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© 2003 Deloitte & Touche – Not to be used or reproduced without Deloitte & Touche’s permission
Software Asset Management
Managing IT Investments
Software Asset Management
Microsoft Licensing Insights
11, 13 & 14 March 2003
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Software Asset Management - SAM
Overview of topics covered:
What is SAM and what does it mean to me?
How to implement a SAM program and manage
your software efficiently
Eliminate unnecessary IT spending – Microsoft
Volume Licensing best practice
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
• Grants owner the legal right to use or Grants owner the legal right to use or access a software programaccess a software program
• Usage governed by vendors license Usage governed by vendors license agreement and copyright lawagreement and copyright law
• Intellectual property copyright remains Intellectual property copyright remains with the vendorwith the vendor
What is a software license?
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Why invest in IT?
• Expedite achievement of business goals•
Work faster
+ Improve quality
+ Minimise cost
= Competitive Advantage
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Software Asset Management
•Comprehensive approach to improving ROI
Two focus areas:
• Minimise costs and investments; and
• Meet and exceed business requirements
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Total Cost of Ownership
The Costing Model
Only 12% of the total cost spent on s/w and h/w
18%
20% 100%
24%
18%
2%6%12%
Support
Mgt
HW/SW
Dev
CommsEnd user
Down time
TCO
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Early SAM Attempts
• Set of procedures to identify usage
• Ignored financial/contractual/technical details
Why did early attempts fail?
• SAM was seen purely an IT issue
• Lack of consideration of the needs of the organisation as a whole -> SAM should touch every part of your organisation
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Upper Management
• When administered intelligently:
Promote communication and coordination
Provide performance criteria
Defines responsibility
Force planning
Key Players
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Purchasing & Accounting
Procurement
Record keeping
Accounts Payable (AP)
Q: Can AP determine whether to pay invoice?
? Is the vendor honouring all Terms&Conditions
? Maintenance contracts been approved
? Agreement cancelled
Key Players
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IT administration/help desk
• Negotiate better licensing deals
• Improves decisions on upgrades and support
• Assist with deployment
• Proactive not reactive
• Maximise help desk services
Key Players
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End Users
• Defines end user vs IT responsibilities
• Educate on IT policy and procedures
• Gives an insight into IT Strategy
• Promote consistency with the end-user
Why did we upgrade?
Key Players
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Why is SAM important?
License Compliance
• Vendors normally view unintentional misuse sympathetically
• Must demonstrate compliance efforts
• Intentional non-compliance not tolerated
The Cost
Public embarrassment
Substantial financial penalties
Personal liability for company directors
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Why is SAM important?
Decrease Risks:
•Acquisition
•Risks
Unauthorised purchase of licenses
Licenses purchased but not readily locatable
Overpayment of license fees
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Why is SAM important?
•Distribution/Deployment
•Risks
Lack of control over where software is installed
Unauthorised duplication of software
•Monitoring & Reporting
•Risks
Software usage is outside license conditions
Under licensed products
Over licensed products
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
SAM Pitfalls
• Purchasing an electronic monitoring tool
without a SAM program in place
• ‘Silver bullet’ solutions
SAM efforts are likely to stall
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Recommended Approach
• Assess your own circumstances
• Look to a phased implementation
• Adopt the most appropriate elements as everybody is different:
Small Business
Multi National
Public Sector
Private Entity
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Developing a SAM program
Phase OnePlanning and Budgeting Define responsibilities
Phase TwoEstablish Procedures
ProcurementDeploymentManagement
Phase ThreeDevelop Policy
Phase FourEmployee Education
Phase FiveSelf Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Planning and Budgeting
• Identify business objectives
• Assess infrastructure needs
• Identify existing resources
• Research available opportunities
• Capture within budget
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Planning and Budgeting
•A comprehensive budget should incorporate:
– Hardware & software
– Training
– Development
– Management
– Support
– Downtime
Support
Down time
Management
Training
HW/SW
Comm/Dev
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Define Responsibilities
• Contractual: Master - Enrollment holder• Who is responsible for:
• Implementing SAM• Planning & budgeting• Monitoring compliance • Developing SAM policy
& procedures
Appoint a software manager?
‘Sends a strong signal’
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Developing a SAM program
Phase OnePlanning and Budgeting Define responsibilities
Phase TwoEstablish Procedures
ProcurementDeploymentManagement
Phase ThreeDevelop Policy
Phase FourEmployee Education
Phase FiveSelf Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
PROCUREMENT
MANAGEMENT
DEPLOYMENT
Establish Establish ProceduresProcedures
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Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Procurement
• Through normal purchasing channels
– How much does it cost to raise a PO?
– What is the most cost effective process?
• Formalise the process - eliminate historical questions
• Avoid reconstructing license
parentage - difficult without good SAM• Buy from a respectable Microsoft Reseller• Visit: www.howtotell.com &
www.microsoft.com/ireland/compliance
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
CASE STUDY
• Decentralised construction company
• No clear procurement policy; purchases also on decentralised level.
