DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL Stephne Hanson Licensing & Compliance.
Software Licensing & Compliance: Two Strategies, One Goal
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Transcript of Software Licensing & Compliance: Two Strategies, One Goal
© 2008 Acresso Software | Company Confidential
Licensing & Compliance:Two Strategies, One Goal
Jeff Gustafson
EMC Corporation
2 © 2008 Acresso Software | Company Confidential
Roadmap for Discussion…
1) What are the challenges facing the Software Industry today?
2) What is the relationship between the business and technology?
3) Why are license management and compliance complimentary?
4) How does the firm begin to frame the issue of compliance?
5) What tools are available in pursuit of the firm’s strategy?
3 © 2008 Acresso Software | Company Confidential
The Business Relationship
Producer:- Are they entitled to it?- Have they deployed it?- Are they using it?- What version is it?- Is it supported?- Where is it?- Do they want it?- Do they need it?
Enterprise:- What is it?- Are we entitled to it?- Have we deployed it? - Are we using it?- Is it supported?- Where is it?- Do we want it?- Do we need it?
“It”
Relationship Management:
Optimizing/Leveraging current/future investmentsAligning to value in the relationship
Establishing baseline visibility on usage/deploymentClarifying issues of entitlement
4 © 2008 Acresso Software | Company Confidential
Software Licensing Framework
Monitoring, Tracking & Compliance(Audit, self-reporting / manual, electronic / data, financial)
En
titl
em
en
tD
ep
loy
me
nt
LICENSING METRICS(Named-User, Concurrent User, CPU, Server, Core, Terabyte, Usage, etc.)
OTHER LICENSING T&Cs(Express rights and limitations regarding usage, functionality, deployment, etc.)
LICENSE GRANT(Perpetual / Non-Perpetual)
OTHER T&Cs(Reporting requirements, Audit rights, Derivative works, Sublicensing, Transferability, etc.)
5 © 2008 Acresso Software | Company Confidential
Elements of Change
Legacy Inertia
Internal ∆
External ∆
↓Undermines Alignment
of the Relationship
Time
ProbabilityOf
Mis-alignment
“Genesisof a
Contract”
Use-Cases
Software
Portfolio
M & A
Activity
Technology
TrendsInstitutional
Mem
ory
Regulatory
TrendsIndustry
Trends
6 © 2008 Acresso Software | Company Confidential
Perpetual / On-site Model
Development: 18+ month cycle
License Right: Perpetual
Deployment: On-premise
Installation: Extensible / Customized
License Renewal: Annual Annuity
Procurement: Upfront payment
Return on Investment: Expected future return
Probability: Variable
Alignment to Value: ?????Exposure to Risk: ?????Business Relationship: ?????
7 © 2008 Acresso Software | Company Confidential
EpistemologyL
icen
sor
“Kn
ow
n”
“Un
kno
wn
”Licensee
“Known” “Unknown”Overcome:
Imperfect Information
Information Silos
Asymmetric Relationships
Lack of Transparency
Objective:
Fact-based Dialogue
Strategic partnership
MutualInsight
AsymmetricInformation
AsymmetricInformation
MutualUncertainty
8 © 2008 Acresso Software | Company Confidential
Yin-Yang of Business and Technology
Business
Technology
What are the strategic goals of the firm in licensing?
How will technology enable those objectives?
“All of the infrastructure and processes necessary for the effective management, control and protection of the software assets within an organization, throughout all stages of their lifecycle.”
- ITIL Best Practice Guide – Software Asset Management
9 © 2008 Acresso Software | Company Confidential
Ownership and Deployment
Knowledge ofOwnership
Ownership
Knowledge ofDeployment
Deployment
CommunicationReconciliation
Disintermediation
Corporate ComplexityDisintermediation
Institutional MemoryM&A Activity
Organizational AlignmentIT Decentralization
M&A ActivityTechnology Trends
PeopleProcess
Tools
10 © 2008 Acresso Software | Company Confidential
Variables to Consider
Market Structure:
Business Climate:
Legal Environment:
Business Dynamic:
Go-to-Market:
Regional Scope:
Business Solution:
SEULA:
Software Portfolio:
Software Type:
License Metrics:
Customization:
Sponsorship
Objectives
Abilities
Monopoly – Competitive
Objective – Relationship
Supportive – Non-supportive
Trusted – Arms Length
Standard – Negotiated
Domestic – Global
Horizontal – Vertical
End-user – Partner
Narrow – Broad
Desktop – Enterprise
Concrete – Diffuse
Stock – Extensible
???
