webinar: how to get started on a software asset management program
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Webinar: How to Get Started on an Optimized SAM Program
November 17, 2011
2 © 2011 Flexera Software, Inc.
Speakers for Today’s Webinar
David LerchDirector of Consulting Services at Flexera Software
John EmmittSr. Marketing Manager at Flexera Software
3 © 2011 Flexera Software, Inc.
Industry Trends & Economic Backdrop
• Global Economy– M&A / Divestiture activity– Cost reduction & budget
constraints– e.g. US Federal Govt mandate to reduce IT costs
• Audits• IT Technology / Business
Model Changes– Desktop & App Virtualization– Public and Private Cloud;
SaaS model
• IT as a Business
4 © 2011 Flexera Software, Inc.
Why do you need a SAM Program?
• Drivers– Budget Constraints– Audit Risk– Complexity- Licensing, IT environment, Organizational
• Evolving Role of IT Asset Management
Industry Analyst Perspective – Gartner
IT asset management (ITAM) is rapidly evolving from a basic asset inventory monitoring and reporting role to a core financial discipline. As ITAM matures, its ability to deliver accurate and timely financial management data and insight will become its core value proposition and increasingly strategic to executive management
SAM Objectives
• Reduced license compliance risks and associated adverse budget impacts
• Elimination of over-buying of software (use what you have, only buy what you need)
Cost Savings and Cost Avoidance
Contract Negotiation Power
• Chargeback / cost allocation to the lines of business
• Improved IT Operational Efficiency
An effective Software Asset Management (SAM) and License Optimization program enables pro-active, continuous management of your software license estate through:
Optimal$ $Over-LicensedOut ofCompliance
5 © 2011 Flexera Software, Inc.
What’s the Cost of Doing Nothing?
• Lack of transparency around SAM / ITAM– Low visibility of hardware and software assets across Business Units
Real Customer Example of Business Issues
• Lack of control over annual software spend− Lack of information required for true-up
negotiations Poor negotiating leverage− Over-buying of software
• Audits and unbudgeted expense• High operational and contract management
costs Softwar
e Spen
d
Audit Cost
s
Mgm
t
Costs
Customer Example:
$35 Million in savings on
one vendor in 6 months
6 © 2011 Flexera Software, Inc.
First StepsAssess your current state of SAM maturity
Define your desired End State
Level 4Optimized
Automated entitlement based license management and optimization; Minimize license consumption and software spend
Level 3Continuously
Compliant
Automated purchased vs. installed license reconciliation; SAM processes to manage contracts and maintain continuous license compliance
Level 2Managed
Perform purchased versus installed license reconciliation on an ad hoc basis; point-in-time management of licenses and contracts
Level 1Installed
Identify software and hardware installed
En
terp
rise
Lic
ense
Op
tim
iza
tio
n
Trad
itio
nal
SA
M /
ITA
M
Ret
urn
on
In
vest
me
nt
7 © 2011 Flexera Software, Inc.
8 © 2011 Flexera Software, Inc.
Perform a Gap Analysis
• Where are you relative to SAM best practices?
• How well does the organization accept change?
• ISO 19770-1– 27 SAM process areas to
assess
• Assess gaps relative to People, Process, Technology
Request
Retire Approve
Purchase
DeployManage
Upgrade
People:Requires Executive Sponsorship,Defined Roles & Responsibilities
Process:The success of any SAM project relies upon the definition of business Processes Technology:Select the Technology solution that is consistent with your objectives
People
Process
Optimize
Optimize
OptimizeOptimize
Optimize
Optimize
Approach SAM HolisticallyManage the Full Software Asset Lifecycle
Technology
9 © 2011 Flexera Software, Inc.
The Approach
• Gain Executive / Key Stakeholder buy-in
• Leverage Industry Standards (ISO, ITIL)
• Focus on Quick Wins
• Identify potential roadblocks / Define action plans to address
− Data quality
− Culture
• Determine SAM team requirements/scope
• Define roles/responsibilities
• Outline a roadmap (phased approach)− Define Business Outcomes at each
stage
− ISO 19770-1 update provides a framework
ISV Market Share
Microsoft 24.37%
IBM 10.89%
Oracle 8.65%
SAP 5.72%
Nintendo 3.57%
HP 3.08%
Symantec 2.81%
Activision Blizzard 2.28%
Electronic Arts 2.10%
CA 1.94%
Adobe 1.66%
Source: http://www.softwaretop100.org
Customer Example
Targeted ISV’s:
Adobe, IBM, Microsoft,
Oracle, VMware
Represented 90% of their
software spend
10 © 2011 Flexera Software, Inc.
