What does it cost to upgrade from TM1 to IBM Planning Analytics?

What does it cost to upgrade from TM1 to IBM Planning Analytics
What does it cost to upgrade from TM1 to IBM Planning Analytics
September 10, 2019

“Hey, I heard a rumor that after September 2019 my TM1 10.2.x will not be supported. What does it cost to upgrade from TM1 to IBM Planning Analytics?” cried Michelle, the TM1 Administrator! 

Yes Michelle, you are correct!  September 2019 has been announced as the date that IBM will no longer support IBM Cognos TM1 10.2.x.

But don’t worry, you will still legally be able to use your on-premise TM1 software. However, if you call IBM support with an issue, they will probably tell you 10.2.x is no longer supported so you need to upgrade.  A lot of TM1 Administrators feel the end of support for TM1 version 10, came way too fast. 

TM1 Administrators have reached out to Lodestar Solutions with a lot of questions regarding the end of TM1 10.2.x support announced by IBM.  One of the first questions Cognos TM1 Administrators ask is regarding the cost of upgrading too Planning Analytics.

How much does it cost to upgrade from TM1 to IBM Planning Analytics? 

Factors to Consider in Estimating the Cost of Upgrading TM1 

There are several factors to consider when you are estimating how much does it cost to upgrade from TM1 to Planning Analytics. Typically, the costs associated with upgrading TM1 include technical support, consulting to deploy the new functionality, training and finally whether you want or need to upgrade your TM1 licensing to include Planning Analytics Workspace (PAW). 

In this blog Lodestar will walk you through the components of what you need to consider when creating your budget and estimating your cost to migrate to Planning Analytics. We will also provide some tips on how to sell your TM1 upgrade to IBM Planning Analytics internally.

IBM Cognos Support Subscription

Are you current on IBM support for TM1?  

For on-premise licensing, clients that are current on their annual IBM support subscriptions have access to download the latest version of TM1 now called Planning Analytics. IBM support subscriptions can be purchased directly from IBM or from a partner like Lodestar Solutions. Buying from Lodestar can save you money. See our previous blog, How an IBM Cognos User Reduced Support Costs by $30,000! So, if you have renewed your support there’s no cost to upgrade from TM1 to Planning Analytics, you can just download it.  

Not Currently Under an IBM Support Agreement? 

If you have not renewed your IBM support for TM1 there are two options.  You might be able to reinstate your IBM Cognos TM1 support if you did not let support lapse too long ago. Alternatively, it might be cheaper to rebuy the current version. Lodestar Solutions can help you evaluate your personal situation so that you can benefit from the latest version of TM1. Contact Renewals@lodestarsolutions.com. 

Technical Costs to Upgrade?

The TM1 Environment

The biggest factor of migrating from Cognos TM1 10 to Planning Analytics is upgrading your environment. Lodestar Solutions recommends when you upgrade you do so in a new environment. This helps prevent unforeseen issues, allows dual system testing and the ability to roll out the new software at your pace. So, you will want to include your environment costs.  For some clients they take the upgrade as an opportunity to upgrade their virtualized servers. 

Server Upgrade Warning: If you upgrade your TM1 servers you MUST understand if the planned servers will increase your IBM Cognos TM1 Analytic server PVU rating. Upgrading your servers could expose you to increased TM1 licensing costs or worse you could fail an audit.  See our previous blogs for more information below.

PVUs and Calculating PVU (Processor Value Unit) for Cognos

IBM Processor Value Unit [PVU] licensing for Distributed Software

Technical Assistance

If you have internal IT talent that you could leverage, you may be able to handle the upgrade without outside assistance.  However, Lodestar Solutions recommends you consider having experts that have done hundreds of TM1 upgrades. If you want to minimize your risks of upgrading, and upgrade faster, then engaging an experienced technical consultant is the way to go. Every upgrade has its uniqueness such as, number of environments, whether there’s new hardware, if you are integrating TM1 with Cognos Analytics (BI) and how you manage your security. Lodestar is happy to provide a more accurate quote for upgrading your environment, but a high-level estimate would be about $6,000 to 8,000 per environment. This includes installation, configuration, migration of models/data, and a summary write up of the new install architecture. Contact Services@lodestarsolutions.com to get a detailed estimate for your upgrade.


