IBM Authorized SAM Provider programme
IBM have introduced several initiatives over the past decade or so to support their audit activities. The latest major initiative, the IBM Authorized SAM Provider programme or IASP, was introduced in 2019 and further developed in 2021.
As an IBM license consultant with extensive experience in IBM license optimisation and management, I have produced the following summary of the programme which looks at the IASP from a customer’s viewpoint, not the benefit it brings to either IBM or the IASP providers.
You may want to read my predictions for IBM in 2023 where I explain how I believe IBM will push the IASP further this year.
What is the IASP?
Customers focus their efforts on understanding how to use the software they have bought.
They, understandably, do not realise how involved the licensing is and how expensive it can be if not managed correctly.
IBM ‘invite’ customers to pay their traditional auditors (KPMG, Deloitte, or Ernst and Young) or Anglepoint to help them with their IBM licensing position.
In exchange for this, and as long as the customer continues to pay for IASP, IBM agrees not to carry out an audit, not to make claims for historical breaches of sub-capacity rules and not to make backdated maintenance claims.
Why have I been invited?
We recommend a certain amount of caution when considering the word ‘invite’ here — invitations to Centre Court at Wimbledon may be nice, but being invited arguably to pay for an audit may not exactly be fresh strawberries and champagne for you.
Firstly, consider whether you are aware of any significant IBM licensing issues you may have. It may also be that you are not aware of any, but you should ask yourself whether IBM’s Sales and Account teams might be, and it might be this which has given rise to this ‘invite.’
Next, consider this ‘invite’ as a ‘buy yourself out of jail card’ as it is likely that declining this invite may well lead to a full audit.
You may prefer to tackle your IBM licensing position head-on, sort out the root cause and avoid perpetuating an issue and a recurring cost.
Companies such as Version 1 are fully independent from IBM and accustomed to developing internal SAM teams to become self-sustaining in IBM licensing.
Will I benefit from a waiver of full capacity charges?
This is a difficult question to answer as the rules around full capacity are complex and the only true way of establishing this is via either bringing in an IBM licensing specialist or the IASP, or an audit.
Certainly, the costs of full-capacity licensing can be enormous. However, these can be remedied internally too with a relatively small cost thus ensuring that you do not have the same issue again further downstream.
We would encourage you to figure out whether you have an issue first before committing to ongoing costs.
What is the cost to me of the IASP?
It has been stated in some of the materials around the IASP that the service will typically take 180 days elapsed and our cautious estimate is that the cost will be between £100k and £125k. This is based on publicly available pay information, a blended day rate across the audit team, the assumption that the audit team is 33% utilised across the 180 days and of course the margin the IASP makes.
We would, however, not be surprised if the costs were significantly higher than this as the size of the estate and the footprint may vary and, correspondingly, the pricing.
Whose side is the IASP provider on?
As with all potential conflicts of interest, we urge a cautious starting point.
It is true that a number of the same organisations who support IBM in audits also provide IASP services.
Equally, these are professional organisations to whom working in sensitive commercial areas is very much common practice.
Unlike the IASPs, we can say that Version 1 prides itself on our independence and can guarantee we are working solely in your interests.
What if I leave the IASP?
Another consideration is whether you intend to have this cost as an annual cost.
Should you choose to leave the IASP, any waiver of the audit rightsand to charge full capacity licensing will be withdrawn.
This may end up being a trigger for an audit putting you back to square one.
For more information
As IBM license experts, we are deeply familiar with a wide range of license considerations and are happy to help with any license queries you may have.
We are offering a complimentary licensing advisory session to understand any license concerns or projects that may impact your compliance position and to advise on the best way forward.
Alternatively, we can look at your ILMT Audit Snapshot and provide a recommendation as to how you might carry out exclusions or classifications and an indication of how much this might save you in financial terms.
To arrange one of these sessions, please go to our website or contact us.
Alternatively, we have produced several other blogs on IBM licensing such as the following:
· 24% price increase for IBM software and how Version 1 can help
· IBM License Metric Tool (ILMT) and the IBM License Service
About the author
Kevin Barnes is an IBM SAM Consultant here at Version 1.
