Software Asset Management (SAM)


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Software Asset Management (SAM)

  1. 1. Software Asset Management (SAM)
  2. 2. Software Asset Benefits of SAM Save money Good software asset management can help deter- mining what software organizations do and don’t Management need. It provides information of the amount of licenses that is required to stay compliant. It can help organizations taking advantage of volume license discounts offered by many software pub- lishers and determine how to deploy software According to Gartner, “...the lack of effective IT more efficiently company-wide. asset management programs limits the ability of Optimize changes in Software management can help organizations CIO’s and CFO’s to address their priorities and infrastructure identifying its software requirements and avoid objectives.” obsolete software. This enables faster, easier and more cost effective changes into the infrastruc- ture. Forrester says they are not aware of any com- Minimize communica- In organizations where acquisition of technology pany that could not save money by implement- tion and data transfer has gone unchecked, many different platforms problems and versions may exist. Managing software can ing an asset management system. They estimate help address and resolve these issues savings in software licenses alone of at least 15 to Justify investments in Software management can help organizations 20 percent, and in some cases up to 30 percent. technology identify what software investments have proven Gartner states that “Companies that systemati- beneficial, while highlighting those areas that may need upgrades or new programs. cally manage the life cycle of their IT assets will Minimize legal and Abuse of software licenses can result in financial reduce the cost per asset by as much as 30 per- financial risks penalties and legal costs. Additionally, directors cent during the first year, and between 5 percent can be individually liable, both in criminal and and 10 percent annually during the next five civil proceedings, for any copyright infringement that occurs within the organization. years (0.8 probability).” Manage corporate Faster and easier integration after merger, acqui- changes sitions and sell-outs. “Software Asset Management (SAM) has become an Purchasing advantages Better (re)negotiating positions and improved imperative, not an option. Software assets are busi- software purchasing arrangements ness assets. Without them directors expose their busi- Improve decision mak- More accurate information as basis when taking ness and themselves to constraints and to legal and ing decisions on standards, policies and procedures will be beneficial for the governing of software financial risk” assets. What is Software Asset Management? Who is/should be interested in SAM? SAM means different things to different people but Following roles and functions are to be responsible/ for Zipper, Software Asset Management is more than interested in Software Asset Management: license management. With SAM you change from being • IT Purchasing uncontrolled and reactive to business driven and proac- • Quality tive. SAM enables a business to gain control over the • CIO’s physical, financial and contractual aspects of its soft- • Asset managers ware assets throughout the asset’s life cycle. In general, • IT Managers we state that SAM consists of three basic • Asset/product/service owners keystones: • Infrastructure The goal of the SAM tools is not to fully ISO standard for SAM automate the entire process, but rather to Many organizations prefer to find areas that need further investigation. Accurate and align to the ISO standard within up-to-date SAM information, automatically updated the SAM area, ISO/ IEC 19770-1. from the live infrastructure, together with the processes This is the first international standard for software asset for control of its accuracy management. ISO/IEC 19770-1 can be adopted, partial- ly or fully by organizations of all sizes. ISO/IEC 19770-1 establishes a baseline for an integrated set of processes • Processes for SAM. It has been developed to enable an organiza- Effective business processes wrapped tion to prove that it is performing SAM to a standard around the technology is needed to make the SAM ini- sufficient to satisfy corporate requirements and ensure tiative successful. All activities must be process driven effective support for IT service management. Zipper and refined through iterative improvements. recommends using the ISO standard as a base when defining an organization’s SAM framework. To be able • Organization to work effectively with SAM it is important to know If SAM processes are to prove successful, where you are today, where you want to be and finally it is important that roles and responsibili- what action you should take, and when, to come there. ties are clearly defined, agreed and that the ownership scope for each of the processes is agreed. by Enfo
  3. 3. Business case or Return of Investment Replacing the full version with a viewer would in this In many organizations the management of software case reduce the need for full version licenses with 1857- assets is uncontrolled and decentralized with few or no 1070=787, to a value of 4 070 000 SEK. documented processes and procedures to follow. When (d) The cost for a viewer license is 570 SEK which in starting to take control of the software assets the costs total entail an extra investment of 449 000 SEK. can be reduced. Even if starting up in small scale the cost reduction effect is immediate and the pay-back period can be minimized. It’s not unusual that 40-60 percent of the installed soft- ware is rarely or never used. Even if not used they do still require a license. When performing detailed inven- tory it is possible to measure software usage and based on that information take required action. The examples below covers only three different titles of (a) Cost for license compliance 0 SEK software out of thousands, used and/or installed simul- (b) Cost for being over licensed 8 100 000 SEK taneously in organizations’ client infrastructure. The (c) Cost for incorrect software usage 4 070 000 SEK potential of financial savings with SAM is extensive. (d) Viewer license cost -449 000 SEK Potential cost reduction 11 721 000 SEK Zipper has managed SAM projects with the objective of saving tens of millions SEK every year. Cost avoidance, example 3 Cost avoidance, example 1 In the example below an organization is planning to (a) The cost per license in this example is 796 SEK upgrade from version 8.0 to 9.0 of a graphical map soft- Without any action taken (uninstall of unused software) ware. The license cost per upgrade in the example below this organization need to purchase 2751-1638=1113 new is 4 970 SEK and for new