How to Reconcile IBM License Entitlements with Deployment Data

04/17/2025|

Reconciling IBM license entitlements with actual deployment data is one of the most critical (and often misunderstood) aspects of Software Asset Management (SAM). With IBM’s complex licensing structures—ranging from PVUs and RVUs to Authorized User metrics—it’s easy to lose track of what you’re entitled to use vs. what’s actually installed and running in your environment.

In this blog, we’ll walk through a step-by-step process for reconciling IBM license entitlements with deployment data using ILMT, BigFix Inventory, or other discovery tools—so you can stay compliant, optimized, and audit-ready.

What Does “Reconciliation” Mean?

Reconciliation is the process of matching:

  • License entitlements (what you’ve purchased and are contractually allowed to use)
  • Deployment data (what is actually installed, configured, and running in your environment)

The outcome? A clear Effective License Position (ELP) that tells you:

  • Are we over-licensed?
  • Are we under-licensed (and at risk)?
  • Are we using licenses efficiently?

Step 1: Gather Proof of Entitlements (PoEs)

Start by collecting all documentation that proves what you’re licensed for:

  • Purchase orders and invoices
  • IBM Passport Advantage reports
  • License certificates
  • Renewals and S&S agreements

Break these down by:

  • Product name and version
  • Part number
  • Metric type (e.g., PVU, RVU, AU, VPC)
  • Quantity
  • Support status

Maintain a centralized entitlement repository—many organizations lose track of entitlements over time, which causes major problems during audits.

Step 2: Understand the License Metric for Each Product

Each IBM product uses a specific license metric. Examples:

  • PVU (Processor Value Unit): Based on CPU type and core count
  • RVU (Resource Value Unit): Tied to specific hardware or system capacity
  • Authorized User: Based on the number of named users
  • Virtual Processor Core (VPC): Common in containerized environments

Identify the exact metric per product from IBM’s License Information (LI) documents or your license agreements.

Step 3: Extract Accurate Deployment Data

Use a discovery tool like:

  • ILMT (IBM License Metric Tool)
  • BigFix Inventory
  • Flexera (if properly configured for IBM)

Make sure you’re capturing:

  • Installed software
  • Version and edition details
  • Virtualized environments (VMs, clusters)
  • Processor configurations for PVU/VPC products
  • Classification data (assigned vs. unassigned software)

Keep ILMT/BFI updated with the latest software catalog and PVU table to ensure accuracy.

Step 4: Map Entitlements to Deployments

Now that you have your entitlement and deployment data, map them:

Entitlement Deployment Result
900 PVUs for WebSphere ND ILMT reports 800 PVUs used ✅ Compliant
500 Authorized Users for Cognos 600 users detected ❌ Over-licensed
700 VPCs for Cloud Pak for Data 300 VPCs deployed ✅ Underutilized

Pay special attention to:

  • Version mismatches (e.g., using v11 when licensed only for v10)
  • Unlicensed deployments (products installed but not purchased)
  • Bundled or bundled-rights components (e.g., Java with WebSphere)

Step 5: Address Gaps & Anomalies

Once mapped, analyze the gaps:

  • Overconsumption → Potential audit exposure
  • Underutilization → Optimization opportunity
  • Misclassifications → Correct in ILMT or BFI classification panels
  • Missing entitlements → Investigate with procurement or IBM Passport Advantage

Step 6: Document & Store Your ELP

Create a comprehensive ELP (Effective License Position) that includes:

  • Product name and version
  • License metric
  • Quantity owned vs. used
  • Notes on assumptions or corrections

Keep this ELP version-controlled and updated quarterly, especially if you’re using sub-capacity licensing (which requires quarterly ILMT reports for IBM compliance).

Repeat the Process Quarterly

IBM recommends (and audits expect) quarterly reviews. Reconcile entitlements with deployments every 90 days to stay ahead of risk.

Common Mistakes to Avoid

  • Only reconciling during audits
  • Assuming ILMT = compliance without reviewing classifications
  • Forgetting to track license changes during product upgrades
  • Letting S&S agreements lapse unknowingly
  • Not accounting for backup, DR, or test environments

Final Thoughts

Reconciliation isn’t just a checkbox—it’s a strategic activity that helps you control costs, avoid audit penalties, and maximize license value. By combining accurate entitlement records with up-to-date deployment data, you can confidently manage IBM software across your enterprise.

Need help building your IBM Effective License Position (ELP)?
Softcense’s SAM team specializes in IBM licensing—whether you’re prepping for an audit, optimizing costs, or deploying ILMT for the first time.