Case Study · Manufacturing

71% off a WebSphere audit claim.

A global manufacturer received an IBM audit finding built on inflated PVU values and a denied sub-capacity position across WebSphere and Db2. We rebuilt the compliance position, challenged the methodology line by line, and cut the claim by more than two thirds. Independent, not affiliated with IBM Corporation.

Sector
Manufacturing
Products
WebSphere · Db2
Result
Claim reduced 71%
The situation.

The manufacturer ran WebSphere Application Server and Db2 across a virtualized estate that had grown through three hardware refreshes without anyone revisiting the licensing math. When the audit notice arrived, IBM had already drafted a position that read the estate at full capacity, counting every physical core in each host rather than the cores actually allocated to the IBM software.

Two assumptions drove the number. First, the PVU per core values applied to the newer processors were higher than the correct table entries. Second, IBM treated the sub-capacity claim as void because the ILMT reports had gaps during a server migration window. Together those two assumptions inflated the opening claim into eight figures.

What we did.
01
Contain
Held the full estate export and scoped the data request to the hosts in question, so nothing went back before the position was built.
02
Reconcile
Recalculated PVU against the correct per core table and rebuilt the sub-capacity evidence from the ILMT snapshots that did exist.
03
Challenge
Disputed each finding line by line: wrong PVU values, the migration window gap, and entitlement offsets IBM had left out of the netting.
04
Settle
Closed the number at a fraction of the opening claim and folded forward renewal terms into the settlement letter.
The outcome.

The claim came down by 71%. The largest single recovery came from the PVU correction, where the right per core values cut the processor count materially before any sub-capacity argument was even made. Reinstating sub-capacity for the periods with valid ILMT data removed the rest. The migration window, which IBM had used to void the whole claim, was contained to the weeks it actually covered rather than the years IBM had reached for.

Because the renewal terms were negotiated inside the settlement rather than after it, the manufacturer left the audit with a known forward cost and a corrected ILMT posture, not just a one time reduction.

"They built our compliance position before IBM finished theirs, then challenged the findings line by line. The exposure dropped by over seventy percent."

VP of IT Procurement · Global Manufacturer
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Services
Audit DefenseAudit NegotiationILMT RemediationSub-Capacity Defense
Products
WebSphereDb2CognosCloud Pak
Company
AboutMethodJournalWhite Papers
Independent. Not affiliated with IBM Corporation.Buyer Side · Est. 2019