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137_ Software Asset Management
2007www.insight.com/uk
Insight White Paper
MKT046
Software Asset Management (SAM)
White Paper
Version 1.0 18.10.2006
By
Dr. Bernhard Schweitzer
One of the greatest challenges is
putting the right software on to the right desk at the
right time. This is exactly why Insight
offers optimised distribution services.
“
”
137_ Software Asset Management
137_ Software Asset Management
2007www.insight.com/uk
Insight White Paper
Implementing Software Asset Management
2
Table of Contents
1. Software Asset Management ..........................................................................................3
1.1. Strategy ..................................................................................................3
1.2. Compliance .............................................................................................3
1.3. Security ..................................................................................................3
1.4. Projects ..................................................................................................4
1.5. Disaster Recovery .....................................................................................4
1.6. Change Management ................................................................................4
2. What is SAM? ................................................................................................................4
3. General Motivation for SAM ...........................................................................................4
4. Business Cases / Hard Facts ..........................................................................................5
4.1. Financial Impact .......................................................................................6
4.2. Legal Aspects ...........................................................................................7
4.2.1. ITIL / ISO / SOX ........................................................................................7
4.2.2. Pure Legal Aspects ...................................................................................9
4.3. ROI in Implementing SAM ..........................................................................9
5. How to implement Software Asset Management ...........................................................10
5.1. Scope of SAM .........................................................................................10
5.2. Who is Involved in SAM ...........................................................................10
5.3. Components of SAM ................................................................................ 11
5.3.1. Base Line Compliance: ........................................................................... 11
5.3.2. Processes ...............................................................................................12
5.3.3. Licence Pool ...........................................................................................13
5.3.4. Sample Processes ...................................................................................13
5.3.5. Roles/Responsibilities .............................................................................. 14
5.3.6. Policies ..................................................................................................15
5.4. Feasibility ..............................................................................................15
5.5. Continuous Software Asset Management ...................................................16
5.5.1. Electronic SAM Solution – Licence Logistic Server...................................... 17
5.5.2. Manual SAM Solution – SAM Desk ............................................................ 17
6. Insight’s Offering .........................................................................................................17
6.1. Licence Reconciliation Service ................................................................ 17
6.2. SAM Desk .............................................................................................18
SAM service: SAM Desk .................................................................................19
6.3. Media Management ................................................................................19
SAM-Service: Media Management ......................................................................19
Global Software Distribution ..............................................................................19
Express Media Duplication Service .....................................................................19
Convenience – ftp-Server ..................................................................................19
Your Benefi ts: ..................................................................................................19
6.4. Licence Logistic Server (LLS) ..................................................................20
6.4.1. SAM tool: Licence Logistic Server ...........................................................20
6.5. SAM and Client Management ..................................................................21
137_ Software Asset Management
2007www.insight.com/uk
Insight White Paper
Implementing Software Asset Management
3
1. Software Asset ManagementWhilst there may be a specifi c driver behind the need to begin a SAM project within an
organisation, it is apparent that these projects are fast becoming an industry standard.
More and more we are seeing SAM included in any RFI for supplier relationships. In
order to fully understand the customer’s needs we have to understand what drives SAM.
1.1. Strategy
To formulate effective and effi cient strategic plans, a business MUST
benchmark its existing position. Hardware and software contracts are generally
ineffectively or more often ineffi ciently put together because they don’t
actually refl ect the real difference between where a company is and where it is
going. Upgrade plans must refl ect a benefi t to the business and without clear
understanding of the value currently gained by the business, justifi cation for
proposed plans have to be assumed rather than confi dently understood creating
an unnecessary risk for the business. This applies to software Licence purchase
contracts (new Licences and upgrades), hardware agreements and projects
alike. It is apparent that many companies, for example, purchase Licences for
software titles without knowing if there are surplus Licences already available
within the organisation. Software is maintained with little or no cross-reference
to usage – how many titles do companies maintain that have ceased to be
used? These are all areas that can realise huge savings with better planning
and understanding about the existing position. The biggest driver in so far as
strategy is concerned is corporate certifi cation such as SOX, BASAL II, ITIL,
ISO 19770-1 and for smaller UK based organisations FAST.
70% of organisations have a 30% discrepancy between a planned IT inventory and
their actual IT inventory
Gartner Group
1.2. Compliance
As global software revenues decline software publishers will rely on other and
more creative methods of generating sales. As such software compliance is now
more prominent issue, and is therefore becoming a more important subject to
address. It is imperative to understand what software is deployed in order to
manage compliance, but to avoid wasting money, it is also extremely important
to understand if software is used before making any investment or change
– information that can be provided by performing a comprehensive Licence
Reconciliation Project (LRS).
