IT Trends Set to Shape Software Asset Management (IBSMA SAM Summit June 2015)

—
Lead Product Manager, Enterprise ITAM
BMC Software
Twitter: @JonHall_
Jon Hall
IT trends set to shape Software
Asset Management
2015 SAM Summit, Chicago

+Virtualisation
Virtual machines
Network deployable software
Capacity-based licensing
2005-
2011
The PC Revolution
Physical machines
Point installs
Install-based licensing
1985-
2005
2015-
+The digital enterprise
Rapid shift to XaaS
Hybrid cloud
Containerization
Internet of Things
2011-
2014
+Cloud and mass mobility
Industrial virtualisation
Mass-mobility and BYOD
Usage-based licensing
As IT evolves, so does ITAM

—
01
The shift to Software as a Service

25% of new business
software purchases will be
SaaS by 2016
PwC, March 2014

Cloud Service Sprawl
0
200
400
600
800
1,000
Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015
923897
831
738759
626
545
Source: SkyHigh Networks Cloud Adoption and Risk Reports (quarterly)

“Cloud Computing did
not end license
compliance worries,
but rather created new
ones”
BSA, November 2013
You can be non-compliant with SaaS!

Accessing the software from prohibited geographies
Sharing user accounts
Allowing systems to pose as users
Providing prohibited access to non-employees
BSA guidance on ways to be non-compliant with SaaS:

Rapid shift to usage and subscription licensing
Sprawl and loss of visibility due to “Shadow IT” SaaS
procurement
Complex range of new pricing structures, perhaps based on
out-of-sight activity
SAM strategies built on legacy discovery tools may not adapt
to SaaS
Key challenges for Software Asset Managers

—
02
The Growth of the Hybrid Cloud

Hybrid Cloud is not a new trend
28% 6% 66%
Private
Cloud
Public
Cloud
Physical Servers &
Non-Cloud VMs
Even two years ago, 34% of
enterprise servers ran in
the Cloud
“Your Cloud Future Is Here - How IT Can Embrace The Business
Demand For Cloud And Exceed Expectations”
Forrester, June 2013

Private Cloud
Location A
Private
Cloud
Location B
Infrastructure
Policies Capacity
Costs/BillingEntitlements
CLOUD SERVICE
BROKERPPortal
Provisioning services in the hybrid cloud

4 x Amazon AWS Instance Enterprise Hot-Standby License 1 year review
1 x Amazon AWS Instance Enterprise Developer License 6 month fixed
4 x Dedicated Server
4 x Private Cloud VM
2 x Amazon AWS instance
Perpetual Core-based license
Perpetual Core-based license
Per-User Subscription License
3 year review
1 year review
1 year review
GOLD
SILVER
BRONZE
Provisioning services in the hybrid cloud

6am 9am Noon 3pm 6pm
DATABASE SERVER
7am 7pm
REPORTING
SERVER
Dedicated instance spun-up
for daily reporting job
Additional database capacity at
peak customer access time
Evening discovery jobMorning discovery job
Limitations of traditional discovery

Instantiate new server
instance in public cloud
Decommission IaaS instance
and reduce app subscription
count
Extend application
subscription to new cloud
instance
MOVERelocate server to new
Datacenter
ADDProvision and deploy
new physical server
DELETE
Remove and decommission
racked server, and reclaim
software licenses
CHANGE
Install application instance
on server
Transfer Amazon instance to
new Availability Zone
IT Asset Management for the New IT

2006
2008
Vendors: slow to react to changing infrastructure

Legacy tools and methods may not adapt to the new
datacenter reality
Service owners need better proactive analysis of software
costs
Multiple technology stacks can lead to silos
Vendors frequently fail to adapt license models in a timely
manner (if at all), leaving dangerous ambiguity

+Virtualisation
Virtual machines
2005-
2011
The PC Revolution
Physical machines
1985-
2005
2015-
+The digital enterprise
Hybrid cloud
Containerization
2011-
2014
+Cloud and mass mobility
Industrial virtualization
We’ve been here before…
Instance-based
licensing
CPU-based licensing
Core-based licensing
“Value unit” licensing
Dynamic capacity
licensing
?

