Who needs ILMT?

December 21, 2016

EKS&H provides the following information as a courtesy based on our best understanding of IBM’s Passport Advantage requirements as of October 2016. We are not providing legal advice regarding the interpretation of any IBM license agreement, and users should consult with their attorneys if they have questions about the legal interpretation of their particular license agreements. EKS&H is not responsible for customers’ IBM license obligations.

Who needs ILMT?

Customers who have licensed IBM software products on a processor value unit (PVU) basis and are running these products in a virtualized environment are required by the terms of their licenses to use IBM’s license metric tool (ILMT) to monitor capacity usage. ILMT applies if you are using the sub-capacity licensing model, only paying for the virtual CPUs allocated to the software, and not on a full-capacity basis (licensing all CPUs on the physical host). ILMT applies to both Production and non-Production environments. 

ILMT Exemptions

There are four exemptions to the ILMT requirement:

1. ILMT does not support the customer’s eligible virtualization technology.

2. The customer’s worldwide enterprise has fewer than 1,000 employees and contractors, excluding Service Providers, and customers who have contracted with a Service Provider to manage their virtualized server environments.
  • ILMT Recommended by IBM
3. The customer’s total physical capacity of their servers with Sub-capacity licensing within their worldwide enterprise is less than 1,000 PVUs.
  • Based on the definition of “servers” below, this would include all servers in a specific VMWare or Hyper-V Cluster (defined below) whether or not an IBM product is running on them. 
  • ILMT Recommended by IBM
4. The customer’s servers, with PVU-based products that are eligible for Sub-capacity licensing, are licensed to the full capacity of the servers.

Summary of ILMT Requirements

There are several requirements provided in the IBM Passport Advantage Agreement (IPAA) for sub-capacity licensing qualification. You must:

1. Install and configure the ILMT within 90 days of your first use of an eligible sub-capacity product in an eligible virtualization environment (or comply with the manual usage tracking requirements if you qualify for such an exception) and

2. Produce, on a quarterly* basis, the required reports; retain such reports for at least two years; and make them available to IBM upon IBM’s request.

Exception Reporting Requirements

For the above exceptions, customers must manually manage, track, and prepare audit reports.
  • An audit report must be prepared at least once per quarter using the Worksheet for Manual Calculation of Virtualization Capacity (link provided below).
  • Audit reports must identify Each Eligible Sub-Capacity Product deployed in each Eligible Virtualization Environment.
  • In addition, the report should provide a summary total of the required number of PVUs by and for each Eligible Sub-Capacity Product.
  • Audit reports must be prepared as frequently as is required to maintain a history of increases to Virtualization Capacity and Full Capacity.
  • Each audit report must be generated at least once per quarter.

Manual Tracking Requirements

  • Customers must manually manage, track, and prepare a Manual Calculation of Virtual Capacity worksheet for each server.
  • The worksheet is available here.

Audit Reports

  • Audit reports implemented in ILMT 7.5 and ILMT 9.0 fulfill the requirements from Passport Advantage sub-capacity license agreements regarding audit reports.
  • Once per quarter – minimum audit report creation frequency
    • The Sub-capacity terms reflect quarterly reporting as the maximum amount of time allowed before having to analyze and reconcile ILMT reports. 
    • Most customers will probably need to perform this effort on a monthly basis. Some customers with very dynamic server environments (e.g., where partitions are resized/moved frequently and/or with changes in their software inventory) may need to create weekly reports in order to keep up with the volume of change. 
    • Only customers with the most stable of virtualized server environments would be able to maintain compliance with IBM licensing terms by doing quarterly reports.
  • Two years – mandatory maintenance period for created audit reports.
  • The audit report is digitally signed and ready to audit after creating an audit snapshot on All IBM Metrics audit report panel. 
  • Audit report creation is always a manual action and cannot be scheduled.

Cluster Definition

  • A group of servers, that are linked together using vCenter Server or Microsoft. 
  • Failover clustering feature to provide resources (i.e., processor core capacity) to the virtual machines (VMs).

Server Definition

  • A machine that provides resources (i.e., processor core capacity) to the VMs.
  • Includes single standalone servers or servers within clusters or resource pools

Links to IBM Resources

Passport Advantage Virtualization Capacity (Sub-capacity) Licensing

Sub-capacity licensing FAQs

Sub-capacity (Virtualization) License Counting Rules

Audit reports IBM License Metric Tool 9.0 Questions & Answers

Manual Calculation of Virtualization Capacity Spreadsheet