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IT Trends Set to Shape SAM: IBSMA Software Asset Management Summit, London 2014

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What will be your next SAM challenge: consumerization of IT, shadow IT, cloud-based software services, security and privacy? The rate at which technology is changing the business of IT makes the job of software asset managers even more challenging. This presentation aims to help Software Asset Managers stay one step ahead by explaining how the IT trends now gaining steam may affect you in the next five years.

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IT Trends Set to Shape SAM: IBSMA Software Asset Management Summit, London 2014

  1. 1. IT Trends Set to Shape SAM © Copyright 2014 BMC Software, Inc Jon Hall, Lead Product Manager BMC Software @JonHall_
  2. 2. © Copyright 2014 BMC Software, Inc. The shift to SaaS Devops and Super-Agility Hybrid Cloud Internet of Things
  3. 3. © Copyright 2014 BMC Software, Inc 1. The Shift to SaaS
  4. 4. The growth of SaaS “By 2016, IDC estimates about 25% of new business software purchases will be service-enabled PWC Global 100 Leaders Software Report 2014 © Copyright 2014 BMC Software, Inc software”
  5. 5. © Copyright 2014 BMC Software, Inc 5 SaaS Sprawl • Average of 700+ cloud services per company in large enterprises. • “Does your business have more cloud services than it needs?” YES 34% 48% 2010 2013 • 70% feel that a fifth or more could be consolidated
  6. 6. You can be non-compliant with SaaS! • Accessing the software from prohibited geographies • Sharing user accounts • Allowing systems to pose as users • Providing access to non-employees where such access is prohibited “Cloud Computing did not end license compliance worries, but rather created new ones” © Copyright 2014 BMC Software, Inc 6 Navigating the Cloud: Why Software Asset Management is More Important Than Ever. BSA (The Software Alliance), November 2013
  7. 7. Key Issues for Software Asset Management • New license models, more user-focused. • Traditional discovery doesn’t detect SaaS usage • External, invisible inter-connections between SaaS services • Difficult to centralize cost management - each service may have different cost model, API, etc. • A key “shadow IT” risk area © Copyright 2014 BMC Software, Inc 7
  8. 8. © Copyright 2014 BMC Software, Inc 2. DevOps and Super-Agility
  9. 9. © Copyright 2014 BMC Software, Inc What Is DevOps? “DevOps (a portmanteau of "development" and "operations") is a methodology of software development. It emphasises communication, collaboration and integration between software developers and information technology (IT) operations personnel” (Wikipedia) 9
  10. 10. What does this mean in practice? • Parallelized development processes • Streamlined processes • Rapid, incremental deployments © Copyright 2014 BMC Software, Inc 10
  11. 11. Traditional Software Development Lifecycle Linear Flow to Release Some friction between SLDC and ITIL - but low cadence “Life was simpler back then…” © Copyright 2014 BMC Software, Inc 11 Release Event SDLC ITIL Business Development Operations
  12. 12. DevOps Goals © Copyright 2014 BMC Software, Inc Release Event Time Release Event Time Frequent Release Events Smoother Effort Lower levels of accumulated change Less Risk “Change is flowing into production…”
  13. 13. Multiple Tiers Multiple Teams Multiple Environments Multiple Deploys © Copyright 2014 BMC Software, Inc 13 Portal DB Agile Team Dev QA Dev Ops SIT, Perf, UAT… Stage 5 5 1 5 3 1 2 1 1 3 1 4 2 1 2 3 Dev Dev Dev QA Prod Multiples of Everything
  14. 14. The Impact of DevOps’s Agile Pace Faster Releases run into Operational Controls Release Process is slow, manual and error prone BUT… it’s controllable, predictable, and a useful SAM input © Copyright 2014 BMC Software, Inc 14 Agile Release DevOps Event Gap Business Development Operations “Sprints” “Marathons”
