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Cost Optimization Programs in Software Asset Management
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Cost Optimization Programs in Software
Asset Management
2009 DIGITAL ENERGY
Signe M. Stenseth, VP, [email protected]
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Agenda
• Value Proposition: – Open the door to
cost optimization!
• Three Key Steps:1. Capture Usage 3602. Analyze – put usage data to work for you!3. Communicate and Optimize
• Realize ROI: Reinvest - Make a difference!
Cost Optimization – more than Cutting Costs
Traditional Way of Cutting Costs
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Reduced Costs
Service QualityChange
New Technologies
Constrained Budgets
Faster, Better, More
Caught in the Squeeze
Key to IT Optimization
• Standardize the justification process for new IT investments– Base it on measurable IT usage data– Document how assets have been used
over time– Document shortages
• Do not let politics be the enemy of a sound investment decision
Open iT, Inc. All rights reserved. 6
Step 1: Capture Usage 360
Knowing what you have - and how it is used
Software Usage Metering
• Software Inventory – as a baseline
• Usage Tracking 360 – track usage for all applications:
• local and server-based applications• applications run in a bowser• applications served by Citrix, WS Terminal Servers
• Track active vs. passive usage• Track by feature, group them into ”products”• Track by user, user-group or global usage
• Look at trends in usage over time and compare
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Too complicated?
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Market Research Facts
”...Quick Payback with Minimal Effort after Implementation”
”Enterprises that Implement Software Usage Capabilities will Achieve Savings of 5-25% in the First Year.”
Gartner, Inc. “Cost Cutting by Effectively Using Existing Software” by Patricia Adams, Feb. 7, 2008
Step 2: Analyze Usage 360
Put the Usage Data to work for you!
Slice and Dice - Prepare for Multiple Views
• Multiple views provide critical insight:
– By business unit/ location
– By application/ application suites
– By users/User-group
– By fixed vs. variable costs
– By vendor
– By project
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Usage Trends – Pick your View
Add more Details: Total vs. Inactive Usage
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Zoom in to see how and why...
Step 3: Communicate and Optimize
Strive for a Common View
• IT and business must be on the same page
• Sizing and support level decisions – must be supported by usage data:– How– Who– What– When – Where
• Ongoing analysis of value and costs
Deal with negative perceptions!
Business Perceptions Response from IT
IT only cares about cutting costs, not listening to user needs
Cut where it does not hurt – free up budget for new products or services that have greater value to users
Their processes and timelinesdrive us crazy…
Act quickly when shortages are documented
Recommendations
• Harvest low-hanging fruit!– Step 1-3: Usage Tracking 360,
Analyze, Communicate, Optimize:
• Reduce software spending on underutlized SW• Standardize on versions and tools• Eliminate lease penalties• Redeploym assets effectively• Spend support where it has greatest effect• Lower operating costs• Lower administration and reporting costs• Mitigate license compliance risk
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Cost Optimization in Newfield
• Costs cut where doing so did not hurt users
• No more denials• Find and fix false denials • Focused training where it has greatest
effect• Communicate with certainty with upper
management, users and vendors
Jim Day, Geoscience Systems ManagerOpen iT, Inc. All rights reserved. 20
More information
• Success Stories• Software Usage Metering• Free Online Demo• Evaluations in your environment
www.openit.com
Open iT, Inc. All rights reserved. 21
