IBM License Agreements Overview

IBM sells software licenses through Passport Advantage and Passport Advantage Express and other licensing programs. The IBM International Passport Advantage Agreement (IPAA) or International Passport Advantage Express Agreement (IPAEA) regulate the software obtained through these programs.

1. International Program License Agreement​ ​(IPLA):
   T​he IPLA is IBM’s primary license agreement for software distributed around the world. It is obtained via both of the Passport (PA) Advantage Programs: Passport Advantage and Passport Advantage Express. For licences acquired through Passport Advantage, the IPLA terms are incorporated by reference and are usually modified and/or overridden.
2. International Passport Advantage Agreement​ (​ IPAA):
   The IPAA regulates the Passport Advantage contract between IBM and the client.

IBM Enterprise License Agreement (IBM ELA) Allows clients to deploy or make use of certain IBM programs with a maximum deployment number for a specific timeframe. While Enterprise Unlimited License Agreement (IBM EULA) Allows clients to deploy or make use of certain IBM programs for unlimited deployment for a specific timeframe.

IBM’s ​Passport Advantage a​ nd ​Passport Advantage Express p​ rograms are broad in scope and utilize a common set of Agreements, processes, and tools. Products offered under the Agreements include software licenses, both One- Time Charge and Fixed Term, Software Subscription and Support, plus IBM Appliances and IBM SaaS offerings. Customers under this agreement would have a price over time called Relationship Suggested Volume Price ​(RSVP) ​level.

1. Passport Advantage is based on the relationship between clients and IBM and is geared toward larger enterprises and enterprises with multiple sites.
2. Passport Advantage Express is ​based on transactions and devised for smaller and enterprises with a single site.

The agreement enables you to obtain a set of programs under the Eligible Products (​EPs​) included in the agreement. Once you acquire the programs, the Proof of Entitlement (​PoE​), you will also receive the level of use and price for the product and type of support.

Proof of Entitlement (PoE)

A Proof of Entitlement confirms a user’s eligible software and level of use. All eligible software must adhere to the terms of the IBM International Passport Advantage Agreement.

Lifecycle policy information

IBM’s software support lifecycle policy defines the period support for IBM software policy. It begins when the software is available for purchase and ends when IBM no longer supports it. Use this site to monitor how long IBM will support your version of the software. This will enable you to prepare an effective investment plan that will prevent gaps in support.

License Information (LI) Documents

LI documents outline the exclusive terms, conditions, and technical requirements of specific programs.

Full Capacity & Sub Capacity Licensing

1. Clients can deploy the Program at Full Capacity licensing or Virtualization Capacity (Sub-Capacity) according to the Passport Advantage Licensing Terms. For Full Capacity Licensing, clients must acquire PVU entitlements to ensure all activated processors cores in the physical hardware environment presented to or managed by the Program are covered. This does not apply to the servers that no longer have the Program. While Clients who are eligible for Virtualization Capacity (Sub-Capacity) licensing are also required to obtain entitlements to guarantee all activated processors cores in the physical hardware environment presented to or managed by the Program are covered, as is stated in the ​Virtualization Capacity License Counting Rules​. as Sub-capacity licensing enables clie​nts to license eligible software products lower than the full capacity of a server or group of servers.
2. The Processor Value Unit (PVU) is a unit of measure used to license the Program. How many required PVU entitlements there are is determined by the processor technology defined within the PVU Table by Processor Vendor, Brand, Type and Model Number and by the number of processors made available to the Program. To license the Program using the PVU, IBM defines a processor as each processor core chip. This means that a dual-core processor, for instance, has two processor cores.

