Eric Chiu presented a 12-question black-belt challenge related to IBM licensing. The challenge questions covered topics such as identifying key information to begin an internal IBM license audit, measuring licenses under different metrics like Processor Value Units and user-based metrics, and determining license requirements and compliance. Participants were asked to answer the challenge questions by selecting the best response and explaining their reasoning. The challenge aimed to highlight common mistakes in IBM license management and provide a hands-on experience with solving licensing issues.

1. The ITAM Review US Conference 2017
IBM Licensing Black Belt
Challenge
Eric Chiu
Managing Director
Fisher IT Asset Consulting

2. The ITAM Review US Conference 2017
Who am I
The man from the dark side
§ Previously Big-4 license auditor
§ Assisted in the development and roll out of
IBM compliance program in the UKI
§ Led over 200 IBM audits
§ Switched to end-user side and founded FIAC in
2013
§ Defending an average of 12 IBM audits globally
at any one time

3. The ITAM Review US Conference 2017
Who are FIAC
http://fiac.hwfisher.co.uk
§ Team of 31, part of H W Fisher founded in 1933 and LEA
(620 offices across 110 countries)
§ Based in London, UK, covering North America and EMEA
§ Poacher-turned-Gamekeeper
§ FIAC IBM+ Services
• License Compliance & Optimization
• Deloitte/KPMG Audit Defense
• ILMT Readiness & Certification
• LMO Readiness & Certification
• Mainframe Compliance & Optimization

4. The ITAM Review US Conference 2017
What has changed in 2017
21st

5. The ITAM Review US Conference 2017
The 12-question black-belt challenge
§ Condensed down from a 2-day training course
§ Focus on common mistakes / mis-conceptions in practice
§ Highlights the unique challenges of IBM license management
§ Deep-dive and hands-on solution experience
Answers will be revealed after each question. Please fill the answer card
before each answer is revealed, NO CHEATING please!

6. The ITAM Review US Conference 2017
Background
§ You are the new IT Asset Manager who has recently joined the
Best Banking Group (“BBG”) – an international bank.
§ On the second day of your job you have received a Letter of
Notification from IBM demanding a License Compliance Audit.
§ The letter also offers an opportunity for BBG to ‘self-declare’ any
known license shortfalls before the audit starts.
In return, any self-declared licences owed can be acquired at
BBG’s usual discounted rate, and IBM will waive any back
maintenance charges on these licences.

7. The ITAM Review US Conference 2017
The History
§ John is the Head of IT Procurement at BBG, he told you that BBG
was audited by IBM approximately 5 years ago and ended up
spending ‘millions’ in settlement.
§ Unfortunately John no longer has the last audit report. From the
best of his memories however, he recalls the following:
§ IBM waived a significant part of the liability around ‘CPU’ related
licences, on the condition that BBG install some kind of a “core-
tracking tool”;
§ The main issues identified by the audit are related to “WebSphere”,
“Cognos” and “Security Manager”
§ As a result of the last audit, BBG signed up to an Enterprise
Agreement with a 5-year spend commitment

8. The ITAM Review US Conference 2017
The Concern
§ John says that the last ITAM manager left 3 years ago due to
budget cuts, and the IBM license estate had not been tracked
by BBG.
§ He is worried that history may repeat itself in this audit.
§ You both agreed that the best course of action is to conduct an
internal audit of your IBM estate and take up IBM’s offer of self-
declaration if license shortfall is identified.

9. The ITAM Review US Conference 2017
Questions 1 – Where would you Start
Conducting an internal audit for IBM licenses deployed at the BBG is
no small task. Facing a large number of data points, what
information would you obtain first (choose one from the below) to
start the exercise:
A. Data from Scan Light, a discovery tool that generates asset inventory
data for BBG’s end-user computing environments
B. Data from Scan Master, a discovery tool that generates asset inventory
data for BBG’s data centre environments
C. The 5-year Enterprise Agreement
D. Find out more about the ‘core-tracking’ tool and see whether you can
get some reports from it
10 Points

10. The ITAM Review US Conference 2017
Why
§ Most IBM licences are server-based, desktop installation data provide
little indication of IBM software usage;
§ Non-IBM discovery tools generally have very limited capability of
discovering and bundling IBM applications;
§ ILMT (the ‘core-tracking’ tool) only measures license consumption for IBM
applications licensed on Processor Value Unit metrics, and it is restricted
by its agents’ coverage. More importantly, it does not provide
measurements for licenses under other metrics.
§ The official IBM audit uses a top-down approach by
understanding license ownership and metric structure, and
subsequently establishing a measurement strategy for each
product and license type.

