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Hans ArgentonFritz Kink
Infineon IT
September 04Page 1
Copyright © Infineon Technologies 2004. All rights reserved.
Best Practices in Internal Billbacks & Usage Tracking
Hans ArgentonFritz Kink
Infineon Technologies
IT
Hans ArgentonFritz Kink
Infineon IT
September 04Page 2
Copyright © Infineon Technologies 2004. All rights reserved.
Overview
Infineon at a Glance
Infineon Global License Management
Infineon Global License Usage Tracking
The Challenge of Internal Billbacks
Infineon’s Billback Solution for Touch-and-Pay Licenses
Deployment Results and Experiences
Outlook and Further Research
Hans ArgentonFritz Kink
Infineon IT
September 04Page 3
Copyright © Infineon Technologies 2004. All rights reserved.
Worldwide Semiconductor Ranking 1st HY 2004 and 2003
0 2 4 6 8 10 12 14 16Rank1st HY 2004
1st HY 2004
1st HY 2003
+22%
+80%
+41%
+35%+28%
+20%
+30%
+43%
+26%
RankCY 2003
(1)
(2)
(3)
(4)
(7)
(5)
(6)
(8)
(9)
(10)
1. Intel
3. TI
5. Infineon6. Toshiba
2. Samsung
4. Renesas*
8. TSMC**
10. Freescale***
7. STM
9. NEC
Source: IC Insights, July 2004
* Merger of Mitsubishi and Hitachi** Pure-play foundry*** Ex-Motorola Semi
Revenues in US $ bn
+26%
Hans ArgentonFritz Kink
Infineon IT
September 04Page 4
Copyright © Infineon Technologies 2004. All rights reserved.
Infineon at a Glance
Infineon - a top 10 semiconductor company
Revenues of 5.202 EUR bn in the first 9 months fiscal year 2004; revenues growth of 18% year-on-year
Fastest growing semiconductor enterprise in 2003
Approx. 34,400 employees (incl. 6,900 R&D staff) as of June 30, 2004
Strong technology portfolio with more than 37,000 patents andapplications; 46 major R&D locations world-wide
Most advanced fab cluster and world leader in 300mm production
Focus on communications, automotive and memory products
Hans ArgentonFritz Kink
Infineon IT
September 04Page 5
Copyright © Infineon Technologies 2004. All rights reserved.
Infineon Global License Management
SalzgitterMobile Phones
Software
SalzgitterMobile Phones
Software
DuisburgAutomotiveSolutions
DuisburgAutomotiveSolutions
HortenTire pressure
sensors
HortenTire pressure
sensors
DüsseldorfDataComCordlessBluetooth
DüsseldorfDataComCordlessBluetooth
WarsteinHigh PowerWarsteinHigh Power
AalborgWirelessSystems
AalborgWirelessSystems
KistaWireless syst.
Communic.
KistaWireless syst.
Communic.
AugsburgSecuritySoftware
AugsburgSecuritySoftware
SophiaAntipolisLibraries
Wireless ASICs
SophiaAntipolisLibraries
Wireless ASICs
DublinSecuritySoftware
DublinSecuritySoftware
KarlsruheEmulators forMicrocontr.
KarlsruheEmulators forMicrocontr.
BristolHigh Perform.
Cores
BristolHigh Perform.
Cores
UlmRF ICs
for GSM
UlmRF ICs
for GSM
Base BandRF Devices
PortoMemories
PortoMemories
Corbeil-EssonnesCorbeil-
Essonnes
HamburgHamburg
ChemnitzWireless
Applications
ChemnitzWireless
Applications
DresdenDRAM fabs
& cell / Flash
DresdenDRAM fabs
& cell / Flash
ErlangenMemoriesErlangenMemories
BerlinFiber
Optics
BerlinFiber
Optics
HannoverWireless
HannoverWireless
Braun-schweigBraun-
schweig
LinkoepingWireless
LinkoepingWireless
NurembergGSM
software
NurembergGSM
software
LinzUMTS/GSM/GPRS/EDGE
Wireless Contr.
LinzUMTS/GSM/GPRS/EDGE
Wireless Contr.
GrazSecurity Autom.Sense&ControlRFID Solutions
GrazSecurity Autom.Sense&ControlRFID Solutions
VillachMixed Signal
CoresTelecom
VillachMixed Signal
CoresTelecom
MunichMixed Signal
CoresAutom. Power
MunichMixed Signal
CoresAutom. Power
Regens-burg
Interconnect.Packaging
Regens-burg
Interconnect.Packaging
PadovaAutomotive &Indust. Power
PadovaAutomotive &Indust. Power
AutomotivePower
Wireless DiscretesIP-CoresMixed Signal
Memory Security Technology Design Flow
Hans ArgentonFritz Kink
Infineon IT
September 04Page 6
Copyright © Infineon Technologies 2004. All rights reserved.
Infineon Global License Management
NetanyaTelecom.
