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Software License Optimization is a resource for IT Asset Managers, Software Asset Managers, and IT Procurement to help them better optimize software use, reduce software costs, and ensure license compliance with vendor license agreements to reduce the risk of software sudits. There are a number of different Software Asset Management (SAM) maturity models out there that address the fact that organizations are at different points in their journey to optimized license management. Generally, organizations at level 2 are doing license reconciliation on an ad hoc rather than a continuous basis.
Level 4 – OptimizedAt level 4, organizations are fully leveraging their license entitlements—product use rights, to minimize license consumption and reduce ongoing costs for software.
At Level 4, the organization is able to quickly calculate how many licenses are needed to cover the installations and usage of software based on product use rights. Many leading companies are being more proactive in managing their SAP software licenses and reaping the rewards. Are you planning to attend the Gartner IT Financial, Procurement and Asset Management Summit in Orlando, FL this week (Sept 25-27)?
If you would like to learn more about Software License Optimization, plan to attend our Solution Provider Session on Thursday afternoon. If you would like to schedule a meeting with one of our representatives at the conference, you can use the Agenda Builder. Only about 35% of enterprises have a Software Asset Management (SAM) program in place today, according to industry analysts. As the blog title states, I’m going on the theory that it’s ‘better late than never’ and writing a blog on this year’s SAM Summit event, which took place in Chicago in June. The opening session was a panel discussion with representatives from the following companies: Allstate, Amtrak, Iron Mountain and Visa. Software license audits continue to be a major challenge for these organizations, with their SAM teams spending, on average, 50% of their time dealing with audits. One of the panelists commented that there are positives and negatives associated with software audits—on the positive side, it pushes the organization to be more proactive about license management and software license compliance. A panelist also commented that third party auditors don’t understand the issues around software that may be found in the customer environment that is associated with POCs (proofs of concept) and software trials. Cloud—Blog: Software licensing in the Cloud-- Now you have more flexibilityIncreased sophistication of SAM Tools—read our white paper: What Does it Take to Achieve Software License Optimization? Chaos theory is a mathematical field of study in which small variations in starting conditions can lead to dramatically different outcomes. Hopefully chaos isn’t the word that comes to mind when considering your organization’s management of software licenses, but there are situations in which the licensing implications of seemingly minor changes are much farther reaching than might initially be assumed. When looking through the lens of SAP software licensing, the need to consider SAP Named User and Package licenses is obvious. Learn more about SAP license management by viewing our on-demand webinar: Lifting the Lid on SAP Licensing.
Security is probably the first issue any company must consider when contemplating using a public cloud.
Most public cloud providers offer some level of security, but based on the level of service you are contracting, you may have to “bring your own”. In conclusion, there are many reasons to take advantage of cloud resources, but there are several important technical issues to make sure you have resolved before you move to the cloud. Learn more about managing concurrent licenses for engineering applications by watching our on-demand webinar: Creating a Mature SAM Process for Concurrent License Management. The IG stated that the IRS spent $235 million taxpayer dollars on software to run the agency in 2011. Develop detailed standard operating procedures for using software licensing tools to manage software licenses. Implement a specialized software license management tool designed to discover, track, and manage software deployments and usage.
Develop an asset management repository of software licensing data and maintain the repository with a specialized software license management tool.
Maintain data in the repository that the IRS can use to more effectively review software licensing agreements, purchases, deployment, usage, and other related aspects of licensing to identify additional savings on software spending.
The IRS can also look to the example of a Flexera Software customer – a US Military agency that was able to save millions of dollars by implementing FlexNet Manager Suite to reduce software license spend. If you are in the market for a software asset management (SAM) tool you are probably looking for ways to narrow down your search. Software License Optimization is a resource for IT Asset Managers and IT Procurement to help them better optimize software use, reduce software costs, and ensure license compliance with vendor license agreements. Not long ago it was safe to go to college, get a degree, then get a job in the field of your study. With the expanding of the client base, the broadening of what can be done, and the incredible lack of employment, should you seek a career, or risk it all and create your own path?
Low pay – as an entrepreneur you can essentially, determine you own pay by you actions. More control over the funds that come in, as well as what’s taken from you in the form of taxes (although the government needs to improve this). Death is a magnificent thing; it gives your life, and this very moment, a very special and unique meaning.
They say that the unemployment rate in America is at 8%, but that’s not counting all of the people who have simply given up. The future isn’t uncertain, it’s very certain that the jobs you hold now may not be there in a decade.
The world needs new companies, leaders, and entrepreneurs if it’s going to survive this economic collapse.
