Under this policy, IBM authorizes you to deploy your eligible IBM software on an eligible public cloud Infrastructure as a Service (IaaS) provided by IBM or a third party subject to the conditions below. For the avoidance of doubt, this does not include engagements with vendors where those vendors are accessing the software and/or running or managing some or all of your computing environment under the control of their own employees, either on your premises or on theirs (e.g. Strategic Outsourcing, Web Hosting, managed service providers, etc.) – these situations require separate arrangements and are not covered by this policy.

Eligible IBM Software

This policy allows you to deploy and execute on an EPC any IBM software licensed to you directly or through an authorized IBM reseller under IBM license terms, subject to the use authorizations and restrictions stated in the applicable governing license agreements and transaction documents for such software including the IBM International Passport Advantage (IPAA) and IBM International Program License Agreement (IPLA) and the License Information documents applicable to the software. This policy does not apply to IBM zSeries software or to any IBM software sublicensed to you by a third party. This policy also does not apply if you are an IBM business partner authorized to deploy your solution on a hosted environment – such situation is handled under a separate arrangement.

Eligible Public Clouds

The Eligible Public Clouds (EPCs) subject to this policy are defined below.

Provider Offering PVUs per vCPU or Core For more details
go to:
IBM IBM Cloud Virtual Servers 70 PVU per vCPU
IBM IBM Cloud Containers 70 PVU per CPU
IBM IBM Power Virtual Server See Considerations for IBM Power Systems Virtual Servers in the note sections below.
Alibaba Alibaba Cloud (Elastic Compute Service) 70 PVU per vCPU https://www.alibabacloud.com/ 
Amazon EC2 Instances & Dedicated Instances 70 PVU per vCPU aws.amazon.com/ec2/instance-types
Google Google Compute Engine 70 PVU per vCPU cloud.google.com/compute/docs/machine-types
Microsoft Azure Virtual Machines 70 PVU per vCPU



Oracle Cloud Compute Instances 70 PVU per vCPU
See Note 1 below


IBM IBM Cloud Bare Metal Servers See Note 2 below


Supported 3rd Party Kubernetes Services
Require the use of IBM License Service and Amended PA terms for Container Licensing (via Addendum)
Amazon Elastic Kubernetes Service (EKS) 70 PVU per vCPU


Google Google Kubernetes Engine (GKE) 70 PVU per vCPU


IBM IBM Kubernetes Service (IKS) 70 PVU per vCPU www.ibm.com/cloud/container-service/
Microsoft Azure Kubernetes 70 PVU per vCPU



  1. An Oracle Compute Unit (OCPU) corresponds to two hardware execution threads, known as vCPUs.  PVU licensing requires 1 OCPU = 2 vCPU = 140 PVU
  2. PVU requirements based on system configuration are located at: www.ibm.com/software/passportadvantage/pvu_licensing_for_customers.html
  3. Virtual Processor Core (VPC) licensing is 1 VPC per 1 virtual CPU (vCPU) unless otherwise noted.

Considerations for IBM Power Systems Virtual Servers

The provisions in this section below apply solely to VPC-based or PVU-based Programs deployed on IBM Power Systems Virtual Servers. For sub-capacity licensing, cores may be allocated in a minimum of 0.25 core increments for shared processors (i.e. physical processors whose processing capacity is shared among multiple logical partitions) and 1.0 core for dedicated processors (i.e. whole physical processors that are assigned to a single logical partition). Fractional cores will be aggregated and rounded to the next full integer, it being clarified that all logical partitions running on the same machine type are counted as a single pool rather than by server. For purposes of illustration and not limitation, see the following examples:

  • 3 logical partitions are deployed on separate S922 servers @ 0.25 cores each. The calculation will be as follows: 0.25 x 3 = 0.75 cores, which is rounded up to 1.0 cores.
  • 3 logical partitions are deployed on 2 S922 servers and 1 E980 server @ 0.25 cores each. The calculation will be as follows: (0.25 x 2 = 0.5, which is rounded up to 1.0 cores) + (0.25 x 1 = 0.25, which is rounded up to 1.0 cores) = 2.0 cores.

Since the IBM Licensing Metric Tool (“ILMT”) currently does not support this configuration, for purposes of sub-capacity licensing and reporting requirements, customers may manually manage, track, and report core usage until the earlier of December 31, 2020 or when ILMT supports IBM Power Systems Virtual Servers.

Once ILMT supports the IBM Power Systems Virtual Servers, Client will be required to install and configure the most current version of ILMT and comply with the Sub-Capacity Licensing and reporting requirements in accordance with Sections 1.13 and 1.14 of the IPAA. The manual reporting for IBM Power core usage does not modify customers' obligations to remain compliant with the IPAA.

In accordance with the reporting terms outlined in IPAA Section 1.14, clients will collect deployment data and complete the manual calculation of virtualization capacity report once per quarter for the IBM Software using the command-line interface (CLI) (see link) to determine core usage. For Google Cloud, pcloud CLI commands are to be used. Such core usage shall be in accordance with the IBM Eligible Public Cloud BYOSOL policy.

PVU per Core values are determined based on the Power System in use as outlined on the PVU Table per Core (section 1 of 2 - RISC and System z) table on the Processor Value Unit webpage

Licensing requirements and conditions

This policy does not modify or supersede any obligations in the applicable governing license agreements, including requirements for licensed software use in a virtualized environment. The verification terms in such license agreements apply to you when you upload, install, or use eligible IBM software in an EPC and you agree to collect any required usage data for your licensed software in that EPC. You will not provide the cloud provider with any unauthorized use or access to the eligible IBM software.

You must use install and configure reporting tools designated by IBM for reporting usage and provide such reports to IBM upon request in accordance with IBM’s guidelines. If IBM has not designated reporting tools to support your environment, then you must provide records and system tools output in accordance with the obligations in the IPAA/IPAEA and IPLA. Information you provide needs to include, but is not limited to: EPC name, EPC service, software product part numbers, quantity of cloud instances/virtual machines in use, vCPUs/Cores for each cloud instance/virtual machine, PVU per vCPU/Core.

When you use a license entitlement according to this policy, you may not use such entitlements for any other purpose or in any other place at the same time