Tag Archives: SAM

Why is Change Management Critical for Software Asset Management?

Early in my career, I often traveled to work with our customers. I remember one trip that required me to visit several cities in just four days. Before embarking on that trip, I remember calling a travel agent to make a change to the first flight of that trip. The travel agent was inexperienced because he made the change exactly as I had instructed.

To my surprise, the change that the travel agent made to the first leg of my flight caused the airline to cancel the flights I had scheduled for the entire trip. Why, because on most airlines, a change to the first segment of a trip requires the entire trip to be cancelled, and then the tickets have to be re-issued. Unfortunately, I lost all the discounts from my original ticket because my discounts were based on a seven day advance purchase.

As a result, I had to find another airline with cheaper flights, rearrange several of my appointments, and stay an extra night in a hotel. An experienced travel agent would have advised me of the consequences of my change request if it were to be granted. If I had been advised properly, I would not have made the change based on the additional costs that were to be incurred. Although some changes seem simple, they can have unintended consequences without the required expertise.

When audited, many organizations are required to pay thousands, and in some cases millions of dollars for violating software license agreements. Configuration changes and software updates are often to blame when an organization is found to be out-of-compliance with their contracts. For that reason, it is important that organizations consider software license contracts as part of their change management process.

Change Management

IT changes made within an organization are typically done to improve performance, and ultimately to save money. However, IT changes can also have unintended consequences that have a reverse affect, resulting in additional expenses as did the change to my flight. Change management is important for IT because it formally manages ongoing transitions from a current configuration to a future configuration.

Gartner states that “Change management is the automated support for development, rollout, and maintenance of system components (i.e., intelligent regeneration, package versioning, state control, library control, configuration management, turnover management, and distributed impact sensitivity reporting).

A change management request first requires detailed information about the future configuration to be submitted, then the configuration details to be reviewed by a change advisory board.

Change Advisory Board (CAB)

A change advisory board (CAB) supports IT personnel or a “Change Management Team” by reviewing change requests that have been submitted. After reviewing a change request, the CAB will either approve or deny the request.

The CAB is generally a team of representatives from various departments as well as people that have a specific expertise.

Because a configuration change can have an effect on employees and/or business processes, many organizations require a CAB to review all change requests in order to protect cost, risk, and revenue.

Software License Management Challenges

According to Gartner, “Optimizing complex licenses manually is labor-intensive; it requires specialized knowledge and does not scale. Larger enterprises will need a SAM tool. A SAM tool can automate, accelerate, and improve manual processes. It can pay dividends over manual alternatives, and can often pay for itself.”

Software license contracts are difficult to understand. For example, IBM releases over 3,000 license changes a year and they have over 100 license metrics. Some IBM products have up to 5 or 6 different license metrics depending on what a customer has purchased. The challenge many organizations face when managing software licenses is that they do not have a good understanding of their software license contracts which is required when using a Software Asset Management (SAM) tool. For this reason, it is important that change management requests are reviewed by a software license expert.

In the scenario above, Sally makes a request for change (RFC) to add a new partition to a server. After the RFC is reviewed by the CAB, the change is approved and then scheduled.

Following the change, a software audit is performed and the organization is found to be out-of-compliance with their contract based on the new partition that was added to the server.

How did this get past the CAB?

The CAB did not have the proper expertise required to make an evaluation about how that change would impact the software license agreement.

Add a License Expert to the Change Advisory Board (CAB)

To avoid unnecessary costs resulting from a software audit, organizations need to have a software license expert on the CAB.

Many organizations struggle when it comes to finding the expertise required to evaluate software license impact. For this reason, it is important to consider hiring a third-party with the proper expertise for the CAB. Although this is an additional expense for an organization, it will help avoid additional costs that come from being out-of-compliance with a software license agreement.

Conclusion

A change management process that requires software license contracts to be considered for every change request can help organizations avoid unnecessary costs resulting from a software audit. However, much like an inexperienced travel agent incurred additional costs for my trip, an inexperienced license expert on the CAB might approve changes that could incur more costs simply because they do not understand their software license agreements and the impact of the RFC. Be sure to hire or partner with the expertise required for evaluating software license contracts.

-follow me on Twitter @marcelshaw

Five Reasons the Data Center needs Software License Optimization (Part-1)

Many years ago, I supported document management software used primarily by legal firms. The software provided attorneys with the ability to quickly access legal documents on the network. The software included intelligent searching capabilities, powerful reporting features, and version control for thousands of documents on a local area network. The capabilities we provided boosted the efficiency of legal departments and law firms all over world.

Although we provided a great software package that supported legal departments everywhere, the software alone was useless without the expertise of a legal expert or an attorney. When organizations need legal expertise, they hire legal experts. They don’t rely on legal software alone to handle legal matters.

Hire the Right Experts

When taxes are due, tax accountants are hired or subcontracted versus relying solely on a tax software solution. Software vendors that audit their customers typically employ software license experts along with software tools to perform the audit.