  15. 15. The DevOps response Building Bridges with DevOps Methodologies DevOps teams, Infrastructure as Code, Toolchains Cloud Environments for Dev/Test CHALLENGES EXISTING SAM TOOLSETS! © Copyright 2014 BMC Software, Inc Agile Release DevOps Event Gap Business Development Operations
  16. 16. Key Issues for Software Asset Management • Multiplies pre-production environments. • Changes and Releases happen much faster: needs new methods of alignment to ITAM. • Can’t rely on basic discovery tools: They simply won’t keep up. • Periodic true-up is not enough. © Copyright 2014 BMC Software, Inc 16
  17. 17. © Copyright 2014 BMC Software, Inc 3. Hybrid Cloud
  18. 18. Cloud Infrastructure on the Rise Percentage of servers operated in global enterprises: 28% 6% 66% Private Cloud © Copyright 2014 BMC Software, Inc Public Cloud Physical Servers & Non-Cloud VMs 34% of enterprise servers already run in the cloud “Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations” Forrester, June 2013
  19. 19. Hybrid Cloud Delivery Architecture © Copyright 2014 BMC Software, Inc Private Cloud Location A Private Cloud Location B Infrastructure Policies Capacity CLOUD SERVICE GOVERNOR Licenses & entitlements Costs & billing
  20. 20. © Copyright 2014 BMC Software, Inc Service Options Infrastructure Models Application Model Cloud Service Offering How the service is structured. (Server roles, software components) How it is deployed and scaled for different purposes. Optional extras and variants. (e.g. additional capacity, premium support)
  21. 21. © Copyright 2014 BMC Software, Inc 4 x Dedicated Server 4 x Private Cloud VM 2 x Amazon AWS instance 4 x Amazon AWS Instance 1 x Amazon AWS Instance Perpetual Core-based license Perpetual Core-based license Per-User Subscription License Enterprise Hot-Standby License Enterprise Developer License 3 year review 1 year review 1 year review 1 year review 6 month fixed GOLD SILVER BRONZE License types depend on Service Offering
  22. 22. Limitations of Traditional Discovery 6am 9am Noon 3pm 6pm 7am discovery © Copyright 2014 BMC Software, Inc job 7pm discovery job DATABASE SERVER REPORTING SERVER Additional capacity automatically applied at peak time Additional capacity, and new (licensed) data transfer option spun up for reporting job
  23. 23. The Asset lifecycle in the Hybrid Cloud © Copyright 2014 BMC Software, Inc Select & Procure Provision & Record Deploy Discover & Reconcile Audit & Monitor Re-Harvest Retire Maintain & Support “Traditional Asset Management model”
  24. 24. The Asset lifecycle in the Hybrid Cloud © Copyright 2014 BMC Software, Inc 24 “Classic” Server SAM SAM in the Hybrid Cloud SELECT & PROCURE •Perpetual licensing •Maintenance renewals •CALs, capacity licensing •Subscription licensing •Subscription renewal •Translation of legacy terms PROVISION & RECORD •Server automation tools •Service instantiation •Server automation tools •CLM deployment DEPLOY •Installation projects •Server automation tools •Infrastructure refresh •CLM Service Governor •Migration DISCOVER & RECONCILE •Agent-based discovery •Agentless discovery •CLM data (volatile?) •Dependency mapping •Vendor usage data
  25. 25. The Asset lifecycle in the Hybrid Cloud © Copyright 2014 BMC Software, Inc 25 “Classic” Server SAM SAM in the Hybrid Cloud AUDIT & MONITOR •License consumption •Vendor audits •CLM Usage stats •Vendor stats MAINTAIN & SUPPORT •Maintenance Windows •Internal change management •Extend/reduce subscription END OF LIFE •Physical decommission •Migrate to new solution •End/renegotiate subscription •Reclaim data from vendor RE-HARVEST •Capacity reclamation •License migration •Budget reallocation
  26. 26. Key Issues for Software Asset Management • Basic discovery doesn’t provide the detail: need smart tools to read the required data • Potentially many more data inputs to SAM • “High Water Mark” is tough to track, but burden of proof still lies with the customer • Blurs lines between infrastructure and software © Copyright 2014 BMC Software, Inc 26
