1. Satish Babu Best practice license models in the context of the Cloud Date: 22 October 2013 Track 2: Reduce the cost of ICT and accelerating service delivery

2. Contents Cloud and it’s potential Trends of Software Licensing Governance

3. 3 What is different about cloud computing? With cloud computingWithout cloud computing  Virtualized resources  Automated service management  Standardized services  Location independent  Rapid scalability  Self-service Software Hardware Storage Networking Software Hardware Storage Networking Software Hardware Storage Networking

4. 4 Cloud Computing is a combination of Virtualization, Standardization and Automation with a focus on the User. Automated Faster cycle times Lower operating expenses Optimized utilization Improved compliance Optimized security End user experience Standardized Easier access Flexible pricing Reuse and share Easier to integrate Virtualized Higher utilization Economy of scale benefits Lower capital expense Higher quality services Doing more with less Breakthrough agility and reducing risk

5. 5 Cloud can play a disruptive role within IT optimization strategy Consolidate Virtualize Standardize and automate  Reduce infrastructure complexity  Reduce staffing requirements  Manage fewer things better  Lower operational costs  Remove physical resource boundaries  Increase hardware utilization  Reduce hardware costs  Simplify deployments  Standardize services  Reduce deployment cycles  Enable scalability  Flexible delivery

6. 6 By co-existence of several different IT Delivery-Models, Cloud Computing goes beyond the boundaries of the own existing Data center. Corporate-IT Traditional Enterprise IT Private cloudHybrid cloud Public cloud  Mission Critical  Packaged Apps  High Compliancy  Test Systems  Storage Cloud  Developer Platform  Archive / Backup  Collaboration  Analytics Typical Workloads for different Delivery-Models Data is inside the corporate firewall

7. IBM’s next generation Cloud will drive higher value Business Process as a Service Software as a Service Platform as a Service Infrastructure as a Service Enabling business transformation Business Process Solutions Application Marketplace of high value consumable business applications Composable and integrated application development platform Enterprise class, optimized infrastructure External Ecosystem IndustryCollaboration Human Resources Big Data & Analytics CommerceMarketing Development Big Data & Analytics Security IntegrationMobileSocial Traditional Workloads Built using open standards ComputeStorageNetworking Built using open standards Public. Private. Dynamic Hybrid. Think it. Build it. Tap into it. SOFTLAYER SmartCloud Enterprise+ Enterprise Solutions

8. Industry is moving towards more flexible licensing and deployment options Trends of licensing and deployment types over time Licensing Models Over Time Increased Productivity and Flexibility Decreased Time-to-Market Licensed Capabilities and Activities Coming Single System CPUID Single User: Owned License Pool of Users: Owned License Pool of Users: Leased License Pool of Users & Products;Flexible Deployment Options Authorized User FloatingTerm Tokens SaaS Cloud Patterns PURE The need for Flexiblity and the use of OPEX budgets is changing the Licensing landscape! Customer expect Instant, Flexible and access to latest technologies IBM 2013

9. 9 Pool No need to buy licenses for specific roles/tools with the inherent limits that imposes: you can use as many or as few of each tool as you like with no penalty. Customer is NOT charged on peak per product usage but on average portfolio usage Developer Rational Team Concert 7 Token Per User Analysts Rational Method Composer 4 Token Per User Program Manager Rational Performance Tester 3 Token Per User Each Rational user borrows tokens from the pool to gain access to whatever tool they need for their job.  Token license agreements allow organizations to “rent” licenses for a given period of time leveraging their OPEX budget with no entitlement rights at end of term  Token licenses can float across users and across products  A token constitutes a unit of value which can be repeatedly exchanged via server for a mix of software licenses - Essentially unlimited REALTIME substitution IBM Rational Example: Flexibility to use the right Tool at the right time

10. Governance Optimal license consumption requires strong governance Your ITIL implementation has to consider strong Asset Management functions Define and use a strong Asset Management Process Automate with tools based on complexity of the Infrastructure Let the automation simplify your audit posture Integrate Analysis into your Change Management Process

11. 11 Governance Toolset : Tivoli Asset Management Family SmartCloud Control Desk Tivoli Asset Discovery for Distributed (TAD4D) IBM License Metric Tool (ILMT) Discovers installed PVU software Measures maximum core capacity in PVUs available to deployed software. Required for sub-capacity licensing Discovers detailed information on installed hardware, IBM software and third party software Delivers flexible options for software use monitoring including ‘Last Used’, ‘Summary and Trend’, and ‘Details’ which provides all software use information Integrates with TAMIT Full asset lifecycle management support for hardware and software license management. Identifies under or over utilized software to reduce costs due to over-purchasing and to reduce risk to under-purchasing Procurement capabilities to create and route purchase orders Financial management for cost tracking, usage accounting and TCO estimation  Customers may choose to install ILMT at no charge or upgrade to TAD4D for a fee.  ILMT is the most basic offering which discovers distributed PVU software products and reports capacity available to installed software (required for sub-capacity).  TAD4D uses the same code base and adds discovery capabilities that extend to most of the distributed software portfolio, non- IBM software and hardware.  TAMIT integrates with TAD4D for full asset management, including usage analysis, procurement and financial management.

12. Questions and Comments