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CHECKLIST

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WHAT TO DO WHEN YOU’REABOUT TO BE AUDITED

THESOFTWARE

 AUDITDEFENSECHECKLIST

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

So you’ve received a license audit letter fromone of your software vendors. Two choices: youcan sit back and let them have their way (whichcould cost you a fortune); or take action andcome out ahead.

 At 1E, we’re big believers in the active approach. We’ve helped lots of companies throw light ontheir software usage and discover some serioussavings in licensing and maintenance.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

1. Initial Contact

 As soon as you’ve received an exploratory,“we want to help you” letter from the softwareauditor or vendor:

 Inform your legal department – some audit letters are quite specic

and not to be ignored; others are complete shing expeditions.

 Based on legal advice, either prepare your reply or carry on regardless.

 Get an immediate picture of your actual software usage.

This is a critical step – and guess what – AppClarity makes it easy.

 Perform an initial SWOT analysis of the vendor’s software footprint within

your IT estate, noting any boundaries that the audit letter indicates

(this could play to your advantage if a “hot spot” is out of scope).

2. First Response After conducting the SWOT analysis:

 Inform senior management of an impending audit, including

a summary of your SWOT.

 Contact the vendor conrming the following information:

 The scope and products being audited

 What constitutes proof of licence

 What constitutes an install of the software under audit

 A schedule for auditing – accept theirs if convenient;

if not, stipulate your own

  Your agreement (if relevant) that the third party can

conduct the audit on behalf of the vendor.

Here’s a quick checklist to help you negotiateyour next audit. You might even think aboutit as the IT health check you need to get your

software estate in order.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

3. Preparing for the Audit

 As soon as you’ve received a reply from thevendor, take these steps:

 Remove unused/ rarely used software – AppClarity will show you

exactly where it is

 Inform senior management of the precise audit schedule and scope;

aligning this to your initial SWOT

 Start to collate all requisite proofs of entitlement relating to the vendor audit

 Schedule the installation and running of any scripts – making sure they only

run on devices specied in the scope of the audit

 Schedule any on-site audit (if required).

4. Conducting the Audit

Chaperone your auditor or vendor.Now’s the time to get close!

 Let the auditor conduct an on-site inspection (if required)

 Ensure the auditor copies you on the ndings of the audit

Ensure that platform usage is factored into audit ndings

(e.g. test/ development/ academic)

 Ask the auditor to validate the licence metric and interpretation of any shortfalls

 Prepare a summary report for senior management and set expectations

of potential liability.

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THE SOFTWARE AUDIT DEFENSE CHECKLIST

5. Negotiation Prep

Don’t ignore the small print:

 Become a subject matter expert in the license Terms and Conditions

to counter any potentially outlandish claims by the auditor.

 Verify that the auditor’s server core/ processor specications are accurate

(some inventory systems won’t accurately pick up the core/ processor count

and that could adversely affect your license position).

 Use 1E’s licensing expertise (including vendor-specic knowledge) to review

license and install data – we’re here to help!

6. Final Meeting

It’s time for negotiation

 Bring in 1E License Negotiation experts. You don’t have to go it alone.

 Offer feedback on the how the audit was conducted and how the audit

experience was for you – remember, you’re the customer.

 Come to an agreement on any fees due (if any) using all the data at your disposal.

Remember: this is a negotiation; make a strong case and argue it.

 Schedule an agreed payment plan. Again: you’re the customer, so negotiate

on terms here too.

 And for the future…Prepare yourself for your next biggestsoftware vendor audit to come along

– the world of SAM is notoriously small,

and if you got stung on your rst audit

then word will undoubtedly get out that

you might have weak IT controls in place.

An active approach always pays dividends.

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1E.COM © Copyright 2013 1E. All rights reserved. The information contained herein is subject to change without notice.1E shall not be liable for technical or editorial errors or omissions contained herein.

 About 1E

1E is the pioneer and global leader in

Efcient IT solutions. 1E’s mission is to

identify IT waste, help remove it and

optimize everything else. 1E Efcient IT

solutions help reduce servers, network

bandwidth constraints, software licenses

and energy consumption.

Contact us

US: +1 866 592 4214

UK: +44 20 8326 3880

India: +91 120 402 4000

info@1e.com

THE SOFTWARE AUDIT DEFENSE CHECKLIST

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Software audits don’t have to be bad news.They can be a great catalyst for getting yourestate in order, removing unused software andredeploying licenses where they’re needed.

Don’t bury your head in the sand – software vendors thrive on paralysis.

Don’t let the audit go beyond the agreed scope.

Fully understand what information is being relayed back to the vendor.

Understand the role of the platform (dev/ test/ production etc.) in your IT estate.Don’t be afraid to ask for help at any time.

Longer term, think about what business as usual activity will make it easier produce

the required reconciliation report yourself – to counter the next vendor audit.

For more help and advice, visit our Software Audit Defense site.

GOOD LUCK, AND DO GETIN TOUCH.

 WE CAN HELP.

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