Gartner Research

How to Proactively Manage IBM Acquisitions and Negotiate 'Bluewash' Conversions for Cost Optimization and Risk Mitigation

Published: 08 September 2015

ID: G00278389

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

Summary

"Bluewashing" is when IBM converts the product licensing and pricing of acquired software vendors. IT procurement professionals must proactively track IBM acquisitions, analyze conversion formulas and ratios, and negotiate clear terms to mitigate cost, budget uncertainty and noncompliant usage risk.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Document and Communicate New and Existing FCT Products for Effective IBM Software Portfolio Management
    • Understand IBM's Unique FCT Product Tagging Mechanism
    • Manage FCT Products for Robust IBM Portfolio and Asset Management
  • Request IBM Proposals to Include Metric Mapping Documents That Reveal IBM Conversion Ratios and Formulas
    • Migration Mapping Requisite to Analyze Conversion Proposals
    • Conversion Example to Illustrate Criticality of Mapping and Analysis
  • Negotiate Clear License and S&S Migration Terms via Mutually Agreeable IBM License Conversion Summary Contracts Signed by Both Your Organization and IBM
    • Collaborate With Legal Counsel and SAM for Conversion Contract Review
    • IBM License Conversion Summaries Necessary for Audit Compliance Documentation
  • Follow These Best Practices and Actions to Avoid Noncompliance, Cost and Budget Risk

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