IBM Tivoli End-to-End Software Asset Management Solutions

Transcription

1 IBM Tivoli Business and Performance Automation IBM Tivoli End-to-End Software Asset Management Solutions IBM Tivoli License Compliance Manager for z/os, IBM Tivoli Contract Compliance Manager, and IBM Tivoli License Manager Best Practices for Automating and Managing Today s Data Centers Seminar August - September, 2005 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

2 Agenda Software Asset Management (SAM) Overview The IBM Tivoli Solutions IBM Tivoli SAM Solutions Value IBM Tivoli License Compliance Manager for z/os IBM Tivoli Contract Compliance Manager IBM Tivoli License Manager Customer Successes 2 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

3 What is Software Asset Management (SAM)? IT Service Management IT Asset Management (ITAM) Hardware Software Contracts Software Asset Management HW Cost Trends SW Cost Trends In the first year (1991), we identified 76 products that were seldom or never used and could be eliminated. We saved $1.25MM in software license and maintenance costs. - Global Oil Producer 3 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

4 Software Asset Management Value Large International Insurance Company Before Uncontrolled Budgets Over a period of 5 years, our Software budget had tripled. After Cost Management With the help of Isogon s SoftAudit reports we're now better able to control software costs. Over the past 3 years we have been able to drive down mainframe fully loaded costs/mip by more than 60%. Software Budget 5 years Cost Management has lead to growth We've been able to keep software cost increases to a minimum while overall workload and capacity has more than doubled over the past several years. Flexibility aligned with business demand We're able to negotiate more flexible agreements with features that (as an example) can allow us to possibly pick up new products and discard obsolete or low usage products. 4 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

5 Software Asset Management Value Major International Oil Company License Compliance Armed with the list of products, we determined some products were not licensed properly These licenses were corrected, some at increased cost Cost Management SAM Actions Some licenses were identified for products no longer installed. These licensed were promptly terminated. In the first year we identified 76 products that were seldom or never used. We saved over $1.3 million in license and maintenance costs. Software Cost Reduction with MIPS Growth Consolidated 5 data centers into one Tripled mainframe computing capacity Reduced mainframe software costs by more than half. Cost / MIPS SAM Results 5+ years 5 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

6 Software Asset Management Value Boise Cascade (an Isogon Customer Reference) SAM Actions Cost Reduction We were able to eliminate several products and optional add-ons to other products that had little or no use. SAM Results Software Cost Reduction with MIPS Growth Our actual mainframe ISV expenses were 24% less than 5 years ago and we now have a lot more processing. Cost Management By understanding what we have, where we have it and who is using it, we have been able to manage our hardware planning more effectively. We can make decisions on how many versions of software we want to maintain. We identify and re-bill our internal customers for expensive must have product that only they are using. Cost / MIPS 5 years 6 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

7 IBM Tivoli s Approach Align IT Software Spending with Business Priorities What software do I have? Tivoli s Unique Capability Auto-discovery of software assets What software assets are in use? How is this different that what was purchased? Use monitoring: measurement of software use activity trends How much does each software asset cost now and in the near future? Contract management: compare use activity to corresponding contracts All three questions must be answered to align IT spending with Business 7 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

8 IBM Tivoli SAM Solutions Help Achieve Software Cost Management Identification and reduction of no and low use software Efficient server consolidations Effective software and hardware upgrades Vendor contract negotiation leverage Reduced software fees through competitive replacement Improve operational performance and reduce maintenance costs Invoice validation Effective charge-back Disaster recovery and business continuation Compliance Risk Reduction Software vendor license compliance audits Sarbanes-Oxley Act Section 404 Growth End-of-Life Buy-In Day-to-Day Tools Strategic Planning Process Business Contingency Planning Budgeting Purchasing 8 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

