1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2016 Info-Tech Research Group Inc. Optimize Software Asset Management Win the compliance battle before it even happens.

2. Info-Tech Research Group2 2 Organizations often conflate software asset management with license tracking. Value is left on the table through underutilized or poor quality data. SAM is not merely knowing how many licenses you require to be in compliance; it’s asking the deeper questions in order to optimize your license estate. Your license inventory needs to be dynamic as it adapts to the needs and direction of the business. Software audits are a growing concern for businesses, but proactive reporting and decision-making supported by quality data will mitigate audit risks. A dedicated SAM team is required to achieve this proactive state, but the benefits for the business are well worth the effort. Achieving an optimized SAM program is a transformative effort, but the people, processes, and technology need to be in place before that can happen. Sandi Conrad, Senior Director, Infrastructure Practice Info-Tech Research Group A license managed is worth two that are tracked. ANALYST PERSPECTIVE

3. Info-Tech Research Group3 3 This Research is Designed For:This Research Will Help You:This Research Is Designed For:This Research Will Help You: Our understanding of the problem Organizations that want to cut their software budget by at least 20%. Small to mid-sized enterprises (SMEs) can expect savings of at least $40,000 per year, while mid to large- sized enterprises (MLEs) can expect savings exceeding $170,000 per year CIOs that want to improve IT’s reputation with the business CIOs that want to eliminate the threat of a software audit Organizations that want proactive reporting that benefits the entire business IT managers who want visibility into their software usage Establish a standardized license management process Designate an internal audit committee + processes Rationalize your software license estate Improve your negotiations with software vendors Improve the quality of your SAM data gathering & reporting

4. Info-Tech Research Group4 4 Resolution Situation Complication Info-Tech Insight Executive summary Organizations are aware of the savings that result from implementing software asset management (SAM), but they are unsure of where to start the process. With no formal standards in place for managing licenses, organizations are constantly at risk for costly software audits and poorly executed software spends. Poor data capture procedures produce an incomplete picture of software lifecycles. No centralized repository exists, resulting in fragmented reporting. Audit protocols are ad hoc, resulting in sloppy reporting and time- consuming work. Perform a current state assessment of your SAM practice to gain insight into what tasks to prioritize. Evaluate your licensing and documentation processes to determine gaps using tools like an effective license position. Rationalize your software licenses to streamline your license estate. Look critically at what you’ve purchased and why. Develop an internal audit program to mitigate the risk of costly audits. Build on the data gathered and produce standard responses and procedures to audit letters. Create a SAM strategy to provide legacy to the outcomes of developing best practices for SAM. 1.A strong SAM program will benefit all aspects of the business. Data and reports gained through SAM will enable data-driven decision making in all areas of the business. 2.To reduce contract cost, reduce the time spent on revision and creation. Automate these processes to reduce the need for costly labor inputs. 3.Good SAM will create better HAM. More efficient software usage will result in improved hardware procurement.

5. Info-Tech Research Group5 5 Cut software spend by a third with optimized SAM processes 1.Reviewing license agreements and usage rights. End-user license agreements are intentionally complicated. For example, some vendors allow users to install software on more than one device, while others allow you to install the software on a physical machine and its associated virtual machine. 2.Harvesting + reallocating deployed licenses. Licenses do not belong to users, they belong to the organization. Use your SAM tool to determine usage levels for deployed licenses and harvest licenses that are not being used. A more in-depth analysis like keystroke count can reveal more about license need. For example, if you have several users who have a license for Adobe Reader Pro assigned to them but their keystroke count is 0, they will get the same value out of the free version of Reader since they do not require.pdf creation/editing capabilities. Savings example : Let’s say your organization has a gross annual revenue of $50 million. IT budgets are typically 3.5% of a company’s total revenue – $1.75 million dollars in this case. Of that $1.75 million, software spend is 9.5% of the IT budget, or $166,250 annually. Through SAM optimization, your software spend can be trimmed by 30% - $49,875 annually. Industry operating profits are around 10.5%, which means $475,000 in annual revenue is gained from SAM savings. 1 1 2 2 3 3 4 4 5 5 Proactive SAM processes are your IT budget’s best friend. Active management of licenses will result in a 30% decrease in annual software spend by:

