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PURE GOLD—Leveraging Software Usage Data to Reduce License Costs and Risk Dan Griffith Donna Yobs
Concurrent Licensing License requested & checked out License unavailable = Denial of service License server  administration Challenges… Having optimal number of licenses Denials for mission critical SW Optimal application mix aka Network or Floating Licenses Example:3 People can  check out a  license  concurrently License Server
Your Software Usage Data is Pure Gold Leverage this data to: Determine Software Mix Requirements Lower costs with Effective Peak Analysis Avoid and Survive Software Audits Support Mergers, Acquisitions, and Divestitures
Key Metrics for Effective License Management 	1	Peak Usage 	2 		Effective Peak Usage 	3 		Duration of Peaks 	4		Number of Engineers Per License 	5	 	Number of True Denials
Effective Peak Usage Analysis What is Effective Peak Usage? Effective Peak Adjustments Mixing to Effective peak can reduce your requirements by as much as 20% with little impact on software availability
Other Critical Aspects 1	Tool Cost 2	Corporate Tool Standards 3	 	Input From Design Managers 4		Interactive vs batch usage (non-GRID vs GRID) of  an Optimized License Management Program
Avoiding and Surviving Software Audits Know what you have Know where your software is installed Know who is using your software Be fully aware of your entitlements and contract terms and enforce them! Develop relationships with your vendors Provide selective usage data If a violation is discovered, report it to the vendor Demonstrate that you have the tools to ensure compliance Take a Proactive Approach
In the Event of an Audit Provide only requested information but provide it quickly Provide data in a well organized and professional format Being in Compliance is Key
In the Event of an Audit Provide only requested information but provide it quickly Provide data in a well organized and professional format Being in Compliance is Key
Mergers, Acquisitions & Divestitures Managing Licenses in the Dynamic Organization Most software contracts do not allow the transfer of software from one entity to another Determining the software requirements of an acquisition or divestiture is complex Organizational & Process Requirements You must be able to determine the software requirements of any individual group within your company You must be fully aware of your entitlements and contract terms
Intelligent Analysis ,[object Object]
 Organizations Value Department Views2010 2011 for Effective License Management
Return on Investment Optimized License Management Savings and Productivity Gains ,[object Object]
 Complex data demands deeper analysisAnnual Spend per Engineer Down 20% or more  Hours of Software Usage per Engineer is Skyrocketing
Summary Leverage Software Usage Data to: Determine Optimal Software Mix Determine Optimal Number of Licenses Reduce Audit Cost & Risk Achieve the maximum ROI on your software investment Is Your Organization Going for the Gold?

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Pure Gold: Leveraging Software Usage Data to Reduce License Costs & Risk