9 IBM Tivoli Software Asset Management Value IBM Tivoli End-to-End Software Asset Management solutions help reduce software costs and compliance risk so that additional resources can be allocated to priority projects. These solutions provide a single view of software inventory, use activity, and contracts across mainframe and distributed environments. The solutions help you: Identify software inventory with no or low activity to reduce license fees Monitor software activity trends to proactively plan future capacity needs Gain contract negotiation leverage Determine where software is used and not properly licensed The integration of Isogon s zseries software asset management technology is a significant milestone in the execution of the IBM Mainframe Charter s goal of enhancing value and lowering the cost of computing of zseries solutions in a way that is compelling, clear, and consistent. Pricing Trend 100 IBM Operating System ISV Software Parallel Sysplex License Charge Introduced OS/3900 Introduced (sum of part less) Middleware Lower OS PSLC for certain MSU levels New Application Lic. Charge Introduced Growth Opportunity License Charge introduced Lower PSLC prices over certain MSU levels Lower OS PSLC prices for certain MSU levels Workload License Charge Introduced "flat" & variable product pricing Target 10-15%+ P/P zelc Introduced WLC Pricing Enhancements Rising ISV Costs Time 9 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

10 IBM Tivoli The Acquisition of Isogon Corporation Acquisition Closed on July 26, 2005 Privately held company Based in New York, with sales office in UK. 90 employees Founded in 1983 Business Partner of IBM s since 1997 Customers Over 200 customers worldwide including IBM Global Services Over 20% of Fortune 500 are Isogon customers Isogon also has several large outsourcing clients as well as federal and state agencies Isogon s Industry-Leading Software Asset Management Auto-discovers mainframe software assets Measures software use activity Compares use activity to relevant software contracts With this acquisition, IBM has the industry's only end-to-end software asset management solution -- combining Isogon's asset management software for mainframe environments with IBM's Tivoli software for distributed environments. 10 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

11 Combination of IBM and Isogon Mainframes UNIX, Intel & Other Distributed Servers PCs IBM Tivoli License Compliance Manager for z/os (Formerly SoftAudit for z/os) IBM Tivoli License Manager Inventory & Usage Inventory & Usage IBM Tivoli Contract Compliance (Formerly Vista) End-to-end Software Asset Management By combining Isogon s mainframe software asset management (SAM) products for zseries with IBM s Tivoli License Manager for distributed, IBM is able to provide the only end-to-end SAM solution capable of measuring software use activity and comparing it to corresponding contracts, ensuring software costs are in line with business priorities. 11 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

12 Tivoli License Compliance Manager for z/os Views Tree View (Left): A consolidated view of enterprise-wide contractual information organized to show specific hierarchies. Tree View List View Property View List View (Middle): Information about the selected data in the tree view. Property View (Right): Detailed information about the List View 12 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

13 Tivoli Contract Compliance Manager Views Tree View List View Property View Tree View (Left): A consolidated view of enterprise-wide contractual information organized to show specific hierarchies. List View (Middle): Information about the selected data in the tree view. Property View (Right): Detailed information about the List View. 13 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

14 Tivoli License Manager Views (for Distributed Systems) Schedule Inventory Scans View Installs by Product or Agent View Install History 14 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

15 End-to-End Software Asset Management Inventory & Use Activity Mainframes UNIX, Intel & Other Distributed Servers IBM Tivoli License Compliance Manager for z/os Contracts & Financials SAM Activities Tools Day-to-Day PCs Budgeting Growth Buy-In IBM Tivoli License Manager Strategic Planning End-of-Life Process Business Contingency Planning Purchasing IBM Tivoli Contract Compliance Manager IBM Tivoli End-to-End Software Asset Management solutions help reduce software costs and compliance risk so that additional resources can be allocated to priority projects. 15 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

16 Customer Successes Examples of Success Aug - Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

17 Benefits from SAM Activities Invoice validation, leverage contract negotiations Verify license compliance Condition I have it I use it Condition I have it I use it Benefit I m contracted for it Benefit I m contracted for it Eliminate unnecessary licenses Cancel maintenance or Verify install process Condition I have it I use it Condition I have it I use it Benefit I m contracted for it Benefit I m contracted for it 17 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

