©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Session ID: BTOT-TH-0900/5 Twitter hashtag #HPSWU

©2010 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice

Speaker Name: Daniel GaleckiDate: Thursday, December 2, 2010Session ID: BTOT-TH-0900/5

SAMHow to optimize cost of software: HP Asset Manager best practices for Software Asset Management

3 HP Confidential

Agenda

– Overview of Software Asset Management (SAM)

– HP SAM components• Overview of HP DDMI

• Overview of HP Asset Manager

– HP SAM Solution

– Summary and Q&A

– Risk mitigation• …“Through 2008, 30 percent of large enterprises will experience at least one on-site software audit per year (0.7probability)” (Gartner, 2008)

• With software business being flat, compliance audits are an easy way for publishers to protect revenues

• SAM compliance is part of SOX compliance

– Opportunity for savings• SW spending will outstrip hardware spending in EMEA by 2012 (Gartner)

• An analyst estimated enterprise companies are on average 15% over compliant

• Many applications are deployed by people who should not use them or don’t use them

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SAM is a hot topic

Software Asset Management - overviewGeneral benefits and best practices

– Business practice that involves managing and optimizing the purchase, deployment, maintenance, utilization, and disposal of software applications within an organization.

All of the infrastructure and processes necessary for the effective management, control and protection of the software assets…throughout all stages of their lifecycle.

Process of managing software licenses and license entitlements. SAM is also the management of the costs, contracts and logistics as software moves throughout it’s lifecycle.

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Cost control

Ability to track software costs

Opportunity to control and

optimize costs

Policy

Ability to control entitlements

Need to enforce policies and standards

Ability to plan for future needs

Compliance

Ability to track internal compliance

Ability to prove compliance during software audit

SAM – Drivers and Benefits

Educate.

Advocate.

Enforce.

The Industry Voice

“promoting a safe and legal digital world”

External pressures

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Software Management Lifecycle

Requirements Planning

Procurement

Deployment

Operation

Evaluation

RenewalRetirement

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Implementation Best Practices

– Find a business need• What vendors/applications are most expensive or difficult to track?

– Develop and execute implementation plan• Focus on specific piece of software or business unit

– Capture success metrics and educate organization• Educate about the benefits and successes

– Create additional success points• Expand scope of SAM to other software or business units

– Continue collecting metrics about SAM program

– Review, enhance and optimize SAM program

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Operational Best Practices– Define organizational needs

– Centralize procurement

– Negotiate contracts, capture terms and conditions

– Collect Inventory

– Validate entitlements, communicate internal rules

– Build compliance reports

– Re-assess needs

– Renew/Retire software licenses

– Remove unused or not authorized applications

HP SAM components

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Components of a successful solution

How HP customers benefit

• Business managers freed from manual asset tracking tasks• Increased confidence in software license compliance• ITAM data can be shared with other IT disciplines

Process Efficiency

• Elimination of software purchases related to unutilized equipment• Savings of $3-4 million for an organization of 5,000 employees• Cost reduction of 10-20% in the first year with HP’s ITAM solution

Cost Avoidance

• IT maintains standards across the enterprise providing effective use of assets through their entire lifecycle

• Standardization of contracts simplifies future purchases and renewals and provides improved predictability of future costs

IT Governance

Inventory DiscoveryHP Discovery and Dependency Mapping Inventory (DDMI)

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DDMI value proposition

Discovery

Discovery of all IP connected

devices

Normalization of device models

Baseline for Inventory

Hardware InventoryAgent-based, or agent-less data

collection

Reliable collection of

data

Standardized results

Software Inventory

OS and Recognition-based data collection

Normalization of results

Recognition updates by HP and customers

Software Utilization

Tracking of software usage

software

Collection of active usage

data (Windows)

Data anonymization

Why HP DDMI

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HP DDMI software inventory capabilities

– Broad collection of software Inventory• OS provided software inventory

• File (header) information

• Static (file-based) recognition

• Dynamic (rule-based) recognition

• ISO 19770-2 SWID tags

– Software Utilization tracking• Running time (all platforms)

• In-Focus (Windows)

• Supports data anonymization (Privacy regulations)

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Benefits of using HP DDMI

– Ability to identify devices on the network• Possible additional benefit – hardware asset tracking

