

Phase 1

Pre-Audit Preparation

We help clients establish a strong audit-ready posture long before any formal notice arrives.

Form cross-functional audit response team (IT, procurement, legal)

Consolidate all IBM entitlements and contracts into centralized repository

Verify ILMT and discovery tools are correctly configured

Conduct internal mock audits to detect and resolve gaps early

Phase 2

Audit Response Support

If IBM initiates an audit, LDS leads the engagement with precision and control.

Define and control audit scope at kickoff meeting

Compile exact data IBM expects: ILMT reports and inventories

Guide on best practices: no guessing, over-sharing, or system alterations

Ensure all submissions are strictly factual and within scope

Phase 3

Documentation Management

We ensure all supporting evidence is complete and audit-ready for IBM's review.

Validated license entitlements from Passport Advantage

Updated deployment and server/VM inventories

ILMT audit reports and inventory snapshots

Retirement or decommissioning records for inactive systems

Phase 4

Risk Mitigation and Negotiation

When IBM identifies shortfalls, we analyze findings to ensure accuracy and fairness.

Calculate actual license delta (true-up) line by line

Explore all mitigation options and alternatives

Negotiate phased purchases or reclassification where appropriate

Participate in audit calls using experience to reduce exposure

Phase 5

Ongoing Audit Defense Discipline

Our engagements leave clients with long-term benefits and embedded governance.

Implement SAM best practices and centralized license tracking

Establish regular internal reviews and reconciliation processes

Embed audit-ready governance to lower future risks

Turn audits into opportunities for cost recovery and optimization

COMPREHENSIVE EXPERTISE

LDS Other SAM Publishers

Extending our expertise beyond IBM to provide comprehensive software asset management across all major technology publishers

CUSTOMER STORIES

Don't Take Our Word for It — Hear from our Customers Who Faced Serious Risk

Navigating IBM licensing can be complex, and the risks of over-deployment, shelfware waste, and audit exposure are real. Our clients have turned to LDS to identify hidden risks, reclaim wasted spend, and avoid multi-million-dollar audit penalties. From missing ILMT configurations to untracked PVU usage, these organizations protected their budgets and achieved compliance clarity with LDS by their side.

”

$7.9M saved

"Facing a looming IBM audit, we discovered our ILMT agents were missing on critical servers, risking full-capacity charges across our virtualized environment. LDS quickly identified the gaps, deployed ILMT correctly, and aligned our sub-capacity reporting, avoiding $7.9 million in potential penalties."

★★★★★

”

$5.2M saved

"We were paying support on shelfware for IBM WebSphere and MQ licenses we hadn't used in years. LDS performed a detailed usage review, reclaiming these entitlements, cutting unnecessary support renewals, and saving $5.2 million while retaining compliance."

★★★★★

”

$3.4M saved

"An internal compliance review revealed potential PVU overuse across our hybrid cloud deployments. LDS conducted a full PVU analysis, validated entitlements, and right-sized our usage, resolving $3.4 million in exposure before IBM's audit."

★★★★★

”

$4.7M saved

"We discovered our IBM Cloud Pak deployments had exceeded licensing limits due to shadow IT. LDS performed a detailed usage audit, negotiated with IBM to adjust entitlements, and optimized our deployment footprint, saving us $4.7 million in potential audit findings and future spend."

★★★★★

”

$6.5M saved

"During our IBM renewal cycle, LDS uncovered complex bundling misinterpretations and misaligned entitlements across DB2 and WebSphere, which could have triggered $6.5 million in audit exposure. LDS remediated the compliance gaps, prepared clean data for IBM, and led renewal negotiations to secure savings."

★★★★★

”

$2.8M saved

"Our IBM Cognos environment had untracked user growth, resulting in user over-deployment. LDS mapped actual user counts against entitlements and optimized licenses, saving $2.8 million in excess renewal costs while ensuring audit readiness."

★★★★★

”

$3.1M saved

"After receiving an audit notice, we found misconfigurations in our ILMT sub-capacity reports and missing agents, risking full-capacity exposure across hundreds of cores. LDS identified the exact issues, corrected the configurations, and provided audit defense, avoiding $3.1 million in penalties."

★★★★★

Success Story

Real-world results from our license optimization services

✨ SUCCESS STORY

Global Financial Services Firm – USA

📈

$0M

Cost Avoidance Through IBM License Optimization and Audit Defense

📊 License Accuracy Improvement0%

s

🛡️ Audit Readiness0%

s

⚠️

Challenge

A U.S.-based financial services firm with 16,000+ employees faced multiple IBM compliance risks:

•Missing ILMT agents on key virtual clusters, risking full-capacity exposure.
•Untracked PVU consumption across hybrid cloud environments.
•Shelfware consuming support costs on unused WebSphere, DB2, and MQ licenses.
•Potential bundling misinterpretations inflating entitlements.
•Lack of a clear sub-capacity reporting process, creating audit vulnerability.

The organization received a pre-audit inquiry from IBM and realized its internal team lacked the specialized licensing and ILMT expertise to resolve these issues before an audit escalated.