“…The last round of simplification we did
was six years ago…
I’d say we succeeded on
simplification, and our
customer satisfaction numbers
plummeted for two and a half
years”.
Steve Balmer,
then Microsoft CEO,2011
It turned out that a lot of the footnotes, fine
print, the caveats, were there because
somebody had used them to reduce their
costs…

So what is Containerization…?
HARDWARE
HOST OPERATING SYSTEM
APPS APPS APPSAPPS
OS OS OSOS
HYPERVISOR
Virtual Machines
HARDWARE
HOST OPERATING SYSTEM
Containers
APP
APP
APP
APP
APP
APP
APP
Libraries Libraries
(…and why should we care?)
DOCKER ENGINE

“For one simple reason: You
can stick a lot more
containers on a single server
than you can VMs.
How many more? Try two to
three times more!”
Steven J. Vaughan-Nichols,
in ZDNet, 2014.

Oracle 11g Enterprise Edition
So… what’s in that Container?

So… what’s in that Container?
IBM MQ Advanced for Developers

Ultra-rapid technology growth means more vendor
inconsistency, and creates silos
Legacy tools and methods may not adapt to disruptive new
means of deploying software
Vendors may fail to adapt license models in, or prohibit new
styles of deployment altogether
Disruptive new generation of applications tailored to run in
containers?

The rise of the Internet of Things
0
5
10
15
20
25
30
2009 2015 2020
4.9bn
0.9bn
Source: Gartner Predicts 2015: The Internet of Things
25bn
Number of connected
things (billion)

25% of new business
software purchases will be
SaaS by 2016
PwC, March 2014
Your current Asset
inventory store:
-PCs and Laptops
-Smartphones
-Tablets
-Printers
-Consumables
Coming soon to your IT
Asset inventory store:
-Wearable devices
-Smart meters
-Standalone sensors
-RFID equipment
-Smart vehicle components

“Oracle’s Forklift”
“First select appropriate services and
approve suppliers, and then
implement a framework that
addresses infrastructure holistically,
rather than allowing for the
proliferation of silos of capacity”
The 30 Forklifts and 15
Temperature Devices in
this example require 415
Named User Plus licenses
Projecting Gartner’s
prediction (2015-2020)
crudely onto this scenario
adds over 200 devices,
and +50% to the license
cost.
Oracle Software Investment Guide

“Today’s smart forklift includes
diagnostics that allow the
equipment to signal when it
needs to be serviced, speed
controls, anti-slip technology
that monitors wheel spin and
improves traction, collision
detection, fork speed
optimization,
and more…”
Forbes, 16th March 2015

“…to secure additional
revenue, manufacturers need
to recognize the role that
embedded software and
applications play in the IoT, and
they need to monetize this
value”
Gartner - Software Licensing and Entitlement Management Is the Key
to Monetizing the Internet of Things (April 2014)
Laurie F.Wurster, Gartner

Device licensing is already here
“We use licensing and entitlement
management systems to develop new
offerings”
“Research Report: The Third Industrial Revolution. Intelligent
Devices, Software and the Internet of Things.
(Flexera and IDC, February 2015.
60% 17% 23%
“We will do this over
the next 12-24
months”
“We have no
plans to do
this”

Hardware and Software Asset Management align
Different devices, priced per
unit
Homogenous devices, priced by
feature consumed
Before… Now…

Legacy discovery tools may not adapt to discovering multiple
new classes of IP-connected devices
Even when the device is visible, it may not be clear what
licensed options have been purchased
Risk of rapid growth in consumption and exposure for existing
licenses
IT may have no mandate to control purchasing and spend of
licensed devices used in other areas
(And… you’re suddenly a Hardware Asset Manager too!)

