Software Licensing Gotchas and How to Manage Them. Frank Venezia September 25, 2012

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1 Software Licensing Gotchas and How to Manage Them Frank Venezia September 25, 2012

2 2 Presenter Frank Venezia Vice President Portfolio Management, Technology & Client Services (212)

3 3 Do you need to be a mathematical genius to figure out your software licensing?

4 4 What are the big contributors to software compliance issues? Vendor End-User Dissolution of license keys Revolutions in technology leading to frequent changes in license models and metrics Lack of clear understanding of contract terms, licensing metrics and nuances Lack of robust Software License Management processes and practices

frequent changes in license models and metrics Lack of clear understanding of

5 5 Categories of Software Licensing Gotchas Contract Scope Licensing Models Product Use Rights Product Dependencies Server Virtualization Disaster Recovery

6 6 Contract Scope Geographic Limitations Mergers & Acquisitions Impact Employee Increase Revenue Increase

7 7 Contract Scope Gotcha Software Licensing Tied to Revenue License Entitlements Oracle customer compliant at beginning of contract term Licensing tied to corporate revenue Revenue increased and company became non-compliant because they did not record these changes

contract term Licensing tied to corporate revenue Revenue

8 8 Licensing Models User-based Server-based Capacity-based Resource-based Bundling

9 9 Licensing Models Gotcha Bundling WebSphere Process Server 7.0 Supporting Products: Product A Product B Product C WebSphere Process Server 8.0 Supporting Products: Product X Product Y Product Z

10 10 Product Use Rights Full Use Rights Limited Use Rights Second Use Rights Downgrade Rights can reduce licensing costs

11 11 Product Use Rights Gotcha Limited Use Rights Fortune 500 Pharmaceutical Company Identified cost avoidance of $2.4M due to Bundling and Limited Use Rights Fortune 500 Telecommunications Company Identified cost avoidance of $7M due to Bundling and Limited Use Rights

4M due to Bundling and Limited Use Rights Fortune 500

12 12 Product Use Rights Gotcha Downgrade Rights End-user over-deployed MS Office 2007 licenses End-user entitled to MS Office 2003 licenses Option 1: Purchase additional MS Office 2007 licenses Option 2: Utilize entitlements for MS Office 2003 to rectify over-deployment if budgetary constraints do not enable new purchase MS Office 2007 MS Office 2003 Entitlements not used Overdeployments Entitlements used

Utilize entitlements for MS Office 2003 to rectify over-deployment if budgetary constraints do not

13 13 Product Dependencies Specific license types can be dependent upon having entitlement to a base license or other products Example: Oracle DB options/extensions require Oracle DB as the base product Bundled products have specific Limited Use terms Example: IBM s DB2 is bundled as part of certain WebSphere products, with deployment and access restrictions

DB as the base product Bundled products have specific Limited Use terms Example: IBM s

14 14 Server Virtualization Scenarios Sub-Capacity Licensing IBM Database Licensing Oracle CPU Licensing BMC

15 15 Server Virtualization Gotcha Sub-Capacity Licensing - IBM Requires separate agreement, quarterly reporting and use of ILMT Not all technologies or products are supported Movement within virtual farms can impact licensing Without sub-capacity agreement, must license entire server or cluster

technologies or products are supported Movement within virtual farms can

16 16 Server Virtualization Gotcha Database Licensing - Oracle Virtualization has a significant impact on Oracle DB license counts Understand how Oracle views CPU Binding. Which applies to you - hard or soft partitioning? Financial difference between hard and soft partitioning

Understand how Oracle views CPU Binding.

17 17 Server Virtualization Gotcha CPU Licensing - BMC For some products, full physical machine must be licensed If virtual machines reside in farm, entire farm must be licensed When licensing physical machine or farm, processors must be counted rather than cores

machines reside in farm, entire farm must be licensed When

18 18 Disaster Recovery Understand software publisher contract definitions for Disaster Recovery IBM is based on workload Oracle is based on frequency of use Understand your own internal Disaster Recovery configurations/utilization

on workload Oracle is based on frequency of use

19 19 In Conclusion Gain deep understanding of your contracts and the licensing models, metrics and nuances Employ ITAM license analysts and contract specialists as an integral part of your ITAM process Provide ITAM data analysis to the vendor management team interfacing with your software publisher and avoid software licensing Gotchas!

as an integral part of your ITAM process Provide ITAM data analysis to the vendor

20 20 Who is Siwel Consulting? Top tier provider of IT solutions involving hardware, software and services Founded in 1992; headquarters in New York; 350+ employees; woman-owned business 14 years of ITAM leadership; IAITAM Corporate Provider Member Service Fortune 50, Enterprise and Mid-Market clients Manage $3.5+ billion deployed software licenses

1992; headquarters in New York; 350+ employees; woman-owned business 14 years of ITAM

21 21 Questions From Our Audience?

22 22 IAITAM Annual Conference & Exhibition 2012 Featured Speaker Wednesday October 17 3:30 4:30 PM (212) Please visit us at the conference - Booth #33!

Beyond Tools: Business Intelligence Meets Analytics

Beyond Tools: Business Intelligence Meets Analytics Presenters: Steffani Lomax Director of ITAM Business Development Frank Venezia Vice President Who is Siwel Consulting? Top tier provider of IT solutions