Acquiring New Technologies with Decreasing IT BudgesThrough Software Portfolio Management

Current Landscape

Opportunities• Cloud Computing• Big Data• IT as the Post Digital Catalyst• Business Driven IT (Functionality Drive Architecture)• IT Evolution (Accomplishing Old Goals with New Innovations)• The Consumerization of IT

Challenges• “2/3 of IT Budgets are flat or declining”1

• “85% to increase IT services spending with external SP’s”2

IT spending needs to:• Align to the business priorities in a realistic manner• Deliver the optimum return for the investments• Take advantage of the trends in buys to optimize the spend

1SearchCIO.com 2Richard Holway (TechMarketView Chairman)

What does Optimize IT Spend Mean

Business Value

Financial Savings

Improved Perception

Delivering Business Value through achievement of objectives and clear alignment of the Technology Solutions to deliver these requirements

Supporting Business Success through clear Financial OptionsDelivering Optimal Purchase Options

Ensuring IT are perceived as a great IT Service Provider

Increased Profit Margins through increased productivity and/or reduced total cost of ownership

Making well informed purchases to only acquire the exact functionality needed while mitigating any risk of non-compliance both industrial and financial

Ensuring IT has a seat at the Leadership Table when making Business Strategy Decisions

Optimized Tech Spend

Decision Points – Business decisions tend to be internal money and time focused decisions. They often seek to:• Present a model shift for business• Identify and control costs• Decrease time to value• Accelerate cash flow• Segment customer demographics• Customize Deliverables• Help and organization lead and displace competitors

Technology Decisions – Technology decisions tend to be external lifecycle decisions. They are often concerned with:

• Support Lifecycle• Regulatory requirements and compliance• Revision incompatibilities

Technology and Business are increasingly becoming more and more intertwined, and as an IT department, you need to be able to manage the technical aspects of the needed solutions as well as help them look at their long term needs more strategically. This includes their technical infrastructure as well as understanding how their business will evolve and advise them on how technology can enable growth that they aspire to. Examples are:

• Blockbuster/Netflix• Sears/Amazon

Case Study 1 – Medium Sized Law Firm

Customer Profile: 300+ UsersMicrosoft Office 2010 Microsoft SQL ServerMicrosoft Core CAL

Inventory Method: Self-Inventory

IT Strategies Discovered: Change Adoption of Microsoft OfficeOver Licensed in SQL due to new Architectural Strategy

Financial Impact: Discovered $100,000+ in Cost Avoidance and SurplusHad the option to expedite IT Projects scheduled in future budgets

1. Mobility and Virtualization Project2. System Center for Servers

Changes in Asset Landscape

License model changes • Created scenarios that could lead to additional investments in deployments

already paid for and deployed• Created scenarios that could lead to the management of competing

technologies due to license grants• Created confusion on Licensed Item (Server/Processor/Cores)

New ways to solve old problems• New Technology Bundles in Functionality Circles (Sophos/Symantec/Kaspersky)• Specific Technologies repurposed for additional solutions

(Mimecast/Veeam/eVault/Centrify)

New Options on the Market• Multi-tenancy• Cloud Software and Hardware Solutions

Changes in Landscape Example

Are you aware of the 18 licensing changes relating to Microsoft SQL Server over the past 36 months? 1. May 1st 2010 - SQL 2008 R2 GA (General Availability)2. Standard Edition Price Increase 25%3. Enterprise Edition Price Increase 15%4. Introduction of “Down Edition” Rights5. SQL 2008 Enterprise Edition Processor Licenses with active SA Prior to GA – ‘Unlimited’ Virtualization

Rights6. Introduction on July 1st 2011 – License Mobility through SA 7. August 1st 2011 - Core CAL Price Increase 15%8. April 1st 2012 - SQL 2012 GA (General Availability)9. Move from Proc to Core Licensing Model10.New B.I. Edition11.Data Center edition discontinued12.Enterprise Edition Per Server licensing discontinued13.Unlimited licensing rights only with SQL Enterprise with Software Assurance14. July 1st 2012 - SQL CAL Price Increase 27%15. July 1st 2012 Start of Global Price List Increases (e.g UK / India etc) 16.December 1st 2012 - User CAL Price Increase 15%17.August 2013 – Announcement of EAP contract retirement18.August 2013 – Announcement of Windows DataCenter Per Proc increase of 28% (conflicts with Per

Core optimization)

Case Study 2 – Healthcare Research Corp

Customer Profile: 7000+ UsersMicrosoft SQL Server

Inventory Method: Software Asset Management Engagement

IT Strategies Discovered: Discovered Entitlements that were not knownUnder licensed in SQL due to new Architectural Strategy

Financial Impact: Discovered $1,000,000+ in Cost Avoidance due to entitlementsHad the option to purchase SQL Server Enterprise Processor Licenses instead of Core Licenses. Was able to adopt SQL Server in a company that was primarily and Oracle customer.

Old Approach, New Results

Step One• Know what you own• What is the value of knowing what you own?

Step Three• Reconciling the two results• What you own - what you have deployed = Delta• Is the Delta +/-?

Step Two• Know what you have deployed• Does everyone in the environment understand what you are entitled

too?• Do you have tools to accurately inventory deployed solutions?

Case Study 3 – Financial Services Firm

Customer Profile: 2500+ UsersMicrosoft SQL Server

Inventory Method: Software Asset Management Engagement

IT Strategies Discovered: Discovered the appearance of Non-ComplianceOver Licensed in SQL due to new Developer and Architectural Strategy

Financial Impact: Discovered $100,000+ in Risk Mitigation and Cost AvoidanceDiscovered SQL Express and Development Installments were reported as licensable SQL Production Servers. An Audit would have generated a bill from the publisher. Had licensed developer installations as a practice with full licensing. Was not sure why.

Intro to Software Portfolio Management

Origins – Software Portfolio Management (SPM) is a combination of ITIL Asset and Configuration Management and Procurement and Licensing Strategy. Using years of knowledge of buying strategies with ITSM.

Software Asset Management

What you ownWhat you have deployedCompliance and Risk Mitigation

What Technology you have todayWhat Technology you need tomorrowHow do you get there

Technology Strategy And Road Mapping

Cost of currently owned technologyCost of New Technologies

Commercial Analysis

Procurement and Contract Negotiation

Asset Life Cycle Management

Software Portfolio Management (SPM)

Commercial Analysis

Cost of currently owned Technologies• After determining what you have, you determine what you actually need• Are you carrying maintenance on the software that you may not need or

will not upgrade?

Cost of New Technologies• Buying Strategies

• Promotions• Bundling • Functionality Based Architecture• Technology Alternatives

• Already Owned Technologies• Functionality hidden in currently owned bundles and subscriptions• Entitlements from older purchases

Big Picture, Big Results

Bringing it all together

Two Possible Outcomes• Cost savings/avoidance• Strategy to become compliant without breaking the bank

Risk Avoidance when facing an audit

Optimized Technology buying strategy across the enterprise

Increased Opportunities to acquire new technologies with saved budget!

Thank You