– Reliable collection of data• Reduces need for manual augmentation of results

– Normalized results• Quicker time to value

• Reduced need for data reconciliation

– Trusted source of data for HP Asset Manager

Software Asset ManagementHP Asset Manager

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Asset Manager value proposition

Lifecycle Asset

TrackingAccurate inventory and improved asset

utilization

Central procurement

process

IT Governance across

infrastructure

IT Financial Managemen

t

TCO measurement

Cost optimization

Chargeback for asset and service

utilization

Contract Managemen

tVendor

Relationship Management

Track various contracts (warranty,

maintenance, etc)

Lease vs. buy; renewal, and end-of-lease process

Software Asset

Management

Software license compliance and

upgrade entitlements

Software usage measurement and

optimization

Managing virtualized

environments

Why HP Asset Manager

HP Asset Manager Software Asset Management

–Enables active management for the authoritative state of software CIs

–Ensures vendor compliance and supports change management decisions

–Allows organizations to optimize what is already owned

Asset Manager

Discover Software

installations (DDMI)

Software Asset Management

Asset Tracking

Contract Management

Reconcile with discovered services

(uCMDB)

Contract ManagementComplianceProcesses

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HP Asset Manager - SAM capabilities

– Ability to track any licensing model

– Ability to track entitlements

– Compliance dashboards and reports

– Reconciliation engine for data

– Customizable workflow engine to support acquisition, re-assignment and removal of software

– Out of the box, regularly updated SAM content – counters, reports and wizards

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HP Live Network Asset Manager Community Forum

HP SAM SolutionHP DDMI + HP AM + HP Best Practices

The Software Asset Management solution

Data Synchronization(Connect-It)

WS/REST Federation

Discovery and Inventory (DDMI)

Asset Portfolio

Procurement

Service Catalog

Financial Management

Chargeback

Contract Management

Software Asset Management

Best practices & wizards

Dashboards & Reports

HP Solution

– DDMI• Inventory Discovery

– Asset Manager• Contract Management

• Software compliance tracking

• Customizable workflows

– HP supplied content• Software signatures and recognition rules for HP DDMI

• SAM dashboards, counters, reports, wizards for HP Asset Manager

– HP Professional Services• Implementation expertise

Based on proven experience

HP’s Software Asset Management Services

ITAM/SAM Processes & Directed Design Methodology

Software as a Service (SaaS) & Outsourcing delivery options

HP Software & ITIL Education Services

Business&

IT Advisory

Process Consulting and

Solution Implementation

Fast Track

Packages

Asset Tracking Expense Control Optimize. Innovate

Chaos OptimizationReactive

An evolutionary approach to ITAM

Proactive

Process Automation

•Inability to discover or track assets (physical or virtual)•Maverick buying•Can not measure risk

•Lack of spend control•Expense attribution•Enforced standards•Effective Contract Management

•Lack of reconciliation of asset request to receipt•Automated request management•IT value articulation

•Identify opportunities to standardize•Align IT with the business objectives•Identify service value•Identify breaks in process

Maturity based approach

Phased approach

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– Identify needs based on maturity level

– Target most important software• Based on likelihood of audit, total cost, etc

– Maintain compliance for targeted software

– Expand to cover additional software

– Automate processes

Summary and Q&ASAM with HP

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HP Solution

– DDMI• Inventory Discovery

– Asset Manager• Contract Management

• Software compliance tracking

• Customizable workflows

– HP supplied content• Software signatures and recognition rules for HP DDMI

• SAM dashboards, counters, reports, wizards for HP Asset Manager

– HP Professional Services• Implementation expertise

Awareness – From a SAM Perspective

– Knowledge of where software is installed and who is using it (acquisitions/divestitures)

– Preparation for Software Audits (installs & licenses)

– Assistance for software contract negotiations (purchase/maintenance)

– Ability to manage Definitive Software Library (ITIL)

– Ability to calculate costs associated to software

– Knowledge to help prepare for software upgrades

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Customer Feedback

“Our Internal Analysis uncovered $2M overspend on a single piece of Software. We have over 200 strategic software contracts, and that’s just one example. We found in our research, we’ve over-purchased a majority of the time. We expect a great deal of savings.”

Cingular/AT&T Wireless

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