6. Info-Tech Research Group6 6 Visa, Inc. Visa, Inc. is the largest payment processing company in the world, with a network that can handle over 40,000 transactions every minute. Software Asset Management Program In 2006, Visa launched a formal IT asset management program, but it was not until 2011 that it initiated a focus on SAM. Joe Birdsong, the SAM director, first addressed four major enterprise license agreements (ELAs) and compliance issues. The SAM team implemented a few dedicated SAM tools in conjunction with an aggressive approach to training. Results The proactive approach taken by Visa used a three-pronged strategy: people, process, and tools. The process included ELA negotiations, audit responses, and software license rationalization exercises. According to Birdsong, “In the past 3 years, SAM has been credited with saving Visa over $200 million.” CASE STUDY Industry Source Financial Services International Business Software Managers Association Tool purchases ELA negotiations License rationalization Audit responses $200 million in savings in just three years thanks to optimized SAM processes Thanks to SAM, Visa saved $200 million in 3 years

7. Info-Tech Research Group7 7 Risk #1: High cost of undiscovered software Needless procurement of new equipment and software for new hires can be costly. Replacement of hardware that could have performed sufficiently following a new operating system release can also increase operating costs. Risk #2: Licensing, liability, and legal violations Legal actions and penalties that result from ineffective ITAM processes can severely impact an organization’s financial performance and corporate brand image. Failing to secure systems with personal data, transactions, or account information can violate federal regulations and lead to severe penalties. According to IDC, 1 organizations that practice IT asset management had an average of 15% or lower total cost of operations (TCO). Express Metrix found that 53% of organizations had been audited within the past two years. Of those, 72% had been audited within the last 12 months. The average cost for deployed software that is left unused by organizations in the US, with 28% of deployed software titles not used in 90 days and an additional 6% not used in 30 days. 53% 15% Risk #3: Compromised security Not knowing what software assets you have, their location, who is using them and how can compromise the security of sensitive information. $5.4M Poor SAM practices increase costs and risks 1. NetSupport DNA, 2011

8. Info-Tech Research Group8 8 Executives know software asset management is an important process and they want it fixed Info-Tech Research Group’s IT Management and Governance Diagnostic (MGD) program assesses the importance and effectiveness of core IT processes. Since its inception, the MGD has consistently identified IT asset management as an area for immediate improvement. Importance Scores No Importance: 1.0-6.9 Limited Importance: 7.0-7.9 Significant Importance: 8.0-8.9 Critical Importance: 9.0-10.0 Effectiveness Scores Not in Place: N/A Not Effective: 0.0-4.9 Somewhat Ineffective: 5.0-5.9 Somewhat Effective: 6.0-6.9 Very Effective: 7.0-10.0 Source: Info-Tech; N=3,285

9. Info-Tech Research Group9 9 Electrify your efforts by following these key insights SAM is a dynamic and ongoing process. Performing routine checks on your license compliance will drastically reduce the risk that your organization gets hit with a costly fine. Maintaining transparency and demonstrating compliance will fend off audit-hungry vendors. Make sure your SAM team is diverse. The SAM team will need to be skilled at achieving compliance, but there is also a need for technically skilled individuals to maximize the function of the SAM tool(s) your organization employs. Optimizing SAM bolsters other areas of the business. The added benefit of optimizing your software licenses is that it creates a ripple effect that assists your organization in optimizing all hardware & infrastructure licenses once the data has been gathered. Tracking licenses isn’t software asset management. SAM is not merely knowing how many licenses you require to be in compliance; it’s asking the deeper questions in order to optimize your license estate.

10. Info-Tech Research Group10Info-Tech Research Group10 The business case for ITAM is built on cost and risk avoidance Compliance: Managing audits and meeting legal, contractual, and regulatory obligations. Efficiency: Reducing costs and making the best use of assets while maintaining service. Agility: Anticipate requirements using asset data for business intelligence and analytics. You can estimate the return even without tools or data. BenefitCalculate the return Compliance How many audits did you have in the past three years? How much time did you spend in audit response? Suppose you had two audits each year for the last three years, each with an average $250,000 in settlements. A team of four with an average salary of $75,000 each took six months to respond each year, allocating 20% of their work time to the audit. You could argue annual audits cost on average $530,000. Increasing ITAM maturity stands to reduce that cost significantly. Efficiency How much do you spend on software, hardware, and maintenance by supplier? Suppose you spent $1M on hardware and $1M on software last year. What if you could reduce the spend by just 10% through better practices? ITAM can help reduce the annual spend by simplifying support, renegotiating contracts based on asset data, reducing redundancy, and reducing spend.