🛠️

Solution

Licensing Data Solutions (LDS) was engaged to conduct a comprehensive IBM license optimization and audit risk mitigation project.

Key activities included:

✅Full entitlement normalization across all IBM contracts.
✅Deployment and remediation of ILMT agents across clusters.
✅Sub-capacity reporting validation to avoid full-capacity charges.
✅Shelfware identification, removing unnecessary S&S costs.
✅PVU consumption and hybrid deployment analysis for compliance.
✅Correction of bundling misinterpretations across WebSphere and DB2.
✅Creation of a complete IBM audit defense package.
✅Support during vendor negotiation to align entitlements with usage.

🎯

Results

💰 $5.9 million in cost avoidance

By reclaiming shelfware costs, correcting sub-capacity risks, and aligning entitlements before the IBM audit.

🛡️ 100% IBM audit readiness

With a complete ELP and accurate ILMT reporting, ensuring clean audit defense.

📊 70% improvement in license accuracy

Through mapping PVU and user metrics to entitlements and removing unnecessary licenses.

🔒 Support cost reductions

By eliminating unused licenses from S&S renewals.

🏢 Unified IBM governance framework

Across U.S. operations, preventing future audit risk and overspend.

📥 Download Full Case Study →

Don't Wait for the Audit Letter

IBM audits are not if, but when—and when it comes, the 30-day response window leaves no room for error.

Let LDS secure your IBM estate—before you're staring at a $6M compliance letter.

Frequently Asked Questions

What services does LDS offer for IBM license management?

LDS offers end-to-end IBM software asset management, including license optimization, compliance reviews, audit defense, ILMT health checks, Cloud Pak advisory, and support for all major IBM licensing metrics like PVU, VPC, and UVU.

How much can we typically save on IBM licensing costs?

What makes LDS different from other IBM license management providers?

How does LDS help prepare for an IBM audit or license review?

How does LDS support IBM cloud and hybrid licensing strategies?

We analyze your workloads to determine the most cost-effective licensing model for cloud or hybrid environments (e.g., PVU vs. VPC). We help you leverage Bring Your Own Software License (BYOSL) programs for platforms like AWS and Azure, and advise on bundling opportunities with IBM Cloud Paks to maximize value and minimize cost.

Contact Us

Contact us today to learn how we can support your Software Asset Management goals—with clarity, control, and confidence.

Audit Defense

Cost Optimization

Flexera Implementation

Compliance Management

Can Your Organization Defend Every Core, Contract, and Clause in an IBM Audit?

Start Optimizing Your IBM Portfolio Today

Reduce Costs

Ensure Compliance

Maximize ROI

The Compliance Challenge Every IBM Customer Faces

Where Organizations Lose Control — Fast

⚠️ILMT misconfiguration

⚠️Inactive or orphaned users

⚠️Cloud migration gaps

⚠️Limited cross-team coordination

How LDS turn Audit Anxiety into Advantage?

Turn Audit Anxiety into Strategic Advantage

Our Expertise

• Our approach covers every stage of IBM licence management, including:

Your Trusted Partner

Comprehensive IBM Compliance & Optimization

Baseline Compliance Assessment

Entitlement & Deployment Mapping

Audit Preparation & Defence

Ongoing Monitoring & Reporting

Contractual Guidance

Our Numbers Speak for Themselves

Key Benefits of Choosing LDS for IBM Licensing Services

Full License & Entitlement Clarity

Accurate Usage vs. Entitlement Mapping

Proactive Internal Compliance Audits

Complete IBM Audit Readiness

Ongoing Software Record Management

Comprehensive IBM Software Review

IBM Server Deployment Baseline

User-Based Product Assessment

Mainframe Software Baseline

ILMT Health Check

IBM Audit Defense Readiness

License Cost Impact Simulation

Third-Party Support Evaluation

Actionable Insights & A Clear Path Forward

IBM Effective Licensing Position (ELP)

Licensing Optimization Recommendations

Strategic Licensing Roadmap

Comprehensive IBM Licensing Assessment

PVU Licensing

Deliverable

Non-PVU Licensing Models

UVU

LDS Role in Optimization

VPC

LDS Role in Optimization

RVU

LDS Role in Optimization

Install/Server

LDS Role in Optimization

MLC

LDS Role in Optimization

Complete Optimization Approach

Cloud & BYOSL

LDS Two-Phase Approach to IBM Licensing

Phase One – The Review Phase

Phase Two – The Optimization Phase

Phase One – The Review Phase

Entitlements Review

Architectural Review

IBM SAM Capability Review

🎯 Two-Phase Result

Phase Two – The Optimization Phase

Model Optimization

Strategic Audit Defence

ILMT-as-a-Service – Permanent Compliance Assurance

💎 Phase Two Result

Deep ELP & IBM License Optimization

Usage Verification

Entitlement Matching

Inactive & Dormant User Cleanup

License Right-Sizing

Metric Optimization

Redundant Software Identification

Data-Backed Results

Smarter IBM Cloud Pak Licensing & Cost Control

Avg Cost Reduction