Regarding software license management, I am amazed how many organizations still do not employ or contract with  software license experts in addition to software optimization tools for software license management in the datacenter.

Software audits are on the rise because software vendors are realizing that audits can generate revenue, and that customers are not investing in software license management solutions or experts.

As long as there are organizations that are non-compliant with their software license agreements because of poor license management, software vendors will continue to find software audits to be profitable.  

In a gated Gartner report published May 28, 2014. Gartner claimed: “Tracking license entitlement has become a priority for many organizations as a means to alleviate the anxiety caused by annual software vendor audit. Gartner has seen an exponential increase in the number of contracts it has received from customers looking to purchase an SLOE tool during the past nine months. We don’t expect this trend to slow down…”

It is not practical to rely on IT managers to manage software licenses in the data center unless they have licensing expertise. This would be like having an accountant with very little legal expertise represent the organization in a lawsuit accusing executives of misappropriating funds. Although the accountant could provide the information required to defend against the accusation, the accountant would not have the required expertise to handle legal process, legal negotiation and most importantly, knowledge of local applicable laws.

Here are five good reason’s every organization should consider implementing an efficient software license optimization solution in the datacenter:

  1. Complex License Variations
  2. License vendors make changes which can affect licensing
  3. Technology alone is not able to correctly calculate most server licensing
  4. Market expertise required – Having the right people with the right knowledge
  5. Software Audit Protection

Part 2

In the second installment of this two part series, I will discuss complex license variations, market expertise, software audit protection, and how software licensing can be affected when configuration changes are made in the datacenter.

 

-follow me on Twitter @marcelshaw

Rise of the Chief Data Officer (CDO) and the Impact to ITSM

Within the IT organization, different entities often fight for control and resources to support their objectives. For example, IT security personnel might ask for more control by taking away rights from end users, while IT support services objects to the request for fear of increased call volumes. Furthermore, with limited budgets, resources are limited, making it difficult to support IT projects for each department. However, executives have to make decisions, leaving some IT projects unfunded.

Unfortunately, too many executives make decisions based on intuition instead of readily available data. This endangers the future of many organizations. In a gated report, Gartner predicts “through 2020, over 95% of business leaders will continue to make decisions using intuition, instead of probability distributions, and will significantly underestimate risks as a result.”

Intuition can be dangerous to an organization. For example, the evolution of Netflix over the past decade was a result of a series of decisions that were made based on the available data as well as some predictive analytics. The data they analyzed indicated a decline in store rentals, an increase in future bandwidth capabilities, and a generation (Gen Z) that expected “instant gratification.” Those who ignored the data did not understand what customers wanted, what future customers would expect, and the technology that would be available to meet customer expectations.

Many companies used “intuition,” to project that people would not want to abandon the local store experience. Today, those companies are nowhere to be found.

Who is the CDO?

Many organizations are realizing the value of their data so they are beginning to treat their data as a company asset; hence, the rise of the Chief Data Officer (CDO). The new executive CDO role is responsible for exploring how to use the organization’s data for its benefit. The CDO role will require this executive to have market and industry knowledge with a “technical” understanding of the organization’s data.

Gartner claims that “the race to drive competitive advantage and improved efficiency through better use of information assets is leading to a sharp rise in the number of chief data officers (CDOs). As a result, Gartner predicts that 90 percent of large companies will have a CDO role by the end of 2019.”

CDO responsibilities will more than likely vary across different organizations; however, we should expect the role will include data governance, data analytics, and data technology. Data governance responsibilities include setting standards and consistent processes to ensure the consistency, accuracy, security, and availability of the data. Interpreting data using data analytics from business intelligence tools will be a critical part of the CDO role as well as choosing the best software tools that support the organization’s objectives.

How will the CDO impact IT Service Management?

The CDO will play a large role in how the IT service management organization and software is structured and integrated with other software tools. Analytics and metrics provided by ITSM reports will provide critical information that will help the CDO determine risk to the organization when new software tools, new processes, and new policies are implemented.

The data provided from the ITSM tools and reports is important when setting IT strategy and defining IT architecture. ITSM reports help organizations make informed decisions when choosing software and hardware to support the objectives of the organization.

For example, if an organization decided to change from PCs to tablets on a project supporting one of the business units, a pilot program would ensure the objectives of the project are met. ITSM reports and metrics are important when analyzing data to determine the costs required to support the proposed solution.

ITSM reports and metrics will provide CDOs with the information they need in order to make informed decisions, avoiding the need to guess or use intuition to set objectives for future IT strategy and related IT projects.

Summary

Data provided from IT service management reports and metrics will be vital information for the CDO as he/she defines strategy for new technology, process, policy, security, and IT architecture. ITSM managers should expect the CDO role to have a direct impact on how IT service management will be implemented, delivered, measured, and most importantly, integrated with other IT solutions within the organization.

-follow me on Twitter @marcelshaw