Software Licensing & Compliance: Two Strategies, One Goal

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  • + mjgusta2 Jeff Gustafson 12 months ago
    Thank you for feedback. On a related note, the SoftSummit website (www.softsummit.com) may be of interest as a compliment to the content available via SlideShare.
  • + dheffern Dave Heffernan 2 years ago
    This is a very good presentation on software licensing and compliance and very relevant for me in my position within the central agency of government.
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Notes on slide 1

Introduction Thank you: SoftSummit 2008 Administrative notes: Variety of information in appendices at the back of the slide deck (e.g. contact information, bibliography, etc.)

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Software Licensing & Compliance: Two Strategies, One Goal - Presentation Transcript

  1. Licensing & Compliance: Two Strategies, One Goal Jeff Gustafson EMC Corporation
  2. Roadmap for Discussion…
    • 1) What are the challenges facing the Software Industry today?
    • 2) What is the relationship between the business and technology?
    • 3) Why are license management and compliance complimentary?
    • 4) How does the firm begin to frame the issue of compliance?
    • 5) What tools are available in pursuit of the firm’s strategy?
  3. The Business Relationship
    • Producer:
    • Are they entitled to it?
    • Have they deployed it?
    • Are they using it?
    • What version is it?
    • Is it supported?
    • Where is it?
    • Do they want it?
    • Do they need it?
    • Enterprise:
    • What is it?
    • Are we entitled to it?
    • Have we deployed it?
    • Are we using it?
    • Is it supported?
    • Where is it?
    • Do we want it?
    • Do we need it?
    “ It” Relationship Management: Optimizing/Leveraging current/future investments Aligning to value in the relationship Establishing baseline visibility on usage/deployment Clarifying issues of entitlement
  4. Software Licensing Framework Monitoring, Tracking & Compliance (Audit, self-reporting / manual, electronic / data, financial) Entitlement Deployment LICENSING METRICS (Named-User, Concurrent User, CPU, Server, Core, Terabyte, Usage, etc.) OTHER LICENSING T&Cs (Express rights and limitations regarding usage, functionality, deployment, etc.) LICENSE GRANT (Perpetual / Non-Perpetual) OTHER T&Cs (Reporting requirements, Audit rights, Derivative works, Sublicensing, Transferability, etc.)
  5. Elements of Change Legacy Inertia Internal ∆ External ∆ ↓ Undermines Alignment of the Relationship Time Probability Of Mis-alignment “ Genesis of a Contract” Use- Cases Software Portfolio M & A Activity Technology Trends Institutional Memory Regulatory Trends Industry Trends
  6. Perpetual / On-site Model
    • Development: 18+ month cycle
    • License Right: Perpetual
    • Deployment: On-premise
    • Installation: Extensible / Customized
    • License Renewal: Annual Annuity
    • Procurement: Upfront payment
    • Return on Investment: Expected future return
    • Probability: Variable
    Alignment to Value: ????? Exposure to Risk: ????? Business Relationship: ?????
  7. Epistemology
    • Overcome:
    • Imperfect Information
    • Information Silos
    • Asymmetric Relationships
    • Lack of Transparency
    • Objective:
    • Fact-based Dialogue
    • Strategic partnership
    Mutual Insight Asymmetric Information Asymmetric Information Mutual Uncertainty Licensor “ Known” “ Unknown” Licensee “ Known” “ Unknown”
  8. Yin-Yang of Business and Technology
    • What are the strategic goals of the firm in licensing?
    • How will technology enable those objectives?
    “ All of the infrastructure and processes necessary for the effective management, control and protection of the software assets within an organization, throughout all stages of their lifecycle.” - ITIL Best Practice Guide – Software Asset Management Business Technology
  9. Ownership and Deployment Communication Reconciliation Disintermediation Corporate Complexity Disintermediation Institutional Memory M&A Activity Organizational Alignment IT Decentralization M&A Activity Technology Trends Knowledge of Ownership Ownership Knowledge of Deployment Deployment People Process Tools
