Gartner Research

Effectively Negotiate 'Bluewash' Conversions of IBM Acquired Software for Cost Optimization and Risk Mitigation

Published: 30 June 2017

ID: G00331046

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

Summary

"Bluewashing" is IBM's conversion of product licensing and pricing of acquired software vendors. Sourcing and vendor management leaders must proactively track IBM acquisitions, analyze conversion formulas and ratios, and negotiate terms to mitigate cost, budget uncertainty and risk of noncompliance.

Table Of Contents
  • Key Challenges

Introduction

  • How the Bluewash Conversion Process Works

Analysis

  • Document New and Existing FCT Products and Communicate the Bluewash Conversion Status to Key Stakeholders
    • Manage FCT Products for Robust IBM Portfolio and Asset Management
  • Request IBM Proposals That Include Metric-Mapping Documents, Revealing IBM Conversion Ratios and Formulas
    • Migration Mapping Is a Prerequisite to Analyze Conversion Proposals
    • An Example to Illustrate the Criticality of Analyzing a Conversion Formula
  • Negotiate License and S&S Migration Terms via Mutually Agreeable IBM License Conversion Summary Contracts
    • Collaborate With Legal Counsel and SAM for Conversion Contract Review
    • IBM License Conversion Summaries Necessary for Audit Compliance Documentation

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