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ILMT and Sub-Capacity
Journal · May 2026 · 7 minute read

Full-capacity vs sub-capacity: the real cost delta.

The phrase "defaulted to full-capacity charging" sounds procedural. The number behind it is not. The gap between licensing the cores your software uses and licensing every core on the host can be eight to one or worse, and a worked PVU example makes the stakes impossible to ignore. Independent, not affiliated with IBM Corporation.

Every sub-capacity rule, every ILMT requirement, and every quarterly report exists to keep you on the right side of one number. Sub-capacity lets you license only the virtual cores allocated to an IBM product. Full-capacity charges as though the product runs on every physical core in the host. The discipline of sub-capacity compliance feels like overhead until you see the cost delta it protects, at which point it becomes obvious why audits target exactly this.

The worked example.

Take a single WebSphere instance using 4 virtual cores on a 32 core physical host, on processors valued at roughly 70 PVU per core.

That is an eight to one difference on one workload, on one host. The same software, the same deployment, priced eight times higher because the evidence to claim sub-capacity was missing. Multiply that across an estate, and the audit math that produces multi-million claims stops being mysterious.

What flips you to full-capacity.

You do not have to over-deploy to get a full-capacity bill. You only have to lose the evidence. IBM defaults the affected period to full-capacity charging when any of the sub-capacity conditions fail:

Each of these is an evidence failure, not a deployment failure, which is what makes the full-capacity exposure so common and so avoidable.

The lookback multiplier.

The cost delta does not apply to one moment. An audit lookback can run two to five years, and where the sub-capacity evidence is missing for that window, the full-capacity rate applies across every period in it. The eight to one delta on a single workload becomes eight to one across years of back-charges. This is why a quiet gap in one quarter of ILMT reporting, left undiscovered, can carry a finding far larger than the workload itself would ever justify.

Defending the delta.

The good news inside the bad math is that the full-capacity default is contestable. Where a workload was genuinely sub-capacity and the deployment can be reconstructed from clean evidence, the sub-capacity position can be reinstated rather than conceded. A buyer side defense recalculates the PVU correctly, restores the agent and report coverage that proves the virtual core count, and challenges every period IBM tried to price at full-capacity. The delta that works against you when the evidence is missing works for you once it is rebuilt.

What this means under audit

Full-capacity charging is not a small adjustment. On a 4 of 32 core workload it is an eight to one increase, applied across a two to five year lookback, triggered by missing evidence rather than over-deployment. The entire point of ILMT discipline is to protect that delta, and the entire point of a sub-capacity defense is to reclaim it when the default has already been applied.

Common questions.

How big is the gap between sub-capacity and full-capacity?
It depends on how much of the host the software uses. A workload on 4 of 32 cores is an eight to one difference, 480 PVU against 3,840 PVU. The smaller the share of the host the software occupies, the larger the gap full-capacity charging creates.
Can I get full-capacity charged even if I am not over-deployed?
Yes. Full-capacity is the default when the sub-capacity evidence fails, not when you over-deploy. Missing ILMT, broken agents, absent quarterly reports, or ineligible technology can each trigger it on a perfectly sized workload.
Is a full-capacity finding reversible?
Often, where the deployment was genuinely sub-capacity. Recalculating the PVU correctly and rebuilding the evidence of virtual core usage can support reinstating the sub-capacity position rather than paying the full-capacity number.
Facing a full-capacity finding?
We rebuild the sub-capacity evidence, recalculate the PVU, and challenge every period priced at full-capacity.
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