Gartner Research

Negotiate Your IBM IULA to Add Clear Terms After Effective Pricing Option Analyses to Reap the Benefits and Eliminate Risk

Published: 12 June 2015

ID: G00274684

Analyst(s): Rob Schafer, Christopher Dixon, Jo Ann Rosenberger

Summary

IBM's Unlimited License Agreement has limitations specific to cost and noncompliance. This research provides IT procurement professionals negotiating IULAs an effective cost-benefit analysis methodology and the necessary terms and conditions to mitigate risk.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Checkpoint 1: Request IBM to Propose Pay-as-You-Go and Bundled Multiyear Options, Based on Forecast Usage Scenarios, for Effective IULA Price Comparison and Analysis
    • How to Analyze IULA Proposals
    • Compare IULA Pricing to Alternative IBM Options for Effective Decision Making and Negotiation Leverage
  • Checkpoint 2: Negotiate the Inclusion of IULA Exhibits That Clarify Reporting of Usage Quantities to Serve as Documentation for Perpetual License Rights Granted on the IULA Expiration Date
  • Checkpoint 3: Negotiate the Inclusion of All Governing Agreements, Clear Definitions and S&S Price Protection in IULA Contracts
    • Negotiate the Inclusion of the Governing IPLA, IPAA and LI Documents as Exhibits to Your IULA, and Reference Them as the "Associated Documents"
    • Negotiate Clear Definitions: IULAs Include Four Critical Definitions That Must Be Reviewed and Negotiated to Meet Planned Enterprise Usage Needs
    • Negotiate S&S Price Increase Caps for Protection After the IULA Expiration Date
  • Follow These Three Checkpoints and Action Items to Optimize IULA Pricing Negotiations and Avoid Financial and Noncompliance Usage Risk
  • Appendix

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