Did you know that IBM requires TM1 clients that virtualize their environment to install a tool to monitor your server usage? It’s called the IBM Licensing Metric Tool and most of our clients need it. There are a few exceptions but not many. Note, Cognos Express clients do not need the ILMT installed. It’s important that TM1 clients educate themselves on the ILMT because failing to install it could cause you to fail an IBM Audit and cost your organization a lot of money. Here are some of our previous blogs on the ILMT topic.

Why have I never heard about the IBM ILMT Tool for Cognos BI or TM1?

ILMT Tool Questions and Answers

So, when you are budgeting for your cost to upgrade your TM1 to Planning Analytics make certain that you plan for installing the ILMT. You may need to order the part which is free if it’s not on your IBM entitlements today.  Lodestar Solutions is happy to answer any questions you may have on the ILMT  or if you need a quote for the ILMT installation, contact us at Services@lodestarsolutions.com.  For budgeting purposes, we recommend you estimate about $10,000 to install the ILMT.  But contact us and we can give you an estimate for your environment.

TM1 Consulting for Upgrade

Do I need to hire a Consultant?

IBM has added a lot of new functionality within Planning Analytics. But the underlaying structures of TM1 really haven’t changed a lot.  The great thing about that is if you need to upgrade quickly because IBM is discontinuing support of TM1 10.2.x in September 2019, you can upgrade to Planning Analytics immediately without deploying the new functionality.  Yes, you can upgrade and continue business as usual. Then when your schedule permits you can plan to deploy all the cool new functionality and maybe redesign your models to better meet your current business needs.

Why You Should Engage TM1 Consulting 

When you are ready to deploy the new functionality, like hierarchies, it can be game changing and impact your model design. For a brief description of hierarchies check out these two links.

Lodestar recommends you plan at least a couple days with a consultant to evaluate your challenges and current models and make recommendations. If your business has changed dramatically, you may want to plan a model redesign. Lodestar Solutions can help you create a plan and determine what level of consulting engagement would help you reach your goals.  Contact us at Services@lodestarsolutions.com.

Since you are reading this blog you must want to know how much it costs to migrate from TM1 to IBM Planning Analytics, we recommend you budget at least $3,500 for a TM1 consultant to help you understand how the new Planning Analytics (TM1) functionality applies to your models for a basic upgrade.


As a TM1 power user, you may have been using TM1 for several years and you are probably thinking, “I don’t need training on TM1.” However, what we have discovered is clients that don’t commit to learning the new functionality of Planning Analytics don’t realize the power of the new Planning Analytics.  It would be like getting a new car and never discovering what blue tooth is or how to use it.

Gap Training

At Lodestar Solutions we appreciate that you don’t want to spend the money and sit through a week of Planning Analytics classes when you probably could teach half the material.  So, we created gap training.  This is customized for you and done to fit your calendar.  How it works is we provide an agenda and we discuss where your knowledge gaps are.  Then we assign a consultant to work with your team virtually to help bridge the knowledge gaps.  To get a more accurate quote for gap training email, services@lodestarsolutions.com.  We recommend all clients upgrading plan for at least $4,800 for gap training.

Planning Analytics Workspace Add On

The last component you want to consider in estimating your cost to upgrade from TM1 to IBM Planning Analytics is whether you own Planning Analytics Workspace (PAW).  PAW is the new interactive interface to Planning Analytics and provides dashboards and reporting options. It’s IBM’s go forward strategy and you can even build models in workspace. Lodestar recommends PAW for all TM1/Planning Analytics clients. 

