Copyright © 2009, SAS Institute Inc. All rights reserved. Company Confidential - For Internal Use...

Copyright © 2009, SAS Institute Inc. All rights reserved. Company Confidential - For Internal Use Only

1st Annual Summit on Cloud-Delivered Software:

Emerging Licensing Trends and Best Practices for Community Colleges January 21 - 22, 2010

Charles A. Coleman, Jr., Ph.D.Co-HostSenior Practice StrategistHigher EducationSAS Institute


“ You can’t there from here. . . .”

The emergence of Consortium-based licensing results from a convergence of

(“It’s the Internet, Stupid.”Bill Clinton)

SaaSASPSOADistributed Computing ParadigmsBroadband & Distance LearningDynamically provisioned services Private/Public Cloud-based Delivery

Results in the

Demand and Supply: The Vendor Conundrum


Where are we? . . . Commercial vs AcademicSoftware Vendor Licensing Police

Wells Fargo

GMUCLA

VT

NCSU


Centralized Distributed

COMPUTING

MA

NA

GE

ME

NT

Cen

tral

ized

Dec

entr

aliz

ed

Too Costly

Not Scalable

Weird

Computing “Sweet Spot”

Chaos

PROVEN UNIVERSITY-WIDE COMPUTING PARADIGM:

Centralized Management of Distributed Computing


Now. Introduce the Role of Governance.

Q: What is Governance on Campuses and How Does it Impact Licensing?

A: Diver’s Licensing


Data Quality/Data Governance Discussion

Data Governance• What is data governance, and how does it relate to

data quality?• Goals for Data Governance

− Enable better decision-making

− Reduce operational friction

− Consolidate Software Licensing

− Build standard, repeatable processes

− Reduce costs/increase effectiveness through coordination

− Ensure transparency of processes


CCCAC TOPIC: GOVERNANCEFrom The Chronicle of Higher Ed, July 23, 2009

Exactly What Is ‘Shared Governance’?

Provost and Vice President

Idaho State University

By Gary A. Olson

http://chronicle.com/article/Exactly-What-Is-Shared-Gov/47065/

Click on link below:

http://chronicle.com/article/Exactly-What-Is-Shared-Gov/47065/


Collision or Convergence? It’s all about the Vocabulary!

Internet

Broadband

Social Networking

Cloud Computing

ASP

SaaS

Grid

HPC

SLA

Virtualization

Objects

Licensing

Commoditization

Collaboration

Cost-Benefit

Overhead

Governance

Master Data Management


Software At Odds: Missions and Mandates in Conflict

Vendors Margin

Revenue

Profit

Market Share

Mind Share

Marketing and Advertising

Use

Control

Campuses Quality

Value in the classroom

Access & Availability

Ease-of-Use

Low Maintenance & Overhead

Low Cost

Minimal Support costs

Simple, Flexible Licensing







But Licensing . . . ? Problem or Soultion?

Licensed to a CPU, an appliance or server

To an End User(s)

To an Entity

To or through an Application (e.g. OEM)

To a Services Provider and/or VAR

To a Means of Distribution . . . . (e.g. extranet)

To an Environment (cancer marker research)


Licensing in Flux . . .

Concurrent Use

Unlimited use—”all you can eat”—Red Lobster/Golden Coral License

Shared with like entities (e.g. departments)

Consortium-Base (multiple institutions)

Use-based (software “leash law”)

(The “old” Groupworks or ShareWare)

Collaborative/ Teaching vs Research (T&R co-licensed to instructors, PIs, and researchers)

Utility Computing and Licensing (metered used)

Grant-based (one project, one license, one term)


It's time for seat-based software licensing to end

25-Mar-2009 -- Kas Thomas, Analyst

Economic downturns tend to accelerate change in the IT world: People with budgetary authority find themselves taking a fresh look at what they're spending money on, how and whether IT investments are paying off, why bad investments are not paying off, and what to do differently going forward.

Given the situation we're in, now might be as good a time as any for potential buyers of software systems -- and licensees whose contract renewals are coming up -- to declare war on per-seat pricing.

Seat-based pricing has been declining in popularity for some time (everyone I know hates it), but like a weed growing out of a crack in the sidewalk, it never seems to go away entirely. In theory, per-user pricing is rational because it allows costs to scale in a predictable (and fair) fashion, according to an organization's size. But in reality, there are many problems with the "headcount equals usage" notion, the most obvious being that if nine people touch the system once a month and one person uses it eight hours a day, seven days a week, you still need 10 seat-licenses even though nine out of ten users are offline at any given time.

http://www.cmswatch.com/Analyst/23-Thomas




Another popular scheme is the "named user" approach. Here, the vendor requires you to list the names (and quite often the roles) of each and every person and process that will access the system in question. But questions arise: What if User A changes roles (or leaves the company)? If a whole department is laid off, will you get reimbursed for unused licenses? Are licenses transferable across departments -- or geos? Even if you can abide the basic terms, named-user licensing tends to be a compliance nightmare -- especially for large organizations, where administering partially overlapping license pools for dozens or hundreds of users and products can be hideously time-consuming, even when the process is semi-automated.

In general, seat-based licensing is burdensome, complex, and difficult to manage. It also encourages overbuying. One wonders: Why does it still exist?

