1. Lead Product Manager, Enterprise ITAM BMC Software Twitter: @JonHall_ Jon Hall IT trends set to shape Software Asset Management 2015 SAM Summit, Chicago 2. Introduction 3. +Virtualisation Virtual machines Network deployable software Capacity-based licensing 2005- 2011 The PC Revolution Physical machines Point installs Install-based licensing 1985- 2005 2015- +The digital enterprise Rapid shift to XaaS Hybrid cloud Containerization Internet of Things 2011- 2014 +Cloud and mass mobility Industrial virtualisation Mass-mobility and BYOD Usage-based licensing As IT evolves, so does ITAM 4. 01 The shift to Software as a Service 5. 25% of new business software purchases will be SaaS by 2016 PwC, March 2014 6. SaaS Software Growth 7. Cloud Service Sprawl 0 200 400 600 800 1,000 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 923897 831 738759 626 545 Source: SkyHigh Networks Cloud Adoption and Risk Reports (quarterly) 8. Cloud Computing did not end license compliance worries, but rather created new ones BSA, November 2013 You can be non-compliant with SaaS! 9. Accessing the software from prohibited geographies Sharing user accounts Allowing systems to pose as users Providing prohibited access to non-employees BSA guidance on ways to be non-compliant with SaaS: 10. Rapid shift to usage and subscription licensing Sprawl and loss of visibility due to Shadow IT SaaS procurement Complex range of new pricing structures, perhaps based on out-of-sight activity SAM strategies built on legacy discovery tools may not adapt to SaaS Key challenges for Software Asset Managers 11. 02 The Growth of the Hybrid Cloud 12. Hybrid Cloud is not a new trend 28% 6% 66% Private Cloud Public Cloud Physical Servers & Non-Cloud VMs Even two years ago, 34% of enterprise servers ran in the Cloud Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations Forrester, June 2013 13. Private Cloud Location A Private Cloud Location B Infrastructure Policies Capacity Costs/BillingEntitlements CLOUD SERVICE BROKERPPortal Provisioning services in the hybrid cloud 14. 4 x Amazon AWS Instance Enterprise Hot-Standby License 1 year review 1 x Amazon AWS Instance Enterprise Developer License 6 month fixed 4 x Dedicated Server 4 x Private Cloud VM 2 x Amazon AWS instance Perpetual Core-based license Perpetual Core-based license Per-User Subscription License 3 year review 1 year review 1 year review GOLD SILVER BRONZE Provisioning services in the hybrid cloud 15. 6am 9am Noon 3pm 6pm DATABASE SERVER 7am 7pm REPORTING SERVER Dedicated instance spun-up for daily reporting job Additional database capacity at peak customer access time Evening discovery jobMorning discovery job Limitations of traditional discovery 16. Instantiate new server instance in public cloud Decommission IaaS instance and reduce app subscription count Extend application subscription to new cloud instance MOVERelocate server to new Datacenter ADDProvision and deploy new physical server DELETE Remove and decommission racked server, and reclaim software licenses CHANGE Install application instance on server Transfer Amazon instance to new Availability Zone IT Asset Management for the New IT 17. 2006 2008 Vendors: slow to react to changing infrastructure 18. Legacy tools and methods may not adapt to the new datacenter reality Service owners need better proactive analysis of software costs Multiple technology stacks can lead to silos Vendors frequently fail to adapt license models in a timely manner (if at all), leaving dangerous ambiguity Key challenges for Software Asset Managers 19. +Virtualisation Virtual machines 2005- 2011 The PC Revolution Physical machines 1985- 2005 2015- +The digital enterprise Hybrid cloud Containerization 2011- 2014 +Cloud and mass mobility Industrial virtualization Weve been here before Instance-based licensing CPU-based licensing Core-based licensing Value unit licensing Dynamic capacity licensing ? 20. The last round of simplification we did was six years ago Id say we succeeded on simplification, and our customer satisfaction numbers plummeted for two and a half years. Steve Balmer, then Microsoft CEO,2011 It turned out that a lot of the footnotes, fine print, the caveats, were there because somebody had used them to reduce their costs 21. 03 Containerization 22. So what is Containerization? HARDWARE HOST OPERATING SYSTEM APPS APPS APPSAPPS OS OS OSOS HYPERVISOR Virtual Machines HARDWARE HOST OPERATING SYSTEM Containers APP APP APP APP APP APP APP Libraries Libraries (and why should we care?) DOCKER ENGINE 23. For one simple reason: You can stick a lot more containers on a single server than you can VMs. How many more? Try two to three times more! Steven J. Vaughan-Nichols, in ZDNet, 2014. 24. Oracle 11g Enterprise Edition So whats in that Container? 25. So whats in that Container? IBM MQ Advanced for Developers 26. Ultra-rapid technology growth means more vendor inconsistency, and creates silos Legacy tools and methods may not adapt to disruptive new means of deploying software Vendors may fail to adapt license models in, or prohibit new styles of deployment altogether Disruptive new generation of applications tailored to run in containers? Key challenges for Software Asset Managers 27. 04 The Internet of Things 28. The rise of the Internet of Things 0 5 10 15 20 25 30 2009 2015 2020 4.9bn 0.9bn Source: Gartner Predicts 2015: The Internet of Things 25bn Number of connected things (billion) 29. 