Here are some of our blogs on why you should invest in Workspace.

7 Reasons Why You Should Purchase Workspace (PAW)

Model Directly in IBM Planning Analytics Workspace. A one stop shop.

Do you own workspace?

Older clients that purchased more than a couple years ago probably do not own it if they haven’t already added Planning Analytics Workspace (PAW) on.  The way you can tell if you own it is to look at your entitlements or support renewal and examine the license name. If the TM1 license is a Performance Management User, and there are no Planning Analytics Workspace add on licenses you do not have workspace rights for your end users. If you have Planning Analytics Users, they do have workspace rights. If you don’t own PAW, you will want to budget for investing in the Planning Analytics Workspace add on for your TM1 users. Due to the fact that IBM has aggressive promotions on PAW every quarter, we are uncomfortable putting a price in this blog.  But email Lodestar Solutions and we would be happy to provide an estimated cost for you. Email Sales@lodestarsolutions.com for your quote.

Selling the Upgrade Internally

Once you have an idea of what it will cost to upgrade from TM1 to IBM Planning Analytics, you need to go sell it internally. Lodestar can help you create your presentation for budget to upgrade to Planning Analytics. To get you started here are a few talking points Lodestar recommends.

Risk - 
The first and one of the most powerful factors of why you should upgrade is risk.  What would happen if you are on an unsupported version of TM1 and Microsoft sent an automatic update to Excel breaking the connection with TM1?  You would call support and they would say, sorry you need to upgrade.  Now, imagine this happens in the middle of budget season.  Is this a risk your CFO wants to take?  I didn’t think so.   This is a great argument why you should at least do the technical upgrade now.  You can leverage the new functionality later.

Failing An Audit Without the ILMT -
If you don’t have the ILMT installed, you could fail an audit.  Lodestar can install the ILMT with your upgrade.

Workspace -
Executives love the look and functionality of workspace.  PAW can help you exceed the needs of your user community and let them be more self-sufficient in their analysis.

Call to Action

Now you know the factors to include when calculating what it costs to upgrade from TM1 to IBM Planning Analytics. But, there’s no reason to go it alone!  Lodestar Solutions is here to help you get a more accurate cost so you can request funding. Our team will even help you create your request for funds, or pitch to get executive support for your upgrade. We encourage you to act soon! September 31,, 2019 is fast approaching and there’s still time to upgrade so you don’t have to risk being unsupported! 

Contact the Lodestar Solutions team today to set up a call with our IBM Cognos TM1 to Planning Analytics upgrade experts.  Email Services@lodestarsolutions.com  or call 813-415-2910.

IBM Cognos Support Renewals Consolidated With Other IT Assets?

Should We Consolidate IBM Cognos Support Renewals With Other IT Assets?

Consolidating IBM Cognos Support Renewals with Other IT Assets

August 22, 2019

I pause for a moment and share with him my thoughts and a true client story about an organization that went with an IT asset consolidation firm for their IBM Cognos licenses.   As we parted ways, I realized all IBM Cognos clients should hear this story, so here it is…

Procurement may save you money on Cognos but could expose you to failing an audit.

Many of our larger IBM Cognos clients look to procurement to lead their purchasing decisions. Procurement is often focused on one thing: the best price. But here’s a true story of a client whose procurement team took over negotiating their IBM Cognos licenses and why procurement may save you a little money on your Cognos support renewals but could expose you to failing an IBM audit.

Cognos Client Story

For many years Lodestar Solutions worked with a client we will call ABC Corp to protect the innocent.  Lodestar worked with ABC’s Cognos BI and TM1 teams providing implementation and training services, as well as helping them get the best deal on their purchase of additional licenses and support.  The client grew their license usage every year and then they hit the point where they were no longer in the optimal licensing model. 

So, Lodestar explained their options and helped negotiate a more economical licensing model that addressed their long-term growth. We moved them from an authorized users licensing model to a processor value unit (PVU) licensing model where they paid for server cores instead of users. For more information on this licensing model see our blog - What the Heck is an IBM PVU?

