Are you using any IBM software in your organization?

IBM released the latest Version (11) of its International Passport Advantage Agreement (IPAA)/ International Passport Advantage Express Agreement (IPAEA) last week. The new agreement is effective immediately for all new customers and will be extended to current customers on May 1, 2023.

Passport Advantage (PA) and Passport Advantage Express (PAE) are comprehensive IBM programs by which customers may order Eligible Products (EPs).

What has changed?

IBM has made several revisions to its IPAA for subscription licenses, container licenses, sub-capacity licensing along with addition of new license verification and compliance requirements for their customers.

Subscription licenses cannot be terminated prior to the expiration of the subscription term; however, customers now have the flexibility to determine the length of the term.

Manual reporting of Container licenses is no longer permitted. Customers must use IBM License Service (ILS) to run quarterly reports and also maintain these reports for a duration of two years.

Additionally, IBM customers must also submit a migration plan to IBM for Sub-Capacity licensing requirements on products no longer eligible for sub-capacity licensing.

While these changes may have only a minimal impact on IBM's discerning clientele, the most significant development has been in the license verification clause, which now states: -

a. Client will, for all Programs at all Sites and for all environments, create, retain, and each year provide to IBM upon request with 30 days' advance notice: i) a report of deployed Programs, in a format requested by IBM, using records, system tools output, and other system information; and ii) supporting documentation (collectively, Deployment Data).

b. Upon reasonable notice, IBM and its independent auditors may verify Client's compliance with the Agreement at all Sites and for all environments, in which Client uses (for any purpose) Programs. Verification will be conducted in a manner that minimizes disruption to Client's business, and may be conducted on Client's premises, during normal business hours. IBM will have written confidentiality agreement with the independent auditor. In addition to providing Deployment Data described above, Client agrees to provide to IBM and its auditors additional accurate information and Deployment Data upon request.

How are you impacted by the revisions to the IPAA?

Changes to IPAA program will have far-reaching repercussions for Enterprises worldwide that are engaged in this program. As a result, it is critical that IBM's customers comply with the new criteria. The three most critical repercussions for organizations include:

• Annual deployment reports

• Supporting evidence

• No separate NDA

Suggested Next Steps

• Ensure that you have the right team and adequate tools for managing and monitoring IBM software deployments.
• With immediate effect, it is imperative that you commence the task of identifying all IBM software deployments across your enterprise, including but not limited to, disaster recovery sites, development environments, and test environments.
• Establish a robust Software Asset Management process, one that is capable of tracking the removals and modifications of IBM software deployments. This will ensure that you are in compliance with the regulations set forth by IBM and can avoid any potential consequences that may result from non-compliance.