Fresno County will pay IBM $2.3 million following software audit


Fresno County paid IBM almost $2.3 million after a software-licensing audit discovered too many people were the usage of unlicensed IBM software programs in county departments.

The bill, which became paid in March, is leading to changes inside the way the county buys and makes use of the software.

County officials say the invoice might have been lots worse.

“We got a hell of a deal,” Board of Supervisors’ Chairman Pal Mendes said.

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IBM, first of all, sought nearly $4.5 million to settle the audit declare. However the county negotiated to get the invoice lowered. In a few instances, software was on computers of lengthy-retired employees and never were eliminated, stated Robert Bash, the county’s chief facts officer.

Different expenses stemmed from a misunderstanding of the settlement, he said.

After supervisors authorized the fee, an anonymous letter transmitted thru inner county emails counseled the county’s software difficulty stemmed from management problems within the inner offerings branch.

$2.3 million

Quantity paid by means of Fresno County to IBM after software licensing audit

Mendes credits Bash for decreasing the charge and bringing the years-long hassle to supervisors’ interest.

“It changed into the system’s fault,” Mendes said. “That changed into being accomplished for years.”

Supervisors at first accepted a contract in July 2014 that paid for $five million in software program, associated maintenance and customer service for 5 years. In early 2015, IBM paid for a 3rd-birthday celebration audit to decide how Fresno County turned into the usage of its software, which uncovered the unlicensed software program users.

IBM’s audit protected 12 months in the past and 365 days into the destiny assuming comparable levels of use. The almost $2.three million can pay for software program licensing and maintenance for the ones years.

Such audits are pretty ordinary and not clean to combat, stated Fresno County Recommend Dan Cederborg.

He said the county weighed its options, but felony action towards IBM wasn’t advised due to the fact the agency is chargeable for confirming its range of licenses and charging as a consequence.

“Manifestly, we checked our all our options, but that wasn’t one of the possible ones,” he stated. “I suppose the (inner offerings) branch did a great activity in working down the number.”

Longtime issue

A little software program misuse troubles, Bash stated, date returned to the past due Nineties, despite the fact that they weren’t a part of the audit. Bash changed into named leader facts officer in early 2014.

The most significantly misused software program became inside the county’s department of Social offerings, county files said.

Beneath the agreement, the county will pay for new licensing and returned preservation for software program overuse, he stated. In Other instances, software program hadn’t been used for long intervals of time because contemporary and previous employees retained software program on their private computers but hadn’t deleted it, Bash said.

Some other cause the fee dropped became due to the fact IBM desired to charge the county for having more than 7,000 employees with get admission to the positive software whilst best one department had maximum of the unlicensed software program established, Bash stated.

“We have been speculated to do software reconciliations as we went alongside, and that wasn’t taking place,” he said. “It has to show up on an everyday basis, and you have to pay for what you set up.”

County officials’ idea the agreement turned into alleged to allow a positive variety of users on software at one time, but the settlement changed into extra stringent.