• Purchase of FPP, Open• Over-licensed on several applications,
under-licensed on Office pro
PROCUREMENT
MANAGEMENT
DEPLOYMENT
Procurement
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Q: How can we address this?
A: Invoice verification
• Have all IT related invoices forwarded to IT dept prior to payment
• As process evolves develop a link with accts payable
PROCUREMENT
MANAGEMENT
DEPLOYMENT
Procurement
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Deployment
• Access to software is limited
• Authorisation for loading is defined
• Product to be loaded is clearly stipulated
• Software register updated once installed
• Home usage is managed
• Disposal of old media controlled
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Management
Pitfalls
• Use of spreadsheets or small custom built database
• Process almost guaranteed to fail as it becomes to complex and onerous
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Recommendation
• Look to a dedicated ownership
management tool capturing:
- What was originally paid- Recurring costs- How and where was it acquired - H/w & s/w interdependencies - OEM - Reference to software license library
Management
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
•Establish good record keeping systems
Hardware Inventory
Software in Use Inventory
License Inventory
Media Inventory
Management
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Management
PROCUREMENT
MANAGEMENT
DEPLOYMENT
CASE STUDY
• European Media group
• Suspected of being uncompliant
• LAR had system problems
• 30% of licenses under wrong contract.
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Q: How can we address this?
A: Reconcile PO to invoice and license confirmation
Why adopt this type of approach?
– Physical deliverable to control payment
– Reseller focuses on processing as payment depends on it
– More efficient than a macro level assessment
– Identifies errors close to when they occur
Management
PROCUREMENT
MANAGEMENT
DEPLOYMENT
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
What is my ‘Proof of License’ ?
• Acceptable ‘proof of license’ is determine by the method in which the software was procured. For example:
Retail/OEM product: Certificate of Authenticity (COA)
Volume licensing product (Select/Open): On-Line license confirmations
Purchase Orders Invoices Reseller confirmations
What does not constitute Proof?
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Proof of License for Retail Products
As of the Launch of XP
Prior to XP
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
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Proof of License for OEM Products
Operating Systems ApplicationsPhase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Proof of License for Volume Purchases
OpenSelect and Enterprise
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Historical Proof of License for Select (prior to e-License)
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Developing a SAM program
Phase OnePlanning and Budgeting Appoint a S/w Manager
Phase TwoEstablish Procedures
ProcurementDeploymentManagement
Phase ThreeDevelop Policy
Phase FourEmployee Education
Phase FiveSelf Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Develop Policy
Need to address:
- Planning - H/w and s/w retirement
- Acquisition - License Documentation
- Installation - Version Control
- Compliance - Auditing
-.
Policies should have threat of disciplinary sanctions associated with them.
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Develop Policy
• Signed by all employees and contractors
• Made a condition of employment
• Documented on the Intranet
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Developing a SAM program
Phase OnePlanning and Budgeting Appoint a S/w Manager
Phase TwoEstablish Procedures
ProcurementDeploymentManagement
Phase ThreeDevelop Policy
Phase FourEmployee Education
Phase FiveSelf Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Employee Education
• Target education at all employees
• Program should:
- Explain s/w code of ethics and SAM policy
- Discuss s/w piracy and why it’s a problem
- Explain the hidden costs of illegal software
• Combine with other IT related issues• Backing up user data• Internet and Email use• Security
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Developing a SAM program
Phase OnePlanning and Budgeting Appoint a S/w Manager
Phase TwoEstablish Procedures
ProcurementDeploymentManagement
Phase ThreeDevelop Policy
Phase FourEmployee Education
Phase FiveSelf Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
• An assessment to determine compliance
• Internal or external
• Should be regular - at least annually
• Use of a discovery tool
• Provides second half of the data needed
• Redeploy assets not being utilised
• Remedy any under licensing
Self Assessment
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Phase OnePhase One Phase TwoPhase Two Phase ThreePhase Three Phase FourPhase Four Phase FivePhase Five
Selecting a tool
• Limited list of tools• Not an endorsement
GASP 5 Suite SMS Express Software Manager
ZenWorks PC Profile MSIA (Microsoft)
www.microsoft.com/piracy/samguide/tools/www.microsoft.com/piracy/samguide/tools/sit.aspsit.asp
Self Assessment
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MSIA Report Example
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One Minute SAM Take Away
• SAM is a process not an event
• Should touch every part of your organisation
• Avoid ‘silver bullet’ solutions
• Look to a phased approach
• Financial, contractual and technical data just as important as usage data
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Software Asset Management - SAM
Overview of topics covered:
What is SAM and what does it mean to me?