Businesses have an average of $405 worth of unLicenced software per corporate
desktop - in other words they have 10 to 20 percent more software deployed than
they realise
Micropath
1.3. Security
It is a fact that a percentage of PCs and equipment will “disappear” from most
organisations annually. Without visibility of these assets accounting for this
loss is impossible to measure. External security risks – hackers, viruses etc are
usually comprehensively accounted for, however it is more often the case that
the greatest risk is an internal problem not external. How is this managed? Are
high-risk applications installed on the network? If so where and by whom? Who
is using them? Insight LRS will assist in identifying security vulnerabilities.
Companies with Asset Management practices experienced 10% fewer hours of
downtime and spent 22% fewer person hours on recovery per incident of downtime
IDC
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Insight White Paper
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1.4. Projects
Software upgrades, hardware refreshes, security improvements, standardisation,
OS migrations etc are all projects that, to be executed effectively and
effi ciently, rely on knowledge of the environment that can only be provided by a
comprehensive reconciliation project and full SAM.
1.5. Disaster Recovery
In the event of a disaster and loss of infrastructure it is critical that software
needed to support the business can be provided at short notice - maintaining
business continuity. It is therefore essential that the contract agreed with the
supplier refl ects the businesses actual requirements. The inventory is essentially
an asset register that can be used for many purposes but in the event of a
disaster, none more so than assisting in the smooth and effi cient process of
business resumption.
1.6. Change Management
Change management is an issue that most Corporate IT departments have to
address in order to better control their environment and the associated costs.
Without and inventory telling them how the desktop environment is confi gured,
what software is installed, the devices connected to the network and their
physical locations it is impossible to highlight change. A full SAM project will
confi rm the software estate and any changes can be managed and reported so
will perfectly supporting a change management policy.
2. What is SAM?SAM – Software Asset Management - is an industry “buzz” word and there are many
defi nitions dependent on who an organisation speaks to.
The expression SAM is often used describe Licence management which is in part
correct however SAM provides much more.
“Software Asset Management is the term used for all those processes and the
infrastructures required to manage, monitor and protect the software assets of an
organisation throughout their entire life cycle. Software in the sense includes both the
Licences and the installed applications. SAM tracks business process as well legal
requirements.”
SAM provides answers…
Increasingly, many organisations and their management teams are being confronted
with software issues:
Which software is installed and where is it installed?
Is this software in use?
How many usable Licences do we own?
What is the company’s licensing situation; are there too many or too few Licences,
or the wrong ones?
Do we have software assets that provide limited ROI?
Are we spending too much on licensing?
Are we using the right Licences?
Are the right processes in place for Licence management?
Which software solutions fi t to our business needs?
How are we reacting to the demand of software manufacturers for Licence
verifi cation?
3. General Motivation for SAMWhy is SAM important? This is very valid question and one which needs to be
addressed in order to justify a SAM Project.
This question is extremely diffi cult to answer but if we examine SAM in more detail it
soon becomes apparent that there are very signifi cant benefi ts in implementing SAM
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137_ Software Asset Management
2007www.insight.com/uk
Insight White Paper
Implementing Software Asset Management
5
In general there three major drivers to implementing Software Asset Management
Transparency It is impossible to manage what cannot be seen.
SAM = Visibility
Financial aspects SAM can recognise huge fi nancial savings
By having visibility of the entire software estate, software
Licence pools also become visible which in turn enables
harvesting and reuse. By defi nition this implies that only
Licences which are really needed are purchased..
Legal and compliance
aspects
SAM can ensure the legal position of a company: this is an
obli-gation for every organisation
Industry standards like ISO 19770-1, SOX, and ITIL are
common-place and have a direct effect on any SAM project
Policy and procedures are a vital part of the compliance
process and must be addressed.
Generally it will be a combination of these factors but not necessarily all of them that
will affect an organisation. However, the benefi ts to be gained from addressing these
aspects are self evident.
All of these drivers will, at some point, be integral part of any SAM project
4. Business Cases / Hard FactsWith the experience of many completed SAM projects we can estimate the possible
benefi ts for other organisations. However all these business cases are individual and
unfortunately nearly all of our customers insist on a non-disclosure agreement with
Insight, so we are only able to provide general information and not specifi c detail about
these projects.
It is important to us that our clients’ privacy is protected, however anonymous case
studies can be provided and on a case by case basis some of our clients will permit
contact to discuss their SAM experiences. .
Nevertheless it is possible to give some examples where the potential benefi ts can be found.
As already mentioned nobody implements a Software Asset Management solution
without expecting signifi cant benefi ts out of such a solution.
What are these benefi ts?
Are there specifi c examples of benefi ts which also apply to every organisation?
In which areas of the business can these benefi ts to be expected?
Can the exact numbers be calculated?
These are the most common questions which are asked before starting a SAM project.