25% of new business software purchases will be SaaS by 2016 PwC, March 2014 Your current Asset inventory store: -PCs and Laptops -Smartphones -Tablets -Printers -Consumables Coming soon to your IT Asset inventory store: -Wearable devices -Smart meters -Standalone sensors -RFID equipment -Smart vehicle components 30. Oracles Forklift First select appropriate services and approve suppliers, and then implement a framework that addresses infrastructure holistically, rather than allowing for the proliferation of silos of capacity The 30 Forklifts and 15 Temperature Devices in this example require 415 Named User Plus licenses Projecting Gartners prediction (2015-2020) crudely onto this scenario adds over 200 devices, and +50% to the license cost. Oracle Software Investment Guide 31. Todays smart forklift includes diagnostics that allow the equipment to signal when it needs to be serviced, speed controls, anti-slip technology that monitors wheel spin and improves traction, collision detection, fork speed optimization, and more Forbes, 16th March 2015 32. to secure additional revenue, manufacturers need to recognize the role that embedded software and applications play in the IoT, and they need to monetize this value Gartner - Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things (April 2014) Laurie F.Wurster, Gartner 33. Device licensing is already here We use licensing and entitlement management systems to develop new offerings Research Report: The Third Industrial Revolution. Intelligent Devices, Software and the Internet of Things. (Flexera and IDC, February 2015. 60% 17% 23% We will do this over the next 12-24 months We have no plans to do this 34. Hardware and Software Asset Management align Different devices, priced per unit Homogenous devices, priced by feature consumed Before Now 35. Legacy discovery tools may not adapt to discovering multiple new classes of IP-connected devices Even when the device is visible, it may not be clear what licensed options have been purchased Risk of rapid growth in consumption and exposure for existing licenses IT may have no mandate to control purchasing and spend of licensed devices used in other areas Key challenges for Software Asset Managers (And youre suddenly a Hardware Asset Manager too!) 36. Conclusion 37. Technology is rapidly evolving on multiple fronts, and IT Asset Management risks being fragmented or left behind Traditional discover and reconcile ITAM is still valid, but it must be combined with new data and methods As IT shifts from the backroom to the frontline of digital business, the need for proactive compliance and software cost optimisation increases Nobody is better placed than the IT Asset Manager to provide holistic and proactive oversight to the CIO Key takeaways 38. Thank You Bring IT to Life. Twitter: @jonhall_ SlideShare: jonhall7 39. References S5: PWC Global 100 Software Leaders: The growing importance of apps and services http://www.pwc.com/en_GX/gx/technology/publications/global-software-100-leaders/assets/pwc-global-100-software-leaders-2014.pdf S6: IDC Worldwide SaaS Enterprise Applications 2014-2018 Forecast and 2013 Vendor Shares http://www.idc.com/getdoc.jsp?containerId=252568 S7: SkyHigh Networks Cloud Adoption and Risk Reports (1-7) https://www.skyhighnetworks.com/cloud-report/ S8: BSA: NAVIGATING THE CLOUD: Why Software Asset Management Is More Important Than Ever http://portal.bsa.org/samcloud/bsasamcloud.pdf S12: Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations Forrester, June 2013 http://documents.bmc.com/products/documents/35/77/443577/443577.pdf S15: CIO.com: 5 Misconceptions of Cloud Software and Virtual Licensing http://www.cio.com/article/2387027/cloud-computing/5-misconceptions-of-cloud-software-and-virtual-licensing.html S18: Announcing Amazon Elastic Compute Cloud (EC2) - 24th August 2006 http://aws.amazon.com/about-aws/whats-new/2006/08/24/announcing-amazon-elastic-compute-cloud-amazon-ec2---beta/ Licensing Oracle Software in the Cloud Computing Environment (c.2008) https://web.archive.org/web/20100311022227/http://www.oracle.com/corporate/pricing/cloud-licensing.pdf S21: Steve Balmer Youtube video, uploaded 5th October 2009 https://www.youtube.com/watch?v=NIN4g8cB_xg 40. References S24: Docker 1.0 brings container technology to the enterprise (ZDNet, 9th June 2014) http://www.zdnet.com/article/docker-1-0-brings-container-technology-to-the-enterprise/ S25: Docker Hub registry image (unofficial) for Oracle Enterprise Edition https://registry.hub.docker.com/u/filemon/oracle_11g/ S26: Docker Hub registry image for IBM MQ Advanced https://registry.hub.docker.com/u/ibmimages/mqadvanced/ S29: Gartner Predicts 2015: The Internet of Things (via ZDNet : Gartner predicts a quarter billion connected vehicles by 2020, 27th January 2015) http://www.zdnet.com/article/gartner-predicts-a-quarter-billion-connected-vehicles-by-2020/ S31: Oracle Software Investment Guide S32: Steve Banker: The Intelligent Forklift in the Age of the Industrial Internet of Things (Forbes, 3rd March 2015) http://www.forbes.com/sites/stevebanker/2015/03/16/the-intelligent-forklift-in-the-age-of-the-industrial-internet-of-things S33: Gartner: Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things (April 2014) http://www.gartner.com/newsroom/id/2700017 S34: The Third Industrial Revolution. Intelligent Devices, Software and the Internet of Things. IDC/Flexera via http://www.flexerasoftware.com/producer/company/news-center/press-releases/IDC-Report-IoT-Intelligent-Devices-Software-Monetization-Are-Propelling- Third-Industrial-Revolution.html PHOTO CREDITS (used via Creative Commons licensing) S15 (Silos): https://www.flickr.com/photos/kh-67/4892949459/ S24 (Containers): https://www.flickr.com/photos/on1stsite/2906484311/ S30 (Asset store): https://www.flickr.com/photos/mwichary/3301333726