Software Compliance 062409

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The W Group offers a rich set of services around software asset managment and compliance

The W Group offers a rich set of services around software asset managment and compliance

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  • 1. Software Compliance ManagementA Critical Component of Software Asset Management
  • 2. Software Asset Management - Overview Software Asset Management is the practice of integrating people, processes, and technology to allow software licenses to be systematically tracked, evaluated and managed. The goal of Software Asset Management is to reduce IT expenditures, human resource overhead, and risk inherent to owning and managing software assets. Software Asset Management Key Process Areas Acquisition Management Education Asset Identification Financial Management Compliance Management Legislation Management Communication Policy Management Disposal Management Project Management Documentation Vendor ManagementCopyright © 2009 The W Group. All rights reserved. 2
  • 3. What is software compliance, and how does non-compliance happen? Software License Compliance is determined by whether you have legally acquired, configured, and are utilizing a genuine copy of a given copyrighted product in accordance to the licensed terms set down by the copyright holder. Non-Compliance is either the intentional, or unintentional misuse of copyrighted software assets. Many factors can contribute to non-compliance. Internet Piracy Soft Lifting Complex Metrics Counterfeiting Hard Disk Loading Virtualization Poor Documentation Management Bundled Suite Breaking Ineffective Policies Software RentalCopyright © 2009 The W Group. All rights reserved. 3
  • 4. The W Group Software Compliance Management Practice brings you skilled sourcing executives, best in class processes and tools to meet todays complex software environment. Why Be Concerned about Software (SW) Compliance? In the current economic environment, SW vendors are under tremendous financial pressure to maintain and grow revenues. As a result, The W Group has seen an increase in the level of SW license compliance audits initiated by SW vendors. Penalties for non-compliance are often in the range of hundreds of thousands of dollars. Understanding where you are currently will save significant sums of money. The W Group Consultants are experienced at assessing the level of compliance of companies and can help ensure that you are effectively utilizing the SW to your fullest advantage. It is imperative that you understand what SW license rights you have acquired, where you have the licenses deployed and whether the license use complies with the terms of each SW license agreement. This information can be used to eliminate your risk of non-compliance and optimize your SW license investments. In a recent survey of 343 IT professionals -- about 24% were CIOs or other IT executives -- most of them admit theyve let licensing compliance slip.Copyright © 2009 The W Group. All rights reserved. 4
  • 5. A recent survey of IT executives identified significant concerns regarding SW compliance. A survey of IT professionals was conducted in May 2008. The goal of the survey was to gather data about the current state of SW license compliance in corporate IT, including existence of unlicensed SW, efforts being made to ensure compliance, and perceptions of the impact of SW audits on IT teams.  73% of IT executives and managers believe they are not prepared for a SW audit  69% of participants are not confident that they are fully in compliance with SW license agreements  67% of IT executives and managers do not believe their companies have taken appropriate steps to ensure compliance  60% of IT executives and managers believe they have unlicensed SW deployed  56% of participants track software assignments manually or not at all  32% of total participants believe they are prepared for a SW audit  16% of participants can automatically report on compliance; 20% are unable to report on compliance at all  8% of participants have a fully automated process for tracking SW license compliance Source: King Research, May 2008Copyright © 2009 The W Group. All rights reserved. 5
  • 6. The W Group can help you better understand your complex SW environment, minimize your compliance risk and optimize your spend.• Do I have a SW compliance issue? License Models• Do I have proof of purchase of my SW license(s)? er Per Per Value Per r Us MIPS Per Server CPU Core Units Device Pe• Do I have a handle on where all of my SW is O/S License deployed? Grant• Is my company at risk if there is a SW License Agreements Acquisition audit? Software Types Database Records e Op nc tim• Have I bought more software than I am l ia SW p iza using? m Inventory Warranty Middle Ware Co tio n• Am I paying maintenance for unused software? Application SW SW Maintenance/ Acquired Metering Support• Does my team have the right tools, processes, skills and knowledge? Infrastructure Management Indemnification• How effective is my IT Asset Management Client Responsibility program? n a tio Pricing• Are there better licensing models that I can liz Virtualization ua deploy? (i.e. user v. CPU) V i rt Mainframe Unix/Linux Intel Desktops PDA’s• Is my software pricing competitive?• Are my software agreements terms flexible? Hardware Platforms Copyright © 2009 The W Group. All rights reserved. 6