In general these questions are not really easy to answer, because most of these issues
are very individual. Moreover, it is more like an individual puzzle pieces representing
single effects, which complete to a whole picture.
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137_ Software Asset Management
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We distinguish between two major areas of potential savings and potential positive
effect by SAM
4.1. Financial Impact
Having visibility of the current licensing position within an organisation is the
basis for cost savings when budgeting for software requirements.
In addition, it should be made clear that savings achieved by implementing SAM
must be understood as reduced spending rather than getting money back
In addition, it has to be outlined that savings by implementing SAM are to
understand as not spending money and not getting money back. Currently it is
very hard to sell used software, but times might change.
One of the major goals for implementing a SAM initiative within a company is to
prevent the unnecessary purchase of software which is not really required.
Knowing, to within 95% accuracy, what is required, gives a stronger negotiating
position when discussing Licence contracts. There are many examples where the
knowledge from SAM has led to signifi cant savings up to several millions at one
time.
Making the right decisions is vital and mistakes can be costly. SAM enables
informed decisions which in turn lead to the right choice. For example does
a Microsoft Enterprise Agreement make more sense than a Select Agreement
dependant on the products and numbers in use in the organisation?
On the other hand what level of Enterprise Agreement should be in place? Do
you need a “full platform” (100% Offi ce Pro) or is 20% Offi ce Pro enough? If
you know the actual usage of Access then you have a good negotiating position.
Example: By having SAM an 8,000 PC customer could save more than 2.5 M€ when
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choosing a managed Microsoft select agreement instead of the all inclusive solution
enterprise agreement.
However this does not mean that in other cases an Enterprise Agreement is not
the better solution.
Establishing and using a Licence pools to get knowledge of free Licences in the
company and use them fi rst before buying new ones.
This may seem obvious, but there very few companies which use this approach
Savings of approximately 5-8% of the Licence budget has been realised in
several large companies by employing Licence harvesting.
Savings by standardisation: Experience shows that a large number of the
companies use several different products for the same purpose. One very
common example is host emulation software. By standardising on one tool instead
of, for example three, puts you in a better negotiating position for approximately
three times higher volume.
A 10, 000 PC customer could immediately save in the region of 1.2 M€ by
consolidating the host emulation solution from three to one, therefore getting a
better volume contract for the entire estate.
Transfer of Licences between companies with in the same corporate group: In
reality it is commonplace for companies within one group not to communicate
their Licence position.
Experience has shown that one company may be over Licenced, another
company under Licenced. If global visibility was in place these Licences could
be shared and costs transferred. However what happens in reality is that when
there is no visibility organisations tend to over buy Licences to cover a potential
Licence discrepancy. This cost is avoidable with SAM.
We assume cost savings by allocating Licences between companies within a
group of approx. 5 -10%.
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137_ Software Asset Management
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Insight White Paper
Implementing Software Asset Management
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Our experiences from several SAM projects can justify this assumption.
Many Products are nice to have, but are rarely used. There are a number of
options which can deal with this type of scenario
The measurement of the usage of certain software products such as MS Project,
Adobe Acrobat, will identify the actual need of the product. Negotiation with the
vendor may allow the de-installation of the product and consequently release the
Licence for reuse.
Another option features Licence Logistic Server. It is possible to entitle someone
to use a software product on a time bound basis. That means after predefi ned
period the software will be de-installed automatically.
Using this approach could save approx. 30% of the Licence cost for such a product.
Example: based on the calculation of a 2.500 PC customer
Products Products installed Products used Savings (€)
MS Offi ce Pro 100% 20% ~150K€
MS Visio (Pro/Std) 25% 10% ~85K€
MS Project 15% 7% ~100K€
Adobe Photoshop 8% 3% ~85K€
Adobe Acrobat 20% 5% ~120K€
Other Products ~500K€
Oracle ~50k€
Legal Risk ~450k€
Sum Savings (total) ~1.570K€
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Process costs: As already mentioned SAM has a lot to do with processes.
Streamlining existing processes helps to avoid double processing the same things
at several points in the company. These savings are not easy to calculate, but it is
obvious that effort can be reduced therefore increasing productivity.
Example: Centrally procuring Licences only once a quarter will save internal
costs... The costs for one buying process is assumed by 200€ each by Gartner.
4.2. Legal Aspects
Beside these measurable savings there are some benefi ts which are diffi cult to
express in hard facts. However for many companies they are extremely important.
4.2.1. ITIL / ISO / SOX
In 2002 after the Enron crash, a law was set up in the US; the Sarbanes Oxley
Act (SOX). This law deals with the responsibilities and the reporting rules for
business numbers. It also deals with the documentation of the processes
dealing with this numbers. What is often overlooked is that Licences are
assets like all other assets within a company (average 780 Euro / PC); the only
difference being is that they are intangible, but they are also affected by SOX.
