Gartner Research

Follow These Three Noncompliance and Audit Risk Mitigation Checkpoints When Negotiating IBM's New IPAA

Published: 16 February 2015

ID: G00271514

Analyst(s): Jo Ann Rosenberger, Rob Schafer

Summary

IT procurement professionals must compare and contrast IBM's new 2014 International Passport Advantage Agreement with the previous 2011 version. New license and services terms, cancellation reporting requirements and other changes must be clarified and negotiated to mitigate audit risks.

Table Of Contents
  • Key Challenges

Introduction

  • "Simplified" Contract Terms Can Be Complicated If Ignored or Misunderstood
  • Three Checkpoints to Help Protect Your IBM Investments

Analysis

  • Checkpoint 1: Require That Final Negotiated Agreements and Associated Documents Are Signed by Both Parties — the Organization and IBM
  • Checkpoint 2: Compare the Previous IPAA to the New 2014 Version to Identify and Clarify the Changes and Ambiguities Requiring Documentation From IBM
    • Some Terms Are Now Governed by the IPAA Rather Than by Attachments
    • The Separate 2011 IPAA Definitions Section Is Eliminated From the 2014 Version
    • Locate Your Passport Advantage Enrollment Form to Identify "Originating Site"
    • Understand the Importance of the IBM Program License Agreement Definitions and License Terms
  • Checkpoint 3: Identify How Specific IPAA Sections and Options Identified in This Research May Damage License Usage and Contract Compliance
    • IBM Can Add, Change and Withdraw Products, S&S, SaaS and Appliance Services, and Metrics, and Change Point Values at Any Time
    • IBM Can Renew S&S at "Then Current Charges"
    • Virtualization/Subcapacity Licensing Terms and Reporting Requirements Remain for PVU-Based Products
    • Understand the Importance of the LI Document and How to Access and Manage
    • Understand IBM Passport Advantage Software Contract Governance Hierarchy
    • Clarify the New Reporting Format Requirements for S&S Cancellations
  • Follow These Three Checkpoints and Action Items for IBM's 2014 IPAA to Avoid Financial Risk

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