  27. 27. Continuous compliance, not periodic CONTINUOUS ENFORCEMENT Best Practices Report © Copyright 2014 BMC Software, Inc Remediate Audit Running Configuration Change Configuration Validate Consistent Configuration Differences
  28. 28. © Copyright 2014 BMC Software, Inc 4. The “Internet of Things”
  29. 29. Rise of the “Internet of Things” Number of internet-connected (excluding PCs, tablets, smartphones) © Copyright 2014 BMC Software, Inc devices 0.9 billion 26 billion 2009 2020 (“Forecast: The Internet of Things, Worldwide” – Gartner Report, 2013)
  30. 30. IoT means many more digital Assets Embedded in devices we already manage © Copyright 2014 BMC Software, Inc Embedded in non-IT business assets New, discrete connected items http://www.flickr.com/photos/sergesegal/
  31. 31. © Copyright 2014 BMC Software, Inc • ß The 2014 inventory store: -PCs and Laptops -Smartphones -Tablets -Printers -Consumables Coming soon… -Wearable devices -Smart meters -Standalone sensors -RFID equipment -Smart vehicle components
  32. 32. “Oracle’s Forklift” In this illustration, there are 15 devices in addition to 400 drivers. © Copyright 2014 BMC Software, Inc 415 “Named User Plus” licenses would be required. (Oracle Software Investment Guide) If the number of devices increased at the rate projected by Gartner, user license costs in this example would double.
  33. 33. Emergence of New Licensing Types “Manufacturers are increasingly looking to leverage the software assets embedded within their devices, including monetisation. In many cases, the software has previously been provided to customers along with the hardware, for no additional charge” “How Software Licensing Helps Manufacturers Generate Value from Embedded Software” - IDC Report, 2011 © Copyright 2014 BMC Software, Inc
  34. 34. Licensing the Internet of Things “If we don't have licensing, we don't have the whole picture” Andrew Gustavsson, manager, Central Licensing Center (CLC), Ericsson. “How Software Licensing Helps Manufacturers Generate Value from Embedded Software” - IDC Report, 2011 © Copyright 2014 BMC Software, Inc
  35. 35. A new shape to Asset licensing © Copyright 2014 BMC Software, Inc 35 Previously… Soon… Multiple devices, priced per unit Homogenous devices, priced by feature consumed
  36. 36. Key Issues for Software Asset Management • Proliferation of untracked employee devices • Entirely new types of software license • Non-IT departments buy equipment which carries Software Licenses • Non-discoverable licensed components • “I can see it, but I don’t know how much we’ve activated” © Copyright 2014 BMC Software, Inc 36
  37. 37. © Copyright 2014 BMC Software, Inc Afterword
  38. 38. “We find that some of the groups building out the cloud often inadvertently become the asset managers. People can accidentally take on the role of asset management without intending to.” Anthony Hillier, CTO of CiRBA, quoted in CIO.com, April 2014 © Copyright 2014 BMC Software, Inc Conclusion
  39. 39. The Future of Software Asset Management? • Asset Management risks being fragmented into silos in line with technology. • Smarter discovery tools become increasingly vital. • Redefine role to “Digital Asset Management”: • Encompass legacy and new, and manage transition. • Retain single information line on costs, dependencies, risks • SAM Toolsets must evolve, or become obsolete: • Significantly more data feeds (CLM, SaaS services, embedded systems…). • Shift from Discover-Calculate to embedded, real-time control. • Opportunity to provide CIO with predictive and proactive cost-management. © Copyright 2014 BMC Software, Inc 39
  40. 40. © Copyright 2014 BMC Software, Inc Questions? Jon Hall, Lead Product Manager BMC Software @JonHall_

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