It is not just the value of a single Licence but the net worth of all the Licences within
the group.
There are cases where the board did not sign the fi nancial statement because of the
lack of transparency of the licensing position within the company.
Internal reviews are methods of addressing the licensing situation within a company.
However anybody who had been affected by such an internal audit knows how
inconvenient that can be. The internal effort and the discomfort can be very high.
Software Asset Management helps to get the right answers for these reviews with a
minimum of effort.
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137_ Software Asset Management
2007www.insight.com/uk
Insight White Paper
Implementing Software Asset Management
8
ITIL / ISO 19770-1: Many companies follow the standards ISO and ITIL. Both of
these standards are dealing with SAM. Following these standards leads to various
advantages in different industry areas.
For Example an automobile supplier may only get a contract if the supplier
conforms to these standards.
ITIL describes the impact of SAM within the ITIL framework detailed in the ITIL
book “Software Asset Management”.
In the diagram left, the commonality between SAM and ITIL are marked in
green. It is obvious that SAM has a central position within the ITIL framework.
Unfortunately, many companies, which have implemented ITIL, have not
implemented the SAM piece. The reason might be that SAM is a very
interdisciplinary process and not, as with most of the ITIL related processes
mainly based in IT.
It is prudent to take the ITIL guidelines into consideration when implementing
SAM, even when ITIL currently is not the main issue in the company.
Recently (May 06) a new ISO standard (ISO 19779-1) was released. This
standard deals exclusively with SAM. It is also well aligned to the ITIL Standard
and BS 15000/ISO 20000 (IT Operations Management).
Unlike other ISO standards, ISO 19770 -1 describes “Outcomes” rather than
specifi c methods and procedures necessary to achieve a result
This standard is not just the basis for the certifi cation of a company; it is also a
best practice guideline for implementing Software Asset Management.
In total 27 different processes are described in this standard.
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Installled Hardware and Software
Proof of Licence Other DocumentationMetering
Distributions Master ReferenceSoftware Copies
Physical flowInformation Flow
Real World Entries: Part ofDefinitive Software Library(DSL)
Information about Real WorldEntries: Part of ConfigurationManagement Database (CMDB)
Directly Affected by SAM
Demand Managementand Tools
Demand Managementand Tools
HardwareInventory
Installed SoftwareInventory
Software LicenceInventory
Indexes & DocumentManagement Systems
Procurement & Tools(ordering, delivery)
DeploymentManagement
and Tools
Licence Managementand Toiols
DiscoveryToolsSecurity
Tools
Security PatchesAnd Updates
AntiVirusUpdates
Other Softwareand Hardware
Received
Commonality between SAM and ITIL
137_ Software Asset Management
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Insight White Paper
Implementing Software Asset Management
9
0
0
0
0
0
0
0
4.2.2. Pure Legal Aspects
Capability to provide appropriate information to software vendors: Most software
publishers have the right to audit their customers; Oracle, Microsoft and Adobe
are prominent examples. If a company does not have an appropriate answer to
such a request, they could be in a position where the publisher will dictate their
conditions for Licence procurement.
Appropriately set up Software Asset Management can provide the company with
the necessary data to give the right answers to any publisher.
This is a high risk factor and is growing across many industries as publishers
become more aggressive. Where there are discrepancies, penalties can amount
to 2-3 times the list price of the software product.
Every company is obliged to be Licenced correctly and the responsibility lies at
board level.
The Board, although concerned by the fi nancial penalties are more concerned
about how the companies reputation could be put at risk by a publisher induced
audit. This could have a potential negative effect on a stock for example.
4.3. ROI in Implementing SAM
To get accurate fi gures for the ROI when implementing SAM within a company a
specifi c pre-study has to be made to get reliable individual data.
Experience from the last 7 years we can say that the ROI correlates with the
complexity of the company.
That means that the benefi ts and the ROI for SAM are greater and faster if
the company is a complex company or group, particularly in a large global
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environment, where the fi nancial effects and the ROI are high / fast.
Smaller companies often are already quite standardised compared to larger ones.
There are some specifi c situations that indicate the ability to realise extreme
high fi nancial effects and ROI are very high.
Complex groups, especially international groups
Decentralised companies
Companies with a high frequency of mergers & acquisitions
Companies which are in the process of negotiating new Licence contracts
However the individual savings and the ROI borne out of the implementation of
Software Asset management still remains an individual thing.
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ROI/Savings
Com
ple
xity
of
the
Com
pan
y
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Insight White Paper
Implementing Software Asset Management
10
5. How to implement Software Asset Management
Implementing Software Asset Management is not rocket science but there are some key
factors which need to be considered in order to achieve clear results in a defi ned time
frame. The experience of the last years has shown that the following points have to be
taken in account in order to achieve acceptable results.
