SOFTWARE LICENSING AWARENESS IN DYNAMIC ENVIRONMENTS
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1 SOFTWARE LICENSING AWARENESS IN DYNAMIC ENVIRONMENTS 3
2 CLOUD TECHNOLOGIES AND EMPLOYEE COLLABORATION MAY SATISFY BUSINESS FLEXIBILITY, DYNAMISM AND INSTANT DEMAND BUT THE LICENSING IMPACT AND FINANCIAL INVESTMENTS MUST BE CONSIDERED. USER VIRTUALISATION REPRESENTS THE DECOUPLING OF THE USER, THEIR PREFERENCES AND DATA FROM THE DESKTOP. APPSENSE
3 Moving to a more Dynamic Infrastructure As business demands change, the requirement for the provision of IT services needs to adapt and become more dynamic to meet these needs. Making sure the button is turned on to this dynamism is reflected in our approach to the Contemporary Workplace by enabling the right device to be aligned to each workstyle within an organisation. Software Application Licensing IT Services are underpinned by software applications; whether these be commercial off the shelf ( COTS ) or internally developed applications. Software publishers permit the use of their applications through the method of licensing the software for use within a business. It must be stated, for the avoidance of doubt, that the publisher at all times owns the software and more specifically the intellectual property ( IP ) and issues the end users a right to use the software based on a number of terms and conditions which must be observed at all times.
4 Software Licence Management/Compliance & Audit Risk It is widely believed that the economic downturn limited the revenues that software publishers historically enjoyed and as such this required the publishers to analyse different ways to ensure revenue streams could be maintained and, in some cases, increased. This has led to the increase in publishers auditing end users; as they are entitled to do in the terms and conditions of the end user licence agreements ( EULA ) and general conditions of use. The general understanding of all of the conditions of use for all software can be complex and the interpretation of these across the enterprise organisations can be extremely challenging to i) understand and ii) apply to their business to remain compliant. As a result of this, publishers found a large swathe of organisations that were non-compliant and as dictated in the terms penalties were issued. In some cases, the publisher may permit the purchase of the shortfalls under the current commercial pricing frameworks, but in many cases the full recommended retail price of software is applied as well as any maintenance and support costs which are backdated. Managing this can be the optimum way to enable management information on compliance risk and enact a mitigation plan to optimise the best way to utilise the software investments. Dynamic Technology Consumption; Legacy Software Licence Metrics Productivity technology is now essential to an organisation s core business activities. How this technology is being consumed in a more dynamic way means a stronger leaning to the user, rather than the device. Currently the standard client end licensing metric is still based on locking the software application down to a device. In Microsoft s latest product use rights; the generally available terms and conditions for the use of Microsoft software it states in connection with reference to the Desktop Applications : You may install the software on the Licensed Device* and a network Server Unless you license the software as an Enterprise Product or on a company-wide basis, you may also install the software on a single portable device Each license permits only one user to access and use the software at a time Local use of the software running on the Licensed Device* is permitted for any user Local use of the software running on a portable device is permitted for the primary user of the Licensed Device Remote use of the software running on the Licensed Device* is permitted for the primary user of that device from any device or for any other user from another Licensed Device* * A Licensed Device is the single physical hardware system to which a license is assigned. It is assumed that the majority of existing organisation s licensing will fall under these terms, although some will conform to their Office 365 offerings which are referenced later in the document. It is important to note that the above is still focussed on the per device metric whereas the deployment is not likely to be tied to any one device. The shift away from historic device based licence models can be avoided if organisations agree to adopt the subscription model. Newer products such as Microsoft s Office 365/VDA or Adobe s Creative Cloud offerings tie organisations into subscription models which permit the latest versions to be used, usually on more than one of the user s devices (personal or business). This satisfies both the publisher with securing revenue streams through the subscription model as well as the end user by creating the flexibility for provisioning. The only downside in this subscription model is that overall the total cost of ownership may increase by following this model. In addition to this, new perpetual rights are sacrificed on the subscription model.