???
???
11 © 2008 Acresso Software | Company Confidential
Strategy and Tactics
INTER-Corporate
INTRA-Corporate
LicenseManagement
ComplianceMonitor
“Ad-hoc”
“Iterative”“Structured”
“Batch”
12 © 2008 Acresso Software | Company Confidential
Two Tales (Software Producer Lifecycle)
Compliance
CorporateStrategy
TechnologyStrategy
MarketingStrategy
R &
D
Licensing
Pricing
Distribution
Go-to-M
arket
13 © 2008 Acresso Software | Company Confidential
Two Tales (Enterprise Lifecycle)
SoftwareAssetMgmt
CorporateStrategy
TechnologyStrategy
MarketingStrategy
Inve
st
Deploy
Manage
Optimize
Leverage
14 © 2008 Acresso Software | Company Confidential
Thoughts regarding Tools
People
Process
Tools
Entitlement ManagementFulfillment/Back Office
Systems of RecordElectronic Software Distribution
License ActivationLicense Management
Software Discovery ToolsUsage Analysis
Proprietary and/or3rd-Party
Point Solutions and/orSuites
ISO Standards:19770 – Part 119770 – Part 219770 – Part 3
15 © 2008 Acresso Software | Company Confidential
In Conclusion…
Prevalence of Complexity, Uncertainty and Risk
One size certainly does not fit all in Software Industry
Opportunity for common lessons learned Software Producers Enterprise 3rd-Parties
Legitimacy of divergent perspectives
Piracy Audit Compliance SAM ?????
Click to edit Master subtitle style
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© 2008 Acresso Software | Company Confidential16
17 © 2008 Acresso Software | Company Confidential
Appendix 1: Contact Information
Jeff GustafsonWW Software Licensing & Compliance
EMC CorporationeMail: [email protected]
Direct: (925) 600-5781
Thank you!
18 © 2008 Acresso Software | Company Confidential
Appendix 2: Selected Reading1. Software Asset Management: A Key to Infrastructure Optimization by KPMG, October 2008.2. Tools Manager 2008 ITAM and SAM Tools by ECPweb, Winter 2008.3. Bringing Software into the Computer Age with Electronic Licensing and Distribution by IDC, October 2008.4. Software and IT Asset Management by IBSMA, June 2008. 5. Worldwide Software Pricing and Licensing Taxonomy and Report Guide by IDC, March 2008.6. Trends 2008: Application Licensing and Pricing by Forrester, January 2008.7. Key Trends in Software Pricing and Licensing by ECPweb, Macrovision, SoftSummit, CELUG, and EDA,
November 2007.8. Is Unlicensed Software Usage Hurting Your Bottom Line by KPMG, October 2007.9. Contract Risk and Compliance: Understanding and Mitigating Risks in Extended Business Relationships by
Deloitte & Touche, September 2007.10. Could Pay-Per-Use Software Licensing Solve the Virtualization Conundrum? by IDC, June 2007 11. Auditing in the Self-Reporting Economy by Harvard Business School, June 2007.12. Fifth Annual BSA and IDC Global Software Piracy Study – 2007.13. Software 2006 Industry Report by McKinsey & Company, April 2006.14. More than a Matter of Trust: Managing Risk in Extended Business Relationships by Deloitte, April 2006.15. The Impact of SOX on IP Management presentation to the Licensing Executives Society-Silicon Valley
Chapter by Ernst & Young, February 2006.16. The End of Software by Timothy Chou, 2005.17. Software Publishers’ Enforcement Programs: A Survey by ECPweb.com, November, 2005.18. The Future of Enterprise Software by Accenture, October 200519. An Insider’s View on Software Licensing Trends for Enterprise Applications presentation to SoftSummit by
Forrester, October 2005.20. The Self-Reporting Economy: A Matter of Transparency and Trust by KPMG, 2004.21. The Future of Software Licensing: Software Licensing Under Siege by IDC, March 2004.