One of the most important issues is not to underestimate the “challenge” SAM
SAM is not implementing a tool
Understanding the interdisciplinary aspects of SAM
Setting reachable and feasible goals
Setting performance indicators
Having an appropriate budget
5.1. Scope of SAM
Defi ning the scope for the implementation of a Software Asset Management
is extremely important. There have been several projects that failed due to an
infeasible scope. “I want to include everything” is an understandable wish, but
in reality, this normally very diffi cult to achieve.
One successful approach which has proved viable many times is to sort out the
most common and important publishers, determined by cost and distribution,
for the fi rst step in implementing SAM.
Also the implementation of SAM in a pilot environment, such as one out of
several locations or countries can be another viable approach.
It is vitally important to fully scope a SAM implementation.
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5.2. Who is Involved in SAM
It will have become evident at this point that SAM is a topic that affects many
areas within an organisation.
SAM is not just an IT issue!
SAM is a topic which relates to:
The IT department
The purchase department
The controlling
The management
The workers council (in some countries) or HR department
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Management
Controlling
IT DepatrmentWorkers
Council
Purchasing
Department
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Insight White Paper
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Due to the complexity of many organisations and the positioning of Software
Asset Management implementation may be diffi cult to fully achieve. However
if the project is driven from board level down then departments are obliged to
assist and comply with any implementation.
5.3. Components of SAM
An individually tailored approach to a SAM implementation within an
organisation seeks to achieve the organisation’s specifi c goals.
Insight’s approach to Software Asset Management is a multi-faceted one in
which all component steps can be considered as unique services dealing with
unique but not necessarily related issues.
With this approach we seek to ensure that the implementation of SAM is
oriented to the needs of any customer and can be easily adopted to make such a
project “feasible”.
Importantly, our aim is to avoid an end result whereby the management of
100 Offi ce li-censes is actually more expensive that the acquisition of those
Licences in the fi rst place.
5.3.1. Base Line Compliance:
Step 1 in implementing SAM is to establish a baseline compliance state. That
means that at the end of this process the company knows precisely the “true“
Licence position
In Insight terms, this process is called the Licence Reconciliation Service (LRS).
Broadly speaking, this process deals exclusively with the company’s licensing
history.
Our experience has shown us that there is no Licence management tool which
can deal with a complex history of licensing. So this approach documents the
history one time only and then includes this documented status in the Licence
management solution.
The advantage of this initial phase is that the eventual Licence management
solution only has to deal with current and future licensing practices.
Base Line
Contract Data
Technical Data
Lice
nce
Dat
a
Base Line Compliance
Licence Management Tool- Licence Logistic Server
Licence Reconsiliatioon Service (LRS)
SAM Desk
Process Consultancy
Tool Based Licence MGT
Not Tool Based Licence MGT
Licence Management
FOUNDATION
Workshop
Project
Overview
Inventoryof Installed
Software
INVENTORY REPORTING CONSOLIDATION REPORTING ONGOING LICENCE MANAGEMENT
Optimisation andstandardisation of the
Software Asset Portfolio
Tool-supportedLicence Management
Licence LogisticServer
Stand-alone LicenceManagementLicence Desk
Development of aCost-optimised LicenceManagement Concept
Inventoryof exisitng Software
1. Reconciliation Status Report 2. Reconciliation Final Report
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The principle of the LRS process is quite simple, but the reality is often not so
simple.
The LRS process is a reconciliation of all existing Licences with all installed
applications in order to obtain a current licensing status.
Reconciliation itself is a two-step process. Step 1 is to reconcile all existing
Licences (including those purchased in the past) to current usable ones.
These current usable Licences are then reconciled with the software
applications which are installed or in use across the desktop and server estate.
Once this has been completed we can document the current licensing status.
The overall goal of this process is to obtain proven and documented licensing
status which will then help avoiding buying too many extra Licences.
The compliance status is the starting point for the “true” Licence management.
The LRS process has been developed over the past 7 years and is especially
designed to get defi ned results with a realistic and acceptable effort.
In more than 95% of 250 projects that we have run, customers have realised
enormous one-time savings as a result of this process.
5.3.2. Processes
Software Asset Management deals not only with data and tools, an integral part
of SAM is the processes, roles and responsibilities.
Implementing the appropriate processes is absolutely key to establishing a working
Licence management solution. It is important to understand that processes
affecting many areas of the organisation are involved in Licence management.
The task is to analyse existing processes and to modify them into to fi t the SAM
initiative without the need for major internal change within the organisation.
The picture above is also only an example but highlights that there are several
processes involved in Software Asset management.
The existing processes have to be analysed, as in many organisations some
processes exist which are not correlated to the core principles of SAM.