Flash Memory
NetanyaTelecom.
Flash Memory
BurlingtonDRAM
Product dev.
BurlingtonDRAM
Product dev.
LongmontFiber Optics
LongmontFiber Optics
Xi'anSuper Design Fab
Xi'anSuper Design Fab
San JoseOptical Networking
San JoseOptical Networking
AlbanyNanotechnology
AlbanyNanotechnology
CaryDRAM
Product dev.
CaryDRAM
Product dev.
BangaloreSoftware
Development
BangaloreSoftware
Development
East FishkillLogic 65/45
MRAM
East FishkillLogic 65/45
MRAM
Singapore8/32 bit µCTelecom
Network &Computer Storage
Singapore8/32 bit µCTelecom
Network &Computer Storage
ShanghaiWireless Systems
ShanghaiWireless Systems
TempeRF PowerDevices
TempeRF PowerDevices
TaipeiBroadband
CPE Systemdevelopment
TaipeiBroadband
CPE Systemdevelopment
Morgan HillRF PowerTransistors
Morgan HillRF PowerTransistors
AustinSematechAustin
Sematech
Hans ArgentonFritz Kink
Infineon IT
September 04Page 7
Copyright © Infineon Technologies 2004. All rights reserved.
site-specific capacity planning
Infineon Global License Usage Tracking
Site C
Site A
Site B
Site D
Reporting Engine
Result
Common Database
Filter
FilterFilter
Filter
Hans ArgentonFritz Kink
Infineon IT
September 04Page 8
Copyright © Infineon Technologies 2004. All rights reserved.
Infineon Global License Usage Tracking
Hans ArgentonFritz Kink
Infineon IT
September 04Page 9
Copyright © Infineon Technologies 2004. All rights reserved.
Global picture
Global forecast
Consolidated license landscape
Single point of contact to vendor
Infineon Global License Usage Tracking
Opportunity: Switch to global pay per use contracts
Hans ArgentonFritz Kink
Infineon IT
September 04Page 10
Copyright © Infineon Technologies 2004. All rights reserved.
The Challenge of Internal Billbacks
How to bill back global license costs to all participating cost centers worldwide transparently and cause-oriented?
To make it more challengingTouch and Pay
Once a license has been checked out for the first time,it has to be paid, regardless of the total number of
check-outs and their durations.
Hans ArgentonFritz Kink
Infineon IT
September 04Page 11
Copyright © Infineon Technologies 2004. All rights reserved.
0
1
2
3
4
5
6
7
8
time
pe
ak
va
lue
UG 4
UG 3
UG 2
UG 1
The Challenge of Internal Billbacks
Hans ArgentonFritz Kink
Infineon IT
September 04Page 12
Copyright © Infineon Technologies 2004. All rights reserved.
Infineon’s Billback Solution for Touch-and-Pay Licenses
0
1
2
3
4
5
6
UG 1 UG 2 UG 3 UG 4
Peak of UG 4
Peak of UG 3
Peak of UG 1
Peak of UG 2= Overall Peak
Corresponding cost slice allocated to UG 2
Corresponding cost slice allocated to UG 1, UG 2
Corresponding cost slice allo-cated to UG 1, UG 2, UG 3
Corresponding cost slices allocated to UG 1, UG 2, UG 3, UG 4
Hans ArgentonFritz Kink
Infineon IT
September 04Page 13
Copyright © Infineon Technologies 2004. All rights reserved.
Solution Deployment: Results
Global acceptance and deployment
Global contracts now meet real license needs
Cost centers now are able to react to accrued license costs within days
Impartial monitoring of license costs per individual project
Hans ArgentonFritz Kink
Infineon IT
September 04Page 14
Copyright © Infineon Technologies 2004. All rights reserved.
Solution Deployment: Experiences
However, strong control and limitation of license peaks still required in order to meet cost targets
Impartial break down of global license costs to individual projects improved significantly forecasting
and planning of project costs
Sharpens cost awareness
Hans ArgentonFritz Kink
Infineon IT
September 04Page 15
Copyright © Infineon Technologies 2004. All rights reserved.
Outlook and Further Research
Deployment of generalized cost-allocation algorithm for business-related hierarchies (e.g.,
geographical regions, business groups)
Apply experiences and benefits of consolidated license landscape to Infineon compute farms for
further increasing license efficiency and cost effectiveness (e.g., most expensive software on
fastest CPU’s?)
Hans ArgentonFritz Kink
Infineon IT
September 04Page 16
Copyright © Infineon Technologies 2004. All rights reserved.
Backup
Hans ArgentonFritz Kink
Infineon IT
September 04Page 17
Copyright © Infineon Technologies 2004. All rights reserved.
0
1
2
3
4
5
6
7
8
UG 1 UG 2 UG 3 UG 4
maximum user-group peaks
Infineon’s Billback Solution for Touch-and-Pay Licenses
Peak Range forCommon Allocation Costs