The SVD Tier Ladder From D to G.
IBM Passport Advantage prices many products against lettered volume tiers. Where your purchase lands on that ladder changes the unit pricing, and in an audit settlement the tier becomes a quiet but real point of leverage.
How the ladder is built.
Passport Advantage applies volume based pricing to many entitlements, expressed as lettered tiers that ascend with committed volume. The tiers are commonly referenced by the letters that mark the bands, with higher letters reflecting larger volume and, in general, more favorable unit pricing. The exact thresholds and the products they apply to are defined in your agreement, so the ladder should always be confirmed against your own terms.
How the ladder behaves.
The principle is straightforward. As committed volume rises, the purchase crosses into a higher tier and the unit cost typically improves. The practical consequence is that the same product can carry materially different pricing depending on the tier it is transacted in. In a clean purchase that is simply a volume decision. In an audit it becomes something more.
Why the tier matters in a settlement.
When an audit produces a shortfall, the resolution usually involves buying the missing entitlements. The tier that shortfall is priced in is therefore a live question. A settlement that quietly prices remediation at a less favorable tier than your overall relationship would justify is a place where value leaks.
- Confirm which tier your overall relationship supports before discussing remediation
- Treat shortfall purchases as part of your volume position, not standalone buys
- Fold tier consistency into the settlement rather than negotiating it afterward
This sits alongside the Passport Advantage program explained and the approach in our ELA negotiation guide.
What this means under audit.
In a settlement, the tier your remediation is priced in is negotiable. Establish the volume tier your relationship justifies and insist any shortfall purchase be priced consistently with it, inside the settlement rather than after.
Do not let the tier slip.
Remediation priced at the wrong tier quietly inflates a settlement. See our settlement negotiation work, or get help now. We mobilize within 48 hours.
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Audit triggers, ILMT pitfalls, and settlement tactics for IBM software buyers.
Independent, buyer side IBM software audit defense and negotiation. Not affiliated with IBM Corporation.