License Grant

1. License Grant
   IBM provides the Licensee a nonexclusive license to use the software under the IPLA and Passport Advantage. In order to receive it, the Licensee must lawfully obtain it up to the level of authorized use specified in the Proof of Entitlement (PoE). Depending on the kind of license the Licensee acquires, the Licensee is permitted to use the software for a fixed term or indefinitely.
2. Indefinite use of software – “License + SW Subscription and Support 12 Months”
   IBM provides the Licensee a nonexclusive license to use the software under the IPLA and Passport Advantage. In order to receive it, the Licensee must lawfully obtain it up to the level of authorized use specified in the Proof of Entitlement (PoE). Depending on the kind of license the Licensee acquires, the Licensee is permitted to use the software for a fixed term or indefinitely.
   1. The “License + Software Subscription and Support 12 Months” license grants the right to:
      • Use the specific version/release of the software indefinitely.
      • Receive Software Subscription and Support/Maintenance for a period of 12 months.
   2. The Software Subscription and Support entitles the Licensee to use the most current commercially available version, release, update, and receive support during the duration of the subscription.
   3. The Licensee has the option of renewing the Software Subscription and Support at the end of each period of coverage for an additional 12 months (at the prevailing price). This is called the “Annual Software Subscription and Support Renewal 12 Months”. The subscription is automatically renewed in some countries unless the Licensee chooses not to renew it. If that is the case, the Licensee must inform IBM or the Licensee’s IBM Business Partner of the decision, and will lose the benefits of Software Subscription and Support. However, the Licensee is allowed to continue using the software according to the license agreement.
3. Fixed Term license of software – “Initial Fixed Term License + SW Subscription and Support”
   1. The “Initial Fixed Term License + Software Subscription and Support” term license grants the right to:
      • Use the software on premise for a limited period only (most commonly of 12 months).
      • Receive Software Subscription and Support/Maintenance for the period of the term.
   2. The Software Subscription and Support entitles the Licensee to use the most current commercially available version, release, update, and receive support during the duration of the subscription.
   3. The Licensee has the option of renewing the Software Subscription and Support at the end of each period of coverage for an additional 12 months (at the prevailing price). Each time the Licensee renews the Fixed Term License, this is called the “Subsequent Fixed Term License + Software Subscription and Support 12 Months”. If the Licensee does not renew, the Licensee loses the right to use the software and is no longer entitled to the benefits of Software Subscription and Support. The Licensee must also destroy all copies of the software.

License Metric

1. User Based Licensing
   • Authorized user: An Authorized User is a unique person granted access to the Program.
   • Concurrent user: A Concurrent User is a person who is currently accessessing the Program at any points of time. The person is considered a single Concurrent User regardless as to whether the person accesses it multiple times.
   • Floating user: A Floating User is a person who is currently accessessing the Program.
   • User Value Unit (UVU): The UVU refers to the number and type of Users for the given Program. The Licensee must acquire enough entitlements for the UVUs required for the Licensee’s environment according to the specific software terms.
2. Capacity based licensing
   • Install: An Install is a copy of the Program on a physical or virtual disk that will be installed on a computer.
   • Processor Value Unit (PVU): The number of PVU entitlements required is determined by the processor technology (defined within the ​PVU Table​ by Processor Vendor, Brand, Type and Model Number) and the number of processors made available to the Program. To license the Program using the PVU, IBM defines a processor as each processor core chip. This means that a dual-core processor, for instance, has two processor cores.
   • Server: A Server is a physical computer consisting of processing units, memory, and input/output capabilities and that executes requested procedures, commands, or applications for one or more users or client devices.
3. Other licensing
   • Client Device: A Client Device is a single-user computing device, special purpose sensor, or telemetry device that requests or receives the execution of a set of commands, procedures, or applications from or provides data to another computer system, which is typically referred to as a server or is otherwise managed by the server.
   • Resource Value Unit (RVU): The RVU Proofs of Entitlement are determined by the number of units of a specified resource that the Program manages or uses.

Disclaimer: The information is provided for general informational and educational purposes only and is not a substitute for professional advice. The use or reliance of any information contained on this site is solely at your own risk. ​All information has been provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information, as the information provided does not contain software licensing advice.