  • 1. PURE GOLD—Leveraging Software Usage Data to Reduce License Costs and Risk Dan Griffith Donna Yobs
  • 2. Concurrent Licensing License requested & checked out License unavailable = Denial of service License server administration Challenges… Having optimal number of licenses Denials for mission critical SW Optimal application mix aka Network or Floating Licenses Example:3 People can check out a license concurrently License Server
  • 3. Your Software Usage Data is Pure Gold Leverage this data to: Determine Software Mix Requirements Lower costs with Effective Peak Analysis Avoid and Survive Software Audits Support Mergers, Acquisitions, and Divestitures
  • 4. Key Metrics for Effective License Management 1 Peak Usage 2 Effective Peak Usage 3 Duration of Peaks 4 Number of Engineers Per License 5 Number of True Denials
  • 5. Effective Peak Usage Analysis What is Effective Peak Usage? Effective Peak Adjustments Mixing to Effective peak can reduce your requirements by as much as 20% with little impact on software availability
  • 6. Other Critical Aspects 1 Tool Cost 2 Corporate Tool Standards 3 Input From Design Managers 4 Interactive vs batch usage (non-GRID vs GRID) of an Optimized License Management Program
  • 7. Avoiding and Surviving Software Audits Know what you have Know where your software is installed Know who is using your software Be fully aware of your entitlements and contract terms and enforce them! Develop relationships with your vendors Provide selective usage data If a violation is discovered, report it to the vendor Demonstrate that you have the tools to ensure compliance Take a Proactive Approach
  • 8. In the Event of an Audit Provide only requested information but provide it quickly Provide data in a well organized and professional format Being in Compliance is Key
  • 9. In the Event of an Audit Provide only requested information but provide it quickly Provide data in a well organized and professional format Being in Compliance is Key
  • 10. Mergers, Acquisitions & Divestitures Managing Licenses in the Dynamic Organization Most software contracts do not allow the transfer of software from one entity to another Determining the software requirements of an acquisition or divestiture is complex Organizational & Process Requirements You must be able to determine the software requirements of any individual group within your company You must be fully aware of your entitlements and contract terms
  • 11.
  • 12. Organizations Value Department Views2010 2011 for Effective License Management
  • 13.
  • 14. Complex data demands deeper analysisAnnual Spend per Engineer Down 20% or more Hours of Software Usage per Engineer is Skyrocketing
  • 15. Summary Leverage Software Usage Data to: Determine Optimal Software Mix Determine Optimal Number of Licenses Reduce Audit Cost & Risk Achieve the maximum ROI on your software investment Is Your Organization Going for the Gold?
  • 16. A Q
  • 17. Contact Info: Dan Griffith Dan Griffith Consulting Dan@CSAMPro.com http://CSAMPro.com Donna Yobs Flexera Software Product Manager dyobs@FlexeraSoftware.com IAITAM info@iaitam.org +1.330.628.3012 Thanks for Attending!

Editor's Notes

  1. Multiple people can use the software concurrently up to the number of licenses purchasedYou may have many more installations than you have licensesCommonly used for software in the EDA, GIS, PLM, and Oil & Gas industriesTools such as FlexNet Manager for Engr Apps are used to:Track usage Ease license server administration Help optimize application mix and number of licenses
  2. DY commentary:To reduce time to market (by providing more tools with the same budget)To improve competitiveness (happens any time you make better use of a resource than a competitor)
  3. No one can afford to purchase excess software nor have fewer licenses then the business requires
  4. Effective Peak Usage is the resulting peak usage after the top 10% of the peak occurrences are removed from a 90 day analysis period.Effective Peak will be adjusted upward or downward depending on usage trends and the duration of the highest peaks DY: I could add a piece here about acceptable denials, based on average run times
  5. Not all tools are equal, different characteristics will cause them to be managed via different metrics.  Some of these characteristics include high / low cost, batch / interactive use, short / long run time, strategic / tactical use.
  6. DY– license manager has to be in control of the licensing; not the engineers.Dan– training program for engineers before they used the licenses; license compliance 101
  7. First graphic – ONLY what is required – yes I’m in complianceAdd Graphic – internal governance so you can manage internal and answer deeper questionsDY- if the vendor knows you have the license compliance tools, then they are less likely to challenge your reports
  8. First graphic – ONLY what is required – yes I’m in complianceAdd Graphic – internal governance so you can manage internal and answer deeper questionsDY- if the vendor knows you have the license compliance tools, then they are less likely to challenge your reports
  9. Many CEO’s, CFO’s and VP’s may not be aware that…Determining the software requirements of a acquisition or divestiture is complex. New software requirements can add a significant expense to the transaction.Understand that the individual software needs of two groups will be greater than the requirements of a shared software pool Freescale spun out of Motorola in 2006; bought Sigma Tel 2008
  10. Dan--DY commentary: Discuss value of product reporting (vs Feature); get at a glance trends (bar) & details (chargeback to reflect internal realization of costs by division) Talk about Dept B went from full dev to QA only usage in 5 months as planned based on project lifecycle ; Dept C fluctuated as expected and Dept A was a surprise.I would also add a couple of other items, like forward planning and mapping tools to project phases.
  11. Only looking at one variable can lead to different assumptions, in this case you have higher usage of applications due to product complexity – high usage doesn’t have to mean more licensesBut the build shows that due to efficient licensing monitoring and policy you have a new picture of productivity…