CASE STUDYFORTUNE 500 COMPANY USED OPEN IT SOFTWARE TOSAVE OVER $5 MILLIONOne of the world’s largest independent energy co...
Open iT Software SolutionIn 2001 the customer invested in Open iT LIcenseAnalyzer, a software program focused entirely on ...
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Burlington Resources garnered $5 million savings by using Open iT software usage monitoring tools


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Burlington Resources garnered $5 million savings by using Open iT software usage monitoring tools to streamline its software spending.

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Burlington Resources garnered $5 million savings by using Open iT software usage monitoring tools

  1. 1. CASE STUDYFORTUNE 500 COMPANY USED OPEN IT SOFTWARE TOSAVE OVER $5 MILLIONOne of the world’s largest independent energy companies wanted to streamline itssoftware spending while better supporting its user needs. Two years after installing OpeniT LicenseAnalyzer as the inventory and usage-metering tool for its software applications,the company garnered a savings of $5 million, and advanced its overall business strategy. SOLUTION OVERVIEW Customer Profile The customer is one of the world’s largest independent en- ergy companies. In 2002 they earned an 18 percent return on capital employed. Business Situation The customer goal was to implement a solution for cost management within software license management. The cus- tomer also wanted assurance of real value from the money spent on software applications. They needed a tool to report onBusiness Overview software usage.As one of the world’s leading producers of oil and gas, the companyhas operations established throughout North America, Europe, NorthAfrica, the Far East and Latin America. It employs over 2,000 people Solutionworldwide, and relies heavily on G&G (geological and geophysical) soft- Open iT® LicenseAnalyzer™ware to support its production activities. BenefitsBusiness Challenge With the Open iT license man-With over 200 high-end users of crucial technical and business soft- agement solution the companyware in a variety of locations, the customer’s Technology Enhancement found a powerful reporting toolManager and IT department faced a formidable task appropriating re- in-house – a window to all theirsources to meet user needs while keeping costs in check. Further, it application usage by feature,became increasingly important for business managers to accurately by location, by user and overprioritize IT resource spending to match defined user groups with a view time – total usage, maximumto advance larger business goals. simultaneous usage and the number of denials – profilingThe Managers had four software application categories that they want- each application and eached to monitor. The “core” software applications were used by everybody all locations; and the “extended core,” were more function-specific,and used in fewer locations. For these, managers wanted to know howmany applications were needed each year, and what flexibility could Scenariosbe built into vendor agreements to best support usage patterns. The Software Management“specialty,” applications were used by a small group for a short period Asset Managementeach year, and if properly managed, could be leased on a monthly basis IT Charge-Backto get the highest value at the lowest cost. Lastly, the “data” applica- Service Managementtions provided critical data throughout the company. Without specific Project Managementuser information for each of these groups, accurate planning was very Skill Analysisdifficult. New purchases and upgrades were simply based on estimated Work Flow Analysisheadcounts of concurrent users at each location, and there was no way Overall Cost Managementof knowing how frequently each application was utilized.
  2. 2. Open iT Software SolutionIn 2001 the customer invested in Open iT LIcenseAnalyzer, a software program focused entirely on licensemanagement. It includes software inventory, a real-time monitor and a usage-reporting tool that analyzessoftware and license utilization over specified time periods. With the metering system in place, the customercould instantly see which applications or features rarely, if ever had enough users to meet the purchasedlicense-level threshold - where money was being spent needlessly. They could also see which applicationswere constantly in demand, sending denials to users who needed access. The reports were customized toshow usage details that distinguished the “core,” “extended core,” “specialty” and “data” applications, en-abling appropriate purchasing decisions for each, and guiding critical business decisions and goals.Within 2 years of purchasing Open iT LicenseAnalyzer, the subsequent modifications made to license agree-ments realized a savings of $5 million. “After the first full year of having Open iT LIcenseAnalyzer in place,we reduced our software expenses for the high-end users by 36%,” explained the Technology EnhancementManager. “The second full year, we reduced costs by an additional 21%. Beyond the money saved, we arenow properly enabling our users to do the work they need to do. If we see that users are getting frequentdenials on a specific application, we know that we need to spend more money on that application for thoseusers.”The detailed, easy-to-understand graphical profiles of each application and user group, gave all key playersa common language. Software vendors were able to evaluate the reports and learn how to better service thecustomer’s objectives, becoming valued “project partners” with their clients. “We now try to renegotiate withvendors and convince them to do trade-ins, showing them the benefits,” confirmed the customer’s Technol-ogy Enhancement Manager. “Also, with money freed up in our current budget, we can shorten the sales cycleon new software products and features. We help the vendor by showcasing his new technology.”Summary - A View to the FutureFor the customer, Open iT LIcenseAnalyzer has enabled technology managers to better service their users,giving them the resources they need for optimal production levels; it has helped business managers knowwhere to add or reduce budget allocations to better advance the business; and, it has helped software ven-dors offer the newest and best features for their valued clients. “Open iT Software has helped us managecosts as we expand the business, supporting and supplying the needs of our highest producers,” explainedthe Technology Manager. “We could not have done this without a tool like Open iT LIcenseAnalyzer. It metersusage 24/7, always hard at work for us, analyzing and providing data for optimizing our software resources,even as we reduce or expand our activity levels. This is not a once a year job!”Indeed, the customer is now looking to further optimize its business by finding ways to measure the valuegenerated by each application while it is up and running on various workstations. The company is now re-viewing Open iT Software’s SystemAnalyzer module, which captures CPU usage and utilization statistics perapplication, user and host.About Open iTOpen iT is a leading provider of solutions within software management, IT charge-back and capacity and per-formance planning. Open iT Software suite is a modular, web-based tool that is easy to install and supportsWindows, Unix and Linux platforms. Customers include large enterprises, software vendors and ApplicationService Providers (ASPs) each relying on Open iT’s tools and services to deploy accurate data and high per-formance solutions.For More InformationFor more information about Open iT’s products and services, call Open iT Sales at (281) 679 5009 or 866OPENIT-1, or visit© 2004 Open iT, Inc. All rights reserved. This case study is for informational purposes only. Open iT makes no warranties, express or implied, inthis summary. Open iT is a registered trademark of Open iT Inc.