Approve Contract Amendments with International Business Machines (IBM) Corporation for Software Licensing (Information and Technology Division)

The District’s Student Information System and the Lawson database reside on two separate IBM mainframe computers. In order to increase capacity and performance, while minimizing the cost, the Information Services staff is in the process of consolidating the two disparate systems into one higher-capacity mainframe. Our current IBM software license prices are based on the full capacity of the mainframe computer on which the software is used, regardless of how much of that capacity is being used. The proposed contract amendments will enable our district to take advantage of sub-capacity pricing for our IBM monthly software license charges. Without these amendments, the District is charged the full capacity price for the IBM software, which is approximately 87% higher.

Attached are the two agreement amendments necessary to enable the District to gain these savings. One amendment adds the sub-capacity capability to the IBM International Program License Agreement, which governs our licensed use of IBM software tools used to administer the Lawson database. The second amends our IBM Customer Agreement, which governs our use of monthly licensed IBM software used to maintain the Student Information System and other enterprise applications. Also attached are two exhibits referenced in the agreements confirming that our IBM System z9 Business Class mainframe is eligible for the sub-capacity pricing under the IBM Entry Workload License Charges (EWLC) terms and conditions. The terms and conditions of these agreements will remain in force, unless amended, for as long as the District continues to use the software.

Supports the District Plan of Work Financial Performance Key Objective.

By utilizing sub-capacity pricing, the District will reduce the IBM software annual total cost by approximately $478,000. The monthly cost will be $45,859.60 per month and will be funded from the Information Services departmental budget.

IBM software is reviewed annually to confirm that it provides the functionality required to meet the District goals and objectives in a cost effective manner.