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Deploying Leading Edge Controls        to Rein inGlobal Software Expenses
Agenda Murphy E&P Overview Software Asset Management Foundation Deployment of Leading Edge Controls Software Savings W...
MurphyExploration & Production $23 billion revenue in 2010 5 primary E&P offices      Houston (E&P Headquarters)      ...
Software Asset Management        Foundation Business “buy-in” at the highest level possible      Business Champion to su...
Tools Deployed to    Monitor Software Usage   Software license monitoring and tracking application   Capability to track...
Scope, Cost and Timing    of Process Tool Chosen   Implemented OpenIT “License Analyzer” in March 2008   Invested $41,00...
Identifying Surplus Licenses          Led to Significant Savings   Transferred 6 licenses from Houston to Perth office   ...
Savings from Utilization of               Surplus Licenses   Transferred 2 licenses from Houston Domestic to Internationa...
Murphy Savings 2008-2009   M&S reductions        License monitoring indicated we were carrying M&S on an excessive numbe...
2011 Updates Implementing OpenIT globally within Murphy E&P      OpenIT “License Analyzer” implementation Centralized d...
Summary   Initial investment of $43,000 has recognized tangible cost savings of $1,388,550   Currently testing “license ...
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Murphy Oil used Open iT software asset management tools to cut global software costs.

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Murphy Oil used Open iT software asset management tools to cut global software costs.

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Transcript of "Murphy Oil used Open iT software asset management tools to cut global software costs."

  1. 1. Deploying Leading Edge Controls to Rein inGlobal Software Expenses
  2. 2. Agenda Murphy E&P Overview Software Asset Management Foundation Deployment of Leading Edge Controls Software Savings Within Murphy E&P 2011 Updates
  3. 3. MurphyExploration & Production $23 billion revenue in 2010 5 primary E&P offices  Houston (E&P Headquarters)  Calgary, Canada  Kuala Lumpur, Malaysia  Jakarta, Indonesia  Perth, Australia Retail business  1300 gas stations in US (Wal-Mart)
  4. 4. Software Asset Management Foundation Business “buy-in” at the highest level possible  Business Champion to support IT Centralized IT support organization  IT SPOC accountable for managing software portfolio Application portfolio  Need to know “what “ software you have. Software reporting capability  Need to know “how” and “who” is using the software. Effective communication and accountability  Monthly usage reports
  5. 5. Tools Deployed to Monitor Software Usage Software license monitoring and tracking application Capability to track both Windows and UNIX applications Generate detailed concurrent usage reports at both the application and end user levels Capability to “release” application licenses during extended period of inactivity
  6. 6. Scope, Cost and Timing of Process Tool Chosen Implemented OpenIT “License Analyzer” in March 2008 Invested $41,000 including M&S for a 35 end user seat license Leveraged existing hardware infrastructure Invested $2,000 on administration training Initial focus on expensive GGRE subsurface applications
  7. 7. Identifying Surplus Licenses Led to Significant Savings Transferred 6 licenses from Houston to Perth office  License usage monitoring determined Houston had surplus licenses  Transfer cost $26,160  Cost to purchase including first year M&S $158,688  Total savings $158,688 - $26,160 = $132,528 Transferred 2 licenses from Houston to Perth office  License usage monitoring determined Houston had surplus licenses  Transfer cost $15,400  Cost to purchase including first year M&S $117,768  Total savings $117,768 - $15,400 = $102,368 Transferred 2 licenses from Houston to Perth office  License usage monitoring determined Houston had surplus licenses  Transfer cost $44,620  Cost to purchase including first year M&S $320,592  Total savings $320,592 - $44,620 = $275,972
  8. 8. Savings from Utilization of Surplus Licenses Transferred 2 licenses from Houston Domestic to International  License usage monitoring determined Houston Domestic had surplus licenses  Transfer cost $0  Cost to purchase including first year M&S $ 320,592  Total savings $320,592 Two (2) requests by exploration business to purchase additional license  License usage monitoring determined existing 3 licenses were being checked out 24/7 by end users  More aggressive license management and end user communication on software costs and best practices resulted in sufficient leveraging of existing 3 licenses and no need to purchase additional license  Cost to purchase including first year M&S $181,782  Total savings $181,782 Additional software requests for new RE contractors  Request to purchase 3 core licenses  License usage monitoring of existing licenses determined only (1) additional core license required  Cost to purchase including first year M&S $88,058  Total savings $88,058
  9. 9. Murphy Savings 2008-2009 M&S reductions  License monitoring indicated we were carrying M&S on an excessive number of applications.  Reduced M&S on one application from 24 to 18  Annual cost savings $15,912  Reduced M&S on a second application from 8 to 6  Annual cost savings $13,248  Reduced M&S on a third application from 21 to 19  Annual cost savings $ 35,616 Domestic and International TCE merge  As a result of merging TCE which includes merging license servers and applications the following annual cost savings will be recognized.  Reduction of M&S for one application $9,576  Reduction of M&S for a second application $3,024  Reduction of M&S for a third application $133,266  Reduction of M&S for a fourth application $18,288  Reduction of M&S for a fifth application $19,080  Reduction of M&S for a sixth application $10,968  Reduction of M&S for a seventh application $28,272
  10. 10. 2011 Updates Implementing OpenIT globally within Murphy E&P  OpenIT “License Analyzer” implementation Centralized data collection server (Houston)  Local BU concurrency reports  Global concurrency reports Upstream software focus verses Exploration  2011 Goal to track 80% of Upstream applications Global WAN license agreements
  11. 11. Summary Initial investment of $43,000 has recognized tangible cost savings of $1,388,550 Currently testing “license optimizer” functionality which will allow application licenses to be released when an end user’s machine remains idle for an extended period. Extended deployment of “license analyzer” functionality has the potential to increase savings further and provide better management of our existing software investment. Look at opportunities to deploy “License Analyzer” on additional (Upstream) applications Looking into global WAN software agreements
  12. 12. Thank you for your time and attention! Questions?
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