OK. WHY? . . . . Discussion, please .

. . .


With Virtualization Comes New . . . Image-based licensing?

Cluster or “Pallet-based” (drag and drop images you need in order to create a custom computing suite of OS, apps, code, etc.)

Open Source-to-Proprietary “bridge” licensing (API Facilitators—Could be built on the iPhone Model.)

Image “time/use sharing” across multiple owners and image generators (like the VCL as an image “factory ”

But, ultimately . . . .


Model: Motel-Based Licensing –The Foundation for Consortium-Based Licensing

“Rooms” (partitioned blades) are pre-furnished with generic images, apps, etc. Users “check in” and use the room on a lease basis, (plus “room service”) = low-budget, (one-night stand) personal cloud.

.


Model: Motel-Based Licensing–The Foundation for Consortium-Based Licensing

Other rooms are more lavish, and have pre-configured images at-the-ready and are provisioned dynamically by the motel’s image/software “room service” depot. These are in steady-state, private “rooms” and always ready for your “occupancy” and use. Your configs remain “static” until re-activated or modified by you = state-room cloud.


Model: Motel-Based Licensing–The Foundation for Consortium-Based Licensing

Other floors are completely “wired” with multiple rooms for your use and the use of others as allowed by you. These are fully-customized on-demand lavish work environments populated with your images, HPC and GRID platform and access. You write your own sub-lease for others to “use” your cluster of rooms = custom condo cloud.


Open Source and Proprietary Software in Cloud Computing

Peaceful co-existence

Proprietary vendors need to provide “bridge” mechanisms and new licensing provisions for users to shuttle seamlessly between OPS and PS

API code libraries and Open Access to and from PS software is a good starting point; &/or “open” some low end apps

Consortium and project-based licensing models will be “a must” if proprietary vendors want to leverage the OPS marketing opportunity (“try it—you’ll like it” upgrade to PRO)

Drag and drop “write your own” licenses

Vendors must come up with a “creative commons” type universal platform licensing agreement (“boiler plate”)


High-Density Use

HPC ON-CAMPUS CLOUD COMPUTING PLATFORM

Each of the colored circles represent virtualized images of SAS software, competitors’ software and Open Source software currently being used in a typical university setting that has adopted a centrally-hosted management implementation of a shared (distributed) computing environment in which users (teachers and students) “call” applications, tools, operating systems and “raw” onto bare metal in a tightly controlled and regulated partitioned-blade HPC environment in an ad hoc manner for teaching and learning. The partitioned blades are either accessed via previous. The colored circle represent “images” or “objects.


“Why Can’t We All Get Along. . . .” Rodney King

= SAS “high-end” solutions, or “A” product line. Image creation is more complex, use more sophisticated, and cost is higher to the University both in terms to LEASE from SAS and to operate on the University computing platform.

= SAS “medium-end” solutions, or “B” product line. Image creation is less complex, easier to run and use, and less cost to LEASE and less overhead of the University to host and maintain.

= SAS “commodity” tools, or “D” product line. Image creation is even simpler, easier to run and use, and less cost to LEASE and less overhead of the University to host and maintain. These tools are FREE for ANY PROFESSOR or STUDENT to use at no cost, provided that they have the Master License in place. These might be GRAPH, for example. They are NOT open-sourced but are free in this licensing and lease agreement context.

= Competitor’s software

= Open Source Software

.


iPhone SDK for iPhone OS 3.0

In App PurchaseSell extra content and services from your application using the Store Kit framework. This new framework helps you keep track of your product catalogs, processes the payment transaction with the iTunes Store and returns information about each purchase. Learn more

Start developing the next generation of innovative mobile applications now. Join the iPhone Developer Program to test your applications directly on iPhone and distribute them to millions of customers around the world on the App Store.

http://developer.apple.com/iphone/program/sdk/inapppurchase.html


Fractional Licensing—Shared Ownership?

NETJETS FRACTIONAL AIRCRAFT OWNERSHIP

In 1986, NetJets pioneered the concept of fractional aircraft ownership. Today, NetJets is the worldwide leader with the most Owners, the largest

fleet, and the most experience. With NetJets Fractional Aircraft Ownership, you gain all the convenience, access, and time advantages of owning

a whole aircraft but at a fraction of the cost and without any of the responsibilities. NetJets hires the pilots, maintains the planes, attends to the logistics, and ensures your safety. To oversee your needs on every flight, a dedicated Owner Services Team is assigned to you. And we back up your

investment with the financial strength of Berkshire Hathaway.


Licensing and Provisioning for Community Colleges in Virtualized Cloud Computing Environments—Standing Committee Create a proprietary vendor “task force” to meet and convene

around these issues (SAS, IBM, Maple, etc.)

Solicit a volunteer committee of NC Community College administrators, faculty, IT and technical professionals for input and guidance

Representation of members and technical staff of NC State’s VCL

Establish a NC Community College Governance Board to insure compliance and uniformity of policy and process implementation as we move forward

Copyright © 2009, SAS Institute Inc. All rights reserved. Company Confidential - For Internal Use OnlyCopyright © 2009, SAS Institute Inc. All rights reserved. Company Confidential - For Internal Use Only

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