  • 7. The W Group is focused on industry best- practices. The W Group uses processes and best-practices from the International Association of Information Technology Asset Managers (IAITAM) and the Information Technology Infrastructure Library Version 3 (ITIL V3). The W Group… …has IAITAM Certified advisors. …is an IAITAM Provider Member firm. …has ITIL V3 Certified advisors. …is an experienced firm in ITIL implementation.Copyright © 2009 The W Group. All rights reserved. 7
  • 8. The W Group has many offerings to address your Software Asset Management needs. Software Asset Management SAM Program Design SAM Program Assessment Compliance Assessment SW Licensing Strategy SW Deployment Strategies Assisted Self-Audit Virtualization Impact Analysis Compliance Audit Support Server Consolidation Impact SW Inventory Service Maintenance Renewal Analysis License Agreement Analysis IT Asset Optimization StudyCopyright © 2009 The W Group. All rights reserved. 8
  • 9. The W Group also has service offerings centered around SW sourcing and contract negotiations. Information Requirements Actions/Output Develop/ The W Group License Execute Analyze Negotiate/ Offerings Strategy Reqmts. Agmts. Strategy & Assess Report SW Sourcing SW Contract Negotiations Contract Reviews Competitive Pricing AnalysisCopyright © 2009 The W Group. All rights reserved. 9
  • 10. The W Group delivers results through the use of our tools, templates and resources, each customized to meet your needs. Process & Procedures Data Gathering Software Maintenance Invoice Processing Vendor sends maintenance • SW license agreements renewal quote to Analyst two months before end of term. 1.1 Cost Savings Opportunities Vendor Vendor re-submits quote. 1.4 • Entitlement/ordering process Prepare purchase Send email to vendor Does the requisition with quote requesting new quote Analyst invoice pricing align on behalf of Asset and reason for No Yes with the contract? Owner in purchasing rejection. • Purchase order history 1.2 system. 1.3 1.5 A A Asset Owner Review purchase Did you Send email to requisition and confirm • Acquisition data from SW Reseller approve the purchase Analyst with reason software is in use and that No requisition? for rejection. the SLAs are appropriate. 1.7 1.8 1.6 Procurement Generate the purchase order. • SW deployment/inventory data 1.9 Accounts Payable • Metering/usage information Assessment and Analysis Software License Management Maturity Model • Non-compliance analysis Level Ownership Tracking This is sample language from our Softwrae license Deployment Tracking This is sample language from our Softwrae license Utilization Tracking This is sample language from our Softwrae license Compliance Monitoring This is sample language from our Softwrae license Governance This is sample language from our Softwrae license Agreement Processes This is sample language from our Softwrae license Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Model template Model template Model template Model template Model template Model template Software Compliance and • License optimization analysis Optimizing 4 This is sample language This is sample language This is sample language This is sample language This is sample language This is sample language from our Softwrae license Management Maturity Model template from our Softwrae license Management Maturity Model template from our Softwrae license Management Maturity Model template from our Softwrae license Management Maturity Model template from our Softwrae license Management Maturity Model template Maintenance Payment Schedules from our Softwrae license Management Maturity Model template Deliverables Advanced 3 This is sample language from our Softwrae license Management Maturity This is sample language from our Softwrae license Management Maturity This is sample language from our Softwrae license Management Maturity This is sample language from our Softwrae license Management Maturity This is sample language from our Softwrae license Management Maturity Initial Future This is sample language from ourProduct license Softwrae Product Discount Vendor Discount Discount Term Mntce Fees COLA Management Maturity Renewal Term Auto- Renew? Notice Parking Hours of Service Period Lot Maintenance Coverage Levels Reinstatement fees Model template Model template Model template Model template Model template Sybase template Model 60% 50% 5 yrs 17% of Net 3% 1 yr Y 30 Days Y 24 x 7 Gold Retro $ + 17% of Net BEA 20% 10% 2 yrs 21% of List CPI 1 yr Y 90 Days N 24 x 7 NA Retro $ + 21% of List EMC eRoom 45% 3 yrs 22% of Net 3% 1 yr Y 30 Days N 24 x 7 NA Retro $ + 22% of List • Compliance reporting Evolving 2 This is sample language This is sample language This is sample language This is sample language This is sample language This is sample language from our Softwrae license from our Softwrae license from our Softwrae license from our Softwrae license from our Softwrae license Sample Compliance and Utilization Model from our Softwrae license Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Product & Actively Model template Model template Model template Model template Model template Vendor template Model Description License Type Entitlement Deployed Compliance Used Shelfware Notes Sybase PowerBuilder Named User 80 55 25 45 35 BEA WebLogic CPU 35 45 -10 45 0 Basic 1 • Risk mitigation strategy This is sample language EMCThis is eRoom language User This is sample language This is sample language This is sample language This is sample language sample 5000 4500 500 3900 500 - 1100 from our Softwrae license from our Softwrae license from our Softwrae license from our Softwrae license from our Softwrae license from our Softwrae license Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Management Maturity Model template Model template Model template Model template Model template Sample Invoice Model Model template Term Safeway Vendor Product Qty Lic Type Location Cost Start Term End Contact Chaos 0 Sybase PowerBuilder 80 Perpetual User Walnut Creek $ 90,000 1/1/08 12/31/08 Friedel • Detailed cost savings opportunities Source: The W Group, Gartner Group BEA EMC WebLogic eRoom 35 5000 Sample Maintenance Payment Schedule Perpetual User Perpetual User Walnut Creek Walnut Creek $ 65,000 $ 100,000 1/1/08 7/31/08 12/31/08 Friedel 8/1/09 Friedel Vendor Product Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Total Sybase PowerBuilder $ 90,000 $ 90,000 • Process design documentations BEA EMC WebLogic eRoom $ 65,000 $ 100,000 $ 65,000 $ 100,000Copyright © 2009 The W Group. All rights reserved. 10