5 Why Virtualise or Adopt a More Mobile Strategy? There are numerous reasons why organisations will look to adopt a more mobile or virtualised strategy that surrounds end user computing. A popular justification is productivity; enterprise expectations should mirror the consumer application stores that provision applications in seconds. Another aspect of productivity relates to how efficient applications and the underlying infrastructure supports this. Virtualisation permits certain functionalities that shift application servers, from highly utilised infrastructure with a draw on processor and memory usage, to those more underutilised to provide a better end user experience. This function is known as load balancing and techniques used are dynamic resource allocations. Another justification could be infrastructure efficiency with a reduction of running costs from a hardware perspective. Whilst this could be a justification based on hardware costs, the total cost of ownership from a hardware and software perspective is necessary to understand to ensure expectations are set for accurate cost reductions. The Impact of IT Asset Management Typically the use of software for users would not usually change from an older physical style deployment to a newer virtualised more mobile infrastructure. The users would normally remain relatively consistent (subject to any other in flight projects) and the applications themselves, in the main, would remain the same. A common misconception would be the risk on this from an asset management and compliance basis would remain fairly low. It would be fair to say that this understanding is not accurate and could open an organisation to a serious compliance challenge. As noted earlier, traditionally licence metrics (especially for desktop based software) are normally device based and have a number of limitations in moving from a physical to virtualised infrastructure. In some cases the application is simply not supported on a virtualised platform; be that VMware, Hyper-V, Xen for example. In other cases the licence metric doesn t transpose effectively enough onto a more user based operation and in others the use of software within a virtualised environment is simply prohibited within the terms and conditions. What is critical is to understand the following as a general base: Current software licence entitlement (all software an organisation has the right to use) Current software application usage or consumption (all software deployed/used on an estate) Limitations on the use of applications in a virtualised or more mobile infrastructure Technological implications of migrating applications across (numerous device requirements) Once all this is understood, you can then have a clear view on strategy, this may require transferring licences to additional metrics which would need to be agreed and negotiated with vendors / suppliers. Adapting the Traditional Licence Metric to New Infrastructure All licensing is based on trust and as such the ability to deploy software applications to enable the business to function is entirely possible without the lockdown of licence keys or limitations. The trust is utilised where an organisation is required to ensure the software application is correctly licensed and compliance can be controlled. The ability to licence correctly based on a traditional device based licence metric in a predominantly user based provisioning practice can be difficult. What is deemed difficult can often mean much more expensive. The approach of licensing all devices that an application could be accessed from would be very difficult especially if Bring Your Own Device ( BYOD ) or any other non-corporate devices are involved. The ability to access the software application, rather than those users/devices that actually do access is the other critical point to make. As such if Microsoft Project or Visio is provisioned through Citrix, any devices that a user could access these applications from would need to be licensed based on the traditional assumed device based licence metric. This makes the cost effectiveness of provisioning the applications this way to be almost prohibitive based on the overall business demands.
