Webinar
Conquering IBM audit complexity with confidence
In this session, Bill Sudbrook and John Schwartzenberger from Flexera explain the changing world of IBM software audits. They share proven ways to get ready for audits, use licenses better and reduce risk.
Overview
Thirty-seven percent of organizations have faced an IBM audit in the past three years, and with audit costs continuing to climb, the time to prepare is now. Watch this webinar to gain clarity on IBM’s new reporting rules and learn real-world tactics for reducing IBM licensing costs and audit risk.
Key takeaways for IT asset managers, procurement leaders and compliance officers
Market trends & software audit risk
- IBM audits are increasingly common, with over one-third of surveyed enterprises audited in the past three years by IBM.
- High-risk environments include hybrid cloud deployments, weak IBM License Metric Tool (ILMT) hygiene and poor entitlement documentation.
- Audit costs can soar for organizations lacking visibility and control—45% of organizations surveyed in the 2025 Flexera State of ITAM report paid more than $1 million in audit expenses over three years.
IBM environment audit risk profile
| Estimated annual audit probability based on environment complexity | |
|---|---|
| Simple: few products, physical servers, full-capacity licensing | 5-10% |
| Moderate: ILMT installed, some virtualization, limited middleware | 15-25% |
| Complex: sub-capacity licensing, multiple IBM products, hybrid cloud, weak ILMT hygiene | 30-50% |
| High Risk: M&A, org changes, lapsed support, lack of reporting, no ILMT | >60% |
IBM software audit readiness framework
- Six pillars of readiness: centralize entitlements, inventory all deployments, validate license compliance, proactively fix gaps, control the audit process and maintain ongoing SAM governance.
- Importance of virtual-to-physical mapping for sub-capacity licensing.
- Real-world advice on controlling the audit process—from assigning a single point of contact to legal review and mock audits.
Flexera’s advantage in IBM license management
- Flexera One offers authorized tooling for IBM audits, replacing ILMT with faster, more scalable solutions.
- Features include:
- Contracts and entitlement data to enable automated optimization recommendations
- Cloud license validation
- Bundling intelligence for cost savings
- Data normalization and entitlement mapping for Passport Advantage
- Product usage data for optimization
IBM license optimization opportunities
- Reduce unused installations and align maintenance with actual license usage.
- Rationalize application portfolios (e.g., replacing DB2 Advanced with Postgres where feasible).
- Leverage device role configuration to identify exempt environments and avoid over-licensing.
- Correctly size virtual environments.
Speakers
John Schwartzenberger
Executive Solution Advisor, Flexera
ITAM leader with over 25 years of experience, including senior leadership roles at a Fortune 200 fin-tech firm and a Fortune 8 healthcare company.
Bill Sudbrook
Senior Director, Solutions Advisory, Flexera
Over 25 years of IT leadership at large, global enterprises, driving successful global software optimization, cost savings, and transformation projects.
Next steps
Ready to take control of your IBM software estate?
- Learn software audit defense principles and ground rules.
- Register for Flexera’s Vendor Audit Readiness Workshop to get expert guidance from former audit defense practitioners.
- Discover how you can confidently manage your IBM estate with Flexera One ITAM—the only certified ILMT alternative.
Frequently asked questions
High-risk estates show M&A activity, lapsed support, missed reporting, or weak ILMT hygiene. These environments face a ≥60% annual audit probability, with many organizations paying over $1M in audit expenses within three years.
ILMT tracks IBM software usage for sub-capacity licensing. Common issues include partial deployment, outdated versions, incomplete reporting, and missing cloud or middleware inventory, all of which can lead to costly audit escalations. ILMT also does not track entitlements or report on product usage.
Consolidate entitlement records from both entities and create a unified view of IBM usage. Align or replace discovery tools, reconstruct entitlements internally, and expect integration to take more than 60 days for complex environments.
Remove unused installations, align maintenance with license counts, periodically reoptimize as environments change, rightsize editions, and leverage bundling to maximize installations per license. Attribute licenses correctly and rightsize compute resources.
It uses IBM authorized agents and is recognized as a system of record for IBM reporting, allowing you to satisfy quarterly reporting requirements and certify your effective license position. This avoids standing up and maintaining a heavy ILMT infrastructure while preserving sub-capacity eligibility.
Its bundling engine lets you group products to maximize installations covered per license and identify cheaper edition options (e.g., avoiding unnecessary DB2 Advanced). It also helps evaluate when full capacity on a consolidated host is cheaper than sub-capacity on scattered VMs.
Automated license reconciliation and optimization insights flag unused installs, and ensures licenses are used optimally according to product use rights.
It centralizes entitlement imports from multiple entities and unifies discovery and measurement into a single enterprise view. This shortens the window in which newly merged environments are vulnerable to audit gaps. Research from PWC shows 65% of organizations are audited within 12 months of an M&A event.
By eliminating on-prem ILMT stack overhead, you avoid server, database, upgrade, and patching burdens. Optimization recommendations then right size licensing to match what you actually need.
Consistent, timely, and comprehensive reports reduce disruption, let legal and audit leads control scope, and demonstrate command of your IBM estate. A strong reporting posture can deter future audits once reliable evidence is consistently produced.
Let’s get started
Our team is standing by to discuss your requirements and deliver a demo of our industry-leading platform.