Webinar: Maximizing the ROI of IT by Simplifying Technology Complexity

MAXIMIZING THE ROI OF IT
BY SIMPLIFYING
TECHNOLOGY COMPLEXITY

© 2018 FORRESTER. REPRODUCTION PROHIBITED.
Technology Lifecycle
Management
Charles Betz, Principal Analyst
>>Click here to Watch this Webinar On Demand
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3© 2018 FORRESTER. REPRODUCTION PROHIBITED.
What I will talk about
› Customer Experience and Digital Transformation
› The Rise of DevOps
› The Value of Technology Lifecycle Management
› Technologies, Assets, and Services
› TLM as a process
› Conclusion

Customer Experience: The complete end-to-end user
experience the customer has with your product.

Idea Build Measure Learn Outcomes
Abandon
Initial version is
termed “Minimum
Viable Product”
Lean Start Up

52% of industry has either fully adopted, is
expanding, or is planning DevOps
Forrester's Global Business Technographics Developer Survey, 2018
Total Sample Size: N=2,062

Heard recently
The best architectures, requirements, and designs
emerge from self-organizing teams.
Agile Manifesto
Allow teams to choose their own tools.
Nicole Forsgren, Jez Humble, and Gene Kim

Defining cost of new technology
› A net new technology product incurs:
• New vendor relationship (sometimes)
• New staff sourcing (step function)
• Security, availability, and performance engineering (one-time and ongoing)
• Risk of outage attributable to complexity
› These costs are dispersed, but they are there and can be estimated
with reasonable assumptions.

Not on our agenda/Low
priority
11%
Moderate priority
51%
High priority/Critical
priority
37%
Don’t know
1%
(What priority is it to...) Simplify the software
landscape/reduce the number of different products we use
BUSINESS TECHNOGRAPHICS® 2018 BT Software Survey, Total Sample Size: N=1,655 (Enterprises > 1000)

Benefits of technology lifecycle management
Revenue/
Cost/Risk
Staffing
Agility
Vendor
Management
Reduced
Attack
Surface
Better
Support
License
Management

How each side sees the other

Service lifecycle
Technology product lifecycle

Service lifecycle
Asset lifecycle

Service lifecycle
Infrastructure service lifecycle
Asset lifecycle

Service lifecycle
Application service lifecycle
Infrastructure service lifecycle
Asset lifecycle

The IT lifecycles all have lives of their own… they are
loosely coupled. This is both advantageous and
painful. Dynamic, chaotic interactions.
Technology product

Asset
Technology product

Application service
Infrastructure service
Asset
Technology product

Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset Asset Asset Asset
Asset AssetAsset
Technology product
Technology product Technology product
Technology product
Asset Asset Asset Asset Asset
IT
Service

Obsolescence risk model
COBIT: measure the “number of critical business processes supported by obsolete
(or soon to be) infrastructure.”
Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset AssetAsset
Technology product
Technology product

Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset AssetAsset
Technology product
Technology product
Windows 7 support ends
1/14/2020

Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset AssetAsset
Technology product
Technology product
1/14/2020
Win7licenses still in
operation?

Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset AssetAsset
Technology product
Technology product
1/14/2020
Services require re-engineering
for new Windows?
operation?

Application service
Asset
Technology
product
Application service
Application service
Application service
Asset
Asset AssetAsset
Technology product
Technology product
1/14/2020
Services require re-engineering
for new Windows?
operation?
And what depends on those
services, anyways?

Identify Need For
Product
Establish & Enforce
Configuration
Standards
Re-evaluate For
Fitness &
Obsolescence
Evaluate Alternatives
& Select
Acquire & Maintain
Skills
Patch And Upgrade
(Product Level)
Retire & Remove From
Environment
Technology Lifecycle

Vicious cycle
Technology lifecycle
management cost of
delay
Pressure for more
carveouts &
exceptions
Process becomes
more complex and
inconsistent

Defining cost of delay
› Some % of requests for new technologies
are reasonable and will be granted.
› The delay that approval takes is waste, and
contributes to the cost of delay
› The cost of delay can be calculated for an
overall IT portfolio.

Importance of
normalization
› IBM? I.B.M.? International
Business Machines?
› Oracle? Oracle Database?
Oracle ERP?
› Without normalization, you
have no inventory, no
consistent understanding of
your estate

Concluding thoughts/recommendations

SYONIA PETERSON
SOFTWARE ASSET MANAGER
CALIFORNIA ISO
Now<<

Agenda
•Challenges with Data
•Clean Data
•Our Strategy
•Results

• Turn disparate data into actionable information
• Need a single source of truth
• Process must be automated, repeatable, actionable,
and defensible
• Gartner says:
• 68% likely to be audited this year.
• 40% of Corporate initiatives may be failing due to dirty data
• 25% of budget wasted due to unused software
The Challenges

•Abundance of data
•Variety of sources
•Requirement for automation
The Positives

Clean Data is….
•Consistent
•Standardized
•Free of gaps and duplication
•Normalized
•Serves your mission

