Murphy Oil used Open iT software usage metering tools to cut global software costs.

1. Deploying
Leading Edge Controls
to Rein in
Global Software Expenses

2. Agenda
 Murphy E&P Overview
 Software Asset Management Foundation
 Deployment of Leading Edge Controls
 Software Savings Within Murphy E&P
 2011 Updates

3. Murphy
Exploration & Production
 $23 billion revenue in 2010
 5 primary E&P offices
 Houston (E&P Headquarters)
 Calgary, Canada
 Kuala Lumpur, Malaysia
 Jakarta, Indonesia
 Perth, Australia
 Retail business
 1300 gas stations in US (Wal-Mart)

4. Software Asset Management
Foundation
 Business “buy-in” at the highest level possible
 Business Champion to support IT
 Centralized IT support organization
 IT SPOC accountable for managing software portfolio
 Application portfolio
 Need to know “what “ software you have.
 Software reporting capability
 Need to know “how” and “who” is using the software.
 Effective communication and accountability
 Monthly usage reports

5. Tools Deployed to
Monitor Software Usage
 Software license monitoring and tracking application
 Capability to track both Windows and UNIX
applications
 Generate detailed concurrent usage reports at both
the application and end user levels
 Capability to “release” application licenses during
extended period of inactivity

6. Scope, Cost and Timing
of Process Tool Chosen
 Implemented OpenIT “License Analyzer” in March 2008
 Invested $41,000 including M&S for a 35 end user seat license
 Leveraged existing hardware infrastructure
 Invested $2,000 on administration training
 Initial focus on expensive GGRE subsurface applications

7. Identifying Surplus Licenses
Led to Significant Savings
 Transferred 6 licenses from Houston to Perth office
 License usage monitoring determined Houston had surplus licenses
 Transfer cost $26,160
 Cost to purchase including first year M&S $158,688
 Total savings $158,688 - $26,160 = $132,528
 Transferred 2 licenses from Houston to Perth office
 License usage monitoring determined Houston had surplus licenses
 Transfer cost $15,400
 Cost to purchase including first year M&S $117,768
 Total savings $117,768 - $15,400 = $102,368
 Transferred 2 licenses from Houston to Perth office
 License usage monitoring determined Houston had surplus licenses
 Transfer cost $44,620
 Cost to purchase including first year M&S $320,592
 Total savings $320,592 - $44,620 = $275,972

8. Savings from Utilization of
Surplus Licenses
 Transferred 2 licenses from Houston Domestic to International
 License usage monitoring determined Houston Domestic had surplus licenses
 Transfer cost $0
 Cost to purchase including first year M&S $ 320,592
 Total savings $320,592
 Two (2) requests by exploration business to purchase additional license
 License usage monitoring determined existing 3 licenses were being checked out 24/7 by end users
 More aggressive license management and end user communication on software costs and best practices resulted
in sufficient leveraging of existing 3 licenses and no need to purchase additional license
 Cost to purchase including first year M&S $181,782
 Total savings $181,782
 Additional software requests for new RE contractors
 Request to purchase 3 core licenses
 License usage monitoring of existing licenses determined only (1) additional core license required
 Cost to purchase including first year M&S $88,058
 Total savings $88,058

9. Murphy Savings 2008-2009
 M&S reductions
 License monitoring indicated we were carrying M&S on an excessive number of applications.
 Reduced M&S on one application from 24 to 18
 Annual cost savings $15,912
 Reduced M&S on a second application from 8 to 6
 Annual cost savings $13,248
 Reduced M&S on a third application from 21 to 19
 Annual cost savings $ 35,616
 Domestic and International TCE merge
 As a result of merging TCE which includes merging license servers and applications the following annual cost
savings will be recognized.
 Reduction of M&S for one application $9,576
 Reduction of M&S for a second application $3,024
 Reduction of M&S for a third application $133,266
 Reduction of M&S for a fourth application $18,288
 Reduction of M&S for a fifth application $19,080
 Reduction of M&S for a sixth application $10,968
 Reduction of M&S for a seventh application $28,272

10. 2011 Updates
 Implementing OpenIT globally within Murphy E&P
 OpenIT “License Analyzer” implementation
 Centralized data collection server (Houston)
 Local BU concurrency reports
 Global concurrency reports
 Upstream software focus verses Exploration
 2011 Goal to track 80% of Upstream applications
 Global WAN license agreements

11. Summary
 Initial investment of $43,000 has recognized tangible cost savings of $1,388,550
 Currently testing “license optimizer” functionality which will allow application licenses
to be released when an end user’s machine remains idle for an extended period.
 Extended deployment of “license analyzer” functionality has the potential to increase
savings further and provide better management of our existing software investment.
 Look at opportunities to deploy “License Analyzer” on additional (Upstream)
applications
 Looking into global WAN software agreements

12. Thank you for your time and
attention!
Questions?