11 © 2011 Flexera Software, Inc.
• SAM organizational structure
• Set up Key Performance Metrics to incent the right behavior– Realign key stakeholder performance objectives to drive advocacy– SAM Roles are important but also critical to align the whole org. with
SAM program objectives
BU CIO BU CIOBU CIO
Corp CIO
BU SAM Team
BU SAM Team
BU SAM Team
Enterprise SAM Team
Change ManagementRoles, Responsibilities & Metrics
Large Enterprise Example
Creation of a Roadmap
Enable SAM organization (5)
Identify Process /Organization Gaps(2)
Develop Strategy & Roadmap (3)
Mature SAM Capabilities(8)
Pha
se 0
Pha
se 1
Pha
se 2
Phase 0 – Foundation1. Gain Key Stakeholder Buy-in2. Identify Process & Organization Gaps3. Develop Strategy & Roadmap
Phase I – Baseline Processes4. Implement FNMS5. Enable SAM organization6. Roll out baseline SAM processes7. Plan/Implement Quick Wins (top 1-2
suppliers)
Phase II – Building on the Baseline8. Mature Asset Mgmt Capabilities
(processes, governance)9. Target next 2-3 suppliers (iterative)
Gain Buy-in(1)
Nov Dec JanOct MarFeb Apr May Jun
2
2011/12
Phase III – Run State• Ongoing maturation of processes and
optimization capabilities
Ongoing Process Maturation
Pha
se 3
Program Management
Jul
ILLUSTRATIVE
This illustrative roadmap conveys a phased approach to SAM implementation
Implement FNMS (4)
Roll out baseline SAM processes (6)
Plan/Implement Quick wins (7)
Integrate next 2-3 suppliers (9)
12 © 2011 Flexera Software, Inc.
Example: Process Deliverables
By having a signed and managed
project charter the customer was
able to keep on track & avoid scope
creep
13 © 2011 Flexera Software, Inc.
14 © 2011 Flexera Software, Inc.
Leverage Existing Systems
• Inventory & CMDB Tools
• ERP, Procurement systems
• Active Directory / HR systems
• Helpdesk
SAM & License Optimization Solution
Requires a highly integrated SAM solution
Optimized SAM Program ROI
• Global conglomerate operating in 130 countries (over 90,000 devices)– Implemented a standards-based set of business processes for software asset management– Saved $35 million in 6 months on Microsoft software
• Large, global utilities company facing an Adobe audit– Adobe was unsure of the installations using their own inventory tool– Flexera Software’s solution provided both parties more detailed data and identified $5.91
million in savings
• International bank (75,000 hardware assets, $200 million/year software
spend)– Multiple volume purchase agreements– Realized $35 million in savings (50% cost avoidance / 50% maintenance savings) upfront
and $8 million savings later as a result of being able to track licenses and negotiate better
contracts
• Global hardware manufacturer facing an Adobe audit– $15 million in license liability– Flexera Software solutions were used to optimize software estate, reducing license
consumption by ~58,000 licenses, and resulting in a final bill of about $1 million $14
million in savings
• Global consumer goods manufacturer (over 100,000 employees)– Realized over $30 million in initial savings on SAP and Oracle software
15 © 2011 Flexera Software, Inc.
16 © 2011 Flexera Software, Inc.
Industry Resources
• IAITAM– www.iaitam.org
• IBSMA – www.ibsma.com
• ITAM Review– www.itassetmanagement.net
• LinkedIn Groups– here are a few:– IT Asset Management - Global – Licensing and SAM – Microsoft Licensing Professionals Network– Software Asset Management
• ISO Standards– www.19770.org/projects/19770-1/
• Flexera Software website– www.flexerasoftware.com – whitepapers, webinars, ELO blog, etc.
17 © 2011 Flexera Software, Inc.
Summary
• Implementing best practice processes critical to SAM program success
• SAM Programs (can) have strong ROI– Focus on quick wins!
• Flexera Software can help with Consulting Services such as:
– ROI Workshop– SAM Gap Assessment– Process Definition based on specific technology– SAM Optimization Workshop– Other services
18 © 2011 Flexera Software, Inc.
Q&A
Please submit your questions via the Live Meeting Q&A form
For more information: www.flexerasoftware.com/ELO
Or contact:
David Lerch: dlerch@flexerasoftware.com
John Emmitt: jemmitt@flexerasoftware.com
Thank you for attending our webinar!
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