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Webinar: How to get started on a Software Asset Management program


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How to get started on a Software Asset Management program
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Webinar: How to get started on a Software Asset Management program

  1. 1. Webinar: How to Get Started on an Optimized SAM Program November 17, 2011
  2. 2. Speakers for Today’s Webinar David Lerch Director of Consulting Services at Flexera Software John Emmitt Sr. Marketing Manager at Flexera Software2 © 2011 Flexera Software, Inc.
  3. 3. Industry Trends & Economic Backdrop • Global Economy – M&A / Divestiture activity – Cost reduction & budget constraints– e.g. US Federal Govt mandate to reduce IT costs • Audits • IT Technology / Business Model Changes – Desktop & App Virtualization – Public and Private Cloud; SaaS model • IT as a Business3 © 2011 Flexera Software, Inc.
  4. 4. Why do you need a SAM Program? • Drivers – Budget Constraints – Audit Risk – Complexity- Licensing, IT environment, Organizational • Evolving Role of IT Asset Management Industry Analyst Perspective – Gartner IT asset management (ITAM) is rapidly evolving from a basic asset inventory monitoring and reporting role to a core financial discipline. As ITAM matures, its ability to deliver accurate and timely financial management data and insight will become its core value proposition and increasingly strategic to executive management4 © 2011 Flexera Software, Inc.
  5. 5. SAM Objectives An effective Software Asset Management (SAM) and License Optimization program enables pro-active, continuous management of your software license estate through: • Reduced license compliance risks and associated adverse budget impacts • Elimination of over-buying of software (use what you have, only buy what you need)  Cost Savings and Cost Avoidance  Contract Negotiation Power • Chargeback / cost allocation to the lines of business • Improved IT Operational Efficiency Out of $ Over-Licensed Optimal Compliance $5 © 2011 Flexera Software, Inc.
  6. 6. What’s the Cost of Doing Nothing? Real Customer Example of Business Issues • Lack of transparency around SAM / ITAM – Low visibility of hardware and software assets across Business Units • Lack of control over annual software spend − Lack of information required for true-up negotiations  Poor negotiating leverage − Over-buying of software • Audits and unbudgeted expense • High operational and contract management costs6 © 2011 Flexera Software, Inc.
  7. 7. First StepsAssess your current state of SAM maturityDefine your desired End State Automated entitlement based license management Level 4 and optimization; Minimize license consumption and Optimized software spend Automated purchased vs. installed license Level 3Return on Investment Continuously reconciliation; SAM processes to manage contracts Enterprise License Optimization Compliant and maintain continuous license compliance Perform purchased versus installed license Traditional SAM / ITAM Level 2 reconciliation on an ad hoc basis; point-in-time Managed management of licenses and contracts Level 1 Identify software and hardware installed Installed7 © 2011 Flexera Software, Inc.
  8. 8. Perform a Gap Analysis • Where are you relative to SAM best practices? • How well does the organization accept change? • ISO 19770-1 – 27 SAM process areas to assess • Assess gaps relative to People, Process, Technology8 © 2011 Flexera Software, Inc.
  9. 9. Approach SAM Holistically Manage the Full Software Asset LifecyclePeople: RequestRequires Executive Sponsorship,Defined Roles & Responsibilities Retire Optimize Optimize ApproveProcess: PeopleThe success of any SAM projectrelies upon the definition of Optimize Optimizebusiness Processes Technology Process Upgrade PurchaseTechnology:Select the Technology solution Optimize Optimizethat is consistent with yourobjectives Manage Deploy9 © 2011 Flexera Software, Inc.
  10. 10. ISV Market Share The Approach Microsoft 24.37% IBM 10.89% • Gain Executive / Key Stakeholder buy-in Oracle 8.65% SAP • 5.72% Leverage Industry Standards (ISO, ITIL) Nintendo 3.57% • Focus on Quick Wins HP 3.08% • Identify potential roadblocks / Define Symantec 2.81% action plans to address Activision Blizzard 2.28% − Data quality Electronic Arts 2.10% − Culture CA 1.94% Adobe 1.66% • Determine SAM team requirements/scope Source: • Define roles/responsibilities • Outline a roadmap (phased approach) − Define Business Outcomes at each stage − ISO 19770-1 update provides a framework10 © 2011 Flexera Software, Inc.
