What is IBM® Passport Advantage?

IBM® Passport Advantage (PA) and Passport Advantage Express (PAE or PAX) remain IBM’s primary programs for acquiring software licenses and Software Subscription & Support (S&S). Think of them as IBM’s version of a loyalty program — customers enroll in an agreement, earn points based on purchases, and qualify for different pricing “bands” over time.

How Passport Advantage works

PA is a relationship-based agreement that can span multiple sites and even operate internationally. It offers volume-based discounts determined by your Relationship Suggested Volume Price (RSVP) level.

• Band levels range from BL, D, E, F, G, H, with I and J for higher tiers.
• Special levels also exist for Academic (ED) and Government customers.
• The higher your band level, the better your pricing across all participating sites.

PAE/PAX, on the other hand, is aimed more at smaller customers who expect fewer transactions. It’s structured as a single-site model and only includes the BL pricing level.

How do you get better pricing from IBM PA?

The RSVP level resets annually, based on the points you’ve accumulated from eligible product (EP) purchases. The more points you earn, the higher your band level — and the better your pricing.

• Your first order sets your initial RSVP level.
• Additional orders may move you up a band level during the term.
• If a single order qualifies for a higher level, you may get that better price for that order (this is called the SVP level).
• At each annual “Anniversary,” your RSVP resets based on the past year’s purchases, but IBM won’t drop you more than one level below the prior year’s level.

In simple terms: the more you buy from IBM, the better the price they’ll offer.

Have the rules changed for IBM PA?

Yes. Back in 2014, IBM updated Passport Advantage terms, and the most impactful change was the “all-or-nothing” rule for S&S. If you want to renew your S&S at a lower quantity than your quote, you must now:

• Provide a verified usage report of your IBM software.
• Potentially submit additional compliance information if IBM requests it.

Because these terms apply at the site level, it’s crucial your PA agreements are set up properly (department, project, country, or address level).

Beware of reinstatement costs: if IBM finds unauthorized use of S&S benefits, you’ll be required to purchase Reinstatement — which can cost up to three times the price of a standard renewal.

The good news? You never lose the right to use software you’ve already licensed, even if your S&S expires.

What should you do if you have a Passport Advantage agreement?

Start by getting organized. Many companies are just one letter away from an IBM audit, and those audits can be aggressive and time-consuming. The best defense is being prepared.

Here are key questions you should be able to answer:

• What IBM PA/PAE/PAX program do I have?
• Who in my company “owns” this program?
• Am I getting the best band level pricing available to me?
• Am I entitled to Government or Academic band-level pricing?
• What license entitlements do I own, and which have active or expired support?
• What versions am I entitled to use?
• Are there expired licenses I could reinstate instead of buying new ones?
• Can I migrate unused licenses to another part of the enterprise?
• Do I have active licenses with S&S that I no longer use?
• Do I have licenses stuck on PAE/PAX that could be consolidated into PA?
• Could I leverage sub-capacity licensing for PVU-based products?
• Do I have PA Online access, and who else has it (including ex-employees or old vendors)?
• Who has downloaded IBM software under my account?
• Are my renewal quotes going to the right person?
• Am I entitled to any free media packs?
• Are there IBM bundles (such as Complete Enterprise Option/CEO) that might be more cost-effective than standalone licenses?
• Do I have the correct number of PVUs, Users, UVUs, Installs, Servers, RVUs, etc.?

Why understanding IBM Passport Advantage is essential

No one enjoys a software audit. They can be complicated, invasive, and expensive, and often leave you none the wiser about licensing rules. Most organizations aren’t in control during an audit — but answering the questions above puts you in a far stronger position.

So don’t wait until the next audit notice arrives. Get proactive. Get organized. And get control of your IBM software entitlements and renewals before IBM gets control of you.

Need clarity on your IBM® S&S entitlements? Origina’s experts help customers navigate Passport Advantage agreements with confidence. Talk to us today.