IT Cost Optimization POC Highlights: Creating Business Value from Software Usage Metering


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You probably know that some software at your organization is underused or unused. But did you know that the full extent of the waste can be almost invisible when usage is tracked conventionally?
Without an unconventionally rigorous, almost forensic level of real usage tracking, you are spending more than you should on software. Read how one company discovered that almost 30% of their applications were under-used or not used at all, using this unconventional approach.

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IT Cost Optimization POC Highlights: Creating Business Value from Software Usage Metering

  1. 1. IT Cost Optimization POC Highlights: Creating Business Value from Software Usage Metering A SCALABLE SOFTWARE CASE STUDY Situation Analysis Of installed applications that were analyzed, an average of 30% showed as underutilized or as never used. Company Profile. The company is a mid-sized utility company that wished to remain anonymous for this proof of concept (POC) report. The project was initiated by IT asset management, IT Finance, and Procurement teams; the organization has 1500+ employees, serving over 550,000 customers. Current State. Historically, both the purchasing and IT departments have had a limited ability to optimize their application portfolio because they lacked: • A business intelligence reporting system designed for software asset management and cost reduction. • Complete and accurate inventory of all software products installed on each device. • Actual usage of the software on each device, including browser-based applications. • Total cost impact of the software portfolio based on end user demands and usage patterns. This was due to the distributed nature of the environment, the processes through which software has historically been purchased and deployed, and limitations in current processes used to manage IT costs. Key Business Drivers. Balancing cost optimization with the company’s key business considerations. In reviewing the current state, the following key business drivers were identified: • Maintain associate and customer productivity. Assure that desktop users have exactly the software they need, no more and no less. Deploy free “reader” versions of licensed software to associates whose usage patterns are low. Figure 1. License usage reports can be run on all applications installed and/or used. Additionally, drill-down is supported to reveal a list of machine names and additional data. 1-866-722-5225 • Reduce the demands on IT helpdesk. Improve internal communication and minimize the complexity of helpdesk calls by optimizing the software portfolio in line with usage. Change IT buying patterns to support only the applications proven to be used by employees.
  2. 2. Over three years, roughly $450,000 in total savings are projected. ROI for an enterprise-wide deployment is <12 months. • Reduce compliance risk. By understanding the compliance position, ensure usage is aligned with entitlements, and reduce software audit impacts. • Optimize IT costs and increase cost transparency. Identify and reduce waste in IT assets, including software licenses and maintenance costs. Proof of Concept (POC) The company defined these critical objectives: • Can a software usage metering product provide reliable information for what is installed and used on each endpoint? • Can the product be deployed with no disruption to the company’s associates and customers? • How significant is the opportunity to optimize the licensing strategy and cut wasteful spending? • Can Scalable’s products provide a shared information platform for Procurement and IT Operations teams to monitor asset utilization, compliance, inventory, and cost containment? • Can this approach to IT cost optimization provide future savings? POC Scope and IT Impact. Scalable’s product was deployed within the company’s network for approximately 30 days. 933 machines, or about 62% of the IT estate, received agents. The outcomes discussed are based on real inventory discovery and real usage patterns collected from endpoint machines, including Windows desktops, laptops, and servers. The POC targeted these applications: • Desktop applications: Microsoft Office editions, MS Visio, and MS Project • Business applications: Oracle, Hummingbird, Lotus Notes, and AutoCAD Figure 2. Real application usage time is reported automatically by Scalable Software. • Web applications: Peoplesoft and Oracle Financials POC Findings • The opportunity to cut waste by optimizing software licenses was massive. Of installed applications that were analyzed, an average of 30% showed as underutilized or as never used. • Scalable’s product did provide a reliable understanding of what is installed and used on each machine. The product identified all applications, not just the targeted applications. • Scalable’s product was deployed with no disruption to the company’s associates and customers. Data showed 100% success in deployment with no negative impact on network traffic or end-user access. 1-866-722-5225 2
  3. 3. “Usage information combined with license consumption data helped reveal software overspending. “Through the reports Scalable provided, we saw that a majority of installed licenses for Project and Visio 2007/2010 are not being used at all. “Having the ability to trend this information over time will prompt a spending freeze and an opportunity to recycle unused licenses.” - Senior IT Systems Administrator • During the POC, Scalable’s products did provide a shared information platform for all Procurement and IT Operations teams. Reports can be defined to meet specific role or user needs, shared per defined schedules, and are easily exported. In addition, both the Procurement and IT Operations teams could share information related to hardware device usage, hardware changes and new machine discovery. • Future savings in excess of $450,000 are possible. Based on the size of the IT estate and fair market value of assets analyzed, projected additional savings over three years exceeded $450,000. Conclusion After review, the company estimated their return on investment with an enterprise-wide deployment of Scalable’s software usage metering to be 4X in less than 12 months. The question was no longer “should we do this?” but “how quickly can we get this done?” Further, since it is a best practice for IT cost optimization to be a continuous process, the ease of reporting and increased potential for collaboration among procurement, finance, and IT means benefits can continue to accrue. The POC for this company provided evidence that Scalable’s products could turn the promise of IT cost optimization—radically cutting IT waste to fund strategic innovation—into reality. About Scalable Scalable Software, an innovator in IT Asset Management software since 2008, publishes the WinINSTALL suite of products and is the company behind Asset Vision®, a unified Cloud-based ITAM tool. Asset Vision optimizes IT costs, and slashes the cost of administering, supporting, and updating traditional on-premise ITAM solutions. For more information: or © 2013 Scalable Software, Inc. All rights reserved. Scalable, the Scalable logo, Asset Vision, WinINSTALL, and Scalable LIVE! are registered trademarks of Scalable Software, Inc. All other marks are the property of their respective owners. 1-866-722-5225 2013CS00911 3