11. The ITAM Review US Conference 2017
Questions 2 – The IBM ESSO
John provided you with a copy of the Enterprise Agreement called
IBM Enterprise Software and Services Offering (ESSO). What
information within this document will be relevant to your internal
audit?
A. Finance and payment schedule
B. Associated Passport Advantage Site numbers
C. Unlimited Usage Terms
D. Cross-brand Allotment
E. Substitution Clauses
F. All of the above
5 Points
each

12. The ITAM Review US Conference 2017
Why
§ Financial and payment schedule does not include unit cost and has no
direct relationship to the internal audit.
§ Passport Advantage site numbers allows end-user to download detail
license records from PA advantage to establish entitlement levels.
§ Unlimited Usage Terms may be applicable for certain products sold under
ESSO.
§ Substitution Clause specify how end-user may swap spare licenses for
licenses in demand (unit cost is included here).
§ CBA specify how end-user may swap spare ‘value credits’ for license in
demand (unit cost is included here).

13. The ITAM Review US Conference 2017
Questions 3 – Counting licences
After sharing the ESSO to you, John was interested to see what you
think BBG’s current license entitlement levels, and has asked you to
give him some high level ideas. You have 2 hours to prepared this,
which ONE of the following information will you rely on to provide
John with such license overview:
A. ESSO license entitlement schedules;
B. Amendment schedules to the ESSO;
C. Active Use / License call-off reports;
D. Passport Advantage Summary Entitlement Reports;
E. Passport Advantage Transaction History Reports;
10 Points

14. The ITAM Review US Conference 2017
Why
§ ESSO license entitlement schedules reflect BBG’s license entitlement level
5 years ago when ESSO was first signed;
§ Amendment schedules to the ESSO reflect additional purchases of
licenses since ESSO was signed, but may not reflect S&S status and
license swaps.
§ Active Use / License call-off reports only show the license swaps;
§ Passport Advantage Summary Entitlement Report provides a moment in
time high level summary of your entitlement level for each IBM product;
§ Passport Advantage Transaction History Report provides detailed records
for each license, renewal, re-instatement and trade-up transaction. Not
something that can be reviewed in 2 hours!

15. The ITAM Review US Conference 2017
Questions 4 – Measuring PVU
More than half of BBG’s licenses are under Processor Value Unit
(PVU) metric. Steve, BBG’s Head of IT Infrastructure, told you that
NOT ALL PVU licenses deployed are tracked by IBM License Metric
Tool (ILMT).
To assess the license requirement for PVU software, what information
would you ask Steve to provide:
A. ILMT Reports;
B. Scan Master Inventory Report;
C. VMWare Vcenter Report;
D. IBM PVU Table;
E. CMDB records;
F. Active Directory computer records;
G. All of the above 10 Points

16. The ITAM Review US Conference 2017
Why
§ ILMT Reports show PVU measurements for IBM installs covered by ILMT;
§ Scan Master Inventory Report, VMWare Vcenter Report and IBM PVU
Table are required to calculate PVU for IBM installs manually;
§ CMDB records and Active Directory computer records shall be used as
validation sources to verify the coverage of ILMT and Scan Master
inventory (so that there is no missing installs)

17. The ITAM Review US Conference 2017
Questions 5 – Sub-Capacity Eligibility
IBM WebSphere MQ is installed on 5 virtual servers, as shown below.
Which MQ installs are eligible for sub-capacity licensing?
A. Apple
B. Banana
C. Orange
D. TLM_VM_0043
E. Kiwi
F. All of above
20 Points
Minus 5 Points Each
Minus 20 Points
# Virtual Server Name Operating System
Covered by
ILMT
ILMT
version
1 Apple Windows Server 2012 No N/A
2 Banana Windows Server 2003 Yes v9.2
3 Orange Windows Server 2008 Yes v7.5
4 TLM_VM_0043 Windows Server 2012 Yes v9.2
5 Kiwi Windows Server 2012 Yes v9.2

