IT Trends Set to Shape SAM: IBSMA Software Asset Management Summit, London 2014

IT Trends Set to Shape SAM
© Copyright 2014 BMC Software, Inc
Jon Hall, Lead Product Manager
BMC Software
@JonHall_

© Copyright 2014 BMC Software, Inc.
The shift to SaaS
Devops and Super-Agility
Hybrid Cloud
Internet of Things

1. The Shift to SaaS

The growth of SaaS
“By 2016, IDC estimates about 25% of new
business software purchases will be service-enabled
PWC Global 100 Leaders Software Report 2014
software”

5
SaaS Sprawl
• Average of 700+ cloud services per company in large
enterprises.
• “Does your business have more cloud services than it
needs?”
YES
34% 48%
2010 2013
• 70% feel that a fifth or more could be consolidated

You can be non-compliant with SaaS!
• Accessing the software from prohibited
geographies
• Sharing user accounts
• Allowing systems to pose as users
• Providing access to non-employees where
such access is prohibited
“Cloud Computing did not end
license compliance worries, but
rather created new ones”
6
Navigating the Cloud: Why Software Asset Management is More Important Than Ever.
BSA (The Software Alliance), November 2013

Key Issues for Software Asset Management
• New license models, more user-focused.
• Traditional discovery doesn’t detect SaaS usage
• External, invisible inter-connections between SaaS
services
• Difficult to centralize cost management - each service
may have different cost model, API, etc.
• A key “shadow IT” risk area
7

2. DevOps and Super-Agility

What Is DevOps?
“DevOps (a portmanteau of "development" and
"operations") is a methodology of software
development.
It emphasises communication, collaboration and
integration between software developers and
information technology (IT) operations personnel”
(Wikipedia)
9

What does this mean in practice?
• Parallelized development processes
• Streamlined processes
• Rapid, incremental deployments
10

Traditional Software Development Lifecycle
Linear Flow to Release
Some friction between SLDC and ITIL - but low cadence
“Life was simpler back then…”
11
Release
Event
SDLC ITIL
Business Development Operations

DevOps Goals
Release Event
Time
Release Event
Time
Frequent Release
Events
Smoother Effort
Lower levels of
accumulated change
Less Risk
“Change is flowing into
production…”

Multiple Tiers Multiple Teams Multiple Environments Multiple Deploys
13
Portal
DB
Agile Team Dev
QA
Dev Ops
SIT,
Perf,
UAT…
Stage
5
5
1
5
3 1
2
1
1
3 1 4
2
1
2
3
Dev
Dev
Dev
QA
Prod
Multiples of Everything

The Impact of DevOps’s Agile Pace
Faster Releases run into Operational Controls
Release Process is slow, manual and error prone
BUT… it’s controllable, predictable, and a useful SAM input
14
Agile
Release
DevOps Event
Gap
“Sprints” “Marathons”

The DevOps response
Building Bridges with DevOps Methodologies
DevOps teams, Infrastructure as Code, Toolchains
Cloud Environments for Dev/Test
CHALLENGES EXISTING SAM TOOLSETS!
Agile
Release
DevOps Event
Gap

• Multiplies pre-production environments.
• Changes and Releases happen much faster:
needs new methods of alignment to ITAM.
• Can’t rely on basic discovery tools: They simply
won’t keep up.
• Periodic true-up is not enough.
16

3. Hybrid Cloud

Cloud Infrastructure on the Rise
Percentage of servers operated in global enterprises:
28% 6% 66%
Private
Cloud
Public
Cloud
Physical Servers &
Non-Cloud VMs
34% of enterprise servers
already run in the cloud
“Your Cloud Future Is Here - How IT Can Embrace The Business Demand For Cloud And Exceed Expectations”
Forrester, June 2013

Hybrid Cloud Delivery Architecture
Private Cloud
Location A
Private Cloud
Location B
Infrastructure
Policies Capacity
CLOUD SERVICE
GOVERNOR
Licenses &
entitlements
Costs & billing

Service
Options
Infrastructure
Models
Application
Model
Cloud
Service
Offering
How the service is
structured.
(Server roles, software
components)
How it is deployed and
scaled for different
purposes.
Optional extras
and variants.
(e.g. additional capacity,
premium support)

4 x Dedicated Server
4 x Private Cloud VM
2 x Amazon AWS instance
4 x Amazon AWS Instance
1 x Amazon AWS Instance
Perpetual Core-based license
Perpetual Core-based license
Per-User Subscription License
Enterprise Hot-Standby License
Enterprise Developer License
3 year review
1 year review
1 year review
1 year review
6 month fixed
GOLD
SILVER
BRONZE
License types depend on Service Offering

Limitations of Traditional Discovery
6am 9am Noon 3pm 6pm
7am discovery
job
7pm discovery
job
DATABASE
SERVER
REPORTING
SERVER
Additional capacity
automatically applied at
peak time
Additional capacity, and new
(licensed) data transfer option spun up
for reporting job

