Cost savings of 42% on IBM Licensing

Optimizing IBM Licensing and significant cost savings at a healthcare organization

Noventiq's IBM experts delivered significant cost savings of 42% annually through strategic license optimization, while simultaneously preventing compliance penalty of €1.6 million by ensuring adherence to IBM's Sub-Capacity conditions.

Customer

A national healthcare organization was incurring substantial annual Subscription & Support (S&S) fees for their IBM software products. They needed expert guidance to determine if savings were possible despite their limited IBM software landscape and to ensure compliance with IBM's licensing conditions.

Challenge

Identifying optimization opportunities within a limited IBM software landscape while ensuring license compliance.

Initial skepticism about finding meaningful savings given the limited IBM software portfolio
Lack of clarity around IBM's complex licensing conditions
Potential financial exposure due to non-compliance
Excessive annual spending on Subscription & Support fees
Need for improved IT asset management processes for IBM products

Solution

Implementation of comprehensive IBM software optimization strategy focused on contract analysis and usage-based license right-sizing.

Conducted detailed analysis of IBM contracts and annual Subscription & Support fees
Shifted organizational focus to proper IBM software housekeeping
Introduced proven methodology (including audit agreement approach) applicable for other software publishers
Identified underutilized software products
Clarified Sub-Capacity conditions for InfoSphere software, determining ILMT was not required

Results

Noventiq achieved a 42% reduction in annual costs while establishing robust IBM license management practices and ensuring full compliance.

Clean Auditor Report with no findings
Annual savings of €85,000 (42%) on IBM renewal costs, reduced from €204,000 to €119,000
Discontinued S&S for five underutilized software products
Identified two additional products with potential for further cost reduction in future renewals
Prevented financial exposure of €1.6 million regarding PVU Sub-Capacity conditions
Eliminated duplicate licenses across the organization
Established clarity on Sub-Capacity licensing requirements for InfoSphere software
Implemented reusable methodology applicable for optimizing other software publishers

Imagine what we can do for you!

Don’t let complex IBM licensing eat into your IT budget. Let Noventiq’s experts uncover savings and compliance opportunities tailored to your environment.

Contact us to discuss what we can do for you.