Address the 800 pound Gorilla in the Room : Software License ManagementSoftware License Management

Presentation By:

Jim SilveraSenior Solutions Architect

Managing Software Licenses: Why is it so important?Uncovering the consequences of poorly managed software licensesReporting that makes sense to you and the auditorHandling a vendor audit the right wayUnveiling the results of 2010 Numara Software &

Objectives

Unveiling the results of 2010 Numara Software & IAITAM Software License Management Benchmark SurveyFinding a solution that works for youQ & A

Underutilized Applications (shelfware)

Having too much of a good thing cango to waste….

Software License Management: Why is it so important?

Overutilized Applications (piracy)

Being non-compliant can cost you $$

How much could you be saving by tracking software usage and avoiding shelfware?

Investment decisions should be based on usage NOT politicsFind out what you have and how often it is being usedHave more then one way to look at your data to evaluateStandardize on versions across the organizationReduce the costs associated with administration and manual reporting

Software License Management: Underutilization

“Enterprises that implement software usage capabilities will achieve

savings of 5-25% in the first year.”Gartner

“Enterprises that implement software usage capabilities will achieve

savings of 5-25% in the first year.”Gartner

Illegal use of software has many repercussionsCostly fines as a result of SOX non-complianceExpensive fines as a result of Software Vendor auditsCompany reputation can be damagedSoftware in use could be outdated and therefore damage your data

Software License Management: Rise in Vendor Audits

data

QUESTION ANSWER

What gives them the right? Copyright Laws and your contract with the publisher

Did we do something wrong?

Not necessarily, although Compliance Agencies do offer compensation for reporting software piracy

Does a bad audit result make it more likely that we will be audited again?

Yes, a poor result shows that license compliance is most likely not in good shape in your organization and that other titles may also be under-licensed.

What is the difference between an audit and a

Reviews – “we come in for free” and audits “You pay.” Either can be “voluntary,” although audits sometimes have “cause”

Frequently Asked Questions About Software Audits

between an audit and a review?

can be “voluntary,” although audits sometimes have “cause” identified in the letter received by the organization. Reviews are presented as offers to help organize and get the SAM program on track. The notification may state that you will have the ability to purchase from your contracted rate.

What is the best piece of advice you can give me for audit survival, assuming we are working hard on SAM already?

Prepare an Audit Response Team in advance

Not responding to a letter or other unreasonable behaviorSharing EVERYTHING Removing software installations or purchasing more after an audit notification has been receivedAsking the auditor what constitutes proof of purchaseOnly managing software in preparation for contract renewal or in preparation for an audit. SAM is not one big True-up

The Worst Audit Behavior Mistakes to Make

preparation for an audit. SAM is not one big True-upAllowing executives to think that license violation is inevitable OR that everything is ok

Accurate Hardware InventoryAccurate Software InventorySoftware DictionaryData-scrubbed Inventory

Purchase DatesReconciliation ReportCertificates of AuthenticityMaster Media if appropriate

The Audit Preparation Check List

©2010 IAITAM8

Data-scrubbed InventoryProofs of Purchase� Paid Invoices� Reseller Reports� Cancelled Checks� More?

Contractual documentsLicense typesRestrictionsVersionsBackup copies, other Ts&Cs

8

Build the Audit Response Team Process

LegalLegal

DocumentationDocumentation

Procurement/ContractsProcurement/Contracts

Software Asset ManagerSoftware Asset Manager

Hardware Asset ManagerHardware Asset Manager

TechnicalTechnical

The Market Says…The Market Says…Survey Results

Solving the SLM Challenge: Automated Inventory

Eliminate manual tracking of assets

Manage your software licenses and avoid overspending on underutilized licenses or costly vendor finesvendor fines

Solving the SLM Challenge : Audit Preparation

Preparing for an audit starts with Discovery…

50%

52%

Do you feel your IT Asset Records are Accurate and current?

48.3%

51.7%

46%

48%

50%

Yes No

Solving the SLM Challenge : Audit Preparation

Solving the SLM Challenge : Detailed Reporting

Solving the SLM Challenge : Audits are a Legal Issue

50.9%49.1%

Do you conduct internal practice audits at your organization?

12%

What SLM task is most important when justifying additional software investments?

Know what is being used or not used

61%

27%

used or not used

Understand # of purchased licenses in agreementAccurate depiction of cost of app

Solving the SLM Challenge Application Blacklisting

52.2%

24.3%

47.8%

Blocking Application Usage

23.5%

A program blocks the download

There is no program to block downloads and no opportunity to institute that process

Downloads are not currently blocked and doing so is of interest to me

Solving the SLM Challenge: Application Blacklisting

Solving the SLM Challenge : Retiring PCs

Retiring Machines

43.0%

32.9%

17.9%6.2%

PCs to be disposed are wiped without examining the software installed on the machine

Perform manual process to document disposed software update license counts

Conduct a discovery run that locates and counts all licenses

Disposal processes are not shared with the software management team

Summary/Conclusion

Importance of SLMPassing an AuditWhat to Look for in a ToolSurvey Results RevealedSurvey Results Revealed