The combination of this knowledge and the defi ned needs of the customer leads
to new Software Asset Management processes.
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L ic ens e
P ool
A pprov a l
Ins ta lla tion
proc es s
R eques t
C ons io lida tion
P roc es s
Inv entory
ins ta lled
a pprov ed
L ic ens e
ex is t
a pprov ed
Y es
No
Y es
No
No
Y es
Ja
Nein
C ros s c harging
F eedbac k for free lic ens es
R eques t
A pprov a l
P roc urem ent
Ins ta lla tion
proc es s
S ta nda rd pro duc ts N o n s ta nda rd pro duc tManual Input
5.3.3. Licence Pool
At the core of any Software Asset Management process is the establishing of a
Licence pool.
The Licence pool can be defi ned as all free / currently unused Licences in an
organisation.
The overall aim of the Licence pool is to avoidance of purchasing Licences if
they are already available within the organisation. This may seem obvious but in
reality only very few companies have implemented such an initiative.
As shown in the Licence life cycle picture above, before any Licence
procurement activity, a check must be made to determine whether there is a
available Licence in the pool.
This seems to be an easy task but there are some obstacles which have to be
overcome.
How to deal with cross charging?
What is the value of a used Licence?
How to ensure that the Licence pool is fi lled?
Are there products that do not qualify for pooling?
In most cases, establishing a Licence pool requires far reaching business
decisions. This is another point where the involvement of an organisation’s
management is required.
5.3.4. Sample Processes
Managing a Licence pool often leads to a system which deals with several
products baskets.
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F ree L ic en s es
= L ic en s e P o o l
U s ed L ic en s es
= a l l l ic en s es w ith in th e c o m pa n y
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For products from the “standard” basket a process can be established whereby
products are installed without buying them. After a period of time (e.g. 3
months), a consolidated purchase of the installed products is made refl ecting
the change in the Licence pool.
For products from the “non standard” basket there is an immediate acquisition
of the Licence but only following verifi cation against the pool of the availability
of free Licences.
There is one very important point to mention: to defi ne the processes within the
organisation is one thing, to keep them running smoothly is another, and is a
task that will prove to be much more diffi cult. The only way to achieve this is to
implement roles and policies that defi ne the SAM processes at the same time
the processes are introduced.
5.3.5. Roles/Responsibilities
The interdisciplinary nature of Software Asset Management requires a very strict
defi ning of roles and responsibilities within the Licence management.
It is vital that defi ned persons with defi ned roles are responsible for the tasks
within Software Asset Management. It is also key that it is well communicated
that these people have these specifi c responsibilities.
The following list gives the most common roles within Licence management.
Role Responsibility
Licence Manager Managing and controlling the whole Licence
management. The general communication
interface for the Software Asset management
Whole responsibility, beside the general
responsibility of the board
Licensing expert Creates the balances for the licensing situation.
Creation and management of the Licence pool. He
is the expert for Licence questions.
Licence Administrator Secures the audit proof storing of Licences
Responsible for transparency concerning the
licensing “papers”
Inventory Adminis-
trator
Responsible for the delivery and the quality of the
technical inventory of the installed / used software
products
Licence acquisition Responsible for verifying whether there are
Licences in the pool before a purchase order is
placed.
Coordination / bundling of acquisition requests
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It is possible that one person has one role or one role is assigned to several
persons, but it is necessary that the roles are defi ned clearly.
There are some factors which support the effi ciency of these roles.
The people assigned these roles must have the power to fulfi l those roles.
Especially in complex corporate structures, a clear escalation path is necessary.
The Licence management must not be a paper tiger.
Support by management is key otherwise Software Asset Management will not
work
Need for dedicated resources to fulfi l the named roles
Regular training, because licensing is a very complex and dynamic area.
Support by specialists as no company has the capability to have continuously up
to date licensing know how.
Licence Policy
5.3.6. Policies
A Licence policy defi nes the rules that govern how to deal with Licences within
an organisation. The following should be covered by the Licence policy:
The authorisation of the licensing and the associated escalation path
How Licences are to be purchased
How Licences are cross charged within the organisation
These are normally very case specifi c, but in all cases it is important for every
participant in the SAM process to know his or her responsibility and also to have
clearly defi ned responsibilities.
Example: An internal service provider is responsible for the Licence management
of the group. For the provider it is essential to defi ne the products he or she
is responsible for. If this has been defi ned nobody can make the provider
responsible for an exotic product an employee might bring into the company,
something that in reality will always occur. Of course, a policy should be drafted
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that prohibits the employee from bringing the software into the organisation in the
fi rst place.
5.4. Feasibility
Software Asset Management, especially in large complex environments, can be
a very extensive project.
