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Journal · Settlement and Negotiation

The 30 to 50 percent rule: how much reduction is realistic.

Buyers want a number before the challenge begins. The honest answer is a range: a disciplined challenge tends to land 30 to 50 percent of audit findings on average, and across our engagements the reduction has run from 30 to 92 percent depending on what the evidence supports. Independent and buyer side. Not affiliated with IBM.

Where the number comes from.

An initial IBM finding is a draft, not a verdict. It is built from raw deployment data, default assumptions, and the full-capacity position wherever sub-capacity evidence is missing or unclear. A large share of that draft is contestable, which is why a structured challenge typically removes 30 to 50 percent of the findings. The figure is an average, not a promise, because the result is bounded by what your records can actually prove.

What moves the number up.

What holds the number down.

Reduction is not unlimited. Where there is genuine over deployment with no entitlement to offset it, and no sub-capacity evidence to narrow the count, that portion of the finding is real and will remain. The 92 percent end of the range reflects cases where the original claim was largely a methodology and evidence problem rather than a true shortfall. Setting expectations honestly is part of the work, because an inflated promise weakens the negotiation it is meant to support.

What this means under audit.

Treat the first finding as the opening position and the 30 to 50 percent figure as a realistic planning anchor, not a ceiling or a floor. The actual outcome is decided line by line, on the strength of your evidence. Our audit negotiation work challenges each finding against that evidence and folds forward terms into the settlement, so the number that lands is the one your records support, not the one the auditor drafted.

Keep reading.

Challenge the findings, not just the total.

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The IBM Audit Brief

Audit triggers, ILMT pitfalls, and settlement tactics for IBM software buyers.

IBM Audit

Independent, buyer side IBM software audit defense and negotiation. Not affiliated with IBM Corporation.

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Independent. Not affiliated with IBM Corporation.Buyer Side · Est. 2019