UNIVERSITY SOFTWARE LICENSING COLLABORATION NEXT GENERATION

1. UNIVERSITY SOFTWARE LICENSING COLLABORATIONNEXT GENERATION SPUSC 2010

2. USLC – 2010 FIRST GENERATION THE FIRST DECADE • Four Queensland Universities with a common mission to collaborate on software purchasing. • Microsoft Campus agreement introduced whole of site annual desktop licensing arrangements • Growth of software licensing – annual versus perpetual • Software Licensing is on the agenda • Enterprise Licensing = ALL YOU CAN EAT

3. USLC - 2010 NEXT GENERATION THE SECOND DECADE • Sector wide managed procurement – CAUDIT style • Optimization of software usage • Entitlement management • Software Audits • Virtualization and Cloud computing • Enterprise Licence Optimization

4. SOFTWARE TRACKING - NEXT GENERATION Is SOFTWARE LICENSING COMPLICATED??? TRY THESE… • Software Procurement • Software Licensing • Software Asset Management • Software Deployment • Software Discovery • Software Entitlements • Software Compliance Management • Software Audits

5. SOFTWARE TRACKING - NEXT GENERATION Is it going to get any better??? Try these… • Software As A Service • Software Virtualization • Cloud Services OR • Software Reharvestation • Software Licence Optimization

6. SOFTWARE TRACKING - NEXT GENERATION SAM => SLM => LCM => ELO We have been consuming the software buffet and paying the ‘all you can eat’ price. I want to order just what I need, just when I need it and at the price I can afford. Show me the MENU!

7. ST:NG – SOFTWARE LICENCE MANAGEMENT (SLM) PROBLEMS • Overspending on maintenance • Overspending on upgrades – need exact numbers • Duplication of purchases – not centrally recorded • Unnecessary installations – not needed everywhere • Inability to recover licences and redeploy/relocate • Easier to pay than count • Focused on future possible needs, not current needs • ALL you can eat rather than exact requirements • Can’t digest (USE) everything

8. ST:NG – SOFTWARE LICENCE MANAGEMENT (SLM) ENABLES • Better negotiation position when procuring licences • Usage control through standards and processes • Cost savings through usage based licensing • Identification of excess capacity and redistribution • Standardization of support, administration & deployment • Minimization of compliance risk – under/over use • Collection of documentation to support audit reviews • Purchases based on need and usage numbers

9. ST:NG – LICENCE COMPLIANCE and MANAGEMENT (LCM) 4 Steps to Effective Software LCM • Understand your RISK • Achieve Licence Compliance • Maintain Licence Compliance • Optimize Your Licences TOO EASY!

10. ST:NG – ENTITLEMENT & COMPLIANCE MANAGEMENT (LCM) • Inventory and Asset Recognition – Collect and analyse everything – ALL versions, editions, suites, etc • Entitlements – Collect everything – Product Use Rights, EULAs, T&C’s, Proof of Purchase, Contracts, etc OUR EDUCATIONAL INSTITUTIONS HAVE THE RESPONSIBILITY TO USE THE SOFTWARE IN ACCORDANCE WITH THE TERMS & CONDITIONS OF THE LICENCE.

11. ST:NG – ENTITLEMENT & COMPLIANCE MANAGEMENT (LCM) When a Software Licence is purchased, is it an ASSET? OR is it an ENTITLEMENT??? We should negotiate: • WHO can use the software • WHAT it can be actually be used for • WHEN it can be used, especially in education • WHERE it can be used • WHY we want to use it and for WHAT The ‘RIGHT TO USE’ conditions set the value of the software and ultimately determine the COSTS.

12. ST:NG – COMPLIANCE & OPTIMIZATIONEnterprise Agreement versus Best Practice LCM • Forecast all products & functionality that enterprise needs over life of agreement • Negotiate enterprise rights • Pricing based on enterprise metrics but greater than actual use or deployment • Unlimited deployment does not guarantee usage • Must understand cost of true up and future price of additional licences and maintenance • Develop base line usage • Ensure metric growth matches usage growth • Pay for software that is used • Record entitlements versus actual usage • Proactively manage licences and compare deployments • Manage upgrades & maintenance • Look for alternative licensing options

13. ST:NG – ENTERPRISE LICENCE OPTIMIZATION (ELO) Too much ‘ALL You Can Eat’ Enterprise Licensing can give you INDIGESTION and empty your wallet. • Go beyond inventory management and usage data collection • Gather usage data to know how many ‘Unlimited’ really means to your organisation • Do the cost analysis: Unlimited licencesx enterprise metric cost versus actual usage x cost of licence

14. ST:NG – ENTERPRISE LICENCE OPTIMIZATION (ELO) • Inventory ALL Devices - to list software installations and collect usage data. • Application Recognition – Clean the raw data to build a comprehensive list of standard software installed on each device • Purchased versus Installed – Reconcile to match usage against purchase orders and contracts • Licence Compliancy – Check and apply T&C’s, etc • Licence Optimization – Allocate licences according to organisational needs preventing over licensing.

15. ST:NG – ENTERPRISE LICENCE OPTIMIZATION (ELO) WHAT TO TELL MANAGEMENT ABOUT ELO? • Reduced expenditure through improved arrangements? • Stronger negotiating position to get what we need? • Prevents over deployment and unused licences? • Improved information for infrastructure planning? • Better risk management especially reputation? • Increases competitive advantage? • ??

16. ST:NG – THE SECRETS • Conduct an enterprise review – deployed vs future need • Allow plenty of time to negotiate • Conduct a ‘What if’ analysis – scalability, flexibility, growth • Build a repository of software licence management info • Automate • Develop expertise or hire/buy some • Self Audit • Track and measure software usage

17. Why were we here today? To talk about … the next generation called Enterprise Licence Optimization Cost reduction is the primary reason to invest in ELO and the savings from effective ELO is between 5 and 35% of the software IT budget.

18. Thank You