licenses 13 995 SEK . licenses to a cost of 886 000 SEK, to be compliant. With (a) Since they are over licensed the cost for license com- a proper SAM initiative the cost for license compliance pliance is 0 SEK. is 0 SEK. (b) Based on usage this organization is over licensed (b) Based on usage this organization is over licensed with 487-180=307 licenses, to a cost of 4 300 000 SEK. with 1638-1364=274 licenses to a cost of 218 000 SEK. With proper policies and procedures (automatic unin- With proper policies and procedures (automatic unin- stall of unused software) this cost could be avoided. stall of unused software) this cost could be avoided. (c) Lacking a SAM initiative, this organization would upgrade all their 487 licenses instead of only 180, which would be the rationalized volume. The extra cost for this would be 1 530 000 SEK. (a) Cost for license compliance 886 000 SEK (b) Cost for being over licensed 218 000 SEK Potential cost reduction 1 104 000 SEK (a) Cost for license compliance 0 SEK Cost avoidance, example 2 (b) Cost for being over licensed 4 300 000 SEK (c) Cost for lacking updated information 1 530 000 SEK (a) The cost per license in this example is 5 170 SEK. Potential cost reduction 5 830 000 SEK Since they are over licensed, the cost for license compli- ance is 0 SEK. (b) Based on usage this organization is over licensed with 3 423-1 857=1 566 licenses, to a cost of 8 100 000 SEK. With proper policies and procedures (automatic uninstall of unused software) this cost could be avoid- ed. (c) The usage trend analysis shows that many users run this software only for a few minutes every time they are using it. It’s possible they only need this software to read files produced by others. by Enfo
  4. 4. ZIPPER’S SAM SERVICES Optimizing the usage of software assets will significantly Copyright © 2008 Zipper by Enfo. All Rights Reserved. reduce the costs associated with purchasing and ownership of • SAM ASSESSMENT software assets and also secure license compliance. • SAM AWARENESS • SAM COMPLIANCE The license inventory allows you to efficiently re-deploy soft- • SAM CONSOLIDATION ware covered by existing licenses rather than buying new • SAM OPTIMIZATION licenses. With inventory data gathered within an inventory database, license compliance can be monitored from a global SAM ASSESSMENT (according to ISO/IEC 19770-1) perspective. It’s possible to compare license availability direct- A preferred way of starting up a SAM initiative is by intro- ly with information on number of installed instances and then ducing the concept to key persons within the business take necessary action to get compliant. Even if starting up in organization and together analyze the present situation small scale the cost reduction effect is immediate and the pay- by performing a SAM Assessment. Zipper is certified by back period can be minimized. IBSMA* to assess SAM processes according to ISO/IEC 19770-1. During the SAM Assessment we will (together • Match inventory with representatives from the business organization): • Business case calculations • Software license re-use • Analyze and benchmark of existing SAM processes • Elimination or reallocation of unused software • Measure SAM process maturity against the ISO standard • Identifies gaps and areas of improvement SAM CONSOLIDATION A consolidation of different software in use allows you to take The outcome of the assessment will be an itemized list of advantage of volume license savings through centralized man- assessment values (scores) for each process area, reasons and agement of software and license-acquisition. Minimizing the evidence for values, gaps and areas for improvement. Then number of different software in operation will also reduce cost you decide how you would like to approach SAM, by yourself for repackaging and maintenance. How well the consolidation or together with an experienced SAM partner. The Assess- turns out is much dependant on how well the supporting poli- ment step is recommended for all organizations to perform on cies and procedures are defined and communicated. a yearly basis, independent of SAM maturity. • Minimize software administration SAM AWARENESS • Reduction of different software Before any savings, consolidation or major improvements can • Reduction of contracts be initiated it is of greatest importance to get knowledge of • Implementation of standards current situation concerning: • Definition of policies - Installed software (name, versions, no. of instances etc) - When the software was last started - For how long it was used SAM OPTIMIZATION Optimizing the SAM initiative gives better insight into the - Owned licenses and the relation to the installed software future software needs. Instead of continuously buying the newest software and updates available, organizations will be An automatic inventory of which software is installed together able to better decide what software is needed and when in with information on how it is being used will discover equip- time it’s needed. Optimizing the supplier relationship will give ment and software no longer in use that can be retired. Inven- an advantage in coming negotiations. A better knowledge of tory and registration of owned licenses can be a challenge if the software needs can enable organizations to buy in higher acquisition has been uncontrolled and knowledge of licenses volume and take advantage of the price benefits associated is decentralized. SAM Awareness includes basic actions that with bulk purchases. Optimizing and simplifying reporting, enables organizations to change from being uncontrolled and and budgeting reduces financial and legal risks through docu- reactive to business driven and proactive. mentation that reduces the potential for over-purchasing and • Software review IT audits. • License review • Usage review • Purchasing optimization • Connection of licenses and software • Processes for continuous improvements • Optimization of lifecycle planning SAM COMPLIANCE • Optimization of system support A SAM initiative will assure savings in several dif- • Optimize risk management ferent areas connected to management of software. For most organizations software licenses account for an exten- sive part of the IT costs. Interested? For more information please contact! or visit Certified by IBSMA to assess SAM processes according to ISO/IEC 19770-1 *IBSMA is world’s largest organization of IT professionals who manage business-application software. IBSMA lobbies software publishers, trade associations and others advocating policies, practices and issues consistent with the members’ interests. Göteborg Stockholm Malmö Anders Carlsson gata 9 Kistagången 16, 7trp Zipper AB, Skeppsgatan 19 402 76 Göteborg 164 40 Kista 211 19 Malmö Tel. +46 (0)31 72 10 100 Tel. +46 (0)31 72 10 100 Tel. +46 (0)31 72 10 100 by Enfo