In this IBM® RedpaperTM publication, you learn how to implement the IBM subcapacity licensing functions and the IBM License Metric Tool to track and manage licenses for your IBM WebSphere® Application Server instances. It also summarizes the different licensing models that IBM employs, the advantages of using software asset management for IT companies, and explains how to save money by using these the subcapacity model for WebSphere Application Server licenses. The primary purpose of the License Metric Tool is counting the processor value units (PVU) and resource value units (RVU) for subcapacity and full-capacity licensing models. It is a no-charge metric tool that many companies use as a regular software asset manager for IBM products. This Redpaper shares installation and configuration scenarios for installing the Endpoint Manager server, the License Metric Tool server, and the IBM DB2® database on a single computer or in distributed computing infrastructures. It describes how the application server components are discovered by the License Metric Tool software, explains how to interpret the inventory reports, and provides technical details about the software detection techniques that the tool uses. You also learn about the software bundling process and how to manage the software inventory that is detected by using the Software Classification panel. You can then use the PVU Subcapacity Reports to analyze actual use of your licenses and produce the data for IBM license audits.