6 Assigning a Licence The term assigning a licence is one that is often used and this indicates a process takes place prior to each deployment of an application. In reality, the underlying process must be observed in a more holistic approach to ensure compliance is maintained within an organisation s infrastructure. Assigning licences to devices covers any client device (PC, notebook, smartphone etc) or any digital electronic device that is able to access the application. Microsoft technologies such as group policies and software restriction policies cannot be used as a means of enforcing licensing control, as these methods apply to users, or groups of users. The assigning of other licensing requirements for all provisioned applications is also mandatory Remote Desktop Services ( RDS ) client access licences are required to cover all devices or users (depending on which model(s) have been selected and purchased) that can access these applications. Licensing Pitfalls There are a number of complexities with the licensing models and this can often promote inconsistencies and confusion. A lot of the licensing terms are written from a product specialists approach and the practical approach to the application of the terms can be quite subjective. The more obvious ones are: OEM licensing for both operating system and application are strictly limited to the device they were shipped with. These licences can be used as a base licence for any upgrades based on them being redeployed on the same device, but in terms of licence mobility this is not possible Licence Mobility permits the use of software on numerous device(s) and often relates to virtualisation load balancing. This is usually tied into terms and conditions and under the condition of software assurance (maintenance and support) being in force for all licences Virtualisation: VDA (Virtual Desktop Access), VDI (Virtual Desktop Infrastructure), VECD (Virtual Enterprise Centralised Desktop) are varying flavours of how applications, desktops, business processes and operating systems can be streamed or provisioned to end users. It is essential that the design of this software provision is aligned to the specific terms and conditions of the software to ensure that no compliance is breached What would Computacenter recommend? Create best practical practice This is a term we use where best practice may not be the best fit for an organisation; best practical practice is an interim measure to deliver management, control and maturity in the Asset Management space. This is usually appropriate to the cost, effort and return on investment which would align to business benefits. Implement effective IT Asset Management (ITAM) IT Asset Management; whether an in house function or an outsourced service; is essential to ensure management and control are exercised. This function should cover all aspects of the lifecycle of IT assets and the first step would be to ensure that adequate policies and processes are in place. Following this at each stage of a lifecycle ITAM should be a central point in advice and reporting.
7 Consider other technology options There are two main options to deliver an optimised virtualised estate through cost effective licensing and this surrounds two areas of design: Infrastructure Lock Down Based on the costs of licensing the entire estate for certain applications that aren t required to all users, a locked down approach will limit the licence requirement. An example would be Microsoft Office is made available to all users as this is required for all; niche products such as Microsoft Project and Visio are not required to all and as such the availability must be limited. The Lock Down approach ensures cost management and effective control, but reduces flexibility and productivity. An example of a product to support the Lock Down approach is the AppSense DesktopNow suite containing AppSense Application Manager. Today s IT organisations are constantly striving to lower the total cost of ownership of their infrastructure while getting the maximum value from their IT investment. With the onset of multiple delivery technologies, efficient software license management is a key component of today s IT strategy. Microsoft acknowledges AppSense Application Manager as a solution that enterprises could use as part of software asset management to provide device-based license management in a Windows Terminal Services, virtual desktop or virtualised streamed environment. Sam Bramwell, Licensing, Anti-Piracy and SAM, Audience Marketing Manager, Microsoft Change of Metric By changing the traditional device based metric to a user based one ensures that compliancy is maintained and managed, but also provides flexibility to the end users. An example of this would be Microsoft s Office 365 offerings. This is a subscription only offering and can be hosted in a public or private cloud setup (on or off site); there are also a number of subscription offerings to align to an organisation s specific requirements. With some of the functionality of the Professional Desktop bundle now contained within the E3 and E4 subscription options this can often be a better option to run, manage and also control costs as all usage is billed on a monthly basis based on a long term commitment (usually three years). Office 365 options also align to a more mobile strategy that many organisations are now implementing. It also permits a user to utilise multiple copies usually five is the limit, but this could ensure tablet, desktop, laptop and smartphone. This reduces costs, but also provides synchronicity across devices, enhances productivity and attains compliance.
8 Computacenter s Solution: C 3 Software Right to Use Service Definition: Reporting on all known or discovered software entitlement evidence to prove an organisation s legal right to use the software under the volumes and terms and conditions noted. Use Case Resolution: You can understand your full software application licence entitlement, including terms and conditions of use, for numerous scenarios (i.e. Physical, Virtual, Virtualised and Mobile) to attain compliance or manage risks accordingly. What is Deployed Service Definition: Reporting on all known physical and virtual deployments of software in addition to the nonphysical usage such as BYOD, virtualised applications and infrastructure to provide a licence requirements position. Use Case Resolution: You can understand, through documented process and data feeds, the actual use of software applications through a number of provisioning scenarios (i.e. Physical, Virtual, Virtualised and Mobile). This is designed to create a gap analysis between all of the available data (including feeds) and those where data is not available to provide a full holistic view of software consumption across the business. The Over or Under Licensed Position Service Definition: Report based on the process of utilising current techniques and concessions to provide a software licence balance comparing the two sources above. Use Case Resolution: You can understand through documented process and reconciliation techniques, the difference between the software licence entitlement and the actual use of software applications through a number of provisioning scenarios (i.e. Physical, Virtual, Virtualised and Mobile). This allows the creation or maintenance of management of both compliance risks and mitigation plans. Advisory Services Service Definition: The provision of industry best practice advice on numerous aspects that would either negatively or positively affect licence compliance management. Use Case Resolution: Typically, these advisory services are aimed at informing organisations of any potential compliance risks when undertaking significant infrastructure projects. These take the form of a top to bottom level view informing an organisation of pre and post project compliance risks as a result of the proposed planning of projects. This will also seek to minimise some of the risk by providing advice and recommendations as to alternative resolutions.
