In February, IBM announced the launch of their newest version of the Passport Advantage Agreement (IPAA) – version 11. The new agreement is active for all new customers and will take effect for all existing customers as of May 1, 2023.

Key changes in version 11

Change in IPAA Notification:

Instead of sending email notifications about changes to IPAA, IBM will be publicly posting any changes on the IBM Terms page. To ensure you receive direct notification of any such modifications, you must subscribe to the IBM Terms.

Version 11 also brings significant changes to the IPAA agreement – read the full agreement here.

Added Subscription Licenses:

While customers are not able to terminate their agreements before the end of the subscription term, customers now have the flexibility to determine a term length that addresses their business needs.

To read on IBM license methodologies, read this article.

Added Container Licensing:

IBM will require the use of IBM License Services (ILS) to run quarterly reports and will maintain the reports for up to two years. Manual reporting is no longer permitted.

License Verification:

Customers will be required to create, retain, and provide:

1. A report of deployed programs, in a format requested by IBM, using records, system tools output, and other system information.
2. Supporting documentation (collectively, deployment data).

This information must be presented upon IBM’s request within 30 days.

Software Subscription and Support (S&S) Verification:

With the new version, if electing to renew expiring S&S for fewer uses or installations than previously, the customer must provide a system-generated verification document to support fewer uses or installations. If supporting documentation cannot be produced within 30 days, the renewal must be for all previous uses or installations.

Reporting for products no longer eligible for sub-capacity licensing:

To continue licensing products under sub-capacity licensing terms that no longer meet sub-capacity requirements, customers can submit a migration plan to IBM outlining how they intend to meet the requirements.  

Connor, your partner for success  

Given the complexity and dynamic nature of IBM’s licensing models and technology portfolio, it’s very important to understand the licensing metrics to ensure that you avoid noncompliance with IBM software and how changes relate to IBM customers.

Even with IBM’s resources, understanding your licenses can be difficult. Our experts can help you navigate your IBM license requirements to ensure you are adhering to your licenses fully. We can even help you determine if all of your licenses are necessary and potentially help you negotiate license terms with IBM.  

If you would like to learn more about IBM licensing, please check out our piece The Challenges with IBM Software Licensing Audits, and for more information on how Connor’s Software Advisory Services can help reduce your vendor licensing risks and optimize IT spending, contact us at softwareadvisoryservices@connor-consulting.com.  

‍