Murphy Oil used Open iT software asset management tools to cut global software costs.
Deploying Leading Edge Controls to Rein inGlobal Software Expenses
Agenda Murphy E&P Overview Software Asset Management Foundation Deployment of Leading Edge Controls Software Savings Within Murphy E&P 2011 Updates
MurphyExploration & Production $23 billion revenue in 2010 5 primary E&P offices Houston (E&P Headquarters) Calgary, Canada Kuala Lumpur, Malaysia Jakarta, Indonesia Perth, Australia Retail business 1300 gas stations in US (Wal-Mart)
Software Asset Management Foundation Business “buy-in” at the highest level possible Business Champion to support IT Centralized IT support organization IT SPOC accountable for managing software portfolio Application portfolio Need to know “what “ software you have. Software reporting capability Need to know “how” and “who” is using the software. Effective communication and accountability Monthly usage reports
Tools Deployed to Monitor Software Usage Software license monitoring and tracking application Capability to track both Windows and UNIX applications Generate detailed concurrent usage reports at both the application and end user levels Capability to “release” application licenses during extended period of inactivity
Scope, Cost and Timing of Process Tool Chosen Implemented OpenIT “License Analyzer” in March 2008 Invested $41,000 including M&S for a 35 end user seat license Leveraged existing hardware infrastructure Invested $2,000 on administration training Initial focus on expensive GGRE subsurface applications
Identifying Surplus Licenses Led to Significant Savings Transferred 6 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses Transfer cost $26,160 Cost to purchase including first year M&S $158,688 Total savings $158,688 - $26,160 = $132,528 Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses Transfer cost $15,400 Cost to purchase including first year M&S $117,768 Total savings $117,768 - $15,400 = $102,368 Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses Transfer cost $44,620 Cost to purchase including first year M&S $320,592 Total savings $320,592 - $44,620 = $275,972
Savings from Utilization of Surplus Licenses Transferred 2 licenses from Houston Domestic to International License usage monitoring determined Houston Domestic had surplus licenses Transfer cost $0 Cost to purchase including first year M&S $ 320,592 Total savings $320,592 Two (2) requests by exploration business to purchase additional license License usage monitoring determined existing 3 licenses were being checked out 24/7 by end users More aggressive license management and end user communication on software costs and best practices resulted in sufficient leveraging of existing 3 licenses and no need to purchase additional license Cost to purchase including first year M&S $181,782 Total savings $181,782 Additional software requests for new RE contractors Request to purchase 3 core licenses License usage monitoring of existing licenses determined only (1) additional core license required Cost to purchase including first year M&S $88,058 Total savings $88,058
Murphy Savings 2008-2009 M&S reductions License monitoring indicated we were carrying M&S on an excessive number of applications. Reduced M&S on one application from 24 to 18 Annual cost savings $15,912 Reduced M&S on a second application from 8 to 6 Annual cost savings $13,248 Reduced M&S on a third application from 21 to 19 Annual cost savings $ 35,616 Domestic and International TCE merge As a result of merging TCE which includes merging license servers and applications the following annual cost savings will be recognized. Reduction of M&S for one application $9,576 Reduction of M&S for a second application $3,024 Reduction of M&S for a third application $133,266 Reduction of M&S for a fourth application $18,288 Reduction of M&S for a fifth application $19,080 Reduction of M&S for a sixth application $10,968 Reduction of M&S for a seventh application $28,272
2011 Updates Implementing OpenIT globally within Murphy E&P OpenIT “License Analyzer” implementation Centralized data collection server (Houston) Local BU concurrency reports Global concurrency reports Upstream software focus verses Exploration 2011 Goal to track 80% of Upstream applications Global WAN license agreements
Summary Initial investment of $43,000 has recognized tangible cost savings of $1,388,550 Currently testing “license optimizer” functionality which will allow application licenses to be released when an end user’s machine remains idle for an extended period. Extended deployment of “license analyzer” functionality has the potential to increase savings further and provide better management of our existing software investment. Look at opportunities to deploy “License Analyzer” on additional (Upstream) applications Looking into global WAN software agreements
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