Deploying

Leading Edge Controls

to Rein in

Global Software Expenses

Agenda

Murphy E&P Overview

Software Asset Management Foundation

Deployment of Leading Edge Controls

Software Savings Within Murphy E&P

2011 Updates

Murphy

Exploration & Production $23 billion revenue in 2010

5 primary E&P offices

Houston (E&P Headquarters)

Calgary, Canada

Kuala Lumpur, Malaysia

Jakarta, Indonesia

Perth, Australia

Retail business

1300 gas stations in US (Wal-Mart)

Software Asset Management

Foundation Business “buy-in” at the highest level possible

Business Champion to support IT

Centralized IT support organization

IT SPOC accountable for managing software portfolio

Application portfolio

Need to know “what “ software you have.

Software reporting capability

Need to know “how” and “who” is using the software.

Effective communication and accountability

Monthly usage reports

Tools Deployed to

Monitor Software Usage

Software license monitoring and tracking application

Capability to track both Windows and UNIX applications

Generate detailed concurrent usage reports at both the application and end user levels

Capability to “release” application licenses during extended period of inactivity

Scope, Cost and Timing

of Process Tool Chosen

Implemented OpenIT “License Analyzer” in March 2008

Invested $41,000 including M&S for a 35 end user seat license

Leveraged existing hardware infrastructure

Invested $2,000 on administration training

Initial focus on expensive GGRE subsurface applications

Identifying Surplus Licenses

Led to Significant Savings

Transferred 6 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses

Transfer cost $26,160

Cost to purchase including first year M&S $158,688

Total savings $158,688 - $26,160 = $132,528

Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses

Transfer cost $15,400

Cost to purchase including first year M&S $117,768

Total savings $117,768 - $15,400 = $102,368

Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses

Transfer cost $44,620

Cost to purchase including first year M&S $320,592

Total savings $320,592 - $44,620 = $275,972

Savings from Utilization of

Surplus Licenses

Transferred 2 licenses from Houston Domestic to International License usage monitoring determined Houston Domestic had surplus licenses

Transfer cost $0

Cost to purchase including first year M&S $ 320,592

Total savings $320,592

Two (2) requests by exploration business to purchase additional license License usage monitoring determined existing 3 licenses were being checked out 24/7 by end users

More aggressive license management and end user communication on software costs and best practices resulted

in sufficient leveraging of existing 3 licenses and no need to purchase additional license

Cost to purchase including first year M&S $181,782

Total savings $181,782

Additional software requests for new RE contractors Request to purchase 3 core licenses

License usage monitoring of existing licenses determined only (1) additional core license required

Cost to purchase including first year M&S $88,058

Total savings $88,058

Murphy Savings 2008-2009

M&S reductions License monitoring indicated we were carrying M&S on an excessive number of applications.

Reduced M&S on one application from 24 to 18

Annual cost savings $15,912

Reduced M&S on a second application from 8 to 6

Annual cost savings $13,248

Reduced M&S on a third application from 21 to 19

Annual cost savings $ 35,616

Domestic and International TCE merge As a result of merging TCE which includes merging license servers and applications the following annual cost

savings will be recognized.

Reduction of M&S for one application $9,576

Reduction of M&S for a second application $3,024

Reduction of M&S for a third application $133,266

Reduction of M&S for a fourth application $18,288

Reduction of M&S for a fifth application $19,080

Reduction of M&S for a sixth application $10,968

Reduction of M&S for a seventh application $28,272

2011 Updates

Implementing OpenIT globally within Murphy E&P

OpenIT “License Analyzer” implementation

Centralized data collection server (Houston)

Local BU concurrency reports

Global concurrency reports

Upstream software focus verses Exploration

2011 Goal to track 80% of Upstream applications

Global WAN license agreements

Summary

Initial investment of $43,000 has recognized tangible cost savings of $1,388,550

Currently testing “license optimizer” functionality which will allow application licenses

to be released when an end user’s machine remains idle for an extended period.

Extended deployment of “license analyzer” functionality has the potential to increase

savings further and provide better management of our existing software investment.

Look at opportunities to deploy “License Analyzer” on additional (Upstream)

applications

Looking into global WAN software agreements

Thank you for your time and

attention!

Questions?