Raw Data Normalized Data
• Adobe System Incorporated
• Adobe System Incorporated.
• Adobe Systems
• Adobe Systems Inc.
• Adobe Systems Inc.
• Adobe Systems Incorporated
• Adobe Systems Incorporated.
• Adobe Systems, Copyright
2005-2008
• Adobe Systems, Inc.
• Adobe Systems, Inc.
• Adobe Systems

Elements of the Process
• Implemented in 2014
• 2 Data Sources
• Normalize
• Analyze
• Dashboard
• Content Packs
• Add Current Entitlements
Asset Management
Finance
Purchasing
IT
InfoSec
Business
Units

Noise Reduction
• 850
Manufacturers
• 11,517 Distinct
versions of SW
ADDM
• 1,014
Manufacturers
• 11,310 Distinct
versions of SW
SCCM
• 390
Manufacturers
• 2,463 Distinct
versions of SW
Normalized

Results
• Cost Savings $725,000 over 3 years
• $325,000 in 2014
• $250,000 in 2015
• $300,000 in 2016
• $500,000 in 2017
• $1,375,000
• Compliance/Risk
• Software audit response
• Take control of the audit process
• Return data from your tools

Results
Business Continuity
• Secondary Use Rights $300K
Enterprise Architecture
• Identify EOL/EOS
• Lifecycle content informs IT Roadmap and planning
Business Units
• Trusted partner
• Faster more efficient service
• Perception is reality

Results
• Information Security
• Automated vulnerabilities reporting
• Zero day attacks
• Reputation and integrity
• Future plans: integrate with heat map
• IT Services
• Patches and updates are fast, efficient, and thorough
• Maintaining service levels without added headcount
• Smoother more complete installs and upgrades
• $100K annual savings in labor costs

The Wrap
• Clean data is invaluable
• Must have automation for discovery and reporting
• Estimated savings over 4 years. >$2,000,000
• Make everyone a stakeholder

The Total Economic Impact Of
Flexera Case Study
Steve Odell, TEI Consultant
Now<<

What is TEI?
Background and methodology

Source: The Total Economic Impact Of Flexera, May 2018
“Next-level” business case justifications are
increasingly important for technology investments
Very important,
60%
Somewhat
important, 33%
Somewhat unimportant, 4% Not at all important, 3%
Over 90% of IT decision-makers find value in a
business case
TCO ROI TEI
IT impact
IT costs
IT cost savings
Business
impact
User efficiency
Business effectiveness
Risk/
uncertainty
Risk mitigation
Risk versus reward
Strategic
impact
Scalability
Flexibility
What is an effective business case?
Base: 825 IT decision-makers at North American enterprises

The objective of the TEI framework is to identify all of
the factors that affect an investment decision
Benefits
Costs
Flexibility
Risks
Total
Economic
ImpactTM
(TEI)

Forrester took a multistep approach to evaluate the
impact of Flexera
Start
Due
diligence
Customer
interviews
Create
composite
Create
financial
model
Write case
study
Review and
finalize

Disclosures
The audience should be aware of the following:
› This document is an abridged webinar version of a full case study (Forrester Total Economic Impact of
Flexera, May 2018).
› The study is commissioned by Flexera and delivered by the Forrester Consulting group.
› Forrester makes no assumptions as to the potential return on investment that other organizations will
receive. Forrester strongly advises that readers should use their own estimates within the framework
provided in the report to determine the appropriateness of an investment in Flexera.
› Flexera reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the
study and its findings and does not accept changes to the study that contradict Forrester’s findings or
obscure the meaning of the study.
› The customer names for the interviews was provided by Flexera.
› Forrester does not endorse Flexera.

Executive summary
High-level findings

Before Flexera, organizations required labor-
intensive efforts for reconciliation activities,
and lacked a clear understanding of their
software environment.
With Flexera, organizations had a
holistic and consistent view of their
software assets.

Flexera enabled organizations to:
Reduce software license and hardware
maintenance costs
Avoid costs from audit findings
Improve productivity for compliance
management and mapping activities

Forrester has determined the following three-year
impact from the Flexera investment
ROI
302%
Return on investment
PAYBACK
< 1 Year
Payback period
NPV
$4.4M
Net present value

Three-year model summary results
ROI
302%
NPV
$4.4 million
Payback
< 1 Year
-$2.0 M
-$1.0 M
$1.0 M
$2.0 M
$3.0 M
$4.0 M
$5.0 M
$6.0 M
Initial Year 1 Year 2 Year 3
Cash
flows
Total costs
Total benefits
Cumulative net benefits

FORRESTER.COM
Thank you
650-581-3856
sodell@forrester.com
Now<<

© 2018 Flexera | Company Confidential
For More Information
Data Platform and SLO Blog
blogs.flexera.com/data-platform
blogs.flexera.com/elo
Twitter
@SAMInsights
@Technopedia
White Paper
bit.ly/DataQuality-WP

THANK YOU! www.flexera.com
Charles Betz
+01 612 868 2754
cbetz@forrester.com
Twitter: @CharlesTBetz
650-581-3856
sodell@forrester.com
Syonia Peterson
speterson@caiso.com
Now<<

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