201908.29
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Be Wary of Certain ISV and Embedded Software Agreements

It is common for software solution providers to use third-party products to support the functionalities those providers have developed for their solutions. For example, a network-monitoring solution may incorporate IBM Cognos functionality, or an accounting solution may incorporate a Microsoft SQL Server database. Increasingly, in today’s market, those solutions are hosted over the Internet, and…

201905.01
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Can a Software Publisher Force You to Audit Your Customers?

Many software-solution vendors utilize third-party infrastructure or application programs as frameworks for embedded solutions that they sell to their customers and install on their customers’ computers. Licenses for those third-party products typically can be acquired by a vendor and passed to its customers pursuant to the terms of an Independent Software Vendor (ISV) or Original…

201805.16
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Fundamentals of Software Audit Data Collection

In order to effectively manage their software usage and to mitigate software license-compliance exposure, companies need to know how to gather information regarding their product usage. While some software products may have unique data-collection requirements that ordinarily would not be applicable for other products, usage levels for many products can be measured using a common…

201704.11
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Are Artificial-Intelligence Software Audits Around the Corner?

Recent weeks have seen a number of news reports and announcements indicating that the Next Big Thing for audits – financial audits, at least, for the time being – is the use of artificial intelligence technologies to facilitate the analysis of large volumes of data in the context of audit-related activities. KPMG’s recent announcement was particularly noteworthy from my…

201702.20
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IBM’s Audit Rights Take a Turn for the Worse

The software-audit language contained in IBM’s standard license agreements never has been anything that anyone would mistake for customer-focused or even very fair contract terms. However, in August 2014, IBM released a new version of its Passport Advantage Agreement (PAA) that applied immediately to all new business that now is in the process of being…

201701.06
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Beware of IBM’s “Blue Washing”

Fans of Star Trek likely are familiar with the dreaded Borg – an alien race of cyborgs that survives and swells its ranks primarily by conquering other races and then absorbing them into the collective through brainwashing and physically altering them with Borg-y bionic body parts. Their creepy, trademark greeting to new races is always:…

201611.12
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Varicent Customers Should Plan for Audits by IBM

In April 2012, IBM announced that it had reached an agreement to acquire Varicent Software, Inc., an Ontario-based publisher of analytics software for compensation and sales performance management. According to the announcement, Varicent’s customers include Starwood Hotels, Covidien, Dex One, Manpower, Hertz, Office Depot and Farmers. While corporate acquisitions of software publishers do not necessarily…

201608.18
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IBM Software Audit Step Number 1: Read the Contract

When first contacted by IBM for a “compliance review” (read: software audit), many business owners simply assume that the scope of the requested audit is within IBM’s rights under applicable licensing agreements. Alternatively, if they do request that IBM identify the basis for the audit demand, they take it at its word that those rights…

201606.05
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Tread Carefully When Deploying IBM Software in Server Clusters

Many businesses are realizing the processing and failover benefits of incorporating clustered servers in their IT environments. Having groups of servers whose processing resources are shared and centrally allocated means that server malfunctions can be remedied without compromising business functions that otherwise might need to be suspended until the appropriate fix can be applied. It…

201605.30
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The Basics of Sub-Capacity PVU Licensing for IBM Software

A processor value unit (PVU) is a unit of measurement that IBM uses to determine licensing costs based on the kinds of processors deployed on servers where IBM software is installed. A server’s PVU count is defined by the brand, model and number of physical processors running in the server and the number of core…