Then, one day ABC’s procurement stepped in and told the BI and TM1 teams they would not be renewing their licenses with Lodestar. They were moving to what they called a consolidator, a company that would handle all ABC’s software renewals for many software brands. The move was intended to save money and was supported by the CFO.  

Risk of Moving to a Consolidator​

When ABC moved all their renewals and IBM licensing purchases to the consolidator, Lodestar warned the client.

“Typically, big consolidators can save a few percentages by pushing paper but are not well versed in IBM licensing changes or configuration recommendations.” 

Lodestar explained that clients that buy IBM Licensing and Cognos support renewals from Lodestar Solutions benefit from receiving a free annual license checkup. In the check up we educate clients on new functionality, discuss supported versions, explain licensing changes and tell them where the landmines may be. We discuss the client’s specific challenges and help them address them.  Clients also get access to our knowledgeable staff throughout the year for licensing questions as well as invitation to our unique workshops.

The Cognos team tried hard to keep Lodestar engaged but procurement was adamant about moving to another vendor for the Cognos support renewals and licenses.  The BI and TM1 teams at ABC stayed engaged with Lodestar for services.

The Audit

About 3 years later, Lodestar identified a licensing change by IBM that we believed would negatively impact ABC and could make them fail an audit. At that time, ABC disclosed that 1 year earlier they had been audited by IBM and that they were way out of compliance and given a $750,000 bill. The Cognos team was terrified that they may fail another audit given Lodestar’s insight on the IBM license change.  The CIO would blow a gasket if they failed again. 

Failed IBM Audit

The cause of their previous failed audit was that they had upgraded their virtual environment and in doing so added more cores and more powerful servers.  If you believe you may be at risk because you upgraded your virtual environment you should contact us for a checkup at Services@lodestarsolutions.com and check out these blogs to assess your risk.

ABC’s consolidator like many paper pushing IBM renewal firms did not know what questions to ask and never did an annual review. So they never advised them that they were over deployed. The result is the client received a very hefty bill from the consolidator/IBM to get compliant.

IBM Licensing Change

When Lodestar identified the changes that IBM was making in the Enterprise Planning Contributor licenses, we reached out to every client we knew that at one time had the older Enterprise Planning product and had migrated to TM1 because they were the clients at risk. (For more information on the Enterprise Planning Contributor changes see IBM’s withdrawal notice and our video on the topic for more information.)

Replacement Program Information

Armed with the new information about the IBM licensing changes that would negatively impact them if they did not adjust some of their licenses, the Cognos team was able to argue that the consolidators may be saving them a little on the annual renewal but it was costing them greatly in the long run. Now, the client’s Cognos team benefits from working with Lodestar on their Cognos Support renewals and benefits from an annual renewal that asks the right questions. 

Moral of the story

Procurement’s job is often to beat up the vendors to save money, but you must ask yourself what the long-term cost is?  Are your Cognos vendors going to go the extra mile for you when there is no loyalty from your procurement team?  Are they going to find resources late on a Friday night before a holiday weekend to help you when your system crashes?

Call to Action:

If you are exploring engaging a firm that claims consolidating your IBM Cognos Support Renewals with other IT assets, do your homework.  How knowledgeable are they on the ever changing IBM licensing rules?  Who will manage your account?  Will they know the functionality of the software and educate you on new releases?  Or will it be someone that just pushes paper?

At Lodestar Solutions, our clients know we go to bat for them.  We are always asking on their behalf is there a better licensing model that will save the client money while addressing their growth?  And proactively reaching out to them when IBM licensing changes occur.  If you are looking for a partner that is committed to your success and saving you money, contact us at Sales@lodestarsolutions.com.  We would be happy to perform an annual IBM Cognos support renewal and license checkup and provide you a competitive quote for your renewal or licensing needs. 813-415-2910.