18. The ITAM Review US Conference 2017
Why
§ Apple - not covered by ILMT;
§ Banana – Windows 2003 is not an eligible sub-capacity OS
§ Orange – v7.5 is no longer supported by IBM
§ TLM_VM_0043 – indicates hardware (vm-host hierarchy) scan failure
# Virtual Server Name Operating System
Covered by
ILMT
ILMT
version
1 Apple Windows Server 2012 No N/A
2 Banana Windows Server 2003 Yes v9.2
3 Orange Windows Server 2008 Yes v7.5
4 TLM_VM_0043 Windows Server 2012 Yes v9.2
5 Kiwi Windows Server 2012 Yes v9.2

19. The ITAM Review US Conference 2017
Questions 6 – Sub-Cap Calculation
20 Points
# Virtual Server Name
Virtual
Cores
Virtual Host Name
Physical
Cores
Operating System
Covered by
ILMT
ILMT
version
PVU/Core
1 Apple 2 ESXPRDAPP-1 24 Windows Server 2012 No N/A 70
2 Banana 2 ESXPRDAPP-1 24 Windows Server 2003 Yes v9.2 70
3 Orange 2 ESXPRDAPP-1 24 Windows Server 2008 Yes v7.5 70
4 TLM_VM_0043 1 ESXPRDAPP-2 16 Windows Server 2012 Yes v9.2 120
5 Kiwi 4 ESXPRDAPP-3 32 Windows Server 2012 Yes v9.2 120
You have identified the PVU-per-core rating for each server based
on the CPU configuration provided by Steve, as shown in the table
below.
What is the license requirement for IBM MQ?
A. 7,440 PVU
B. 4,620 PVU
C. 4,080 PVU
D. 1,020 PVU
E. None of the above

20. The ITAM Review US Conference 2017
Why
# Virtual Server Name
Virtual
Cores
Virtual Host
Name
Physical Cores Operating System
Covered by
ILMT
ILMT
version
PVU/Core
Sub-
Capacity
Eligible ?
Sub-Cap Full-Cap
1 Apple 2 ESXPRDAPP-1 24 Windows Server 2012 No N/A 70 No - 1,680
2 Banana 2 ESXPRDAPP-1 24 Windows Server 2003 Yes v9.2 70 No - -
3 Orange 2 ESXPRDAPP-1 24 Windows Server 2008 Yes v7.5 70 No - -
4 TLM_VM_0043 1 ESXPRDAPP-2 16 Windows Server 2012 Yes v9.2 120 No - 1,920
5 Kiwi 4 ESXPRDAPP-3 32 Windows Server 2012 Yes v9.2 120 Yes 480 -

21. The ITAM Review US Conference 2017
ILMT reports from the previous 4 quarters show license measurement
of WebSphere Portal as following:
What is BBG’s current license liability with WebSphere Portal Server?
A. 0 PVU, as the product has now been decommissioned;
B. 200 PVU, as this is the last known usage;
C. 800 PVU, as this is the peak PVU rating across 4 quarters;
D. 350 PVU, as this is the average PVU rating across 4 quarters;
Questions 7 – Sub-Cap Considerations
10 Points

22. The ITAM Review US Conference 2017
Why
Sub-Capacity is measured on the peak
CPU usage of IBM software in a virtualised
environment, instead of a moment-in-time
usage.

23. The ITAM Review US Conference 2017
Questions 8 – Measuring other licenses
You noticed from the license entitlement records that just under half
of the IBM licences BBG owns is licensed on various other metrics,
such as:
- Authroised User
- Authroised User Single Install
- Concurrent Sessions
- Floating User Single Install
- Resource Value Unit
- Terabyte
- User Value Units
How would you measure consumption for these licences?
A. Using figures reported in ILMT;
B. Using figures reported in Scan Light and Scan Master;
C. Manually;
D. Ask application owner for a declaration;
10 Points
10 Points

24. The ITAM Review US Conference 2017
Why
§ ILMT or any other discovery tools will not understand nor report on these
license metrics
§ IBM’s contractual statement:
http://public.dhe.ibm.com/software/passportadvantage/PA_Agreements/PA_Agreement_International_English.pdf

25. The ITAM Review US Conference 2017
How – SLA DB: IBM Licensing Bible
http://www-03.ibm.com/software/sla/sladb.nsf/search

