Webinar: How to Get Started on an Optimized SAM Program

November 17, 2011

2 © 2011 Flexera Software, Inc.

Speakers for Today’s Webinar

David LerchDirector of Consulting Services at Flexera Software

John EmmittSr. Marketing Manager at Flexera Software

3 © 2011 Flexera Software, Inc.

Industry Trends & Economic Backdrop

• Global Economy– M&A / Divestiture activity– Cost reduction & budget

constraints– e.g. US Federal Govt mandate to reduce IT costs

• Audits• IT Technology / Business

Model Changes– Desktop & App Virtualization– Public and Private Cloud;

SaaS model

• IT as a Business

4 © 2011 Flexera Software, Inc.

Why do you need a SAM Program?

• Drivers– Budget Constraints– Audit Risk– Complexity- Licensing, IT environment, Organizational

• Evolving Role of IT Asset Management

Industry Analyst Perspective – Gartner

IT asset management (ITAM) is rapidly evolving from a basic asset inventory monitoring and reporting role to a core financial discipline. As ITAM matures, its ability to deliver accurate and timely financial management data and insight will become its core value proposition and increasingly strategic to executive management

SAM Objectives

• Reduced license compliance risks and associated adverse budget impacts

• Elimination of over-buying of software (use what you have, only buy what you need)

Cost Savings and Cost Avoidance

Contract Negotiation Power

• Chargeback / cost allocation to the lines of business

• Improved IT Operational Efficiency

An effective Software Asset Management (SAM) and License Optimization program enables pro-active, continuous management of your software license estate through:

Optimal$ $Over-LicensedOut ofCompliance

5 © 2011 Flexera Software, Inc.

What’s the Cost of Doing Nothing?

• Lack of transparency around SAM / ITAM– Low visibility of hardware and software assets across Business Units

Real Customer Example of Business Issues

• Lack of control over annual software spend− Lack of information required for true-up

negotiations Poor negotiating leverage− Over-buying of software

• Audits and unbudgeted expense• High operational and contract management

costs Softwar

e Spen

d

Audit Cost

s

Mgm

t

Costs

Customer Example:

$35 Million in savings on

one vendor in 6 months

6 © 2011 Flexera Software, Inc.

First StepsAssess your current state of SAM maturity

Define your desired End State

Level 4Optimized

Automated entitlement based license management and optimization; Minimize license consumption and software spend

Level 3Continuously

Compliant

Automated purchased vs. installed license reconciliation; SAM processes to manage contracts and maintain continuous license compliance

Level 2Managed

Perform purchased versus installed license reconciliation on an ad hoc basis; point-in-time management of licenses and contracts

Level 1Installed

Identify software and hardware installed

En

terp

rise

Lic

ense

Op

tim

iza

tio

n

Trad

itio

nal

SA

M /

ITA

M

Ret

urn

on

In

vest

me

nt

7 © 2011 Flexera Software, Inc.

8 © 2011 Flexera Software, Inc.

Perform a Gap Analysis

• Where are you relative to SAM best practices?

• How well does the organization accept change?

• ISO 19770-1– 27 SAM process areas to

assess

• Assess gaps relative to People, Process, Technology

Request

Retire Approve

Purchase

DeployManage

Upgrade

People:Requires Executive Sponsorship,Defined Roles & Responsibilities

Process:The success of any SAM project relies upon the definition of business Processes Technology:Select the Technology solution that is consistent with your objectives

People

Process

Optimize

Optimize

OptimizeOptimize

Optimize

Optimize

Approach SAM HolisticallyManage the Full Software Asset Lifecycle

Technology

9 © 2011 Flexera Software, Inc.

The Approach

• Gain Executive / Key Stakeholder buy-in

• Leverage Industry Standards (ISO, ITIL)

• Focus on Quick Wins

• Identify potential roadblocks / Define action plans to address

− Data quality

− Culture

• Determine SAM team requirements/scope

• Define roles/responsibilities

• Outline a roadmap (phased approach)− Define Business Outcomes at each

stage

− ISO 19770-1 update provides a framework

ISV Market Share

Microsoft 24.37%

IBM 10.89%

Oracle 8.65%

SAP 5.72%

Nintendo 3.57%

HP 3.08%

Symantec 2.81%

Activision Blizzard 2.28%

Electronic Arts 2.10%

CA 1.94%

Adobe 1.66%

Source: http://www.softwaretop100.org

Customer Example

Targeted ISV’s:

Adobe, IBM, Microsoft,

Oracle, VMware

Represented 90% of their

software spend

10 © 2011 Flexera Software, Inc.

