Satish Babu

Best practice license models in the

context of the Cloud

Date: 22 October 2013

Track 2: Reduce the cost of ICT and

accelerating service delivery

Contents

• Cloud and it’s potential

• Trends of Software Licensing

• Governance

3

What is different about cloud computing?

With cloud computingWithout cloud computing

Virtualized resources Automated service

management Standardized services

Location independent

Rapid scalability Self-service

• Software• Hardware

• Storage• Networking

• Software• Hardware• Storage• Networking

• Software• Hardware• Storage• Networking

4

Cloud Computing is a combination of Virtualization, Standardization and Automation with a focus on the

User.

AutomatedFaster cycle times

Lower operating expensesOptimized utilization

Improved complianceOptimized security

End user experience

StandardizedEasier access

Flexible pricingReuse and share

Easier to integrate

VirtualizedHigher utilization

Economy of scale benefitsLower capital expense

Higher quality services

Doing more with less

Breakthrough agility and reducing risk

5

Cloud can play a disruptive role within IT optimization strategy

Consolidate

Virtualize

Standardizeand automate

Reduce infrastructure complexity

Reduce staffing requirements Manage fewer things better Lower operational costs

Remove physical resource boundaries

Increase hardware utilization

Reduce hardware costs

Simplify deployments

Standardize services Reduce deployment cycles Enable scalability Flexible delivery

6

By co-existence of several different IT Delivery-Models, Cloud Computing goes beyond the boundaries of the

own existing Data center.Corporate-IT

Traditional Enterprise IT

Private cloud Hybrid cloud Public cloud

Mission Critical Packaged Apps High Compliancy

Test Systems Storage Cloud Developer Platform

Archive / Backup Collaboration Analytics

Typical Workloads for different Delivery-ModelsData is inside the corporate firewall

IBM’s next generation Cloud will drive higher value

Business Processas a Service

Softwareas a Service

Platformas a Service

Infrastructureas a Service

Enabling business transformation

Business ProcessSolutions Application Application Application Application Application

Marketplace of high value consumable business applications

Composable and integrated application development platform

Enterprise class, optimized infrastructure

ExternalEcosystem

Industry Collaboration HumanResources

Big Data & Analytics

Commerce Marketing

Development Big Data & Analytics

Security Integration Mobile Social TraditionalWorkloads

Built using open standards

Compute Storage Networking

Built using open standards

Public. Private. Dynamic Hybrid.

Think it. Build it. Tap into it.

SOFTLAYER

SmartCloud Enterprise+

Enterprise Solutions

Industry is moving towards more flexible licensing and deployment options

Trends of licensing and deployment types over time

LicensingModels

Over Time

IncreasedProductivity and Flexibility

DecreasedTime-to-Market

Licensed Capabilities

and Activities

ComingSingle System CPUID

Single User:Owned License

Pool of Users: Owned License

Pool of Users: Leased License

Pool of Users & Products;Flexible

Deployment Options

AuthorizedUser Floating Term

TokensSaaS

CloudPatterns

PURE

The need for Flexiblity and the use of OPEX budgets is changing the Licensing landscape!

• Customer expect Instant, Flexible and access to latest technologies

IBM 2013

Pool

No need to buy licenses for specific roles/tools with the inherent limits that imposes: you can use as many or as few of each tool as you like with no penalty. Customer is NOT charged on peak per product usage but on average portfolio usage

Developer

Rational Team Concert7 Token Per User

Analysts

Rational Method Composer4 Token Per User

Program Manager

Rational Performance Tester3 Token Per User

Each Rational user borrows tokens from the pool to gain access to whatever tool they need for their job.

Token license agreements allow organizations to “rent” licenses for a given period of time leveraging their OPEX budget with no entitlement rights at end of term

Token licenses can float across users and across products A token constitutes a unit of value which can be repeatedly exchanged via server

for a mix of software licenses - Essentially unlimited REALTIME substitution

IBM Rational Example: Flexibility to use the right Tool at the right time

Governance

• Optimal license consumption requires strong governance

• Your ITIL implementation has to consider strong Asset

Management functions

• Define and use a strong Asset Management Process

• Automate with tools based on complexity of the Infrastructure

• Let the automation simplify your audit posture

• Integrate Analysis into your Change Management Process

11 11

Governance Toolset : Tivoli Asset Management Family

SmartCloud Control Desk

Tivoli Asset Discovery for Distributed (TAD4D)

IBM License Metric Tool (ILMT)

• Discovers installed PVU software

• Measures maximum core capacity in PVUs available to deployed software.

• Required for sub-capacity licensing

• Discovers detailed information on installed hardware, IBM software and third party software

• Delivers flexible options for software use monitoring including ‘Last Used’, ‘Summary and Trend’, and ‘Details’ which provides all software use information

• Integrates with TAMIT

• Full asset lifecycle management support for hardware and software license management.

• Identifies under or over utilized software to reduce costs due to over-purchasing and to reduce risk to under-purchasing

• Procurement capabilities to create and route purchase orders

• Financial management for cost tracking, usage accounting and TCO estimation

Customers may choose to install ILMT at no charge or upgrade to TAD4D for a fee. ILMT is the most basic offering which discovers distributed PVU software products and reports capacity available to installed

software (required for sub-capacity). TAD4D uses the same code base and adds discovery capabilities that extend to most of the distributed software portfolio, non-

IBM software and hardware. TAMIT integrates with TAD4D for full asset management, including usage analysis, procurement and financial management.

Questions and Comments