2003 Deloitte & Touche Not to be used or reproduced without Deloitte & Touches permissionSoftware Asset ManagementManaging IT InvestmentsSoftware Asset ManagementMicrosoft Licensing Insights11, 13 & 14 March 2003 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionSoftware Asset Management - SAMOverview of topics covered:What is SAM and what does it mean to me?How to implement a SAM program and manage your software efficientlyEliminate unnecessary IT spending Microsoft Volume Licensing best practice 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permission Grants owner the legal right to use or access a Grants owner the legal right to use or access a software programsoftware program Usage governed by vendors license agreement Usage governed by vendors license agreement and copyright lawand copyright law Intellectual property copyright remains with the Intellectual property copyright remains with the vendorvendorWhat is a software license? 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionWhy invest in IT?Expedite achievement of business goals Work faster+ Improve quality+ Minimise cost = Competitive Advantage 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionSoftware Asset ManagementComprehensive approach to improving ROI Two focus areas:Minimise costs and investments; andMeet and exceed business requirements 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionTotal Cost of OwnershipThe Costing ModelOnly 12% of the total cost spent on s/w and h/w18%20%100%24%18%2%6%12%SupportMgtHW/SWDevCommsEnd userDown timeTCO 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionEarly SAM AttemptsSet of procedures to identify usageIgnored financial/contractual/technical detailsWhy did early attempts fail?SAM was seen purely an IT issueLack of consideration of the needs of the organisation as a whole - SAM should touch every part of your organisation 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionUpper ManagementWhen administered intelligently:Promote communication and coordinationProvide performance criteriaDefines responsibility Force planningKey Players 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPurchasing & AccountingProcurementRecord keeping Accounts Payable (AP)Q: Can AP determine whether to pay invoice?Is the vendor honouring all Terms&Conditions?Maintenance contracts been approved ?Agreement cancelled Key Players 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionIT administration/help deskNegotiate better licensing deals Improves decisions on upgrades and supportAssist with deploymentProactive not reactiveMaximise help desk servicesKey Players 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionEnd UsersDefines end user vs IT responsibilitiesEducate on IT policy and proceduresGives an insight into IT Strategy Promote consistency with the end-userWhy did we upgrade?Key Players 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionWhy is SAM important?License ComplianceVendors normally view unintentional misuse sympathetically Must demonstrate compliance effortsIntentional non-compliance not toleratedThe CostrPublic embarrassmentrSubstantial financial penaltiesrPersonal liability for company directors 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionWhy is SAM important?Decrease Risks:AcquisitionRisksUnauthorised purchase of licensesLicenses purchased but not readily locatableOverpayment of license fees 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionWhy is SAM important?Distribution/DeploymentRisksLack of control over where software is installedUnauthorised duplication of softwareMonitoring & ReportingRisksSoftware usage is outside license conditionsUnder licensed productsOver licensed products 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionSAM PitfallsPurchasing an electronic monitoring tool without a SAM program in placeSilver bullet solutionsSAM efforts are likely to stall 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionRecommended ApproachAssess your own circumstancesLook to a phased implementationAdopt the most appropriate elements as everybody is different:Small BusinessMulti NationalPublic SectorPrivate Entity 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeveloping a SAM programPhase OnePlanning and Budgeting Define responsibilitiesPhase TwoEstablish ProceduresProcurementDeploymentManagementPhase ThreeDevelop PolicyPhase FourEmployee EducationPhase FiveSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FivePlanning and BudgetingIdentify business objectivesAssess infrastructure needsIdentify existing resourcesResearch available opportunitiesCapture within budget 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FivePlanning and BudgetingA comprehensive budget should incorporate:Hardware & softwareTrainingDevelopmentManagementSupportDowntimeSupportDown timeManagementTrainingHW/SWComm/Dev 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDefine ResponsibilitiesContractual: Master - Enrollment holderWho is responsible for:Implementing SAMPlanning & budgetingMonitoring compliance Developing SAM policy & proceduresAppoint a software manager? Sends a strong signal 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeveloping a SAM programPhase OnePlanning and Budgeting Define responsibilitiesPhase TwoEstablish ProceduresProcurementDeploymentManagementPhase ThreeDevelop PolicyPhase FourEmployee EducationPhase FiveSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveEstablish Procedures 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveProcurementThrough normal purchasing channels How much does it cost to raise a PO?What is the most cost effective process?Formalise the process - eliminate historical questionsAvoid reconstructing license parentage - difficult without good SAMBuy from a respectable Microsoft ResellerVisit: www.howtotell.com & www.microsoft.com/ireland/compliance 