2. 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)
3. 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 Options
Delivering 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
4. 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
5. Case Study 1 – Medium Sized Law Firm
Customer Profile: 300+ Users
Microsoft Office 2010
Microsoft SQL Server
Microsoft Core CAL
Inventory Method: Self-Inventory
IT Strategies Discovered: Change Adoption of Microsoft Office
Over Licensed in SQL due to new Architectural Strategy
Financial Impact: Discovered $100,000+ in Cost Avoidance and Surplus
Had the option to expedite IT Projects scheduled in future budgets
1. Mobility and Virtualization Project
2. System Center for Servers
6. 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
7. 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” Rights
5. SQL 2008 Enterprise Edition Processor Licenses with active SA Prior to GA – ‘Unlimited’ Virtualization Rights
6. 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 Model
10. New B.I. Edition
11. Data Center edition discontinued
12. Enterprise Edition Per Server licensing discontinued
13. Unlimited licensing rights only with SQL Enterprise with Software Assurance
14. 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 retirement
18. August 2013 – Announcement of Windows DataCenter Per Proc increase of 28% (conflicts with Per Core optimization)
8. Case Study 2 – Healthcare Research
Corp
Customer Profile: 7000+ Users
Microsoft SQL Server
Inventory Method: Software Asset Management Engagement
IT Strategies Discovered: Discovered Entitlements that were not known
Under licensed in SQL due to new Architectural Strategy
Financial Impact: Discovered $1,000,000+ in Cost Avoidance due to entitlements
Had 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.
9. 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?
10. Case Study 3 – Financial Services Firm
Customer Profile: 2500+ Users
Microsoft SQL Server
Inventory Method: Software Asset Management Engagement
IT Strategies Discovered: Discovered the appearance of Non-Compliance
Over Licensed in SQL due to new Developer and Architectural Strategy
Financial Impact: Discovered $100,000+ in Risk Mitigation and Cost Avoidance
Discovered 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.
11. 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 own
What youhave deployed
Compliance and RiskMitigation
What Technology youhave today
What Technology youneed tomorrow
Howdo youget there
Technology Strategy And Road
Mapping
Cost ofcurrently ownedtechnology
Cost ofNewTechnologies
Commercial Analysis
Procurement and Contract Negotiation
Asset Life Cycle Management
Software Portfolio Management (SPM)
12. 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
13. 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!