The challenge is to implement a SAM solution in a feasible way.
That means:
Defi ned goals have to be reached in a certain amount of time
Financial goals have to reached in short time (fast ROI)
The effort should not incur costs that outweigh the savings
This seems to be obvious, but many companies make SAM a science and the
subsequent effort invested will be extreme
The SAM solution has to be accepted in the company
How to achieve this?
This is a very important and central question. As always, there are no clear
answers. The answers will always be case specifi c. There are however some
general guidelines that should be followed:
Defi ning clear and reachable goals and time frames
Starting with a short “pre study” to clarify these goals
Defi ning steps for the implementation of SAM
Start e.g. with the most important vendors.
There will be a short-term quick win, which is internally very important.
Sometimes creative ideas are needed. Some vendors are open for very creative
contracts and such contracts can help avoid the need for complex SAM
processes.
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5.5. Continuous Software Asset Management
Software Asset Management has to be done continuously and not occasionally.
“Which is the right solution for my organisation?” is always asked when this
point is discussed.
There must be a solution in place once the historic data has been reconciled!
What the right solution for continuous Software Asset Management is will depend
on a number of factors specifi c to each case. However the 2 crucial factors in
every case are:
The size of the organisation, and;
The complexity of the organisational structure
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A step by step implementation has been proven to be an approach with good chances for success.
Pilot
Im plem en tin g T o o l S A M live
Mostimportant
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important
Vendor
Processanalys is
Processdes ign
Implementingprocesses in tool
B ase L ineC ompliance
E xpansion for the
whole company
Licence Logistic Server
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A medium sized organisation (e.g. 3.000 PCs) which doesn’t have a particularly
complex structure (e.g. 1 subsidiary and centralised purchase department) can
be easily managed by employing “simple” solutions.
However a medium sized company with 30 subsidiaries and decentralised
purchasing is a totally different proposition and may need a more developed
Software Asset Management solution.
For medium sized and large organisations Insight offers one of two Software
Asset Management solutions:
5.5.1. Electronic SAM Solution – Licence Logistic Server
Software Asset Management can be handled using a dedicated electronic
solution. Licence Logistic Server (LLS) is Insight’s customised solution.
Based on the results from the base line compliance LLS controls of the
management of the Licences an organisation has acquired.
All the necessary processes and technology can be integrated into LLS, which
was designed specifi cally to be capable of connecting into any existing IT- and
procurement environment.
5.5.2. Manual SAM Solution – SAM Desk
Some companies prefer to leave the management of their Licence to a partner.
Insight offers a solution known as SAM Desk where an Insight employee will
manage the Licences on site. This resource is the interception between the
client and the entire Insight back offi ce. Allowing the client access to many
years of SAM and Licensing knowledge. This service is highly customisable and
is always adapted to the specifi c needs of the customer.
6. Insight’s OfferingInsight’s mission is to be the trusted advisor to all of our customers. For SAM, our aim
to help our customers achieve and maintain a compliant status by advising on Licence
management processes to facilitate the implementation of a SAM solution.
Our aim is that the customer reaches these goals without investing unnecessarily in
unneeded Licences. Our aim is also to produce cost savings for our customers.
6.1. Licence Reconciliation Service
Today many companies purchase software according to what they think is
needed, without looking into the availability and usage requirements of Licences
in the individual departments. The process eventually takes on a life of its own.
Either too many or too few Licences can end up costing you money, and unused
software is idle capital. Sooner or later, the time will come when the visibility of
the bigger picture is lost – along with a lot of money.
Licence Reconciliation Service (LRS) creates transparency and stability
At Insight we support you in the assessment and restructuring of your software
assets. Our Licence Reconciliation Service (LRS) offers you the ideal platform
for professional Licence management and provides you with the perfect tool for
appropriate and above all, simple licensing.
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The benefi ts of the Licence Reconciliation Service (LRS)
Transparent overview of products in use
Transparent overview of the current Licence situation
Analysis of current Licences
Basis for dynamic Licence management
Basis for needs-based procurement
Basis for informed licensing negotiations
Analysis of current Licence management processes
Tracking/Integration of Licence management
Basis for simplifi ed IT planning (budget)
Legal peace of mind
LRS in Detail The Workshop: The project kicks off with the representatives of all
relevant functions gaining a common understanding of the project and agreeing on
its scope.
Inventory of available software products:
An existing or newly implemented inventory tool is used to identify the installed
products. Key criteria: Highest quality, minimal cost.
Inventory of available Licences: We work together with you to collect the
“Licences” available within the company. Key criteria: Cost/Benefi t ratio
Initial comparison of the data: An initial automated, and therefore audit-proof and
replicable comparison is made between installed products and Licences. The goal
is to optimally match the two.
