More Related Content Similar to Webinar- How Software License Optimization Empowers IT Procurement (20) Webinar- How Software License Optimization Empowers IT Procurement1. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential1
How Software License Optimization
Empowers IT Procurement
2. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential2
Speakers and Agenda
Eric Feldman
Senior Product Marketing Manager
Flexera Software
@EricJFeldman
Agenda:
• License complexity
• Software Asset Management drivers
• Maintaining compliance and reducing
costs
• Managing cloud infrastructure
• Key Takeaways
Joe Freda
Chief Financial Officer
Flexera Software
@JoeFreda_CFO
3. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential3
You Are Probably Over-buying Software
Software license complexity will indirectly cost
organizations an average of 25% of their software
license budgets in 2016
- Amy Konary, IDC
>>Click here to Watch this Webinar On Demand Now<<
4. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential4
But You Are Under-buying Licenses Too
65% of enterprises are audited 1 or
more times each year
14%
9%
23%
19%
21%
15%
How often have you been audited (or had a license review) by your
vendors within the last 18-24 months?
More than 3 times
3 times
2 times
1 time
We have not been audited or had a
license review within the past 18-24
months
We have never been audited
65%
How many times have you been audited in the past
year?
5. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential5
And Software Audits are Costly
20% of enterprises have audit
true-up costs of more than
$1 million…
Not to mention labor costs!
2%
6%
12%
9%
15%
56%
What was your total software audit/license review true-up cost
within the last year for your organization?
More than $10 million
$5 million to $9.99 million
$1 million to $4.99 million
$300,001 to $999,999
$100,000 to $300,000
< $100,000
20% pay > $1 Million
6. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential6
Software Asset Management Program Drivers
Managing Entitlements
Software Audits
Overspend
Reducing Manual Effort
7. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential7
How Do Software License Optimization Tools Help?
Automated Tools Help Manage License Complexity
Product Use Rights Library:
• Upgrade / Downgrade
• Second Use Rights
• Virtual Use Rights
• Disaster Recovery / Backup Rights, etc.
• Points Tables (PVU, etc.)
Built-in License Intelligence
8. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential8
Control Software Costs, Manage Contracts
Contract
Expiration
Areas of
Over-Spend
9. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential9
Maintain License Compliance – Reduce Audit Cost
& Risk
Publishers
in Breach
10. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential10
Enterprise App Stores Proactively Help Maintain
Compliance and Reduce Costs
• Automate Software Request, Approval & Delivery
Process
• Check for Available Licenses
• Automate the License Reclamation Process
11. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential11
Negotiate Better Software Contracts
• Visibility into Software Usage and Trends
• Recommendations for License Types to Best Meet User
Needs at Lowest Cost
• Right-size Software Maintenance
• Leverage Global Enterprise Agreements
12. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential12
Achieve Greater ROI
Savings Due To:
• Audit Cost
Reduction
• Labor Savings
• Reduced
Maintenance Costs
• Software Reuse
Ability to Negotiate
More Favorable
Contracts
13. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential13
Case Studies
*Case Studies are from a May 2016 TechValidate Survey
14. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential14
>>Click here to Watch this Webinar On Demand Now<<
15. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential15
The Drive to the Cloud
Market Shift
• Spending for cloud services is growing at 5X of other IT spending
• At least half of IT spending will be cloud based by 2018 (IDC)
• 83% of all new software application purchases in the cloud
• 77% of organizations have an initiative to access compute power in
the cloud (Constellation Research)
• Operating Expense (OpEx) vs. Capital Expense (CapEx)
of Enterprises using
Hybrid cloud by 2017.
(source: Gartner)
Size in 2015;
26% annual growthCloud Market
(source: Market & Market)
Market Shift
16. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential16
Cloud IT is Growing – Traditional IT is Shrinking
• Cloud IT spending will reach $53.1B in 2019
– CAGR: 15.1% (IDC)
• Traditional IT spending will shrink to $62.3B in 2019
– CAGR: -1.7%
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
2014 2015 2016 2017 2018 2019
IT Spending - Cloud vs. Traditional IT
Cloud IT Traditional IT
17. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential17
Software in the Cloud
Cost Savings– but only if closely managed
Complexity
New SAM
Challenges
Still have
License
Compliance
Risk
18. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential18
Why Customers Need Better Cloud Management
• Customers lack visibility
into cloud spend &
utilization
– Understand per business
unit and company wide
spending
– Identify under-utilized
resources
– Track usage and spending
patterns
• IT & Procurement need
to manage cloud spend
and resource usage
Unmanaged Cloud can
be a Dark Cloud
19. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential19
The Challenge of Not Managing the Cloud
20. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential20
The Challenge of Not Managing the Cloud
21. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential21
The Challenge of Not Managing the Cloud
22. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential22
The Challenge of Not Managing the Cloud
23. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential23
The Challenge of Not Managing the Cloud
24. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential24
The Challenge of Not Managing the Cloud
% Utilization
% Utilization
% Utilization
% Utilization
% Utilization
25. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential25
Managing Traditional IT and Cloud IT
Capability Traditional IT Cloud IT
Hardware Asset
Management
Track location of desktops
and servers
Manage IaaS and PaaS
subscriptions
Manage maintenance
contracts
Track & maximize
utilization of instances
Manage hardware lifecycle
(acquisition to disposal)
Optimize spend
Software Asset
Management
Track software
deployments
Manage SaaS
subscriptions
Manage compliance Manage compliance of
BYOSL in IaaS
Optimize spend with SLO Optimize spend with SLO
26. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential26
>>Click here to Watch this Webinar On Demand Now<<
27. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential27
Enterprise-Wide Data Collection
Required Capabilities
• Aggregate billing and usage
information from multiple
accounts
• Classify spend and usage
• Configurable based on
business requirements
Business Value
• Reduce time consuming
manual effort
• Align cloud service billing to
organization hierarchy
• Up-to-date visibility into usage
and spending data
AWS
28. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential28
Managing Cloud Infrastructure
Complete 360 degree view of cloud usage and spend
• At-a-glance visibility and control of cloud spending
• Align cloud usage to business needs
• Reduce waste due to low utilization
29. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential29
Cloud Cost Analysis
Required
Capabilities
• Trend analysis
• Monthly
spending
projections
• Insight into
spending
based on data
classification
Business Value
• Choose the
most cost
effective
instance type
• Enables better
budgeting and
financial
management
Visibility of on-demand vs. reserved instances
30. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential30
Cloud Usage Analysis
Required
Capabilities
• Utilization of
reserved
instances
• Instance
utilization rate
• Instance usage
trends
Business Value
• Maximize
utilization of
cloud instances
• Eliminate idle
cloud instances
to reduce
waste
31. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential31
Key Takeaways
• 65% of companies face a software audit at least once per
year – and many will pay over $1 million for true-up costs
• Enterprise app stores help proactively maintain
compliance and reduce costs
• Automated software license optimization tools help
manage complexity, reduce the risk of audits, and provide
the data needed to negotiate better contracts
• To manage the cloud, you need the right data across the
enterprise
• Cloud does not remove the need for IT Asset
Management or Software Asset Management
– If anything, they become they become more important!
32. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential32
>>Click here to Watch this Webinar On Demand Now<<
33. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential33
For More Information
SLO Blog
http://blogs.flexerasoftware.com/ELO
Twitter
@SAMInsights
Web
www.flexerasoftware.com/SLO
34. © 2016 Flexera Software LLC. All rights reserved. | Company Confidential34
For more information go to:
www.flexerasoftware.com/SLO
>>Click here to Watch this Webinar On Demand Now<<