Chad HowseChad Howse is the creator of Be Legendary, a company dedicated to helping guys experience greatness in Fitness, Work, & Life.

Yes, and many of us consider the results as a side effect of effort – when truly is the other way! I suspect that few folks in the supply chain management world would argue with the fact that supply chain management is risky business.
The reality is that risk comes in many forms (including anticipated risk, uncontrollable risk and unanticipated risk).
When we talk risk, we’re not just talking about headline-making tsunamis, floods and earthquakes. We wanted to share this infographic that looks not only at the types, drivers and impact of risk but also discusses the competencies needed to react to a disruptive event and the advantages that a focus on risk management can bring your organization. If you want to learn more about supply chain risk management, our Knowing the Risks – Mitigating and Responding for Success is a good read.
Meranda joined Kinaxis in 2014 with over 15 years of experience in marketing and communications under her belt. Below is Flexera Software’s version of the maturity model and shows that the goal is to get to Level 4—the Optimized level of maturity.
Understanding the software installed and in use in the IT environment is the foundation of Software Asset Management and Software License Optimization.
These organizations have manual processes in place to bring in purchasing and contract data so that they can do a license reconciliation for some compelling event—often this is for a software audit. Part of the reason for this is that without the right processes and tools in place, it just takes too long to perform the task.
PO’s with SKUs can automatically be processed to understand exactly what has been purchased and then this can be compared to the inventory data—a ‘purchased versus consumed’ license position can be calculated. Organizations that are at level 3 can either avoid software audits altogether or dramatically reduce the cost and effort to address an audit. We will discuss an automated 3-step process to achieving optimized license management and introduce our SaaS offering.
In the Agenda Builder, select My Agenda, then choose an Open Time Slot and select Exhibitor Meeting and Flexera Software.
Many are starting on the journey to implement a SAM program but are running into the common challenges—extremely complex software license agreements, license models and product use rights, highly dynamic virtualized environments, and globally distributed organizations. Leong held leadership positions at EMC, CA, Bearingpoint, Deloitte, and PWC where he delivered consulting and professional services to Fortune 500 companies. The panel discussed a wide range of Software Asset Management (SAM) related topics, including software audits, Cloud computing and Software as a Service (SaaS).
It has been well documented that software audits have been increasing over the last few years (see this blog post and also our 2012 Key Trends in Software Licensing and Pricing Report) so it behooves organizations to be prepared. The butterfly effect is a popular theoretical example whereby the formation of a hurricane results from the flapping of a butterfly’s wings. However, what begins as an SAP-specific enhancement may end up requiring licenses from up to 3 major publishers and spanning multiple volume license agreements!
This is because proprietary data will be loaded onto a computer which is outside of the corporate firewall. For instance, with Rackspace, you can purchase their base level “Cloud Server” package, in which they offer a Linux-standard firewall. Many software vendors have restrictions about the usage of the software with respect to geography, users, and equipment. One high-value SAM tool feature, helpful for bringing organizations to the highest Software License Optimization maturity levels, is the SKU (stock keeping unit) library, also known as the SKU catalog or SKU database. If your organization doesn’t currently satisfy this dependency, you should consider realigning your purchasing processes to take advantage of automated PO processing with SKUs in the future.
You’re kicked to the curb, forced to see what you can offer the world – and if they’ll accept it. A workers pay is determined not always based on merit (unless you work in commission, even then you’re getting a small piece of the pie), but on seniority.
So many spend their lives doing things they don’t like to do – essentially living a life they don’t want to live; what’s the point?
In the stock market that risk isn’t always founded on sound principles, but a lot of time when you’re talking about growing a company, or even finding success in life, great risk leads to growth. Some economists believe that unemployment is actually closer to 15%, and could reach up to 25% in the next decade. This may mean joining on with a start up, something that entails a lot more risk, but you typically need less education, you’re working for a company who’s making a difference, whose leaders are leading with passion and have a lot of skin in the game, and you’re innovating. The internet has given you endless possibilities to create what you want to create, to reach who you want to reach, and to help who you want to help.
Chad has been featured in Men's Health, Men's Fitness, and Shape magazines, and is a contributor to the Art of Manliness, and Addicted2Success. I am in college right now and I ask a lot of my friends who are not working toward a technical degree why they are there and the majority either tell me that college gives them a better chance for security or they were simply told that they had to go.
It’s a scary time for sure, but if you can control your fear and focus, one can succeed. While it may be tempting to try to define specific response plans for every potential risk your supply chain might encounter, that would be difficult to achieve. In her role as senior campaign manager, she is exposed to a lot of great supply chain focused content including white papers, research, infographics and more. However, before any company focuses on trying to minimize risk they have to consider supply chain cost efficiency vs risk reduction. This is where you will achieve the highest return on your investment (ROI)—both in terms of your SAM program investment as well as your overall software investment.
