White paper v · IBM

ILMT, sub-capacity and the IBM audit cycle.

ILMT health, sub-capacity entitlement preservation, PVU and RVU computation under virtualisation, Passport Advantage anchoring and the buyer-side defence inside the IBM audit cycle. Mainframe MLPS and Red Hat subscription handled separately. Written from the buyer’s side. None of it carries reseller margin or referral fee.

FormatWhite paper, gated
Pages30
AudienceCIO, CFO, Procurement, SAM
PublishedMarch 2025
UpdatedSeptember 2025

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Contents

Inside the 30 pages.

i.
The sub-capacity construct
What sub-capacity entitlement means under the Passport Advantage agreement, what is required to maintain it, and the consequences of full-capacity reversion at audit.
ii.
ILMT health
Installation, version currency, scan completeness, agent coverage, the report cadence and the documented ILMT health protocol the buyer maintains.
iii.
PVU computation
Processor Value Unit accounting under virtualisation, partition treatment, the high-water mark logic and the defensible PVU position the buyer holds.
iv.
RVU and instance-based metrics
Resource Value Unit accounting, instance-based metrics, the metric-mapping question at upgrade and the buyer-side position on metric migration.
v.
The audit notification
Notification response, scope contestation, the engagement letter, the audit firm question and the protections written into the response.
vi.
Evidence and counter-evidence
Deployment evidence, ILMT report bundle, manual reconciliation, the buyer’s deployment view and the publisher’s deployment view contrasted.
vii.
Passport Advantage anchoring
Anchor-date treatment, anniversary economics, S&S step-up, the renewal posture and the buyer-side contest on PA price inflation.
viii.
Settlement boundary
What the settlement covers, what it does not, the released-claims construct, the audit-window protection and the closing letter.
ix.
Red Hat subscription overlap
Where the Red Hat subscription model intersects the IBM audit, how the two are kept separate and the buyer-side defence at the boundary.
x.
Reading list and references
Companion papers on mainframe MLPS, Red Hat subscription strategy and the Passport Advantage anchoring methodology.
Excerpt · Section II

ILMT health is the audit defence.

The sub-capacity entitlement is the most consequential commercial protection inside the Passport Advantage agreement. Sub-capacity allows the buyer to license PVU-metered products at the virtual processor count rather than the physical processor count. On a modern x86 estate, the difference between the two is, on most engagements, a multiple. The sub-capacity entitlement is conditional. The condition is ILMT. ILMT installed, ILMT scanning, ILMT reports running on the documented quarterly cadence, ILMT retained for two years, ILMT covering the in-scope estate.

Where ILMT fails the conditions, sub-capacity reverts to full-capacity for the products and the periods in which the conditions fail. The cost of full-capacity reversion, on a virtualised estate that has been licensing at sub-capacity, is the deployment exposure the publisher will raise at audit. The buyer-side defence is not built at audit. The buyer-side defence is built in the ILMT operating model that has been running before the audit, and the documented evidence trail that establishes ILMT health across the audit window.

Sub-capacity is conditional. The condition is ILMT. ILMT is the audit defence.

This paper covers the methodology Admodum applies inside the IBM audit cycle: the ILMT health protocol, the PVU computation defence, the RVU and instance-based metric treatment, the Passport Advantage anchoring methodology and the settlement-boundary protection. The methodology is the one that has been applied across twenty-six IBM audits in the firm’s engagement history.

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Admodum is not a partner, reseller, or affiliate of IBM, or of any other software vendor. No reseller margin, no referral commission, no audit subcontract. The buyer is the only client.
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