This presentation discusses the importance of software license management (SLM) and preparing for a vendor audit. Key points include: 1) Poor SLM can lead to underutilized software, piracy issues, and costly fines from vendor audits. Proper SLM is important for compliance and cost savings. 2) When preparing for an audit, organizations should have accurate hardware and software inventories, proofs of purchase, and contract documents organized. An audit response team should also be established. 3) Automated SLM tools can help eliminate manual tracking, manage licenses to avoid overspending, and prepare accurate reports needed for audits. Survey results showed many organizations do not have accurate asset records.

1. Address the 800 pound
Gorilla in the Room :
Software License Management
Presentation By:
Jim Silvera
Senior Solutions Architect

2. Objectives
Managing Software Licenses: Why is it so important?
Uncovering the consequences of poorly managed
software licenses
Reporting that makes sense to you and the auditor
Handling a vendor audit the right way
Unveiling the results of 2010 Numara Software &
IAITAM Software License Management Benchmark
Survey
Finding a solution that works for you
Q&A

3. Software License Management: Why is it so important?
Underutilized Applications
(shelfware)
Having too much of a good thing can
go to waste….
Overutilized Applications How much could you be
saving by tracking software
(piracy) usage and avoiding
shelfware?
Being non-compliant can cost you $$

4. Software License Management: Underutilization
Investment decisions should be based on usage NOT politics
Find out what you have and how often it is being used
Have more then one way to look at your data to evaluate
Standardize on versions across the organization
Reduce the costs associated with administration and manual
reporting
“Enterprises that implement software
usage capabilities will achieve
savings of 5-25% in the first year.”
Gartner

5. Software License Management: Rise in Vendor Audits
Illegal use of software has many repercussions
Costly fines as a result of SOX non-compliance
Expensive fines as a result of Software Vendor audits
Company reputation can be damaged
Software in use could be outdated and therefore damage your
data

6. Frequently Asked Questions About Software Audits
QUESTION ANSWER
What gives them the right? Copyright Laws and your contract with the publisher
Did we do something Not necessarily, although Compliance Agencies do offer
wrong? compensation for reporting software piracy
Does a bad audit result Yes, a poor result shows that license compliance is most likely
make it more likely that we not in good shape in your organization and that other titles
will be audited again? may also be under-licensed.
What is the difference Reviews – “we come in for free” and audits “You pay.” Either
between an audit and a can be “voluntary,” although audits sometimes have “cause”
review? identified in the letter received by the organization. Reviews
are presented as offers to help organize and get the SAM
program on track. The notification may state that you will have
the ability to purchase from your contracted rate.
What is the best piece of Prepare an Audit Response Team in advance
advice you can give me for
audit survival, assuming we
are working hard on SAM
already?

7. The Worst Audit Behavior Mistakes to Make
Not responding to a letter or other unreasonable behavior
Sharing EVERYTHING
Removing software installations or purchasing more after an audit
notification has been received
Asking the auditor what constitutes proof of purchase
Only managing software in preparation for contract renewal or in
preparation for an audit. SAM is not one big True-up
Allowing executives to think that license violation is inevitable OR
that everything is ok

8. The Audit Preparation Check List
Accurate Hardware Purchase Dates
Inventory Reconciliation Report
Accurate Software Certificates of Authenticity
Inventory Master Media if
Software Dictionary appropriate
Data-scrubbed Inventory Contractual documents
Proofs of Purchase License types
Paid Invoices Restrictions
Reseller Reports Versions
Cancelled Checks Backup copies, other
More? Ts&Cs
8 8 ©2010 IAITAM

9. Build the Audit Response Team Process
Legal
Procurement/Contracts
Documentation
Technical
Hardware Asset Manager
Software Asset Manager

10. The Market Says…
Survey Results

11. Solving the SLM Challenge: Automated Inventory
Eliminate manual tracking of
assets
Manage your software licenses
and avoid overspending on
underutilized licenses or costly
vendor fines

12. Solving the SLM Challenge: Audit Preparation
Preparing for an audit starts with Discovery…
Do you feel your IT Asset Records are Accurate and
current?
52%
50%
51.7%
48%
48.3%
46%
Yes No

13. Solving the SLM Challenge: Audit Preparation

14. Solving the SLM Challenge: Detailed Reporting

15. Solving the SLM Challenge: Audits are a Legal Issue
Do you conduct internal practice
audits at your organization?
What SLM task is most important when justifying
additional software investments?
49.1% 50.9%
12%
Know what is being
used or not used
Understand # of
27% purchased licenses
in agreement
61% Accurate depiction
of cost of app

16. Solving the SLM Challenge Application Blacklisting
Blocking Application Usage
24.3%
52.2% 47.8%
23.5%
A program blocks the download
There is no program to block downloads and no opportunity to institute that process
Downloads are not currently blocked and doing so is of interest to me

17. Solving the SLM Challenge: Application Blacklisting

18. Solving the SLM Challenge: Retiring PCs
Retiring Machines
6.2%
17.9%
43.0%
32.9%
PCs to be disposed are wiped without examining the software installed on the machine
Perform manual process to document disposed software update license counts
Conduct a discovery run that locates and counts all licenses
Disposal processes are not shared with the software management team

19. Summary/Conclusion
Importance of SLM
Passing an Audit
What to Look for in a Tool
Survey Results Revealed