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IBM stopped accepting exceptions to its approved-tool rule on 1 May 2023. Will your ILMT evidence stand up?

IBM ILMT and Sub-Capacity Compliance

Sub-capacity licensing lets you pay only for the cores your IBM software can use, as long as the IBM License Metric Tool (ILMT) proves it. We check your ILMT evidence against IBM’s rules and fix the gaps before an auditor finds them.

$132,000instead of $56,000 for the same IBM MQ deployment, when ILMT has no VM manager connection (IBM’s own example)

IBM MQ on one 16-core host, IBM’s example
ILMT setupLicense cost
VM manager connected$56,000
VM manager missing$132,000
Full capacity$56,000

IBM’s sample values: 70 PVUs per core (120 when the VM manager is missing) and $50 per PVU.

Where sub-capacity goes wrong

Why ILMT Gaps Become Audit Findings

If IBM’s conditions are not met, the programs affected are licensed at full capacity: every core of every physical host. These are the gaps that get them there:

Machines without a scannerEvery machine with IBM software you want counted needs a scanner, non-production included. Gaps show up when the ILMT computer list is compared with the hypervisor inventory or CMDB.

VM managers not connectedWithout the connection ILMT counts each VM’s cores at 120 PVUs and cannot cap the count at the host. IBM accepts a report calculated that way.

Scans gone staleILMT flags a computer as Missing Scan when its last software scan is more than 40 days old, by default in ILMT 9.2.

Software never classifiedAutomatic mapping has to be reviewed: entitled part numbers imported, bundled and supporting programs assigned, Cloud Pak components mapped, every exclusion explained.

Snapshots missingIBM wants a signed audit snapshot at least every quarter, kept for two years and supplied in full. Many are kept only on the ILMT server.

Installed too lateNew sub-capacity customers must have ILMT running within 90 days of the first eligible deployment.

IBM’s sub-capacity conditions

What IBM Requires Before It Accepts Sub-Capacity

ConditionWhat IBM requires
Approved toolILMT, HCL BigFix Inventory, or IBM’s pre-approved Flexera One products where they support your virtualization. No exceptions since 1 May 2023
WhenWithin 90 days of the first eligible deployment
ReportsAt least quarterly, kept for two years, provided to IBM or its auditors on request
Tool updatesILMT is updated quarterly, and IBM says you must keep it current
CountingThe high-water mark: no averaging and no grace period
ContainersIBM License Service only, with quarterly snapshots kept for two years. Mixed estates need both tools
Public cloudMachines flagged as cloud are counted at 70 PVUs per vCPU; unflagged, at 120
If a condition is missedThe programs affected are licensed at full capacity

General information, not legal advice: your IPAA or IPAEA and the product License Information documents govern your terms. The rules and IBM’s example are explained step by step in our article IBM sub-capacity licensing and ILMT.

Worked example

One Missing Connection, $76,000 More

IBM’s own scenario: a 16-core host runs two VMs of 12 and 10 virtual cores, both with IBM MQ, at $50 per PVU. Together the VMs have 22 virtual cores, more than the host has.

ILMT setupHow it countsPVUsCost
VM manager connectedThe processor’s real rating, capped at the host’s 16 cores: 16 × 701,120$56,000
VM manager missingAll 22 virtual cores at the highest rating for the processor: 22 × 1202,640$132,000
Full capacityEvery core of the physical host: 16 × 701,120$56,000

IBM’s sample values for a two-socket Xeon 3400 server. Your rating depends on your processor model. IBM’s documentation says you license the lower of the sub-capacity and full-capacity values.

How we work

How Rythium Gets Your ILMT Evidence Audit-Ready

  1. CoverageCompare ILMT’s computer list with your hypervisor inventory or CMDB
  2. ConnectionsCheck every VM manager for failed connections and expired credentials
  3. ScansFind missing and stale scans before IBM’s defaults flag them
  4. ClassificationMap software to your entitled part numbers, bundles and Cloud Paks
  5. EvidenceSigned snapshots for each quarter, archived away from the ILMT server

What you receive

Coverage gap listMachines with IBM software and no scanner, by environment.

Tool health reportVM manager status, scan health and ILMT version against IBM’s rules.

License positionPVU consumption at sub-capacity and at full capacity, against what you own.

Evidence checkWhich quarters of the last two years you can prove, and which you cannot.

An operating rhythmWeekly checks, monthly snapshots and quarterly sign-off, with one named owner. IBM lets you delegate the work, not the responsibility.

An audit notice has arrived?

Check the snapshots and the archive against IBM’s rules before any data goes to the auditor, so you know your position before they do. Talk to us first.

Why choose Rythium?

Independent, and on Your Side of the Table

IndependentWe do not resell any publisher’s licenses or earn income from publishers. Our focus is our customers.

Evidence firstWe check the records a publisher would ask for before anyone else sees them, so you know your position first.

Every publisher in the estateIBM, Red Hat, Oracle, Microsoft and VMware licensing often sit on the same servers. We look at what a change in one does to the others.

Who this is for

Frequently Asked Questions

What is ILMT?

The IBM License Metric Tool. It measures the processor capacity your IBM software can use, and IBM accepts its reports, kept to IBM’s rules, as the evidence for sub-capacity licensing.

Is ILMT mandatory?

For sub-capacity licensing, yes, or HCL BigFix Inventory, or IBM’s pre-approved Flexera One products where they support your virtualization. IBM stopped accepting exceptions on 1 May 2023.

What happens if our ILMT reports are incomplete?

The programs affected are licensed at full capacity, on every core of every physical host they run on. In an audit the burden of proof is on you.

How long must we keep ILMT reports?

Two years. IBM wants a signed snapshot at least every quarter, supplied in full on request. Keep the archive somewhere other than the ILMT server.

Why does a missing VM manager connection cost so much?

Without it ILMT cannot see the host. It counts every VM’s virtual cores at the highest rating for the processor and cannot cap the count at the host’s physical cores. In IBM’s example the bill rises from $56,000 to $132,000.

How is IBM software in containers counted?

With IBM License Service, the only tool IBM accepts for containers, with quarterly snapshots kept for two years. An estate with both virtual machines and containers needs ILMT and License Service.

How is IBM software in public cloud counted?

Flag the machines as cloud so ILMT applies 70 PVUs per vCPU. Without the flag it applies 120.

Do you sell IBM or Red Hat licenses?

No. Rythium is independent and does not resell publisher licenses or earn income from publishers.

How do you charge?

We charge a fixed fee for the assessment, a success-based fee or a hybrid, case by case, depending on the scope and the deliverables you need. Contact us for a scoped quote and tell us your preference.

IBM license compliance

Get Your ILMT Evidence Checked

Tell us about your IBM estate and any audit dates. We will show you where your evidence is complete, where it is not, and what that is worth.

Sheshagiri Anegondi
Sheshagiri AnegondiManaging Partner, Rythium. Former Vice-President, Oracle Corporation.
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