1. Manage Software Assets Efficiently Practical IT Research that Drives Measurable Results

2. Software represents as much as 20%* of the total IT spend, effective management can make a big difference to your budget Software Asset Management (SAM) is a formalized process used to reduce costs, create efficiencies, and manage risks regarding organizational software use. This research is designed for: CIO IT Director IT Asset Manager Anyone who is building or improving a SAM practice. This research will provide you with the tools you need to: Recognize trigger points that will precipitate an audit. Create a methodology to quickly and efficiently respond to audit requests. Reduce and reuse software assets to lower costs. Perform a gap analysis to create a plan to measure and improve your SAM practice. Add policies to internal documentation. Choose the right person to fulfill the role of IT Asset Manager. *calculated from Info-Tech MeasureIT data, Oct 2010, (19.96%; n = 407) No SAM, No Plan No SAM Early SAM Mature SAM 2010 13% 27% 29% 31%

3. Executive Summary Effective SAM practices can save as much as 30% of your software budget and help prevent embarrassing and costly penalties for non- compliance. Your SAM strategy must include: - A SAM manager to perform the responsibilities and duties for SAM. - Policies for software usage and control. - Integration of SAM practices into software procurement, monitoring, and asset deployment. - Selection of a tool to discover, record, and manage installed software. Calibrate your SAM approach to your organization’s situation and needs and use the ROI tool to be sure the costs are commensurate with the benefits.

4. Compare your status with peers regionally & globally to know if you are ahead of the pack or behind BSA Piracy Rates for 2009: Central/Eastern Europe - 64% Latin America - 63% Australasia/Africa - 59% European Union - 35% Western Europe - 34% North America - 21% Status of Formal Software Asset Management by Region Regional differences reflect diverse attitudes regarding: Formalized processes. Differences in laws and enforcement. Methods by which publishers and anti-piracy groups are educating companies and enforcing anti-piracy rules.

5. Implement SAM to reduce software spend by as much as 30% and benefit from tighter controls & processes Build these benefits into your business case to optimize SAM practice for a total savings of 30%: Significant cost savings through redeployed software, and renegotiated and retired contracts. Administrative benefits through consolidated contracts and readily available data. Accurate reports of product, support, and maintenance usage. Improved budget process with increased accuracy. Build these benefits into your business case to optimize SAM practice for a total savings of 30%: Significant cost savings through redeployed software, and renegotiated and retired contracts. Administrative benefits through consolidated contracts and readily available data. Accurate reports of product, support, and maintenance usage. Improved budget process with increased accuracy. 78% of organizations who listed their primary goal as saving money reported higher success with their SAM program. 5 High Cost savings important Cost savings not important ModerateLow Software Licensing Success % of Organizations

6. Calculate the potential risks of getting caught with unlicensed software to support your business case for SAM Anti-Piracy groups such as the BSA (Business Software Alliance), SIIA (Software & Information Industry Association), and FAST (Federation Against Software Theft) work on behalf of publishers to investigate, prosecute, and remedy non-compliant companies. They audit and issues fines, varying greatly by region, and publish the results. In choosing whether or not to manage your software, conduct a risk assessment calculating both potential fines and benefits of cost savings. What triggers these audits? BSA offers rewards ranging from $5,000 to $1,000,000 US, depending on region, to anyone calling its anti-piracy hotline; usually disgruntled employees, consultants, or vendors. Asking publishers for help sorting out licenses. Publishers seeing discrepancies between published company data and license counts. Vendors noticing obviously poor safekeeping practices, such as CDs and serial numbers left unsecured.

7. *Each section represents a statistical estimate of the relative importance each contributor has to software licensing success. Source: Info-Tech Research Group N=106 Employ a dedicated asset manager to initiate a SAM practice with a focus on the factors that will bring the greatest success Relative Importance to Licensing Success Effective Policies Build Compliance Cushion into Budget Automated Discovery Dedicated Asset Manager Realistic Goals Interdepartmental Cooperation Effective policies, automated discovery, and budget setting are considered to be the greatest contributors to a successful SAM practice

8. Build the right framework for the SAM solution before choosing the technology to fit the tool to your environment Policies Processes Technology Roles & Responsibilities Create a strong Software Asset Management practice by selecting the right people to fill the roles required to manage the software. Implement policies and processes and integrate SAM into every aspect of IT. Choose your SAM technology based on your company size and the complexity of your environment; use the technology for a data repository and to produce efficiencies in gathering data and reconciling licenses to installations. Remember: without the right processes and policies in place, and without the right people leading the SAM team, no tool will facilitate an effective SAM solution.

9. 1 Analyze and Integrate SAM processes with existing processes Create and disseminate policies Manage your SAM process Define SAM and understand its benefits Choose tool and implement 1 1 5 5 4 4 2 2 Next Section in Brief This section will provide you with: A description of SAM. Comparison of software audits to asset management. Tools to help build your business case. This section will provide you with: A description of SAM. Comparison of software audits to asset management. Tools to help build your business case. 3 3

10. Build the business case for SAM to save up to 30% and improve effectiveness in managing software A full-time commitment to achieving and maintaining compliant status. SAM involves setting up controls, safeguarding software, and managing all aspects of your IT assets to avoid risks of piracy. A means for managing budgets and facilitating smart purchases. Accurate license inventories are the first step in reducing software costs and strengthening negotiation position. A means for improving efficiencies. Creation and enforcement of policies and processes, use of ITAM technology, and integration into IT service management will contribute to improved efficiency and effectiveness, and organized and accurate license inventories. Satisfy regulatory compliance requirements. Use the reporting features to quickly and painlessly respond to audit requests and prove your compliance status as often as is required. Reduce your software spend and optimize your assets. Budget accurately, redeploy assets, and use up- to-date information to negotiate all details of software contracts to get the best deal. Provide the help desk with current asset data for managing users, assets, and service desk tickets. Assets can be tied directly to users, change, incident and problem management tickets to bring efficiencies to the help desk and prevent duplication of data in various ITSM systems. Software Asset Management is: Software Asset Management can:

11. Complete Info-Tech’s ROI Calculator to support the business case for implementing a SAM program Use Info-Tech’s Software Asset Management ROI Calculator to help identify your organization’s potential:Software Asset Management ROI Calculator 1.Direct and operational cost savings. 2.Compliance and risk exposure. 3.Six year ROI and payback period in months. Complete the ROI calculator to calculate the risk of an audit, and the potential savings through enforced policies, redeployed software, and implementation of a SAM tool. “ ” It’s not just about software and hardware assets – it’s also about human assets, and about how bad or good the organization is delivering the service. You have to figure out how to price and cost the assets – it’s a very surgical procedure. - Director, Management Information Group, Manufacturing

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