Fact: poor management of datacenter software licensing is probably costing your organization thousands, if not millions
80% of software spend now takes place within the datacenter, so the need to manage and optimize license spend here is critical. However, the complexities of vendor licensing programs, different metrics and associated stipulations around installation, usage, editions, virtualization etc. make optimization easier said than done. This means that not only is your datacenter software licensing prone to non-compliance, but you are probably wasting huge amounts of money on unnecessary licenses.
6 Key tips
#1 Get on the front foot and take control
Don’t sit back and wait until your annual submission is due and certainly don’t wait until a vendor comes knocking with a compulsory audit notice. By then it’s often too late.
#2 Don’t rely on the licensing tools provided by the vendors
Remember the licensing tools employed by vendors such as Oracle (LMS), SAP (SLAW and USMM) and IBM (ILMT, TAD4D, BigFix) are mainly designed to capture installation and usage data. They are point-in-time and don’t facilitate any refinement. They aren’t SAM tools and certainly won’t help you optimize your licensing.
#3 Being compliant is not the only answer
Being compliant simply means that you’re not under-licensed, but what about the unnecessary cost associated with being over-licensed or having installed software that isn’t used? Organizations waste millions every year paying for software licenses they simply aren’t using.
#4 Be careful when using consultancies or licensing specialists
Employing the services of specialist licensing consultancies can be extremely costly and only usually works for point-in-time requirements. They also tend to be heavily reliant on manual processes, which by definition are prone to error and vary in quality dependent on the level of experience/expertise of the aligned individual.
#5 Tools are available, but choose carefully
Many tools claim to be a ‘silver bullet’, but simply can’t deliver what they promise. Most available desktop or datacentre licensing optimization tools are based on legacy technology, lack automation and struggle to process large volumes of data. Hence problems with inaccuracy and unreliability are common.
#6 Remember: achieving an ELP is only the start of your journey
Establishing an ELP (effective licensing position) is just the start of SAM: it simply provides visibility and a foundation from which to begin the journey towards an optimized licensing position (OLP). Of course it’s then absolutely essential to ensure that the ELP and OLP are maintained to ensure you continue to realize all the benefits of controlled cost, minimised risk and enhanced management.