Demystifying ITAM in the Cloud Frank Venezia Senior Vice President 2016 Siwel Consulting, Inc. All rights reserved. No portion of this document may be used and/or reproduced without prior written consent of Siwel Consulting, Inc.
CXO Challenges 2
The Reality of a CIO s Budget Capital Budget Expense Budget 3
Factors that Impact the IT Budget Operational Expenses Personnel Hardware Maintenance Software Maintenance 4
CIO s Expense Reduction Options Reduce Software Maintenance Reduce Hardware Maintenance Reduce Personnel 5
Cost Increases Related to Expense Budgets 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Year 10 Year 20 Year 30 Year 40 Hardware Maintenence Software Maintenence Personnel Cost 6
How to Reduce Software Maintenance Costs Technology Innovation Invest in Software Asset Management Cloud Solutions 7
The Cloud 21 st Century Outsourcing Feature/Function without People & Infrastructure Puts Focus on Services Organization Pay as you Go Quick Response Time and Service 8
Types of Cloud Services Private Hybrid Public 9
What are Public, Private, and Hybrid Clouds? Public cloud: Scalable and elastic IT-enabled capabilities are provided as a service to many external customers using Internet technologies Private cloud: Used by only one organization, ensuring that an organization is completely isolated from others. Hybrid cloud: Policy-based and coordinated service provisioning, use and management across a mixture of internal and external cloud services. - Definitions provided by Gartner IT Glossary 10
Cloud Offerings Software as a Service (SaaS) Platform as a Service (PaaS) Backup as a Service (BaaS) Infrastructure as a Service (IaaS) 11
Cloud Service Providers 12
Private Cloud Analogy Reality 13
Public Cloud Analogy Reality Application Infrastructure Platform 14
Public Cloud Analogy Reality Application Platform 15
Why should you care about Software Asset Management in the Cloud? Control over the virtual environment, but not over the physical HW infrastructure. Negligence is no excuse. No architectural control of the HW means no ability to affect and manage the SW licensing environment and requirements Lack of SW asset control exposes your firm to potential SW licensing liabilities and serious financial risk that you may not recognize Lack of visibility into who is accountable for SW components in your cloud elevates risk of non-compliance with your SW publishers 16
Challenges of Software Licensing in the Public Cloud Licensing SW in the public cloud is dependent upon the services requested from the Cloud Provider Most SW products are licensed as part of the service (owned by the Cloud provider) Transparent to Customer; all licensing concerns are with the Cloud provider Unlikely but if the customer uses their own SW, their exposure is great No customer visibility into cloud infrastructure Customer has no ability to limit exposure 17
Challenges of Software Licensing in the Public Cloud (cont d) Recommendation: Avoid using customer-owned software within a public cloud environment, if applicable Have cloud provider include all SW licenses you require as part of the monthly services 18
Challenges of Software Licensing in the Private Cloud Traditional license models are the governing terms and conditions for the Private Cloud as with any other cloud service Customer is responsible for all licenses 19
Challenges of Software Licensing in the Private Cloud (cont d) Understanding the HW infrastructure architecture and how you utilize this infrastructure within the Private Cloud is imperative Key: understand design models between production and development Traditional production environments are always on and scale as the business requires Traditional development environments are always on and scale as the business requires Development environments are moving from static environments to a flexible, as needed model, offering users the same experience as in a Public Cloud scenario 20
Challenges of Software Licensing in the Private Cloud (cont d) Understanding the financials associated with your SW in both the production and the development environment is critical: SW deployment within a production or traditional development environment is governed by the standard SW publisher licensing models Challenges of a flexible as needed development environment: Customers want a use-based model rather than an environment-based model to limit their server SW costs Currently no distributed licensing model exists that looks at time and CPU utilization as the bases for SW licensing costs Need a financial model for SW licensing costs within as needed development environments and compare to traditional environments 21
Challenges of Software Licensing in the Private Cloud (cont d) Development of a new licensing model with the OEM, based on your desired as needed development environment Currently only mainframe environments offer a utilization-based licensing model: SW is charged monthly based on a defined peak usage calculation and adjusts each month based on workload If current publisher T s and C s do not meet your financial requirements, the SAM team must recommend more negotiations to the Procurement/Sourcing/Legal teams The key is to clearly articulate how the SW will be metered, how the OEM will be able to measure and how SW licensing usage will be charged Creation of a new licensing model within a defined environment with tools for reporting and tracking actual consumption Develop a distributed server right to use or monthly license model that mimics the mainframe model 22
Challenges of Software Licensing in the Hybrid Cloud Software licensing in a Hybrid cloud environment is a combination of the Public and Private environment The critical component in a Hybrid environment is clarity on who owns the HW and who owns the SW Infrastructure architectural diagram along with make and model SW ownership defines who has the obligation HW ownership defines who has the requirement to provide SW usage (Processors, Cores, PVUs) If Customer-owned SW, T s and C s and financial obligations are with the customer, regardless of the HW ownership Leverage the creative licensing models outlined in the Private Cloud model. 23
Summary Understanding what is and isn t included in your monthly fees from your cloud service provider is critical SW licensing obligations are no different in traditional data center deployments as they are in Cloud services deployments Understanding how to utilize the cloud infrastructure is critical to determining the necessary Terms and Conditions needed from your SW publishers SW licensing in the cloud is not complex, but it requires diligence and a focused team of experts to analyze the deployment environment in order to maximize your software investment. Ensuring an efficient and comprehensive IT Asset Management Program is in place can have a significant impact on the Bottom Line. 24
About Siwel Founded in 1992; woman-owned business (WBENC) Top tier provider of IT solutions: hardware, software and services 17+ years providing ITAM solutions and services for our clients Certified ITAM professionals; IAITAM Provider Member Headquartered in New York City; 125 150 employees Specializing in Cloud, Big Data Analytics, Storage Optimization and IT Asset Management Solutions. 25
Contact Information Frank B. Venezia Senior Vice President Client Services and Technology Contact Details: Office #: (212)691-9326 x201 Mobile #: (516)317-3071 Email: fvenezia@siwel.com 2016 Siwel Consulting, Inc. All rights reserved. No portion of this document may be used and/or reproduced without prior written consent of Siwel Consulting, Inc. 26