11. Info-Tech Research Group11Info-Tech Research Group11 Info-Tech’s approach to asset management optimization focuses on building essential best practices Consolidate ITAM Build a strategic roadmap to consolidate and centralize asset management functions to reduce support costs and improve data quality. Implement ITAM Build essential hardware and software asset management processes, policies, and procedures; develop an asset management implementation plan; and communicate processes to key stakeholders. Our Approach to Asset Management Asset management goes beyond just discovering CIs in a CMDB. Info-Tech’s ITAM approach focuses on adding value to the data, building workflows, policies, and procedures that support a proactive asset management practice, putting in place an improvement plan, and choosing the right technology to support the functionality needed. Our Approach to Asset Management Asset management goes beyond just discovering CIs in a CMDB. Info-Tech’s ITAM approach focuses on adding value to the data, building workflows, policies, and procedures that support a proactive asset management practice, putting in place an improvement plan, and choosing the right technology to support the functionality needed. Optimize SAM Now that you have the base processes in place, expand your ITAM practice to improve and optimize your software asset management practice. Select and Implement Review IT asset management tools, select an ITAM solution, and build an implementation plan to ensure your investment meets your needs. Build a Business Case for ITAM Before moving forward with an ITAM practice, ensure success by engaging executives to gain financial and resource support by creating a business case and project charter.

12. Info-Tech Research Group12Info-Tech Research Group12 1. Assess Current State of Software Licensing 2. Develop Software License Estate 3. Create SAM Strategy Execute on Info-Tech’s project blueprint to optimize your SAM Phases 1.1 Assess SAM Processes 1.2 Determine Software Needs 2.1 Evaluate Software Usage 2.2 Rationalize Software Licenses 3.1 Create Audit Response Process 3.2 Develop SAM Strategy Steps Conduct stakeholder analysis Assess current SAM processes Develop software standards Determine organizational profile Determine KPIs & metrics Develop effective license position Calculate ROI of software licenses Rationalize software license data Create audit response Complete SAM strategy Develop software catalog Design SAM roadmap Activities

13. Info-Tech Research Group13Info-Tech Research Group13 Establish baseline metrics Metric DescriptionCurrent MetricFuture Goal Software harvested and redeployed – # of titles and total value15 titles/$25,000 Software licenses purchased$1,000,000 Contracts renewed – value$438,000 Software license maintenance fees$ 50,000 1.Increased help desk efficiency. Through training of personnel and increased efficiency of processes. 2.Increased level of self-service for end users. Implementation of a self-service portal will decrease the number of menial tasks help desk must complete for end users. 3.Decreased time to escalation. Knowing when to escalate tasks sooner can decrease wasted effort by tier-one workers. 4.Automation of simple, repetitive tasks. Automation frees time for more important tasks. Baseline metrics will improve through:

14. Info-Tech Research Group14Info-Tech Research Group14 Measure the value of guided implementations (GIs) Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings. GIMeasured Value Phase 1: Assess software licensing process Time, value, and resources saved by using Info-Tech’s methodology to assess and design an effective software licensing process. For example, 2 FTEs * 5 days * $80,000/year = $6,400 Phase 2: Develop software license estate Time, value, and resources saved by using Info-Tech’s tools and templates to rationalize and develop your software license estate. For example, 2 FTEs * 5 days * $80,000/year = $6,400 Phase 3: Create SAM strategy Time, value, and resources saved by using Info-Tech’s tools and templates to create your SAM strategy and accompanying documentation. For example, 2 FTEs * 5 days * $80,000/year = $6,400 Total savings$19,200

15. Info-Tech Research Group15Info-Tech Research Group15 Since 2013, Info-Tech has surveyed over 20,000 business stakeholders as part of our CIO Business Vision program. Business stakeholders ranked the following 12 core IT services in terms of importance. Network Infrastructure Service Desk Business Applications Data Quality Devices Analytical Capability Client-Facing Technology Work Orders Innovation Leadership Projects IT Policies Requirements Gathering 11 10 12 1 2 4 5 8 9 7 6 3 Top IT Services for Business Stakeholders Info-Tech; N=21,367 Learn more about the CIO Business Vision program. An ITAM program implements contractual and financial management processes to support core IT services with: Improved software license compliance. Reduced total cost of ownership. More effective contract management. Reduced maintenance costs. More effective reuse of licensed software and hardware. Improved hardware visibility. Business decision support. Technology refresh. Software license management. Asset tracking. Compliance support. IT asset management will also improve the performance of the most important IT services

