With the IBM Passport Advantage Update to version 10 as of February 1, 2018, changes in the contract have automatically came into effect. In addition to corrections and general reformulations for greater clarity, as well as the re-branding of “Software as a Service (SaaS)” to “Cloud Services”, upcoming changes connected to the EU GDPR/ DSGVO have been included.

However, as part of the Terms and Conditions, IBM has also changed certain terms, some of which may have a significant impact.


Monthly License (ML) and fixed term license (FTL) with fixed run-time

You now have the option to terminate a contract period before its expiration and to receive a pro-rata refund of your prepaid royalties.


Continuous support

Connected to IBM Software-Subscription and –Support, limited support for specific versions and releases of selected software products will now be provided even after the service period has ended.


Sub-Capacity Licensing and ILMT Usage

“Exceptions to this requirement are the following cases: i) if ILMT’s authorized virtualization environment or authorized subcapacity product is not yet supported; ii) if the customer’s business has less than 1,000 employees and contractors, the customer is not a service provider and hasn‘t appointed a service provider to manage the environment hosting eligible products, and if the customer’s corporate server’s total physical capacity as measured from full capacity, but licensed under sub-capacity licensing terms, falls below 1,000 PVUs or iii) if the customer’s servers are at full capacity.”


Insight and audit rights in the sub-capacity environment

IBM reserves the right to declare the affected company or parts thereof inappropriate at any time in case of suspected inadequate licensing in the sub-capacity environment. As a result, the customer must provide IBM with information that fully complies with the licensing requirements. Otherwise, the customer agrees to the additional purchase required to use the full capacity to the corresponding list price.

Especially for customers running their IBM software on virtualized servers, the last two points are particularly important!

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