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Satish Babu

Satish Babu. Best practice license models in the context of the Cloud. Date: 22 October 2013 Track 2: Reduce the cost of ICT and accelerating service delivery . Contents. Cloud and it’s potential Trends of Software L icensing Governance. What is different about cloud computing?.

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Satish Babu

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  1. Satish Babu Best practice license models in the context of the Cloud Date: 22 October 2013 Track 2: Reducethe cost of ICT and accelerating service delivery

  2. Contents • Cloud and it’s potential • Trends of Software Licensing • Governance

  3. What is different about cloud computing? Without cloud computing With cloud computing • Software • Hardware • Storage • Networking • Software • Hardware • Storage • Networking • Software • Hardware • Storage • Networking • Virtualized resources • Automated service management • Standardized services • Location independent • Rapid scalability • Self-service

  4. Cloud Computing is a combination of Virtualization, Standardization and Automation with a focus on the User. Virtualized Higher utilization Economy of scale benefits Lower capital expense Doing more with less Standardized Easier access Flexible pricing Reuse and share Easier to integrate Higher quality services Automated Faster cycle times Lower operating expenses Optimized utilization Improved compliance Optimized security End user experience Breakthrough agility and reducing risk

  5. Cloud can play a disruptive role within IT optimization strategy Standardizeand automate • Standardize services • Reduce deployment cycles • Enable scalability • Flexible delivery Virtualize • Remove physical resource boundaries • Increase hardware utilization • Reduce hardware costs • Simplify deployments Consolidate • Reduce infrastructure complexity • Reduce staffing requirements • Manage fewer things better • Lower operational costs

  6. By co-existence of several different IT Delivery-Models, Cloud Computing goes beyond the boundaries of the own existing Data center. Corporate-IT Public cloud Traditional Enterprise IT Private cloud Hybrid cloud • Mission Critical • Packaged Apps • High Compliancy • Test Systems • Storage Cloud • Developer Platform • Archive / Backup • Collaboration • Analytics Typical Workloads for different Delivery-Models Data is inside the corporate firewall

  7. IBM’s next generation Cloud will drive higher value TraditionalWorkloads Big Data & Analytics Big Data & Analytics ExternalEcosystem HumanResources Application Application Application Application Application Networking Storage Compute Mobile Social Integration Development Industry Commerce Marketing Security Collaboration Think it. Build it. Tap into it. Enabling business transformation Business ProcessSolutions Business Processas a Service Marketplace of high value consumable business applications Softwareas a Service Composable and integrated application development platform Built using open standards Platformas a Service Enterprise class, optimized infrastructure SOFTLAYER SmartCloud Enterprise+ Enterprise Solutions Built using open standards Infrastructureas a Service Public. Private. Dynamic Hybrid.

  8. DecreasedTime-to-Market Coming Licensed Capabilitiesand Activities Pool of Users & Products;Flexible Deployment Options Single System CPUID LicensingModelsOver Time Single User: Owned License Pool of Users: Owned License Pool of Users: Leased License IncreasedProductivity and Flexibility Industry is moving towards more flexible licensing and deployment optionsTrends of licensing and deployment types over time IBM 2013 Tokens SaaS Cloud AuthorizedUser PatternsPURE Floating Term • The need for Flexiblity and the use of OPEX budgets is changing the Licensing landscape! • Customer expect Instant, Flexible and access to latest technologies

  9. IBM Rational Example: Flexibility to use the right Tool at the right time • Token license agreements allow organizations to “rent”licenses for a given period of time leveraging their OPEX budget with no entitlement rights at end of term • Token licenses can float across users and across products • A token constitutes a unit of value which can be repeatedly exchanged via server for a mix of software licenses - Essentially unlimited REALTIME substitution Pool Each Rational user borrows tokens from the pool to gain access to whatever tool they need for their job. Rational Method Composer 4 Token Per User Rational Team Concert 7 Token Per User Rational Performance Tester 3 Token Per User Program Manager Analysts Developer No need to buy licenses for specific roles/tools with the inherent limits that imposes: you can use as many or as few of each tool as you like with no penalty. Customer is NOT charged on peak per product usage but on average portfolio usage 9

  10. Governance • Optimal license consumptionrequires strong governance • Your ITIL implementation has to consider strong Asset Management functions • Define and use a strong Asset Management Process • Automate with tools based on complexity of the Infrastructure • Let the automation simplify your audit posture • IntegrateAnalysis into your Change Management Process

  11. Governance Toolset : Tivoli Asset Management Family SmartCloud Control Desk • Full asset lifecycle management support for hardware and software license management. • Identifies under or over utilized software to reduce costs due to over-purchasing and to reduce risk to under-purchasing • Procurement capabilities to create and route purchase orders • Financial management for cost tracking, usage accounting and TCO estimation Tivoli Asset Discovery for Distributed (TAD4D) • Discovers detailed information on installed hardware, IBM software and third party software • Delivers flexible options for software use monitoring including ‘Last Used’, ‘Summary and Trend’, and ‘Details’ which provides all software use information • Integrates with TAMIT IBM License Metric Tool (ILMT) • Discovers installed PVU software • Measures maximum core capacity in PVUs available to deployed software. • Required for sub-capacity licensing • Customers may choose to install ILMT at no charge or upgrade to TAD4D for a fee. • ILMT is the most basic offering which discovers distributed PVU software products and reports capacity available to installed software (required for sub-capacity). • TAD4D uses the same code base and adds discovery capabilities that extend to most of the distributed software portfolio, non-IBM software and hardware. • TAMIT integrates with TAD4D for full asset management, including usage analysis, procurement and financial management. 11

  12. Questions and Comments

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