16. Info-Tech Research Group16Info-Tech Research Group16 This blueprint illustrates the scope of each phase of the project with relevant case studies A major European bank was able to save up to £25,000 per end user by rationalizing its software licenses. This case study illustrates the benefits of the rationalization phase. A major European bank was able to save up to £25,000 per end user by rationalizing its software licenses. This case study illustrates the benefits of the rationalization phase. A global financial services firm saved $200 million in 3 years by implementing SAM. This case study illustrates the full scope of the project. A global financial services firm saved $200 million in 3 years by implementing SAM. This case study illustrates the full scope of the project. A German luxury automotive company achieved 100% visibility of its global licensing estate. This case study illustrates the scope of the strategy phase. A German luxury automotive company achieved 100% visibility of its global licensing estate. This case study illustrates the scope of the strategy phase. A large American oil & gas company optimized its software licenses to save $5 million per year. This case study illustrates the scope of the assessment phase. A large American oil & gas company optimized its software licenses to save $5 million per year. This case study illustrates the scope of the assessment phase. Assess Licensing Rationalize Licensing Develop SAM Strategy

17. Info-Tech Research Group17Info-Tech Research Group17 SAM Maturity Assessment Tool Software License ROI Calculator in the Software License Rationalization Roadmap SAM Strategy Template Info-Tech delivers: Outputs of the optimization project Diagnostic Tools

18. Info-Tech Research Group18Info-Tech Research Group18 Info-Tech draws on the COBIT framework, which focuses on consistent delivery of IT services across the organization

19. Info-Tech Research Group19Info-Tech Research Group19 Implementing software asset management is done over two projects The second is all about technology. Select and implement an ITAM solution to support the processes you build. Book a Guided Implementation to have our analysts walk you through recommended vendors, explain our method, review your material, and answer your questions.Guided Implementation The second is all about technology. Select and implement an ITAM solution to support the processes you build. Book a Guided Implementation to have our analysts walk you through recommended vendors, explain our method, review your material, and answer your questions.Guided Implementation The first is all about process. Design the licensing, contract management, and audit processes that make up a software asset management program. Use the current project blueprint to design and implement the process part of the equation. Vendor Landscapes: Guided implementations Info-Tech Research Group is a vendor-neutral organization. We have no financial relationship with vendors we evaluate.

20. Info-Tech Research Group20Info-Tech Research Group20 Use these icons to help direct you as you navigate this research This icon denotes a slide where a supporting Info-Tech tool or template will help you perform the activity or step associated with the slide. Refer to the supporting tool or template to get the best results and proceed to the next step of the project. This icon denotes a slide with an associated activity. The activity can be performed either as part of your project or with the support of Info-Tech team members, who will come onsite to facilitate a workshop for your organization. Use these icons to help guide you through each step of the blueprint and direct you to content related to the recommended activities.

21. Info-Tech Research Group21Info-Tech Research Group21 Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Diagnostics and consistent frameworks used throughout all four options Info-Tech offers various levels of support to best suit your needs

22. Info-Tech Research Group22Info-Tech Research Group22 Best-Practice Toolkit 1.1 Assess SAM Process 1.2 Determine Software Needs 2.1 Evaluate Software Usage 2.2 Rationalize Software Licenses 3.1 Create Audit Response Process 3.2 Develop SAM Strategy Guided Implementations Conduct SAM maturity assessment Designate roles and responsibilities; perform stakeholder analysis Determine organizational profile Complete the ELP Rationalize software licenses Develop audit response strategy Complete SAM strategy Create communication deck and SAM roadmap 1. Assess Current State of Software Licensing 2. Develop Software License Estate 3. Create a SAM Strategy Optimize Software Asset Management – project overview (three phases)

23. Info-Tech Research Group23Info-Tech Research Group23 Workshop overview Contact your account representative or email Workshops@InfoTech.com for more information.Workshops@InfoTech.com Workshop Day 1Workshop Day 2Workshop Day 3Workshop Day 4 Activities Assess the Current State of Your SAM Program 1.1 SAM maturity assessment 1.2 Determine roles & responsibilities 1.3 Perform a stakeholder analysis 1.4 Determine software standards 1.5 Determine organizational profile & project direction Develop Software License Estate 2.1 Identify KPIs and metrics to inform your license rationalization 2.2 Determine ELP scope 2.3 Complete the ELP 2.4 Calculate software license ROI 2.5 Complete the software license register Create SAM Strategy 3.1 Develop audit response 3.2 Create software catalog 3.3 Complete SAM strategy Design Implementation Plan 4.1 Create communication plan 4.2 Develop SAM roadmap Deliverables 1.SAM maturity assessment 2.Organizational profile 1.Completed ELP 2.ROI values for all applicable licenses 3.Prioritized list of licenses to reconcile and manage 1.Audit response template 2.SAM strategy template 1.Communication deck 2.SAM roadmap