11 © 2011 Flexera Software, Inc.

• SAM organizational structure

• Set up Key Performance Metrics to incent the right behavior– Realign key stakeholder performance objectives to drive advocacy– SAM Roles are important but also critical to align the whole org. with

SAM program objectives

BU CIO BU CIOBU CIO

Corp CIO

BU SAM Team

BU SAM Team

BU SAM Team

Enterprise SAM Team

Change ManagementRoles, Responsibilities & Metrics

Large Enterprise Example

Creation of a Roadmap

Enable SAM organization (5)

Identify Process /Organization Gaps(2)

Develop Strategy & Roadmap (3)

Mature SAM Capabilities(8)

Pha

se 0

Pha

se 1

Pha

se 2

Phase 0 – Foundation1. Gain Key Stakeholder Buy-in2. Identify Process & Organization Gaps3. Develop Strategy & Roadmap

Phase I – Baseline Processes4. Implement FNMS5. Enable SAM organization6. Roll out baseline SAM processes7. Plan/Implement Quick Wins (top 1-2

suppliers)

Phase II – Building on the Baseline8. Mature Asset Mgmt Capabilities

(processes, governance)9. Target next 2-3 suppliers (iterative)

Gain Buy-in(1)

Nov Dec JanOct MarFeb Apr May Jun

2

2011/12

Phase III – Run State• Ongoing maturation of processes and

optimization capabilities

Ongoing Process Maturation

Pha

se 3

Program Management

Jul

ILLUSTRATIVE

This illustrative roadmap conveys a phased approach to SAM implementation

Implement FNMS (4)

Roll out baseline SAM processes (6)

Plan/Implement Quick wins (7)

Integrate next 2-3 suppliers (9)

12 © 2011 Flexera Software, Inc.

Example: Process Deliverables

By having a signed and managed

project charter the customer was

able to keep on track & avoid scope

creep

13 © 2011 Flexera Software, Inc.

14 © 2011 Flexera Software, Inc.

Leverage Existing Systems

• Inventory & CMDB Tools

• ERP, Procurement systems

• Active Directory / HR systems

• Helpdesk

SAM & License Optimization Solution

Requires a highly integrated SAM solution

Optimized SAM Program ROI

• Global conglomerate operating in 130 countries (over 90,000 devices)– Implemented a standards-based set of business processes for software asset management– Saved $35 million in 6 months on Microsoft software

• Large, global utilities company facing an Adobe audit– Adobe was unsure of the installations using their own inventory tool– Flexera Software’s solution provided both parties more detailed data and identified $5.91

million in savings

• International bank (75,000 hardware assets, $200 million/year software

spend)– Multiple volume purchase agreements– Realized $35 million in savings (50% cost avoidance / 50% maintenance savings) upfront

and $8 million savings later as a result of being able to track licenses and negotiate better

contracts

• Global hardware manufacturer facing an Adobe audit– $15 million in license liability– Flexera Software solutions were used to optimize software estate, reducing license

consumption by ~58,000 licenses, and resulting in a final bill of about $1 million $14

million in savings

• Global consumer goods manufacturer (over 100,000 employees)– Realized over $30 million in initial savings on SAP and Oracle software

15 © 2011 Flexera Software, Inc.

16 © 2011 Flexera Software, Inc.

Industry Resources

• IAITAM– www.iaitam.org

• IBSMA – www.ibsma.com

• ITAM Review– www.itassetmanagement.net

• LinkedIn Groups– here are a few:– IT Asset Management - Global – Licensing and SAM – Microsoft Licensing Professionals Network– Software Asset Management

• ISO Standards– www.19770.org/projects/19770-1/

• Flexera Software website– www.flexerasoftware.com – whitepapers, webinars, ELO blog, etc.

17 © 2011 Flexera Software, Inc.

Summary

• Implementing best practice processes critical to SAM program success

• SAM Programs (can) have strong ROI– Focus on quick wins!

• Flexera Software can help with Consulting Services such as:

– ROI Workshop– SAM Gap Assessment– Process Definition based on specific technology– SAM Optimization Workshop– Other services

18 © 2011 Flexera Software, Inc.

Q&A

Please submit your questions via the Live Meeting Q&A form

For more information: www.flexerasoftware.com/ELO

Or contact:

David Lerch: dlerch@flexerasoftware.com

John Emmitt: jemmitt@flexerasoftware.com

Thank you for attending our webinar!