How to implement a SAM program and manage
your software efficiently
Eliminate unnecessary IT spending – Microsoft
Volume Licensing best practice
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Microsoft Licensing Specifics
• Software Assurance
• Client Access Licenses (CALs)
– Per Server / Seat / Processor
– Internet Connector
– Core CAL
• Select
• The Open License program
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Software Assurance
• Focused on:
• Streamlining administration
• Reducing acquisition costs
• Correcting former inequities
• Product implementation and security
• Predictable budgeting
• Promoting program consistency
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Streamlining Administration
• Eliminates the need to maintain numerous license confirmations
• Replaces a confusing collection of upgrades
– Version Upgrade
– Competitive Upgrade – License
– Product Upgrade – Software Assurance
– Language Upgrade – L+SA
– Upgrade Advantage
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Client Access Licenses (CALs)
Key Key PointsPoints::
• Needed to access server software with another device eg. PC, workstation or terminal
• Is not software! It’s a legal document that grants access to the services of the server
• Is a separate license and is not part of any operating system eg. Windows 95/98 or NT
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Client Access Licenses
• Per Server
• Per Seat
• Per Processor
• Internet Connector
• Core CAL
5 options for licensing server clients:5 options for licensing server clients:
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Client Access Licenses
Per ServerPer Server
• Only Windows 2000 Server
CAL
CALCAL Server
License
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Client Access Licenses
Per SeatPer Seat
ServerLicense
ServerLicense
• Windows 2000 Server
• SQL Server 2000
• Exchange 2000
• System Management Server 2.0
• Microsoft Mobile Info Server
• SharePoint Portal Server
CAL CAL CAL CAL
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Client Access Licenses
Per ProcessorPer Processor
• Host Integration Server 2000• Internet Security Acceleration Server
2000• BizTalk Server 2000
• Application Centre 2000
• Commerce Server 2000• SQL Server 2000 • Microsoft Operations Manager
Vendors
Partners
Customers
InternetFirewall
Internal Clients
ProcessorLicense
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Client Access Licenses
• Internet ConnectorsInternet Connectors
InternetConnect
orLicense
CustomersInternetFirewall
• Provides access to an unlimited number of anonymous users over the Internet
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Core CALs
• License server components across all desktops within the firewall
• Includes a CAL for:
– Windows Server
– Exchange Server
– System Management Server
– SharePoint Portal Server
• Core CALs sold with Software Assurance attached
• Clients will always be licensed regardless of the server version deployed
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
OEM Licensing
• No additional license needed to use older version operating system if OEM is Windows XP Pro
However, end users may not:
- Use multiple versions simultaneously
- Transfer Windows XP Pro to a 3rd party
• Restrictions on renting and leasing removed from Windows XP Pro EULA
• Network installation now permitted – supports implementation enhancements in Windows XP
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Programs Benefits:Programs Benefits:
• Instant access to softwareInstant access to software
• Easy to understandEasy to understand
• Valuable investmentValuable investment
• Broad range of software titles Broad range of software titles availableavailable
• Convenient license acquisitionConvenient license acquisition
• eSelect electronic license deliveryeSelect electronic license delivery
Microsoft Select
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Open Subscription License
4 different Open License flavours:
Open Business: • Initial order minimum of 5 licenses
Open Volume: • Initial order minimum of 150 pts per pool
Open Subscription License (OSL)• See next slides
Multi-year Open (MYO)• See next slides
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Open Subscription License
• Requires minimum of 5 pc’s
• Facilitates standardisation: Microsoft Office Professional
Microsoft Windows Professional upgrade
Core CAL – can now select which components are covered
• During the time of the agreement your PC count may increase or decrease
• Annual payment
• Fixed rental price per PC at different Price Levels - based on your desktop count:
• 3 year rental period - buy out option at the end of the subscription
• Includes Software Assurance (L & SA)
• Multiple subsidiaries can purchase under the same subscription
• Faciliates ease of administration
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission
Multi Year Open - MYO
• Target Market Another option If you were planning to go for Open + SA Small / Medium Company wishing to standardise on one or
more of the platform products – 5 to 250Pc’s
• Type of License Perpetual License Spread payments over 3 years @ 0% Finance SA Included Price cheaper after 3 years – can then buy SA only 2 Types – Volume & Enterprise
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eOpen
eOpen - Electronic License Delivery
• Open License offers electronic license delivery, for tracking license confirmations
• eOpen allows you to:
- View Open License information for one or more authorisation numbers
- Create and retain personalised views of license purchase history information
- View Open License purchases made in more than 180 countries
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eOpen – screen shot
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Questions you should ask yourself
• Questions you should ask yourself:
– How easy is it for your employees to copy software?– Do you have standard applications in place?– What software is being used?– Do you have enough CALs?– Do you have enough licenses for all the software in
use?– Does it all tally up (software licenses to software in
use)?• Consider:
– Software Assurance– Open License Subscription
• Microsoft want to help
© 2003 Deloitte & Touche – not to be used or reproduced without Deloitte & Touche’s permission