We seem to spend so much time focusing on desktop licensing and trying to get that right...but frequently it is our IT backoffice applications that get us into trouble.
Despite change control on our desktops and servers, it seems that we continue to find an abnormally high number of IT management tools that are underlicensed. This is also an area where we find a lot of functionality redundancy.
IT will police the end users, but typically no one is policing IT's software. Here are some common costly issues we see at new customers:
Symantec NetBackup - it may be part of standard operations to automatically cover new servers by the technology but where is the automatic purchasing of the necessary additional licenses? Also we frequently see resellers selling the Express program licenses, even when the customer is already a Rewards program customer - make sure you're getting the benefits of your overall Symantec spend on each purchase.
Development/Test/Disaster Recovery - typically all of these instances require licensing. Make sure your servers are licensed appropriately, don't assume you can build a Test server and not license it!
Imaging/Virus scan/Desktop management - yes these are all standards of doing business but frequently they don't get reviewed to ensure that sufficient licenses exist to cover usage.
Client Access Licenses - if you're running Microsoft Windows server, each user or device requires a CAL. If you then add Sharepoint on that server, you also then need a CAL for that. If you're running SQL server to support Sharepoint, you need a CAL or a processor license for SQL. The list goes on and on...if you're using the resources of the server chances are there is a corresponding license requirement. This typically falls to IT to manage.
In short, make sure you're looking at licensing requirements on your IT management apps as well as your end-user apps.
As always, if you need help - let us know!
Tuesday, March 02, 2010
Thursday, December 31, 2009
Software Licensing - 2010
Wow, can't say I'm upset to see the end of 2009! Having been in business since 1999 I've seen some ups and downs (think California, technology, early 2000's...ouch!) and am happy that with business maturity comes a certain tolerance to economy and business shifts...but I'm ready for this year to be over!
What's in store for licensing in 2010? I think we will continue to see a lot of acquisitions occur this year - which means eventual changes to volume licensing agreements. Be sure to keep an eye on mergers, acquisitions and divestitures to see which of your software licenses are impacted. It typically takes at least a year for any changes to volume licensing agreements but it might have a big impact on your maintenance decisions.
For Microsoft users there will be several new releases this year in Office, SharePoint and SQL Server to name a few. SQL Server is also being purported to have a couple of new editions and changes to some of the licensing terms (in particular SQL Enterprise and SQL Datacenter edition). Be sure to keep a close eye on these, especially if you have a virtualized model.
SaaS will continue to feel it's way and don't be surprised to hear more about the Microsoft Enterprise Subscription agreement...an agreement that has long existed but (in my opinion...as is all of this blog) wasn't priced well for most businesses.
Also, for those renewing Microsoft agreements there are some changes to your terms and conditions that you might not be aware of...the loss of the 30 day "grace" period on renewing of Software Assurance and an increase to 90 days for notice of change of reseller (hint, this determines who gets paid for your purchases and impacts any incentives resellers will offer to you - be sure to handle this on a timely basis if changing. You don't want the reseller you're "firing" to get paid for the renewal you do next month.)
What do you expect to see happen with software in 2010? Any licensing trends you know are happening or changes to PURs?
What's in store for licensing in 2010? I think we will continue to see a lot of acquisitions occur this year - which means eventual changes to volume licensing agreements. Be sure to keep an eye on mergers, acquisitions and divestitures to see which of your software licenses are impacted. It typically takes at least a year for any changes to volume licensing agreements but it might have a big impact on your maintenance decisions.
For Microsoft users there will be several new releases this year in Office, SharePoint and SQL Server to name a few. SQL Server is also being purported to have a couple of new editions and changes to some of the licensing terms (in particular SQL Enterprise and SQL Datacenter edition). Be sure to keep a close eye on these, especially if you have a virtualized model.
SaaS will continue to feel it's way and don't be surprised to hear more about the Microsoft Enterprise Subscription agreement...an agreement that has long existed but (in my opinion...as is all of this blog) wasn't priced well for most businesses.
Also, for those renewing Microsoft agreements there are some changes to your terms and conditions that you might not be aware of...the loss of the 30 day "grace" period on renewing of Software Assurance and an increase to 90 days for notice of change of reseller (hint, this determines who gets paid for your purchases and impacts any incentives resellers will offer to you - be sure to handle this on a timely basis if changing. You don't want the reseller you're "firing" to get paid for the renewal you do next month.)
What do you expect to see happen with software in 2010? Any licensing trends you know are happening or changes to PURs?
Monday, October 19, 2009
SaaS Contracts - A function of Software Asset Management?
Earlier this month I spoke at the IAITAM conference in Nevada on the topic of Licensing Implications in the Cloud (Saas), it was a lively group and an interesting subject. However; the most interesting piece was the conversation it sparked about "Should Software Asset Management (SAM) be responsible for SaaS?".
For me the not so private laugh was the fact that several audience members asked the question right when we got to my slide asking the same question...always nice to have evidence that I do think like a SAM Manager! OK, thanks for sharing my pat on the back...
This is a topic we hear more frequently at our clients. Does subscription software such as SaaS belong under the SAM umbrella or does it belong elsewhere? Certainly businesses have used subscription software for a long time, and commonly it is not handled by IT but instead handled by the business unit that is using the service (think Payroll, HR services, etc).
I don't think there is a global answer for this, but I would urge companies to think about what's at stake if that subscription is suddenly no longer available. What happens if the provider goes out of business or the server hosting the service fails? These are examples of topics that belong in the contract signed for the service...but will a business unit necessarily think to negotiate these into the contract? How is the usage being tracked to ensure that the billing is accurate? Is the business unit going to track it or are they just going to pay the bills (start thinking telecom audit if you don't think subscription billings can be inaccurate)?
While subscription software services might not fall under the traditional SAM umbrella, it needs to fall under someone's umbrella and the SAM Manager is probably the best suited to take on the challenge.
Would love to hear other's thoughts on this...
For me the not so private laugh was the fact that several audience members asked the question right when we got to my slide asking the same question...always nice to have evidence that I do think like a SAM Manager! OK, thanks for sharing my pat on the back...
This is a topic we hear more frequently at our clients. Does subscription software such as SaaS belong under the SAM umbrella or does it belong elsewhere? Certainly businesses have used subscription software for a long time, and commonly it is not handled by IT but instead handled by the business unit that is using the service (think Payroll, HR services, etc).
I don't think there is a global answer for this, but I would urge companies to think about what's at stake if that subscription is suddenly no longer available. What happens if the provider goes out of business or the server hosting the service fails? These are examples of topics that belong in the contract signed for the service...but will a business unit necessarily think to negotiate these into the contract? How is the usage being tracked to ensure that the billing is accurate? Is the business unit going to track it or are they just going to pay the bills (start thinking telecom audit if you don't think subscription billings can be inaccurate)?
While subscription software services might not fall under the traditional SAM umbrella, it needs to fall under someone's umbrella and the SAM Manager is probably the best suited to take on the challenge.
Would love to hear other's thoughts on this...
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