26. The ITAM Review US Conference 2017
Questions 9 – Measuring Cognos
You noticed BBG has the following Cognos licences
- IBM Cognos Analytics Administrator
- IBM Cognos Analytics Explorer
- IBM Cognos Analytics User
Your Cognos administrator however, seemed confused and cited
that BBG had Cognos licences under ‘consumer’ and ‘author’
metrics and therefore not sure how the user count works. What
information will you provide to Andy to assist him in providing the
information you requested for?
A. IBM audit letter, to show him that this is important;
B. ILMT report, which shows Cognos Server installations details;
C. Scan Light report, which shows a list of Cognos client installs;
D. License Documents with detailed Cognos usage rights 10 Points

27. The ITAM Review US Conference 2017
Why
§ Cognos has a major migration of license models between version 10 and
version 11. The post-migration license models are ‘simplified’ and contain
less user types than previously, as shown below

28. The ITAM Review US Conference 2017
Why
http://www-03.ibm.com/software/sla/sladb.nsf/lilookup/F2D72CBBB2828F2685258186005BEEEC?OpenDocument

29. The ITAM Review US Conference 2017
Questions 10 – User Value Unit
You noticed BBG holds license for IBM Security Identity Manager and
Role Management, on User Value Unit metrics.
John is the Head of Access Management and has full access to this
product. What information would you require from John to
calculate the license requirement for this product?
A. Number of internal users within BBG
B. Number of external users such as BBG customers
C. Usage statistics showing frequency
D. User to User Value Unit conversation table
E. All of the above 10 Points

30. The ITAM Review US Conference 2017
Why

31. The ITAM Review US Conference 2017
Questions 11 – Counting UVU
Jon has provided you with the below user statistics. By referencing
the UVU table, what is the total UVU requirement for IBM Security
Identity Manager and Role Management?
A. 170,000
B. 84,700
C. 16,000
D. 10,300 20 Points
User Type Quantity
BBG Internal (Normal) 5,000
BBG Internal (Infrequent) 15,000
BBG Customer 150,000

32. The ITAM Review US Conference 2017
Why
User Type Quantity Licensable Quantity
BBG Internal (Normal) 5,000 5,000
BBG Internal (Infrequent) 15,000 1,000
BBG Customer 150,000 10,000
16,000
Number of Users Conversion Basis
# Users in
this Level
UVU
1 - 5000 1 User equals 1 User Value Unit 5,000 5,000
5001 - 15000 1 User equals 0.5 User Value Unit 10,000 5,000
15001 - 50000 1 User equals 0.3 User Value Unit 1,000 300
16,000 10,300

33. The ITAM Review US Conference 2017
Last Question - Reconciliation
After all the hard work, you have put together an Effective License
Positions (“ELP”) report that reconciles license ownership to
deployment. An extract of the ELP is displayed below:
What is the compliance position for these two products?
A. WAS and WAS ND are both in compliance
B. WAS has a license shortfall, WAS ND is in compliance
C. WAS is in compliance, WAS ND has a S&S shortfall
D. WAS has a license shortfall, WAS ND has a S&S shortfall
20 Points
IBM Software Metric
Licence
Quantity
Active S&S Usage
WebSphere Application Server PVU 10,000 0 12,000
WebSphere Application Server Network Deployment PVU 20,000 5,000 10,000

34. The ITAM Review US Conference 2017
Why
IBM Software Metric
Licence
Quantity
Downgrade
/Upgrade
Effective
License
Quantity
Active
S&S
Usage
Licence
Position
S&S
Position
WebSphere Application Server PVU 10,000 2,000 12,000 0 12,000 - -
WebSphere Application Server Network Deployment PVU 20,000 -2,000 18,000 5,000 10,000 13,000 -5,000
§ WAS ND can be downgraded to cover WAS license shortfall
§ WAS is does not have any IBM support, which satisfied IBM’s “all or
nothing” rule;
§ WAS ND has a 5,000 shortage of S&S and require reinstatement
http://public.dhe.ibm.com/software/passportadvantage/PA_Agreements/PA_Agreement_International_English.pdf

35. The ITAM Review US Conference 2017
What’s your score?
<90 90 – 120 130 – 150 160+
Beginner Associate Black Belt!
Leave your corporate e-mail to receive your Challenge Certificate and win $50
Apple & iTunes Gift Voucher
*End-user Participants Only
Better luck next time!

36. The ITAM Review US Conference 2017
Questions?
The ITAM Review UK Conference 2016

37. The ITAM Review US Conference 2017
Thank You