Status quo report: A preliminary report informs you of the current status and
serves as the basis for decision-making regarding improvements and optimum
licensing.
Consolidation: In this phase, the preliminary status is consolidated and changes
discussed and implemented.
Second comparison: The updated inventory data of installed applications and the
optimised licensing situation are reconciled and used as the basis for a
fi nal report.
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Final report: Defi nes the Licence pool and lays the groundwork for optimised
Licence management.
Achievement of compliance: You receive written certifi cation from Insight that
your company has achieved compliance
6.2. SAM Desk
SAM Desk will help you take control of your costs, the complex issue of global
licensing and the legal aspects of Licence compliance.
SAM Desk offers a broad range of services, which assists you in the
optimisation of your SAM processes. In most cases, SAM Desk is implemented
directly with the customer by an Insight employee. SAM Desk offers access to
Insight highly specialised SAM and Licensing experts
The result: professional software procurement and administration.
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SAM Desk contains an array of individual solutions. The following services can
be selected and combined by you:
SAM service: SAM Desk
Licence analysis
Individual company Licence pool
Licence and expenditure benchmarking
Licence monitoring
Licence tracking and reconciliation with current needs
Management of Licence benefi ts
Assistance with licensing decisions
Licence Desk offers you several advantages:
You save money, because you optimise software licensing.
You improve security, because your licensing now complies with the terms of the
agreements and more importantly, licensing complies with your needs.
You are always up-to-date, because the specialist from Insight manages all
software processes and ensures exact matching to the real time needs of your
company.
6.3. Media Management
One of the greatest challenges is putting the right software on to the right
desk at the right time. This is exactly why Insight offers optimised distribution
services.
SAM-Service: Media Management
Global software distribution
Express media duplication
ftp-Server
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Global Software Distribution
We create individual software solutions for you and send them to you at the right
point in the software life cycle.
Express Media Duplication Service
We duplicate your previously Licenced software, and deliver the data-media
anywhere in the world.
Convenience – ftp-Server
You receive a password-protected company account. With this, you can download
the software that you need from our FTP server within 24 hours after availability
of the fi rst media kit.
Your Benefi ts:
Low cost
Short delivery times
Standardised software at every workstation
Simultaneous distribution of software
Ease of use
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Implementing Software Asset Management
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6.4. Licence Logistic Server (LLS)
Many companies spend a number of SAM tools. However a large proportion still
has little control of their Licence management. As a result, the use of software is
uncoordinated and this combination of decentralised procurement procedures and
almost random installation methods costs many companies time and money.
LLS monitors procurement, distribution and administration of software in one
comprehensive application that works by integrating existing tools and systems.
6.4.1. SAM tool: Licence Logistic Server
The electronic SAM solution from Insight
Visibility of Licence pools
Clear defi nition in an access plan of who is permitted to use or purchase a
software Licence
Introduction of a self-service concept.
An overview of how to access the software
Clear enforcement of company standards, resulting in uniformity
An end to chaotic procurement and distribution
Prevention of licensing mismatching
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Licence Logistic Server ensures an optimum utilisation of all software rights you have purchased and protects you from expensive mistakes.
Deployment
ToolsInventory
Discovery & SAM
Workflow
Employee
Directory
Procurement
System
Employee
Portal
Insight
LicenceLogisticServer
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6.5. SAM and Client Management
The consistent and sustained use of client management within the company goes hand
in hand with the successful implementation of the right SAM service processes. Here
the existing infrastructure is integrated into the SAM concept. The focus is on fi tting
the client management technologies into your SAM processes.
Client Management – is an integral part of a company-wide SAM strategy
Use of SAM should incorporate their client management, whether this is achieved
through the use of a centralised server-based computing approach, or centralised fat
client management.
After more than 300 projects, our client management experts are familiar with the
necessary processes and the standard solutions in the area of client management.
Insight acts as a neutral advisor that provides tool-independent support for your
company in the development of optimum client management.
In addition to technical preparation and implementation, we also provide answers to
questions like:
What does optimum client management mean for you in connection with SAM?
What steps can I take as a customer to prepare?
Which of my PCs are the most expensive based on purchased but
unused software?
Which of my departments?
Organisational units?
How can I prevent software installations (individual installations or rollouts)
without the necessary software Licences?
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Our goal is always to use your existing software assets. That is why taking an inventory of the software in use is one of the fi rst steps in the SAM process. Why purchase new software to perform this inventory? The existing systems adapted early on in the SAM process, such as the technical inventory, are also used later for client management. We standardise, consolidate and automate your client management.
Cost savings of up to 30% per PC
Optimised IT personnel utilisation (up to 150 PCs per administrator)
Software allocation made to fi t with SAM processes
Only the introduction of process oriented client management guarantees you the cost savings expected through the implementation of a SAM strategy.
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