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveCASE STUDYDecentralised construction companyNo clear procurement policy; purchases also on decentralised level.Purchase of FPP, OpenOver-licensed on several applications, under-licensed on Office proProcurement 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveQ: How can we address this?A: Invoice verificationHave all IT related invoices forwarded to IT dept prior to payment As process evolves develop a link with accts payableProcurement 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeploymentAccess to software is limitedAuthorisation for loading is definedProduct to be loaded is clearly stipulatedSoftware register updated once installedHome usage is managedDisposal of old media controlled 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveManagementPitfallsUse of spreadsheets or small custom built databaseProcess almost guaranteed to fail as it becomes to complex and onerous 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveRecommendationLook to a dedicated ownership management tool capturing:What was originally paidRecurring costsHow and where was it acquired H/w & s/w interdependencies - OEM Reference to software license libraryManagement 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveEstablish good record keeping systemsHardware InventorySoftware in Use InventoryLicense InventoryMedia InventoryManagement 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveManagementCASE STUDYEuropean Media groupSuspected of being uncompliantLAR had system problems30% of licenses under wrong contract. 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveQ: How can we address this?A: Reconcile PO to invoice and license confirmationWhy adopt this type of approach?Physical deliverable to control paymentReseller focuses on processing as payment depends on it More efficient than a macro level assessment Identifies errors close to when they occurManagement 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionWhat is my Proof of License ?Acceptable proof of license is determine by the method in which the software was procured. For example:Retail/OEM product: Certificate of Authenticity (COA)Volume licensing product (Select/Open): OnLine license confirmationsPurchase Orders InvoicesReseller confirmationsWhat does not constitute Proof?Phase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase Five 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionProof of License for Retail ProductsAs of the Launch of XPPrior to XPPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase Five 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionProof of License for OEM ProductsOperating SystemsApplicationsPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase Five 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionProof of License for Volume PurchasesOpenSelect and EnterprisePhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase Five 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionHistorical Proof of License for Select (prior to e-License)Phase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase Five 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeveloping a SAM programPhase OnePlanning and Budgeting Appoint a S/w ManagerPhase TwoEstablish ProceduresProcurementDeploymentManagementPhase ThreeDevelop PolicyPhase FourEmployee EducationPhase FiveSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDevelop PolicyNeed to address: Planning H/w and s/w retirement Acquisition License Documentation Installation Version Control Compliance Auditing.Policies should have threat of disciplinary sanctions associated with them. 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDevelop PolicySigned by all employees and contractorsMade a condition of employmentDocumented on the Intranet 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeveloping a SAM programPhase OnePlanning and Budgeting Appoint a S/w ManagerPhase TwoEstablish ProceduresProcurementDeploymentManagementPhase ThreeDevelop PolicyPhase FourEmployee EducationPhase FiveSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveEmployee EducationTarget education at all employeesProgram should: Explain s/w code of ethics and SAM policy Discuss s/w piracy and why its a problemExplain the hidden costs of illegal software Combine with other IT related issuesBacking up user dataInternet and Email useSecurity 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveDeveloping a SAM programPhase OnePlanning and Budgeting Appoint a S/w ManagerPhase TwoEstablish ProceduresProcurementDeploymentManagementPhase ThreeDevelop PolicyPhase FourEmployee EducationPhase FiveSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveAn assessment to determine complianceInternal or external Should be regular - at least annuallyUse of a discovery toolProvides second half of the data neededRedeploy assets not being utilisedRemedy any under licensingSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPhase OnePhase OnePhase TwoPhase TwoPhase ThreePhase ThreePhase FourPhase FourPhase FivePhase FiveSelecting a toolLimited list of toolsNot an endorsementGASP 5 Suite SMSExpress Software Manager ZenWorksPC Profile MSIA (Microsoft)www.microsoft.com/piracy/samguide/tools/sit.aspwww.microsoft.com/piracy/samguide/tools/sit.aspSelf Assessment 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionMSIA Report Example 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionOne Minute SAM Take AwaySAM is a process not an eventShould touch every part of your organisationAvoid silver bullet solutionsLook to a phased approachFinancial, contractual and technical data just as important as usage data 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionSoftware Asset Management - SAMOverview of topics covered:What is SAM and what does it mean to me?How to implement a SAM program and manage your software