  • 11. The W Group’s offerings will be customized to meet your needs. Timelines will vary based on scope and complexity. Data Gathering 0 days - 3 weeks Discovery 2 days – 10 days Utilization 4-6 weeks Analysis and Assessment 2 -3 weeks Recommend 1-1.5 weeks 6 weeks total Note: This sample shows a typical SW license compliance assessment.Copyright © 2009 The W Group. All rights reserved. 11
  • 12. Practical. Adaptable. Experienced.  Our consultants are: — All senior-level professionals with an average of 20 years’ experience — Focused on using practical management techniques that produce rapid improvements — Skilled at working with executive management and dealing with a broad range of cultural and jurisdictional issues — Adept at bridging the communications gap between technology and business metrics — Experienced in both business processes and information technology — Dedicated to producing value for our clientsCopyright © 2009 The W Group. All rights reserved. 12
  • 13. Examples of our Fortune 500 software asset management and vendor management experience  Kevin O’Hara:  Mark Vandergast:  Stephen LeVine: 6 years in software solution 20 years in strategic sourcing, 24 years in strategic sourcing, design, implementation, and vendor management, finance, vendor management, finance, complex software license logistics and operations logistics and operations agreements. management management Experience in pharmaceutical, Experience in pharmaceutical, Experience in insurance, healthcare, banking, healthcare, banking, healthcare, banking, warehouse manufacturing, distribution, distribution, computer services and distribution, construction, insurance, technology industries manufacturing, facilities Practical knowledge of software Practical knowledge of best Practical knowledge of best compliance, IT Asset practices in strategic sourcing practices in strategic sourcing, Management program design, and vendor management vendor management, domestic complex software licensing, Led IT sourcing team and international BPO vendor software agreements. responsible for $200M in Led multiple sourcing Led many internal audits for managed SW spend and organizations for fortune 500 clients leading to penalty achieved 10+% year over year companies, influencing spend in avoidances of up to 90%. savings the billions of dollars while Identified an auditor mistake Personally negotiated over 125 consistently delivering hundreds that led to an $800k savings. IT contracts of millions of dollars in savings "Competition takes place between supply chains, not individual firms." Dr. Simon Croom, Executive Director of the Supply Chain Management Institute at the University of San DiegoCopyright © 2009 The W Group. All rights reserved. 13
  • 14. The W Group has delivered results for our clients. A Midwest manufacturing company A multinational pharmaceutical firm was facing a software compliance was informed that a SW vendor audit bill for non-compliance in suspected it was under-licensed. The excess of $800K. After analysis by a W Group helped the firm optimize its W Group advisor, several major licensing and negotiated a SW miscalculations by the audit firm purchase which resulted in $300K+ in were identified and the compliance savings over 3 years and a new bill was reduced to a little over MSLA with improved T’s and C’s. $100K, a savings of $650K+. A Northeast financial services firm A multinational pharmaceutical firm engaged The W Group prior to was issued a $1.7M invoice for signing a proposed enterprise SW unauthorized SW use. The W Group agreement. Based on our analysis, helped the firm optimize its licensing the firm negotiated an additional $2M and successfully negotiate the non- in savings and secured improved compliance fee to $150K, a savings T’s and C’s. of $1.55M.Copyright © 2009 The W Group. All rights reserved. 14
  • 15. Quotes from our clients“I would enthusiastically recommend your firm to anyoneNeeding contract development expertise.Equally important, I look forward to doing more businesswith you in the future.”Mark A. RitterChief Operating OfficerCommerce Bank “The W Group did an excellent job reviewing our IT Services and Purchase Agreements helping us achieve savings and organizational improvements.” Robert Pompey Senior Vice President IT Operations TD Bank The W Group provided knowledgeable experts who reviewed our maintenance spend and helped us identify savings opportunities. This led to a 22% reduction in our server hardware maintenance.“ Ryan Steinberger Vice President Wyeth PharmaceuticalsCopyright © 2009 The W Group. All rights reserved. 15
  • 16. Contact information Harry Wallaesa President and CEO (610) 213-4701 hwallaesa@thinkwgroup.com Please Visit Us At www.ThinkWGroup.comCopyright © 2009 The W Group. All rights reserved. 16