IBM is taking a more structured approach to license management these days. Instead of the occasional audit catching you off guard, there’s now an expectation to keep clearer, more consistent records of your software deployments. While IBM doesn’t automatically request a report every year, they can ask for one. If you’re not ready, responding could be stressful and potentially costly.
Whether you're facing a renewal, preparing for an ELP, or trying to make sense of ILMT, this checklist will help you assess your readiness and take control of your IBM environment before it takes control of you.
Do you have an up-to-date Effective License Position (ELP)?
Why it matters:
IBM expects clients to participate in active license management. This means the client should have an accurate ELP in hand prior to renewal time to ensure quantities are accurate and new license purchases can be made if needed. IBM will also expect clients to have evidence ready for any support reductions.
Commonly misunderstood:
Many organisations think an old ELP is good enough. But licensing, usage, and entitlements change. Even being 12 months out of date can put you at risk.
How Livingstone can help:
We proactively create or update your ELP, ideally before IBM sends the 100-day renewal notice so you're never caught off guard.
Are you confident in your IBM Passport Advantage (PA) verification reporting?
Why it matters:
The PA Verification Report is now expected to be created on an annual basis and ready to provide to IBM at any time when requested. It must be accurate and audit ready.
Commonly misunderstood:
Many companies believe they can manually compile this from spreadsheets and invoices. But IBM expects detailed, structured reporting, often at short notice.
How Livingstone can help:
We produce the PA report by working with you and your data, so you are ready to submit the report if IBM requests it.
Is your ILMT tool deployed correctly and actively maintained?
Why it matters:
IBM requires ILMT to be not only installed but fully configured and consistently managed to validate sub-capacity licensing.
Commonly misunderstood:
Just having ILMT in place isn't enough. If reports aren’t scheduled or configurations are incorrect, you could be contractually liable to license at at full capacity, which is often a six or seven-figure price difference.
How Livingstone can help:
We manage ILMT as a service, ensuring it's correctly deployed, monitored, and the reports are an accurate representation of your deployment.
Have you verified the accuracy of your IASP partner’s assessments?
Why it matters:
Working with an IBM Authorised Service Provider (IASP) can help maintain compliance but it doesn’t mean you're immune to over-licensing or human error.
Commonly misunderstood:
IASP reviews are often taken at face value. But you should always validate their findings—just like you would an external auditor.
How Livingstone can help:
We act as your independent check, reviewing the IASP’s analysis to ensure you’re not overpaying or misclassified.
Do you have a plan if you receive an IBM audit letter?
Why it matters:
IBM audits are commonplace rather than rare and can be triggered from a variety of sources. Even calling for support on an out of support product can raise a red flag.
Commonly misunderstood:
Many teams panic and scramble to comply, inadvertently admitting liability or exposing unnecessary risk.
How Livingstone can help:
We manage the audit for you as a partner, challenging flawed assumptions and protecting your position every step of the way.
Don’t Be Caught Off Guard
The rules have changed, and the margin for error is shrinking. IBM licensing clarity is a business-critical requirement.
Livingstone gives you the visibility, validation, and vendor defence you need to navigate IBM with confidence.
Need our help?
About the author:
Alicia Ijaz
Managing Consultant
Alicia has been at Livingstone for over 3 years and her experience is mainly specific to IBM licensing. She also has knowledge of other vendors including Red Hat and VMware. Before Livingstone, she worked for Deloitte where she became the UK lead for IBM audits.
