Software Asset Management

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How to maximise the benefit of your software costs in compliance with the software licence agreements? …

How to maximise the benefit of your software costs in compliance with the software licence agreements?
How an enhanced software asset management can help optimizing your IT costs?

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  • 1. Contract Compliance ServicesSoftware License / Asset Management (SAM)Getting back in controlADVISORY
  • 2. Key issues Issue Examples Impacts  Software agreements Overhead  Entitlements and restrictions are not always properly understood by those of responding to operating the software (e.g. system administrators and end users) inbound audits  Ambiguous terms can compound compliance issues; for example, even if the software has not been accessed, it can be deemed as in ‘use’ if available Liabilities Under for unplanned licensing g  In-bound vendor audits expenditure  Vendors are increasingly invoking their right to audit; this increased level of Reputation threat means that end users need to proactively address under-licensing over legal matters  Audits may result in paying back maintenance charges as well as settlement on unpaid licenses  Software surplus “shelf ware”  Software is being purchased even though ‘spare’ licenses already exist or just Financial too difficult to harvest losses in buying  Unnecessary software renewals are being made for software that is obsolete or more than Over required no longer in use (e.g. p g ( g post rationalisation / merger) g ) deployment Efficiency  Systemic configuration errors in not using assets  Software can be inadvertently made available across an entire IT estate (e.g. available added to the standard build / image)  Development, test and DR plat o s can be introduced into p oduct o evelop e t, a d platforms ca t oduced to production environments without a full understanding the license implications © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 1
  • 3. Value proposition We assist our clients to :  Better understand the risks and exposures faced relating to software licensing  Develop a plan that would enable them to implement effective Software Asset Management practices In implementing the plan, this will: p g p , • Better understand and manage license entitlements, locally and globally Improve management practices • Reduce software license compliance risks that could impact budgets and reputation • Enhance the existing processes to better manage costs • Identify areas where under utilised software can be reallocated or removed Identify opportunities to reduce costs • Provide better levels of awareness amongst the user communities to support the reallocation and/or retirement of under-utilised software • Better manage and respond to software vendors requests for reports on the utilisation of Improve vendor software management • Structure better commercial licensing terms to fit current and future requirements © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 2
  • 4. Our approach to SLAM “Top Down” Assessment of Software Asset Management Review IT management g practices: design effectiveness practices (people, process, and technology competencies) ( l dt h l t i ) Only a combined approach provides complete SLAM transparency to root issues “Bottom Up” Deep dives of licenses and deployment ‘deep dives to positions: operating effectiveness obtain key license (variances between deployment and entitlement provide positions evidence of license usage) © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 3 3
  • 5. Methodology – test of design We meet with key stakeholders and discusses 20 domains for Software Asset “Top Down” Review IT Management . These components address Software Asset Management from the management perspectives of people, process, and technology. practices The Software Asset Management Workshop constitutes a high-level, top-down approach to understanding the current management practices. Each component is scored on a scale of 1-4 and the definitions for each domain component: SLAM  1 - Basic (Low Maturity)  2 - Standardized  3 - Rationalized “Bottom Up” ‘deep dives to  4 - Dynamic (High Maturity) obtain key license positions Basic Standardized Rationalized Dynamic y Generally, Entitlement has been SAM systemSoftware Licenses entitlement records Entitlement records and interfaces with vendor and Entitlement contracts are readily reviewed and validated and contracts are not by significant software system t d t to dynamically i ll Inventory readily available available track licenses vendors © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 4
  • 6. Example output – test of design This output shows the various levels of maturity against our 20 areas of assessment. We can use this to help highlight the gaps between current state (e.g. basic) and required state (e g (e.g. standardized). This also serves to help prioritise actions for example, address ‘basic’ aspects first. © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 5 5
  • 7. Methodology – deep dives The diagram below illustrates the two areas where would seek a license position on key selected products as part of our overall SLAM approach: Test of Design (IT Management) Test of Design (Vendor Management) Procuremen t Deployment Vs Vs Vendor Entitlement sales records Infrastructure data Scanned / paper Vendor purchase from inventories, tools copies of procurement history records & and scripts e.g. SMS ‘Deep Dive’ and financial records ‘Deep Dive’ finance Test of Test of Effectiveness Effectiveness The clouds represent the test areas (‘deep dives’) where would seek clarity on current capabilities to match software deployment with entitlements and commercial arrangements. © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 6
  • 8. Example output – test of effectiveness The output below illustrates the results of a point in time deployment and entitlement analysis which would lead to an Effective License Position that can be used to help address any surplus and shortfalls © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 7
  • 9. Why KPMG?• We have developed a unique methodology for SLAM, combining the principles from ISO 19770-1 framework and key aspects from ITIL’s service management model• Our definitions, ratings and output are used consistently on a global basis across our practices and we have recently conducted a survey of 1000 companies using this method. This provides KPMG with the unique ability to benchmark Software Asset Management maturity levels across peers and other industry sectors• In addition to providing independent client side SLAM services, we also work extensively with vendors, providing them with global license compliance programmes. This provides KPMG with an unparalleled depth of understanding of licensing models, products and platforms• In support of the tools and methodology that we have developed, we have a well trained and experienced set of SLAM practitioners; some of whom have helped develop methodologies and have practical delivery experience of ISO 19770-1 Current Future State State © 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 8