9 Why Computacenter? Computacenter are uniquely positioned as we are a combination of a Reseller and Outsourcer with an in-house SAM practice. This means our advice is supported by vendor s sales training and resources that organisations don t have direct access to. We have the scale and experience of an outsourcer to manage the services for our customers and by having an in-house SAM practice partnered with specialist tool capability we can provide a more in-depth knowledge than many other resellers. By selecting Computacenter you can be confident of receiving best in class SAM resources to deliver a best practice solution that meets the your objectives throughout the software asset s lifecycle. By selecting Computacenter for SAM, you will benefit from: Collectively has over 25 years of software asset management industry knowledge to include Audit Defence engagements within the consultancy practice Software Audit and negotiation engagement process and tactics Access to industry leading licensing expertise to underpin clients technology and business strategy Proactive Licence reconciliation to identify and mitigate immediate and sustained compliance risks Software Audit Management expertise across all industry sectors i.e. Financial, Industrial and Commercial/Retail for Tier 1 Software vendors. Delivery of quantifiable cost savings and cost avoidance In addition, Computacenter s position as an industry leading software supplier and software asset management organisation means our customer can benefit from a linking of the two services. By linking procurement with asset management leads to: Quicker decision making A one stop shop for all software requests A complete process with a single organisation ensuring there are no gaps in the overall management of software from request, through procurement, into management and then retirement The client can potentially benefit from commercial innovation offsetting some cost of service via the supply of software via Computacenter. Computacenter has more than 25 years experience of sourcing and managing multi-vendor licences and over 80% of the FTSE 250 companies collaborate with Computacenter making us a partner of choice when it comes supporting our customers through a software audit irrespective of the stage we are engaged. We can utilise strong commercial vendor relationships with an organisation s strategic suppliers to ensure the best approach can be realised; to this end we have multiple accreditations with around 30 key vendors including Microsoft, Citrix, EMC, NetApp, Adobe amongst others. Due to the varying business delivery, Computacenter conduct technical, design, delivery and commercial services which include full end to end services to satisfy the expansive business requirements of organisations.
10 If you are thinking about, or are already involved in any of the following projects then Computacenter can help you assess the Software licensing implications and the impact to your business: Windows 7 upgrade Bring your own device Data storage and retrieval Big Data Information management Mobility and remote working Desktop, telepresence and collaboration Workplace transformation or upgrades Cloud Before starting any projects listed above Computacenter recommends that you consider the impact these may have on your Software licensing estate. To learn more about how Computacenter can help, speak to one of our experts, free of charge or contact your Computacenter Account Manager today on the details below: Enquires@computacenter.com Tel: Web: Computacenter (UK) Ltd Hatfield Avenue Hatfield Hertfordshire AL10 9TW United Kingdom +44 (0) enquiries@computacenter.com Computacenter is a leading independent provider of IT infrastructure services and solutions. From desktop to datacenter, we help our customers minimise the cost and maximise the value of IT to their businesses. We can advise organisations on IT strategy, implement the most appropriate technology, optimise its performance, and manage elements of our customers infrastructure on their behalf. Computacenter operates in the UK, Germany, France and the Benelux countries, as well as providing transnational services across the globe. Computacenter 2015
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