Gartner Research

IBM Customers Who Count Their Processor Value Units Achieve Software Savings and Avoid Noncompliance Audit Fees in the Millions

Published: 23 June 2014

ID: G00262429

Analyst(s): Rob Schafer , Jo Ann Rosenberger, Frank DeSalvo


Software asset managers who know how to manage IBM's PVU software licensing metric can achieve virtualization cost savings and avoid millions in noncompliance risks. Get trained to calculate PVU requirements for savings opportunities and understand subcapacity T&Cs to reduce risk during IBM audits.

Table Of Contents
  • Key Challenges


  • Take Advantage of Cost Savings Opportunities Through Virtualization


  • SAMs That Lack Education/Training on IBM's PVU Model, Metric, Rules and Options Miss Substantial Software Savings and Budget Reduction Opportunities
    • Learn How to Apply the PVU Calculation Rules and Formulas
    • Use These PVU Calculation Examples as Your Guide
    • Always Calculate Virtual Sub-Capacity Cost Savings Opportunities
  • SAMs That Do Not Follow and Tightly Manage the IPAA Section 3.2 Sub-Capacity Terms Subject Their Organizations to Severe Unbudgeted Noncompliance Audit Fines
    • Read, Communicate and Manage Section 3.2 IPAA T&Cs
    • Know That IPAA Section 3.2.3 Requires ILMT Installation and Reporting
  • Change Management Processes That Do Not Include SAM Engagement to Review All Software Installs and Hardware Changes Risk Potential Noncompliance Fees
    • Don't Allow Downloads or Deployment Before SAM PVU Impact Analysis
    • Customize Processes to Manage Both Internal Change and External IBM Website Changes
  • Follow These Three Best Practices to Ensure You Take Advantage of Savings in the Millions and Are Not Subjecting Your Organization to Noncompliance Risk That Diminishes These Substantial Savings

Gartner Recommended Reading

  • Note 1 Physical Full-Capacity PVU Licensing
  • Note 2 Virtual Sub-Capacity PVU Licensing

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