18 SAM Success Stories IBM Tivoli License Compliance Manager for z/os A Large Financial Organization Over nine years ago, the organization set up a data repository containing information on contractual obligations, purchase dates, renewal dates and maintenance agreements related to mainframe software. We use a repository to monitor compliance with vendor contracts. Condition Benefit I have it I use it I m contracted for it Verify license compliance 18 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

19 SAM Success Stories IBM Tivoli License Compliance Manager for z/os A Global Oil Producer In the first year (1991), we identified 76 products that were seldom or never used and could be eliminated. We saved $1.25M in software license and maintenance costs. Condition Benefit I have it I use it I m contracted for it Eliminate unnecessary licenses We had a modeling product that cost $144,000 per year but was used by only one application to produce a weekly service station sales report. Converting that application to a PC spreadsheet eliminated the service station sales report. We also identified products that were licensed on multiple CPUs, but were only required on one. Since 1991, we have been able to eliminate approximately 200 licenses. 19 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

20 SAM Success Stories IBM Tivoli License Compliance Manager for z/os A Fortune 500 Manufacturer To give some insight to how effective the mainframe SAM product has been for us, consider our experience: Condition Benefit I have it I use it I m contracted for it Eliminate unnecessary licenses We started 1998 with 635 MIPS, 150 program products, and software expenses that were a little over $7,000,000; the software cost per MIP was around $11,000. In 2002 we have ~ 1,100 MIPS, 65 program products, and software expenses around $4,400,000. Today our software cost per MIP is around $4, Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

21 SAM Success Stories IBM Tivoli License Manager European Patent Office Condition Benefit I have it I use it I m contracted for it Eliminate unnecessary licenses The European Patent Office and IBM Global Services - Integrated Technology Services worked together to implement the Tivoli License Manager software. The Tivoli License Manager software monitors usage of approximately 6,000 to 7,000 applications. The applications include Microsoft Internet Explorer, Adobe Acrobat, IBM Lotus Domino, Microsoft Visio and Microsoft SQL server software. With information obtained through the Tivoli License Manager software, EPO executives expect to reduce related software costs by being better positioned to negotiate new software contracts, plan for future software deployments and match resources with demand. The EPO believes that it will only need to achieve a few percentage points of savings to realize a full return on investment for the new Tivoli software solution. 21 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

22 SAM Success Stories IBM Tivoli License Manager Tata Consultancy Services Condition Benefit I have it I use it I m contracted for it Verify license compliance The leading computing systems integrator company in India. TCS faced challenges related to employees' compliance with corporate software licensing policies, software distribution and asset management, and server monitoring and maintenance. To satisfy requirements for becoming listed on India's stock exchange, TCS had to ensure compliance with national standards related to controls for enterprise software licenses. To manage employee behavior and gain better control over software and similar assets, the company established an enterprise system management program. Company goals were to collect complete asset inventory across the entire organization and comply with regulations related to licensing. 22 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

23 SAM Success Stories IBM Tivoli License Compliance Manager for z/os Large AG Insurance Company Condition I have it I use it I m contracted for it Invoice validation, leverage contract negotiations Based on our knowledge of usage through our mainframe SAM product we are able to re-negotiate contracts with several of our largest vendors and maneuver the distribution of their products on our systems to become better aligned with our end users needs while also reducing costs. Now we have enough information to drive LPAR pricing, and in the future vendors will have to step up to that requirement or face replacement. We are better able to negotiate software contracts from a position of strength and make demands of vendors that we might otherwise back away from. When you have confidence in your resource allocations you are not as easily persuaded into wasteful agreements. Benefit 23 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

24 IBM Tivoli SAM Value Summary Enterprises that begin an asset management program experience up to a 30% reduction in costs the first year.. and continue savings of 5-10% for the next 5 years Gartner IBM Tivoli End-to-End Software Asset Management solutions help reduce software costs and compliance risk so that additional resources can be allocated to priority projects. These solutions provide a single view of software inventory, use activity, and contracts across mainframe and distributed environments to help you: Identify software inventory with no or low activity to reduce license fees Monitor software activity trends to proactively plan future capacity needs Gain contract negotiation leverage Determine where software is used and not properly licensed For more information visit: 24 Aug Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation 2005 IBM Corporation

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