2. Software License Optimization = Software
Savings & Continuous Compliance
Software is one of the major items on IT expense
budgets. Industry analysts estimate that software
license and maintenance fees represent 20 to 35%
of total enterprise IT spend. The vast majority of that
software spend is tied to major desktop and server
application vendors—Microsoft®
, IBM®
, Oracle®
,
SAP®
, Symantec™
and Adobe®
— that have a range
of complex license models, translating into license
management challenges for clients.
The lack of mature software asset management
processes exposes enterprises to software audit
liabilities and overspending on licenses and
maintenance. A SAM program supported by a
Software License Optimization solution allows
organizations to control costs and reduce risks
associated with software assets. But, many
companies lack sufficient understanding of their
current state and adequate business case data (both
quantitative and qualitative) to justify a SAM and
license optimization investment decision. Flexera
Software’s Software License Optimization Services
assist organizations in assessing their current
state of asset management maturity, help build the
justification for a SAM and license optimization
program investment, and develop best practice
SAM processes and roadmaps for program
implementation. In addition, license optimization
services assist organizations with generating an
accurate and optimized license position, enabling
them to reduce ongoing cost and risk and accelerate
time to value.
Our Software License Optimization services will
set you on a path to the highest level of license
optimization maturity where ongoing cost savings of
5-30% per year on software spend can be realized
(figure 1).
DATASHEET
License Reconciliation and Optimization Service
Leverage License Entitlements to Reduce Software Costs
Benefits to
Your Organization:
• Calculate an
Effective License
Position (ELP) to
identify areas of
over licensing or
under licensing and
gain visibility and
control over the
software estate
• Apply license
entitlements to
minimize license
consumption and
reduce ongoing
software costs
• Mitigate risk by
understanding
the organization’s
license compliance
position
Optimized License Position
Stock Keeping Unit
(SKU) Library
Product Use Rights
Library
FlexNet Manager Suite
Optimization Solutions
FlexNet Manager Platform
Application
Recognition
Library
Hardware Inventory
Software Inventory
Application Usage
Entitlement DataInventory Data
Purchase Orders
Contracts
License Position
Figure 1: Flexera Software consultants leverage FlexNet Manager Suite to generate a license position
3. Figure 2: Flexera Software’s Customer Value Methodology
Figure 3: Flexera Software’s Application Usage Management (AUM) Success Framework
Planning
• Virtualization/Cloud/VDI
• Transformations (e.g. OS, SaaS)
• BYOD / BYOL Strategies
Processes Systems
• Cradle to Grave SW HW Mgmt
• Packaging and Delivery
• Centralized Asset Management
• ITSM Process Alignment
Procurement Approach
• Sourcing Strategy
• Total Spend Leverage
• Centralized vs Decentralized
• Alignment w/SW Consumption
Proactive Supplier Management
• Fact Based Negotiation Strategy
• Contract Lifecycle Management
Compliance Management
• Entitlement Based Reconciliation
• License Position Remediation
• MA / Divestitures
Sustained Optimization
• Usage / Entitlement Based
License Optimization
• Self-service SW Request, Approval, Fulfillment
• Standard Software Catalog
Consumption
Strategy
Application
Management
Procurement
Supplier
Model
Compliance
Optimization
Enterprise IT Initiatives
(Desktop/Server)
Reduce Costs
Application Usage Management (AUM) Across the Entire Lifecycle
Decrease Risk Increase Operational
Efficiences
Entitlement Management
Compliance Strategy
Supplier Management
Application Hardware
Lifecycle Management
Application Procurement
Strategy
Customer
Value
1. Ide
ntify
Opt
imize
4.Me
asure
Val
idate
2. D
efine
Del
iver
3.De
sign
Flexera Software License Reconciliation and Optimization
Service is part of Flexera Software’s Customer Value
Methodology which focuses on customer value and
business outcomes over the entire lifecycle (figure 2).
Managing application usage across the software lifecycle
is important to ensure your ability to maximize value
with high-value solutions that have been built out over
the years with successful customer deployments. This
methodology uses the Flexera Software Application
Usage Management (AUM) Success Framework (figure 3).
The Success Framework leverages industry best practices
to understand organizational maturity and possible gaps.
4.