Technology is rapidly evolving on multiple fronts, and IT Asset
Management risks being fragmented or left behind
Traditional “discover and reconcile” ITAM is still valid, but it
must be combined with new data and methods
As IT shifts from the backroom to the frontline of digital
business, the need for proactive compliance and software cost
optimisation increases
Nobody is better placed than the IT Asset Manager to provide
holistic and proactive oversight to the CIO
Key takeaways

—
Thank You
—
Bring IT to Life.™
Twitter: @jonhall_
SlideShare: jonhall7

References
S5: PWC Global 100 Software Leaders: The growing importance of apps and services
http://www.pwc.com/en_GX/gx/technology/publications/global-software-100-leaders/assets/pwc-global-100-software-leaders-2014.pdf
S6: IDC Worldwide SaaS Enterprise Applications 2014-2018 Forecast and 2013 Vendor Shares
http://www.idc.com/getdoc.jsp?containerId=252568
S7: SkyHigh Networks Cloud Adoption and Risk Reports (1-7)
https://www.skyhighnetworks.com/cloud-report/
S8: BSA: NAVIGATING THE CLOUD: Why Software Asset Management Is More Important Than Ever
http://portal.bsa.org/samcloud/bsasamcloud.pdf
S12: “Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations” Forrester, June 2013
http://documents.bmc.com/products/documents/35/77/443577/443577.pdf
S15: CIO.com: 5 Misconceptions of Cloud Software and Virtual Licensing
http://www.cio.com/article/2387027/cloud-computing/5-misconceptions-of-cloud-software-and-virtual-licensing.html
S18: Announcing Amazon Elastic Compute Cloud (EC2) - 24th August 2006
http://aws.amazon.com/about-aws/whats-new/2006/08/24/announcing-amazon-elastic-compute-cloud-amazon-ec2---beta/
Licensing Oracle Software in the Cloud Computing Environment (c.2008)
https://web.archive.org/web/20100311022227/http://www.oracle.com/corporate/pricing/cloud-licensing.pdf
S21: Steve Balmer Youtube video, uploaded 5th October 2009
https://www.youtube.com/watch?v=NIN4g8cB_xg

References
S24: Docker 1.0 brings container technology to the enterprise (ZDNet, 9th June 2014)
http://www.zdnet.com/article/docker-1-0-brings-container-technology-to-the-enterprise/
S25: Docker Hub registry image (unofficial) for Oracle Enterprise Edition
https://registry.hub.docker.com/u/filemon/oracle_11g/
S26: Docker Hub registry image for IBM MQ Advanced
https://registry.hub.docker.com/u/ibmimages/mqadvanced/
S29: Gartner Predicts 2015: The Internet of Things (via ZDNet : Gartner predicts a quarter billion connected vehicles by 2020, 27th January 2015)
http://www.zdnet.com/article/gartner-predicts-a-quarter-billion-connected-vehicles-by-2020/
S31: Oracle Software Investment Guide
S32: Steve Banker: The Intelligent Forklift in the Age of the Industrial Internet of Things (Forbes, 3rd March 2015)
http://www.forbes.com/sites/stevebanker/2015/03/16/the-intelligent-forklift-in-the-age-of-the-industrial-internet-of-things
S33: Gartner: Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things (April 2014)
http://www.gartner.com/newsroom/id/2700017
S34: The Third Industrial Revolution. Intelligent Devices, Software and the Internet of Things. IDC/Flexera
via http://www.flexerasoftware.com/producer/company/news-center/press-releases/IDC-Report-IoT-Intelligent-Devices-Software-Monetization-Are-Propelling-
Third-Industrial-Revolution.html
PHOTO CREDITS (used via Creative Commons licensing)
S15 (Silos): https://www.flickr.com/photos/kh-67/4892949459/
S24 (Containers): https://www.flickr.com/photos/on1stsite/2906484311/
S30 (Asset store): https://www.flickr.com/photos/mwichary/3301333726

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