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

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1 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

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 Virtualized resources Automated service management Standardized services Storage Networking Location independent Rapid scalability Self-service 3

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

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

6 By co-existence of several different IT Delivery-Models, Cloud Computing goes beyond the boundaries of the own existing Data center. Corporate-IT Traditional Enterprise IT Private cloud Hybrid cloud Public 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 6

7 IBM s next generation Cloud will drive higher value Think it. Build it. Tap into it. Enabling business transformation Business Process as a Service Business Process Solutions Application Application Application Application Application Marketplace of high value consumable business applications Software as a Service External Ecosystem Industry Collaboration Human Resources Big Data & Analytics Commerce Marketing Platform as a Service Composable and integrated application development platform Built using open standards Development Big Data & Analytics Security Integration Mobile Social Traditional Workloads Infrastructure as a Service Enterprise class, optimized infrastructure Built using open standards Compute Storage Networking SOFTLAYER SmartCloud Enterprise+ Enterprise Solutions Public. Private. Dynamic Hybrid.

8 Industry is moving towards more flexible licensing and deployment options Trends of licensing and deployment types over time IBM 2013 Authorized User Decreased Time-to-Market Floating Term Tokens SaaS Cloud Patterns PURE Licensing Models Over Time Single System CPUID Single User: Owned License Pool of Users: Owned License Pool of Users: Leased License Pool of Users & Products;Flexible Deployment Options Coming Licensed Capabilities and Activities Increased Productivity and Flexibility 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 licenseagreements 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 exchangedvia server for a mix of software licenses - Essentially unlimited REALTIME substitution Each Rational user borrows tokens from the pool to gain access to whatever tool they need for their job. Pool Rational Method Composer 4 Token Per User Analysts Rational Team Concert 7 Token Per User Developer Rational Performance Tester 3 Token Per User Program Manager 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

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

11 Governance Toolset : Tivoli Asset Management Family 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. 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 11 11

12 Questions and Comments

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