efficientlyEliminate unnecessary IT spending Microsoft Volume Licensing best practice 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionMicrosoft Licensing SpecificsSoftware AssuranceClient Access Licenses (CALs)Per Server / Seat / ProcessorInternet ConnectorCore CALSelectThe Open License program 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionSoftware AssuranceFocused on: Streamlining administrationReducing acquisition costsCorrecting former inequitiesProduct implementation and securityPredictable budgetingPromoting program consistency 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionStreamlining AdministrationEliminates the need to maintain numerous license confirmationsReplaces a confusing collection of upgrades Version Upgrade Competitive Upgrade License Product Upgrade Software Assurance Language Upgrade L+SA Upgrade Advantage 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access Licenses (CALs)Key Points:Needed to access server software with another device eg. PC, workstation or terminalIs not software! Its a legal document that grants access to the services of the serverIs a separate license and is not part of any operating system eg. Windows 95/98 or NT 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access LicensesPer ServerPer SeatPer ProcessorInternet ConnectorCore CAL5 options for licensing server clients: 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access LicensesPer ServerPer Server Only Windows 2000 ServerCALCALCALServerLicense 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access LicensesPer SeatPer SeatServerLicenseServerLicenseWindows 2000 ServerSQL Server 2000 Exchange 2000System Management Server 2.0Microsoft Mobile Info ServerSharePoint Portal ServerCALCALCALCAL 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access LicensesPer ProcessorPer ProcessorHost Integration Server 2000Internet Security Acceleration Server 2000BizTalk Server 2000Application Centre 2000Commerce Server 2000SQL Server 2000 Microsoft Operations ManagerVendorsPartnersCustomersInternetFirewallInternal ClientsProcessorLicense 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionClient Access LicensesInternet ConnectorsInternet ConnectorsInternetConnectorLicenseCustomersInternetFirewallProvides access to an unlimited number of anonymous users over the Internet 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionCore CALsLicense server components across all desktops within the firewallIncludes a CAL for:Windows ServerExchange ServerSystem Management ServerSharePoint Portal ServerCore CALs sold with Software Assurance attachedClients will always be licensed regardless of the server version deployed 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionOEM LicensingNo additional license needed to use older version operating system if OEM is Windows XP ProHowever, end users may not:Use multiple versions simultaneously Transfer Windows XP Pro to a 3rd partyRestrictions on renting and leasing removed from Windows XP Pro EULA Network installation now permitted supports implementation enhancements in Windows XP 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionPrograms Benefits: Instant access to softwareInstant access to software Easy to understandEasy to understand Valuable investmentValuable investment Broad range of software titles availableBroad range of software titles available Convenient license acquisitionConvenient license acquisition eSelecteSelect electronic license delivery electronic license deliveryMicrosoft Select 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionOpen Subscription License4 different Open License flavours:Open Business: Initial order minimum of 5 licensesOpen Volume: Initial order minimum of 150 pts per poolOpen Subscription License (OSL)See next slidesMultiyear Open (MYO)See next slides 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionOpen Subscription LicenseRequires minimum of 5 pcsFacilitates standardisation:Microsoft Office Professional Microsoft Windows Professional upgrade Core CAL can now select which components are coveredDuring the time of the agreement your PC count may increase or decreaseAnnual paymentFixed rental price per PC at different Price Levels based on your desktop count:3 year rental period buy out option at the end of the subscriptionIncludes Software Assurance (L & SA)Multiple subsidiaries can purchase under the same subscriptionFaciliates ease of administration 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionMulti Year Open - MYO Target MarketAnother option If you were planning to go for Open + SASmall / Medium Company wishing to standardise on one or more of the platform products 5 to 250PcsType of License Perpetual LicenseSpread payments over 3 years 0% Finance SA Included Price cheaper after 3 years can then buy SA only2 Types Volume & Enterprise 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissioneOpeneOpen Electronic License Delivery Open License offers electronic license delivery, for tracking license confirmations eOpen allows you to: - View Open License information for one or more authorisation numbers- Create and retain personalised views of license purchase history information - View Open License purchases made in more than 180 countries 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissioneOpen screen shot 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permissionQuestions you should ask yourselfQuestions you should ask yourself:How easy is it for your employees to copy software?Do you have standard applications in place?What software is being used?Do you have enough CALs?Do you have enough licenses for all the software in use?Does it all tally up (software licenses to software in use)?Consider:Software AssuranceOpen License SubscriptionMicrosoft want to help 2003 Deloitte & Touche not to be used or reproduced without Deloitte & Touches permission