Fifty shades of software compliance by Mark Bartrick, Forrester Research. ITAM Review IBM & SAP Licensing Seminar, Tuesday 28th April 2015.

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Of
Compliance
By I O Ewe

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Mark Bartrick
Principle Consultant
Software Contract Negotiation
mbartrick@forrester.com
ITAM Review IBM & SAP Seminar, London 28th April 2015

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Why non-compliance occurs
ITAM Review IBM & SAP Seminar, London 28th April 2015
Bad Buying Bad Behaviours

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Minimising Bad Behaviours
ITAM Review IBM & SAP Seminar, London 28th April 2015
• Education
• Making sure your users know the rules/regulations
• Using good SAM tools
• Using technology to identify non-compliance
• Regular self-policing
• Audit yourself – find the pain before your vendors do

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Minimising Bad Buying
ITAM Review IBM & SAP Seminar, London 28th April 2015
• Know your vendor
• Know your licensing options better than they do
• Negotiate away vague or inappropriate licensing
definitions/terminology
• Avoid ‘grey’ licensing
• Negotiate in exceptions and exemptions
• If they won’t change their standard contractual
wording, then negotiate in some Addendums
• Demand better pricing mechanisms
• Don’t assume that your software vendor’s price book
is written in stone

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Click to edit
ITAM Review IBM & SAP Seminar, London 28th April 2015
Know Your vendor

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How many ways are there to
license SAP products?
ITAM Review IBM & SAP Seminar, London 28th April 2015

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Negotiate Away Vague or
inappropriate Licensing Definitions/
Terminology
ITAM Review IBM & SAP Seminar, London 28th April 2015

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What is a named user?
ITAM Review IBM & SAP Seminar, London 28th April 2015
Three main user types (but there can be many more)
• Professional User
• Limited Professional User
• Employee User
• e.g, Limited Professional User is a named user who is
authorised to perform limited operational roles supported
by the licensed software
• Just to confuse matters, a User can be all three types at once:
• Reads reports from BI system
• Updates ERP stock system
• Approves invoices
• Do you classify by amount of activity or number of different
activities or the type of activity?

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Negotiate in Exceptions and
Exemptions
ITAM Review IBM & SAP Seminar, London 28th April 2015
Addendums is the place to exclude certain user types or include new user
types, as well as a place to better define indirect access

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Indirect access
(SAP’s #1 audit focus)
ITAM Review IBM & SAP Seminar, London 28th April 2015
‘Named users are also upstream and intermediary technical systems
that exchange information with the SAP software system, as well as the
users of those systems, if users exchange information with the SAP
software in dialog or prompt mode. It makes no difference whether the
software is accessed directly or indirectly’.
Source: SAP System Measurement Guide, Version 7

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© 2014 Forrester Research, Inc. Reproduction Prohibited 12
Great apps can get you in trouble with
SAP’s indirect access compliance
Make sure you understand your exposure here & ensure your SAM tools
include ways of measuring indirect access

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© 2014 Forrester Research, Inc. Reproduction Prohibited 13
Great technology can get you in trouble
with SAP’s indirect access compliance
Make sure you understand your exposure here & make sure your SAM tools
include ways to measure indirect access

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© 2014 Forrester Research, Inc. Reproduction Prohibited 14
SAP Audit defence
› Best defence is offence
• Educate users
• Run best SAM tools
• Audit yourself regularly

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© 2013 Forrester Research, Inc. Reproduction Prohibited
Why Software Vendors Audit Users
Forrester Report August 2013 “Software Audits: The Pain, The Shame, And
The Gain”

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© 2014 Forrester Research, Inc. Reproduction Prohibited 16
SAP Audit defence
› SAP’s audit clause – watch out for gotchas and
negotiate your get-out-of-jail-frees:
• Annually, or more/less often
• Metrics, as per their Price Book or your Appendices
• Underpaid fees, as agreed or at current list price
• Underpaid maintenance fees, backdated for how
long
• If non-compliance is over 5% of estate, you may
have to pay for auditors time too

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Of
Compliance
By Ewe O Me
Using SAP Audits to your advantage

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The upside of a SAP Audit
ITAM Review IBM & SAP Seminar, London 28th April 2015
You may find unused SAP (shelfware) software that
can be either:
• traded out (credited) against actual non-
compliance
• negotiated out during your next renewal as a
credit against new stuff
• Sold to brokers as used licenses (within Europe
only)

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One final reminder…..
ITAM Review IBM & SAP Seminar, London 28th April 2015
Mark Bartrick
Principle Consultant
Software Contract Negotiation
Forrester Research
mbartrick@forrester.com
Be compliant but don’t be submissive
In a grey world, everything is negotiable