The Asset lifecycle in the Hybrid Cloud
Select &
Procure
Provision &
Record
Deploy
Discover
& Reconcile
Audit &
Monitor
Re-Harvest
Retire
Maintain &
Support
“Traditional Asset
Management model”

24
“Classic” Server SAM SAM in the Hybrid Cloud
SELECT & PROCURE •Perpetual licensing
•Maintenance renewals
•CALs, capacity licensing
•Subscription licensing
•Subscription renewal
•Translation of legacy terms
PROVISION & RECORD •Server automation tools •Service instantiation
•Server automation tools
•CLM deployment
DEPLOY •Installation projects
•Server automation tools
•Infrastructure refresh
•CLM Service Governor
•Migration
DISCOVER & RECONCILE •Agent-based discovery
•Agentless discovery
•CLM data (volatile?)
•Dependency mapping
•Vendor usage data

25
“Classic” Server SAM SAM in the Hybrid Cloud
AUDIT & MONITOR •License consumption
•Vendor audits
•CLM Usage stats
•Vendor stats
MAINTAIN & SUPPORT •Maintenance Windows
•Internal change management
•Extend/reduce subscription
END OF LIFE •Physical decommission
•Migrate to new solution
•End/renegotiate subscription
•Reclaim data from vendor
RE-HARVEST •Capacity reclamation
•License migration
•Budget reallocation

• Basic discovery doesn’t provide the detail: need
smart tools to read the required data
• Potentially many more data inputs to SAM
• “High Water Mark” is tough to track, but
burden of proof still lies with the customer
• Blurs lines between infrastructure and software
26

Continuous compliance, not periodic
CONTINUOUS
ENFORCEMENT
Best Practices Report
Remediate
Audit
Running
Configuration
Change
Configuration
Validate
Consistent
Configuration
Differences

4. The “Internet of Things”

Rise of the “Internet of Things”
Number of internet-connected
(excluding PCs, tablets, smartphones)
devices
0.9 billion
26 billion
2009 2020
(“Forecast: The Internet of Things, Worldwide” – Gartner Report, 2013)

IoT means many more digital Assets
Embedded in devices
we already manage
Embedded in non-IT
business assets
New, discrete
connected items
http://www.flickr.com/photos/sergesegal/

• ß
The 2014 inventory store:
-PCs and Laptops
-Smartphones
-Tablets
-Printers
-Consumables
Coming soon…
-Wearable devices
-Smart meters
-Standalone sensors
-RFID equipment
-Smart vehicle components

“Oracle’s Forklift”
In this illustration, there are 15 devices in addition to 400 drivers.
415 “Named User Plus” licenses would be required.
(Oracle Software Investment Guide)
If the number of devices increased at the rate projected by Gartner,
user license costs in this example would double.

Emergence of New Licensing Types
“Manufacturers are increasingly looking to
leverage the software assets embedded within
their devices, including monetisation.
In many cases, the software has previously
been provided to customers along with the
hardware, for no additional charge”
“How Software Licensing Helps Manufacturers Generate Value
from Embedded Software” - IDC Report, 2011

Licensing the Internet of Things
“If we don't have licensing, we don't
have the whole picture”
Andrew Gustavsson, manager, Central
Licensing Center (CLC), Ericsson.
“How Software Licensing Helps Manufacturers Generate Value
from Embedded Software” - IDC Report, 2011

A new shape to Asset licensing
35
Previously… Soon…
Multiple devices,
priced per unit
Homogenous devices, priced by
feature consumed

• Proliferation of untracked employee devices
• Entirely new types of software license
• Non-IT departments buy equipment which carries
Software Licenses
• Non-discoverable licensed components
• “I can see it, but I don’t know how much we’ve
activated”
36

Afterword

“We find that some of the groups building
out the cloud often inadvertently become
the asset managers.
People can accidentally take on the role of
asset management without intending to.”
Anthony Hillier, CTO of CiRBA, quoted in CIO.com, April 2014
Conclusion

The Future of Software Asset Management?
• Asset Management risks being fragmented into silos in line with technology.
• Smarter discovery tools become increasingly vital.
• Redefine role to “Digital Asset Management”:
• Encompass legacy and new, and manage transition.
• Retain single information line on costs, dependencies, risks
• SAM Toolsets must evolve, or become obsolete:
• Significantly more data feeds (CLM, SaaS services, embedded systems…).
• Shift from Discover-Calculate to embedded, real-time control.
• Opportunity to provide CIO with predictive and proactive cost-management.
39

Questions?
Jon Hall, Lead Product Manager
BMC Software
@JonHall_

IT Trends Set to Shape SAM: IBSMA Software Asset Management Summit, London 2014

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IT Trends Set to Shape SAM: IBSMA Software Asset Management Summit, London 2014

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