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Audits and compliance

IBM Sub-Capacity Licensing and ILMT: A Plain-Language Guide

IBM sub-capacity licensing explained in plain language: PVUs, full vs sub-capacity, the ILMT requirement, quarterly reports and how to stay eligible.

By the MI Solutions SAM team9 min read2 exhibits

Many IBM products are licensed by processor capacity, measured in Processor Value Units (PVUs). In a virtualized environment you can usually license only the capacity available to the virtual machines running IBM software, which is called sub-capacity licensing, instead of the full capacity of the physical server. The saving can be large. The condition is strict: you must run IBM License Metric Tool (ILMT) correctly and keep its reports.

Full capacity vs sub-capacity

Exhibit 1
Sub-capacity licensing counts only what the VM can usePVUs required for one IBM workload on a 64-core host (illustrative)0 PVU1,000 PVU2,000 PVU3,000 PVU4,000 PVU5,000 PVU4,480 PVUFull capacity: all 64 host cores560 PVUSub-capacity: 8 virtual coresIllustrative, assuming 70 PVUs per core. PVU values depend on the processor type in IBM's PVU table.

In this example, sub-capacity licensing needs one-eighth of the PVUs. Across an estate with dozens of virtual machines on large hosts, the difference can be the largest single number in the IBM relationship. That is why staying eligible matters so much.

What ILMT requires

To remain eligible for sub-capacity licensing, organizations generally need to:

ILMT obligations

Exact obligations are set out in IBM's Passport Advantage terms; check them for your agreement.

Exhibit 2
The quarterly ILMT routineOne quarter, from the start of the period to the archived reportQUARTERREPORT WINDOW0306090120Days from the start of the quarterQuarter startsAgents reportcontinuouslyMid-quarter checkAgents healthy; newhosts coveredQuarter endsPeak usage for theperiod fixedBundling reviewedComponents assignedto productsReport signed andarchivedKept for two years

Where organizations go wrong

01Incomplete coverage

ILMT not installed on every relevant server, or agents not reporting.

02Missing reports

Reports not produced every quarter, or not retained.

03Wrong bundling

Software components counted as separate products instead of parts of the product you own.

04New hosts

Virtualization hosts added without ILMT coverage.

How MI One helps

Frequently asked questions

Is ILMT free?

IBM provides ILMT to eligible customers at no additional license charge, but deploying and maintaining it takes effort.

What happens if ILMT reports are missing?

IBM may assess licensing at full capacity for the affected period, which can be far more expensive.

Who should own ILMT?

Usually the infrastructure team runs it, with the SAM function reviewing bundling and signing off the quarterly reports.


Sources

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