murphy oil used open it software asset management tools to cut global software costs
DESCRIPTION
Murphy Oil used Open iT software asset management tools to cut global software costs.TRANSCRIPT
Deploying
Leading Edge Controls
to Rein in
Global Software Expenses
Agenda
Murphy E&P Overview
Software Asset Management Foundation
Deployment of Leading Edge Controls
Software Savings Within Murphy E&P
2011 Updates
Murphy
Exploration & Production $23 billion revenue in 2010
5 primary E&P offices
Houston (E&P Headquarters)
Calgary, Canada
Kuala Lumpur, Malaysia
Jakarta, Indonesia
Perth, Australia
Retail business
1300 gas stations in US (Wal-Mart)
Software Asset Management
Foundation Business “buy-in” at the highest level possible
Business Champion to support IT
Centralized IT support organization
IT SPOC accountable for managing software portfolio
Application portfolio
Need to know “what “ software you have.
Software reporting capability
Need to know “how” and “who” is using the software.
Effective communication and accountability
Monthly usage reports
Tools Deployed to
Monitor Software Usage
Software license monitoring and tracking application
Capability to track both Windows and UNIX applications
Generate detailed concurrent usage reports at both the application and end user levels
Capability to “release” application licenses during extended period of inactivity
Scope, Cost and Timing
of Process Tool Chosen
Implemented OpenIT “License Analyzer” in March 2008
Invested $41,000 including M&S for a 35 end user seat license
Leveraged existing hardware infrastructure
Invested $2,000 on administration training
Initial focus on expensive GGRE subsurface applications
Identifying Surplus Licenses
Led to Significant Savings
Transferred 6 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses
Transfer cost $26,160
Cost to purchase including first year M&S $158,688
Total savings $158,688 - $26,160 = $132,528
Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses
Transfer cost $15,400
Cost to purchase including first year M&S $117,768
Total savings $117,768 - $15,400 = $102,368
Transferred 2 licenses from Houston to Perth office License usage monitoring determined Houston had surplus licenses
Transfer cost $44,620
Cost to purchase including first year M&S $320,592
Total savings $320,592 - $44,620 = $275,972
Savings from Utilization of
Surplus Licenses
Transferred 2 licenses from Houston Domestic to International License usage monitoring determined Houston Domestic had surplus licenses
Transfer cost $0
Cost to purchase including first year M&S $ 320,592
Total savings $320,592
Two (2) requests by exploration business to purchase additional license License usage monitoring determined existing 3 licenses were being checked out 24/7 by end users
More aggressive license management and end user communication on software costs and best practices resulted
in sufficient leveraging of existing 3 licenses and no need to purchase additional license
Cost to purchase including first year M&S $181,782
Total savings $181,782
Additional software requests for new RE contractors Request to purchase 3 core licenses
License usage monitoring of existing licenses determined only (1) additional core license required
Cost to purchase including first year M&S $88,058
Total savings $88,058
Murphy Savings 2008-2009
M&S reductions License monitoring indicated we were carrying M&S on an excessive number of applications.
Reduced M&S on one application from 24 to 18
Annual cost savings $15,912
Reduced M&S on a second application from 8 to 6
Annual cost savings $13,248
Reduced M&S on a third application from 21 to 19
Annual cost savings $ 35,616
Domestic and International TCE merge As a result of merging TCE which includes merging license servers and applications the following annual cost
savings will be recognized.
Reduction of M&S for one application $9,576
Reduction of M&S for a second application $3,024
Reduction of M&S for a third application $133,266
Reduction of M&S for a fourth application $18,288
Reduction of M&S for a fifth application $19,080
Reduction of M&S for a sixth application $10,968
Reduction of M&S for a seventh application $28,272
2011 Updates
Implementing OpenIT globally within Murphy E&P
OpenIT “License Analyzer” implementation
Centralized data collection server (Houston)
Local BU concurrency reports
Global concurrency reports
Upstream software focus verses Exploration
2011 Goal to track 80% of Upstream applications
Global WAN license agreements
Summary
Initial investment of $43,000 has recognized tangible cost savings of $1,388,550
Currently testing “license optimizer” functionality which will allow application licenses
to be released when an end user’s machine remains idle for an extended period.
Extended deployment of “license analyzer” functionality has the potential to increase
savings further and provide better management of our existing software investment.
Look at opportunities to deploy “License Analyzer” on additional (Upstream)
applications
Looking into global WAN software agreements
Thank you for your time and
attention!
Questions?