  10. Variables to Consider
    • Market Structure:
    • Business Climate:
    • Legal Environment:
    • Business Dynamic:
    • Go-to-Market:
    • Regional Scope:
    • Business Solution:
    • SEULA:
    • Software Portfolio:
    • Software Type:
    • License Metrics:
    • Customization:
    • Sponsorship
    • Objectives
    • Abilities
    Monopoly – Competitive Objective – Relationship Supportive – Non-supportive Trusted – Arms Length Standard – Negotiated Domestic – Global Horizontal – Vertical End-user – Partner Narrow – Broad Desktop – Enterprise Concrete – Diffuse Stock – Extensible ??? ??? ???
  11. Strategy and Tactics INTER-Corporate INTRA-Corporate License Management Compliance Monitor “ Ad-hoc” “ Iterative” “ Structured” “ Batch”
  12. Two Tales (Software Producer Lifecycle) Compliance Corporate Strategy Technology Strategy Marketing Strategy R & D Licensing Pricing Distribution Go-to- Market
  13. Two Tales (Enterprise Lifecycle) Software Asset Mgmt Corporate Strategy Technology Strategy Marketing Strategy Invest Deploy Manage Optimize Leverage
  14. Thoughts regarding Tools ISO Standards: 19770 – Part 1 19770 – Part 2 19770 – Part 3 People Process Tools Entitlement Management Fulfillment/Back Office Systems of Record Electronic Software Distribution License Activation License Management Software Discovery Tools Usage Analysis Proprietary and/or 3 rd -Party Point Solutions and/or Suites
  15. In Conclusion…
    • Prevalence of Complexity, Uncertainty and Risk
    • One size certainly does not fit all in Software Industry
    • Opportunity for common lessons learned
      • Software Producers
      • Enterprise
      • 3 rd -Parties
    • Legitimacy of divergent perspectives
    • Piracy  Audit  Compliance  SAM  ?????
  16.  
  17. Appendix 1: Contact Information Jeff Gustafson WW Software Licensing & Compliance EMC Corporation eMail: Gustafson_Jeffrey@EMC.com Direct: (925) 600-5781 Thank you!
  18. Appendix 2: Selected Reading
    • Software Asset Management: A Key to Infrastructure Optimization by KPMG, October 2008.
    • Tools Manager 2008 ITAM and SAM Tools by ECPweb, Winter 2008.
    • Bringing Software into the Computer Age with Electronic Licensing and Distribution by IDC, October 2008.
    • Software and IT Asset Management by IBSMA, June 2008.
    • Worldwide Software Pricing and Licensing Taxonomy and Report Guide by IDC, March 2008.
    • Trends 2008: Application Licensing and Pricing by Forrester, January 2008.
    • Key Trends in Software Pricing and Licensing by ECPweb, Macrovision, SoftSummit, CELUG, and EDA, November 2007.
    • Is Unlicensed Software Usage Hurting Your Bottom Line by KPMG, October 2007.
    • Contract Risk and Compliance: Understanding and Mitigating Risks in Extended Business Relationships by Deloitte & Touche, September 2007.
    • Could Pay-Per-Use Software Licensing Solve the Virtualization Conundrum? by IDC, June 2007
    • Auditing in the Self-Reporting Economy by Harvard Business School, June 2007.
    • Fifth Annual BSA and IDC Global Software Piracy Study – 2007.
    • Software 2006 Industry Report by McKinsey & Company, April 2006.
    • More than a Matter of Trust: Managing Risk in Extended Business Relationships by Deloitte, April 2006.
    • The Impact of SOX on IP Management presentation to the Licensing Executives Society-Silicon Valley Chapter by Ernst & Young, February 2006.
    • The End of Software by Timothy Chou, 2005.
    • Software Publishers’ Enforcement Programs: A Survey by ECPweb.com, November, 2005.
    • The Future of Enterprise Software by Accenture, October 2005
    • An Insider’s View on Software Licensing Trends for Enterprise Applications presentation to SoftSummit by Forrester, October 2005.
    • The Self-Reporting Economy: A Matter of Transparency and Trust by KPMG, 2004.
    • The Future of Software Licensing: Software Licensing Under Siege by IDC, March 2004.

+ Jeff GustafsonJeff Gustafson, 2 years ago

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