For example, it takes a lot of IT time and resources to pull together the necessary data and reports to answer a software license audit.

Consumption at this level equates to install counts or user counts, or processor counts, etc., depending on the license metric in effect.
A Product Use Rights Library helps automate the process of applying these entitlements to generate an Optimized License Position.
Please visit us at Booth #103 in the exhibit hall where we will be showcasing FlexNet Manager Suite for Enterprises, our Software License Optimization solution used by hundreds of organizations to maintain software license compliance and reduce ongoing software costs. As a result, many enterprises are taking a look at SAM managed services as a way to meet these challenges and more quickly achieve the desired business outcomes. There was a good session on software audit readiness at last year’s SAM Summit, as reported in this blog. Another panelist said that they promote their SAM program internally based on risk mitigation—their CIO doesn’t want to receive any more audit letters and wants to stop spending on audits (which can include unbudgeted true-up fees, penalties and IT staff time). Organizations need to have an independent assessment of their license position that is defensible, based on the data. Do you have cost-effective and reliable means to calculate Package license consumption based on those metrics? Most high technology firms are talking about their cloud solutions or at least their plans for it.
But doing so requires numerous considerations on how to get the target application(s) actually running in such a cloud and whether its a good idea in the first place. If you want something more secure, you would need to provision your own security package at the time of setting up the environment. If your application runs primarily in a “batch” mode, meaning there is no user interaction once the application is started, then throughput may be the primary concern. For instance, the software license may state that the software may only be used on a particular site within your company, or maybe just on the company intranet.
A recent article posted by Martin Thompson at The ITAM Review, entitled How SKU catalogues save time and money, provides an explanation of a SKU catalog and insight into how organizations can save money using this technology. Or, you can go another route: you can find something that excites you, and give it to the world. These are not the right reasons to be spending 4 years of their life in college and I hope this article will spark something in a ton of young people to start exploring and taking risks to find their passion and happiness they deserve.
And the amount of risk being faced by supply chain professionals has been on the rise for the past 20 years. Instead, it’s really about taking a proactive approach that ensures you are prepared to recognize, assess and respond to any disruption that comes your way. In her blog, she shares that content to help supply chain professionals keep up-to-date on the latest industry information. Reducing supply chain risk can be very costly and in order to make a strategic decision there needs to be a cost benefit analysis to determine the possible ROI on risk reduction efforts.
Have you optimized the consumption of existing SAP Named User licenses by identifying inactive and duplicate users and assigning license types based on real usage data? Using Microsoft Windows Server 2012 Standard as an example, its license model is based on the number of physical processors and the number of virtual machines running on the server. We will focus on the technical issues, leaving business issues, such as pricing, out of the discussion for now.
In general, the consensus in the community is that public cloud security is improving, but probably not ready for your most sensitive data. But total turnaround time could be a big consideration if the data size is large: a fast run-time may be outweighed by the process of transmitting the data. There may also be restrictions for using the software on virtual machines, and in most cases, public cloud companies are utilizing virtualization technologies. Another article on the topic posted by Steve Mullins also explains the importance of using SKUs for SAM.
You don’t even have to learn their language, there are apps that can translate the text for them. Putting plans, processes, enabling tools and technology in place will help you improve reaction times and decrease the overall impact of any disruption. The question is, will the benefits of implemented risk minimizing processes outweigh the cost? For existing SAP users, can you be confident that SAP’s License Administration Workbench (LAW) will combine the new user accounts with existing accounts on other SAP systems?
Provisioning a new virtual machine and upgrading the server’s hardware specifications to match the increased resource requirements of a new SAP system may require additional operating system licenses, and may even affect the license requirements of other software running on the same physical server. What is the most cost-effective license model based on the hardware and usage requirements? Carefully consider these aspects of your application when considering putting it in the cloud. Some software vendors are modifying their software licenses to deal with public clouds, but many of the applications you use today probably have a fairly old software license, and as such don’t address this type of usage.
The spotlight is shifting from Generation X, Generation Y and the Millenial crowd and coming full bear on the new Laptop Entrepreneurs. Ultimately, risk minimizing strategies will be allocated according the each specific business organization and their values. This is partially based on concerns around security, but also because of a lack of understanding of what capabilities are really available, and what needs to be done to actually run an application in a cloud environment.
Not being able to quantify this risk and not analyzing a cost benefit analysis will lead to inefficient and costly risk reduction efforts that do more harm financially and do not add value.

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