IBM has been a major player in the software industry for decades. However, instead of simplifying its pricing and licensing over the years, IBM has become more complex as its product portfolio has grown and diversified. As a result, preparing for an IBM software negotiation takes time and patience, and in order to make any headway at the negotiating table, sourcing and vendor management (SVM) professionals need to understand how IBM licenses and prices its software products. This report highlights three areas of research and education that you must address prior to negotiating software licensing and pricing with IBM and presents key sources of information that will help you through your next negotiation.