software asset management
TRANSCRIPT
1© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
IT Advisory Services
Pavit MekmokExecutive Director, KPMG Phoomchai Business Advisory Ltd.
Software Asset Management
Advisory
2© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Agenda
What is Software Asset Management (SAM)?Why Should companies care About SAM?Analyst Quotes on SAMSAM Standards, Components, and RoadmapSAM is Not Easy – Why?Additional ReadingQuestions, Contacts
3© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Cases for SAM
Key Drivers
Organization
Law, and Regulations
Merger & Acquisition
Changes in IT
Management
Intellectual Property (IP)Software controlled (e.g. prohibited tools, malware)
Define value of software assets
IT assets for planning,
budgeting, management
IO concept
Requ
irem
ents
for
certi
ficat
ion,
ste
ps to
go
vern
ance
International Standard,
Certification,Governance
IT Dept.
4© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
What is Software Asset Management (SAM)?
Software Asset Management is:
“Effective management, control and protection of software assets within an organization”
ISO/IEC 19770-1:2006 - Software Asset Management
5© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
What is Software Asset Management (SAM)?
Software Asset Management is:
“All of the infrastructure and processes necessary for the effective management, control and protection of the software assets within an organization, throughout all stages of their lifecycle”
ITIL Best Practice guide - Software Asset Management
6© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
SAM for What?
• IT Services as enabler to business
• Alignment with business needs
• Operational benefits
• IT Services as enabler to business
• Alignment with business needs
• Operational benefits
• The right controls in the right place
• Understanding law and regulations
• Driving down cost of compliance
• The right controls in the right place
• Understanding law and regulations
• Driving down cost of compliance
Business PerformanceBusiness Performance Risk ManagementRisk Management
7© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
SAM for What?
Risk Management
Risk Management
Business Performance
Business Performance
8© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
SAM for What?
• Managing Risks (e.g. Brand, Reputation, Financial)
• Support IT Service Management• Controlling Costs• Cost Reduction in IT Operation• Competitive Advantage
Business PerformanceBusiness Performance Risk ManagementRisk Management
9© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Simple Questions for SAM
Do you know where your deployed software come from?How many software do you have? Licenses?How do you effectively manage those software?How do you effectively manage your users from self-installation of software?How do you manage all medias of your software licenses?How do you optimize the deployment of your software licenses?
10© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
What is NOT Software Asset Management
SAM is NOT just about a ONE-TIME DISCOVERY
EXERCISE / AUDIT
SAM is NOT just about a TOOL
SAM is NOT just about IT
11© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Why Should companies care About SAM?
Direct Cost Savings: Optimisation, negotiate from a position of knowledge
Mitigation of Business Risks: Sarbanes Oxley, Legal, Financial, and Operational risks
Improved IT Operations: Informed decision making, efficient and effective IT management
SAM
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Leading Drivers For SAM In The Marketplace
Regulatory / Sarbanes Oxley
Compliance Activities
Desire To Cut and Save Costs
SOX: focus on Effectiveness of Internal Controls over Financial Reporting
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Leading Objections For SAM In The Marketplace
• “It is compliance driven, but not worth having for positive benefits”
• “We have existed without it for years, why do it now?”
• “Asset Management is not a priority; there are more important things to do”
• “The idea is too bureaucratic and not workable”
• “People won’t accept new processes and working practices”
• “The SAM tool market is immature with no fully comprehensive or integrated solutions yet available”
Source: ITIL
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Analyst Quotes on SAM
“By 2008, more than 70% of companies will implement software usage tools”
- Gartner
“55% of senior management surveyed recognized software compliance as an issue in their companies…
52% had implemented some software usage tools”
-Gartner
“Enterprises that begin an asset management program experience up to a 30% reduction in costs the first year... and continue savings of 5-10% for the next 5 years”
– Gartner
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SAM Standards
ITIL SAM Best Practice GuideISO/IEC 19770COBITOthers
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IT Service Management
Source: itSMF “ITIL Guide to Software Asset Management
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SAM Process Overview
Overall Management Process
Core Asset Management Process
Logistics Processes Verification and Compliance Processes
Relationship Processes
Overall management responsibility
Risk Assessment
Policies and procedures
Competence, awareness and training
Performance metrics and continuous improvement
Service continuity and availability management
Asset identification
Asset control
Status accounting
Database management
Financial management
Requirements definitionDesignEvaluationProcurementBuildDeploymentOperationOptimizationRetirement
Verification and auditLicensing complianceSecurity complianceOther compliance
Contract managementSupplier managementInternal business relationship managementOutsourcing management
Source: itSMF
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Overview of SAM Processes
Source: ISO/IEC 19770
Organizational Management Process
Control Environment Planning and Implementing Processes
Core SAM Processes
Primary Process Interfaces for SAM
Inventory Process Verification and Compliance Processes
Operations Management Processes and Interfaces
Life Cycle Process Interfaces
Corporate Governance
Process
Roles and Responsibilities
Policies Processes and
Procedures
Competence in SAM
Planning Implementation Monitoring and Review
Continual Improvement
Software Asset
Identification
Software Asset Inventory
Management
Software Asset
Control
Software Asset
Record Verification
Software License
Compliance
Software Asset
Security Compliance
Conformance Verification
Relationship and
Contract Mgmt.
Financial Mgmt.
Service Level Mgmt.
Security Mgmt.
Change Management
Process
Software Development
Process
Software Deployment
Problem Management
Process
Acquisition Process
Software Release Mgmt.
Process
Incident Management
Process
Retirement Process
COBITCOBIT
Plan and Organize
Monitor and Evaluate Deliver and Support
Acquire and Implement
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Lifecycle Of Software Assets
Source: ITIL
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Components of SAM
Executive sponsorshipCross-departmental cooperation (IT, Legal, Finance, Procurement)Policies and ProceduresSAM organisationHardware inventorySoftware media inventoryContracts repositoryLicenses (entitlements) repositorySAM discovery tools (Inventory / Usage)SAM databasesAwareness & Training
22© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
SAM Roadmap
Source: ITIL
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SAM Is Not Easy - Why?
Ease of software deploymentNumber of software vendors, brands, products, versions,and componentsComplex, vague, and ever-changing software licensingand pricing rules (e.g. by usage, by CPU)Rapid business changesDecentralisation & organisational complexityHardware inventory challengesDisconnect between IT, Procurement, and Legal
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SAM Is Not Easy (Cont.) – Common Implementation Pitfalls
Focus on tool (“silver bullet”) rather than processFocus on IT onlyFocus on one-time exercise onlyTool limitationsBenefits are indirect and accrue over timeLack of executive sponsorshipLack of budget for SAMLack of skilled resources for SAM
25© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Additional Reading
ITIL:http://www.ogc.gov.uk/index.asp?id=2261
W3 on SAM (SAM Sales Play Tutorial):http://w3-103.ibm.com/software/xl/portal/viewcontent?type=doc&srcID=XT&docID=H788147M28510E98
Microsoft:http://www.microsoft.com/resources/sam/default.mspx
26© 2008 KPMG Phoomchai Business Advisory Ltd., a Thai limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved. Printed in Thailand.
Presenter’s contact detailsPavit MekmokExecutive DirectorKPMG Phoomchai Business Advisory [email protected]
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.