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Why software vendors audit their customers

Why software vendors audit their customers. Helpful intelligence from License Dashboard. Presented by:. Matt Fisher, Director. Agenda. How did we get here? A short history of software auditing Compliance versus SAM – what is the difference?

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Why software vendors audit their customers

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  1. Why software vendors audit their customers Helpful intelligence from License Dashboard Presented by: Matt Fisher, Director

  2. Agenda • How did we get here? A short history of software auditing • Compliance versus SAM – what is the difference? • WHY do software vendors audit end user organizations? • HOW do vendors decide who to target? • Lessons to learn & next steps

  3. License Dashboard in 60 seconds • Technology used to successfully deliver 1,000 SAM projects globally • Designed, built & maintained by licensing experts • Used by SAM and licensing consultants in Europe, US, Canada & Australia • Recognized by leading vendors • Microsoft (SAM partner), Adobe, Symantec, VMware and more • Technology supported by licensing expertise • Full range of Professional Services, SAM Consultancy & Licensing Advice • Delivery options to meet your needs: • Perpetual and subscription on-premise or Managed Service

  4. How did we get here? • 30+ years since software was commercially ‘sold’ • People still believe they ‘buy’ software, not ‘license’ it • Licenses come with strict rules and conditions of use • End User License Agreement • EULA gives the software publisher the right of audit • “(e) You agree that xxx may audit your use of the Software for compliance with these terms at any time, upon reasonable notice. In the event that such audit reveals any use of the Software by you other than in full compliance with the terms of this Agreement, you shall reimburse xxx for all reasonable expenses related to such audit in addition to any other liabilities you may incur as a result of such non-compliance.” • EULA strongly favours the publisher: • Audit at any time with ‘reasonable’ notice • Reimburse… for all reasonable expenses • …any other liabilities

  5. How the vendors see things • You owe us money! • Most organizations are guilty of over-deploying software • Most due to negligence, some wilful • BSA states 57% of users globally admit to software piracy • US – 20%, UK – 27%, Australia – 24% • When new license sales drop off… • Vendors making less new license sales; shareholders want dividends! • So where do you turn…? • Now a 65% likelihood you will be audited in next 12 months • Audit ‘styles’ vary greatly • Self-assessment • SAM Partner engagement • Enforced

  6. Compliance versus SAM • “Compliance” now a dirty word • SAM often used in its place • Restricted to ‘compliance’, SAM is the wrong phrase • ‘License Management’ is a better term • SAM encompasses: • Software Request • Approvals Management • Policies for license allocation and acquisition • Approvals cycle for deployments • Monitoring of usage and re-harvesting • Tracking and reporting financials of software • Some software publishers are invested in SAM, others not!

  7. Why vendors audit customers

  8. How do vendors select targets?

  9. Lessons to learn • You are spending too much on software • Software accounts for circa 35% of overall IT spend • Organizations typically over-spend by 20% • Purchasing new licenses when existing ones could be re-deployed • Buying outside of volume licensing agreements • Failing to crack down on ‘rogue’ purchasing • Renewing Support & Maintenance without adjusting for current usage • Your software puts you at risk • 65% likelihood you will be audited by at least one vendor this year • Average audit diverts resources for 3-6 months (& cost up to $500,000) • 100% of audits end in some form of payment for under-licensing • Software & licensing needs to be “managed”

  10. Be prepared • Not just a motto for the scouts • Audit is now ‘when’ not ‘if’ • Preparation is key: • Collate all software licenses into a single location • Aggregate and apply ‘intelligence’ to software licenses • Monitor software installs and usage • Remove unused software before an audit • Reconcile usage against entitlement • Where shortfall exists, plan to rectify • Where over-licensing exists, explore ways to save costs

  11. Coming next… • How to become a less attractive target… • Strategies to adopt to reduce the risk of an audit • Register Now: • July 12th 2012 – 15:00 UK, 16:00 CET, 10:00 EST • Register at www.licensedashboard.com • How to survive an audit request • Minimizing cost, risk and distruption • July 19th 2012 – 15:00 UK, 16:00 CET, 10:00 EST • Read the white paper • View a weekly live solution demonstration

  12. Thank Youwww.licensedashboard.com

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