  11. 11. Change Management Roles, Responsibilities & Metrics Corp CIO • SAM organizational structure Large Enterprise Example Enterprise SAM Team BU CIO BU CIO BU CIO BU SAM BU SAM BU SAM Team Team Team • Set up Key Performance Metrics to incent the right behavior – Realign key stakeholder performance objectives to drive advocacy – SAM Roles are important but also critical to align the whole org. with SAM program objectives11 © 2011 Flexera Software, Inc.
  12. 12. Creation of a Roadmap This illustrative roadmap conveys a phased approach to SAM implementation 2011/12 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Program Management Gain Buy-in(1) ILLUSTRATIVEPhase 0 Identify Process /Organization Gaps(2) 2 Develop Strategy & Roadmap (3) Implement FNMS (4)Phase 1 Enable SAM organization (5) Roll out baseline SAM processes (6) Plan/Implement Quick wins (7)Phase 2 Mature SAM Capabilities(8) Integrate next 2-3 suppliers (9)Phase 3 Ongoing Process Maturation Phase 0 – Foundation Phase I – Baseline Processes Phase II – Building on the Phase III – Run State 1. Gain Key Stakeholder Buy-in 4. Implement FNMS Baseline • Ongoing maturation of processes and 2. Identify Process & Organization Gaps 5. Enable SAM organization 8. Mature Asset Mgmt Capabilities optimization capabilities 3. Develop Strategy & Roadmap 6. Roll out baseline SAM processes (processes, governance) 7. Plan/Implement Quick Wins (top 1-2 9. Target next 2-3 suppliers (iterative) suppliers) 12 © 2011 Flexera Software, Inc.
  13. 13. Example: Process Deliverables13 © 2011 Flexera Software, Inc.
  14. 14. Leverage Existing Systems Requires a highly integrated SAM solution • Inventory & CMDB SAM & License Optimization Solution Tools • ERP, Procurement systems • Active Directory / HR systems • Helpdesk14 © 2011 Flexera Software, Inc.
  15. 15. Optimized SAM Program ROI • Global conglomerate operating in 130 countries (over 90,000 devices) – Implemented a standards-based set of business processes for software asset management – Saved $35 million in 6 months on Microsoft software • Large, global utilities company facing an Adobe audit – Adobe was unsure of the installations using their own inventory tool – Flexera Software’s solution provided both parties more detailed data and identified $5.91 million in savings • International bank (75,000 hardware assets, $200 million/year software spend) – Multiple volume purchase agreements – Realized $35 million in savings (50% cost avoidance / 50% maintenance savings) upfront and $8 million savings later as a result of being able to track licenses and negotiate better contracts • Global hardware manufacturer facing an Adobe audit – $15 million in license liability – Flexera Software solutions were used to optimize software estate, reducing license consumption by ~58,000 licenses, and resulting in a final bill of about $1 million $14 million in savings • Global consumer goods manufacturer (over 100,000 employees) – Realized over $30 million in initial savings on SAP and Oracle software15 © 2011 Flexera Software, Inc.
  16. 16. Industry Resources • IAITAM– • IBSMA – • ITAM Review– • LinkedIn Groups– here are a few: – IT Asset Management - Global – Licensing and SAM – Microsoft Licensing Professionals Network – Software Asset Management • ISO Standards– • Flexera Software website– – whitepapers, webinars, ELO blog, etc.16 © 2011 Flexera Software, Inc.
  17. 17. Summary • Implementing best practice processes critical to SAM program success • SAM Programs (can) have strong ROI – Focus on quick wins! • Flexera Software can help with Consulting Services such as: – ROI Workshop – SAM Gap Assessment – Process Definition based on specific technology – SAM Optimization Workshop – Other services17 © 2011 Flexera Software, Inc.
  18. 18. Q&A Please submit your questions via the Live Meeting Q&A form For more information: Or contact: David Lerch: John Emmitt: Thank you for attending our webinar!18 © 2011 Flexera Software, Inc.