5. License Reconciliation and Optimization Service
The License Reconciliation and Optimization Service uses a combination of FlexNet Manager Suite for Enterprises system
functionality and onsite services to provide the customer with a full license management and optimization solution for an
agreed set of vendors. A license reconciliation is performed, resulting in the creation of an Effective License Position that allows
the organization to understand areas of license over spend and under spend (non-compliance). With that knowledge the
organization is able to take action to defer new license purchases, mitigate license compliance risk, and/or reduce ongoing
software license and maintenance costs.
Workshop Objectives
The License Reconciliation and Optimization Service has two primary objectives:
• Perform a license reconciliation taking into consideration software deployed (inventory data) and license entitlements,
including purchase order data and product use rights, to generate an optimized Effective License Position (ELP)
• Generate a license compliance report for each vendor in scope and show final, optimized license consumption
Service Delivery Approach
The License Reconciliation and Optimization Service will be carried out as follows:
• Purchase order (PO) and contract data related to customer software purchases will be verified and normalized to ensure
clean entitlement data is flowing into the system
• If Stock Keeping Unit (SKU) information exists within the Purchase Order data, SKUs will be verified against the Flexera
Software SKU library and Licenses, as defined within FlexNet Manager Platform, will be created
• Volume Agreements (e.g. Microsoft Enterprise Agreement, IBM Passport Advantage, etc..) will be mapped to licenses and
purchases to create a complete overview of associated Product Use Rights
• Where purchase agreements include maintenance (e.g. Microsoft Software Assurance) this will also be mapped in
FlexNet Manager Platform to determine rights to future product releases (upgrades). Entitlements for these products will be
automatically applied as new product versions are released
• Product Use Rights (e.g. upgrade, downgrade, second use, virtual use, etc.) will be incorporated into the creation of Licenses
(within FlexNet Manager Platform) to allow determination of an optimized license consumption position. Relevant software
upgrade entitlements will be applied to demonstrate full current entitlement.
• Any product bundles or suites will be identified and mapped into the system
• Where applicable, and when required data is available, allocation of licenses to corporate structure will be performed
• Where Purchase Order data is insufficient or unavailable, best endeavors will be made to map purchases in the system. This
may not result in an accurate license position, but any restrictions or limitations will be documented.
• The Flexera Software consultant will produce an Effective License Position report that will identify the compliancy of each
product in scope. This report will show the purchases of each product against the base level install count, and also the final
license consumption.
Service Deliverables
Flexera Software will provide the following deliverables to the client at the conclusion of the engagement:
• An Effective License Position/Compliance report that will identify the optimized license consumption and compliance
position of each product in scope.
• An Unlicensed Application report showing where installs exist, but no purchasing information can be found for licensable
products. This report will help to mitigate risk by catching unauthorized installs as well as standard license breaches.
6. License Reconciliation and Optimization Service
Project Timeline
A typical schedule for a 30 day License Reconciliation and Optimization Service is shown below. The schedule assumes that
all pre-requisites set forth below have been met. The length of the service is variable depending on the scope of work and the
quality of the customer’s data.
Task Description
Week
1 2 3 4 5 6
Offsite
License Agreements, POs etc analyzed
Assessment of purchase and Contract Data
Normalization of Purchase Data
Research on any unrecognized SKUs or Applications
Onsite
Creation of licenses from SKU/install data
Creation of License Contracts
Mapping of Upgrade Purchases
Mapping of other Use Rights to licenses
Creation and mapping of bundles or suites
Creation of unlicensed Application report
Creation of License Consumption Report
Preparation of Actual License Position report
Report completion, presentation and Sign-off
Service Prerequisites
The following prerequisites must be met for the License Reconciliation and Optimization Service:
• FlexNet Manager Platform is installed and operational in customer’s production environment.
• Software and hardware inventory data is available.
• Relevant user and organizational structure data is available.
• Relevant Purchase Order data is available.
• Purchase Orders should have a minimum of Product Title, License Quantity, and Type of Purchase (full license, upgrade). It is
highly desirable for purchases to include SKU information or Product Codes. Where there is no SKU information available,
more time may be required to map purchases, or the deliverables may be based solely on a Consumption report.
• Relevant software contract information should be fully available.