Demystifying ITAM in the Cloud

Demystifying

ITAM in the Cloud

Frank Venezia

The Reality of a CIO’s Budget

Capital

Budget

Expense

Factors that Impact the IT Budget

Operational Expenses

Personnel

CIO’s Expense Reduction Options

Reduce Hardware Maintenance

Reduce Software Maintenance

Reduce Personnel

Cost Increases Related to

Expense Budgets

Year 10 Year 20 Year 30 Year 40

Hardware Maintenence Software Maintenence Personnel Cost

How to Reduce Software

Maintenance Costs

Invest in Software Asset Management

Technology Innovation

The Cloud



₂₁

_{Century “Outsourcing”}

•

Feature/Function without People & Infrastructure



_{Puts Focus on Services Organization}

•

Pay as you Go

Types of Cloud Services

What are Public, Private,

and Hybrid Clouds?

Public cloud:

Scalable and elastic IT-enabled capabilities are

provided as a service to many external customers using

Internet technologies

Private cloud:

Used by only one organization, ensuring that

an organization is completely isolated from others.

Hybrid cloud:

Policy-based and coordinated service

provisioning, use and management across a mixture of

internal and external cloud services.

Cloud Offerings

Software as a Service (SaaS)

Platform as a Service (PaaS)

Backup as a Service (BaaS)

Infrastructure as a Service (IaaS)

Private Cloud

Public Cloud

Analogy

Reality

Infrastructure

Application

Public Cloud

Analogy

Reality

Application Platform

Why should you care about Software

Asset Management in the Cloud?



_{Control over the virtual environment, but not over the physical HW}

infrastructure. Negligence is no excuse.



_{No architectural control of the HW means no ability to affect and}

manage the SW licensing environment and requirements



_{Lack of SW asset control exposes your firm to potential SW licensing}

liabilities and serious financial risk that you may not recognize



Lack of visibility into who is accountable for SW components in your

Challenges of Software Licensing

in the Public Cloud



_{Licensing SW in the public cloud is dependent upon the services}

requested from the Cloud Provider

•

Most SW products are licensed as part of the service

(owned by the Cloud provider)



_{Transparent to Customer; all licensing concerns are}

with the Cloud provider

•

Unlikely … but if the customer uses their own SW, their

exposure is great



_{No customer visibility into cloud infrastructure}



_{Customer has no ability to limit exposure}

Challenges of Software Licensing in

the Public Cloud (cont’d)

Recommendation:

•

Avoid using customer-owned software within a public cloud

environment, if applicable

•

Have cloud provider include all SW licenses you require as part

Challenges of Software Licensing

in the Private Cloud

Traditional license models are the

governing terms and conditions for the

Private Cloud as with any other cloud service

Challenges of Software Licensing

in the Private Cloud (cont’d)

Understanding the HW infrastructure architecture and how you utilize this

infrastructure within the Private Cloud is imperative

•

Key: understand design models between production and development

•

Traditional production environments are always on and scale as the

business requires

•

Traditional development environments are always on and scale as the

business requires

•

Development environments are moving from static environments to a

flexible, “as needed” model, offering users the same experience as in a

Public Cloud scenario

Challenges of Software Licensing

in the Private Cloud (cont’d)

Understanding the financials associated with your SW in both the production and

the development environment is critical:

•

SW deployment within a production or traditional development environment

is governed by the standard SW publisher licensing models

•

Challenges of a flexible “as needed” development environment:



_{Customers want a use-based model rather than an environment-based}

model to limit their server SW costs



_{Currently no distributed licensing model exists that looks at time and CPU}

utilization as the bases for SW licensing costs



_{Need a financial model for SW licensing costs within “as needed”}

Challenges of Software Licensing in

the Private Cloud (cont’d)

Development of a new licensing model with the OEM, based on your desired “as needed” development environment

• Currently only mainframe environments offer a utilization-based licensing model:

 SW is charged monthly based on a defined peak usage calculation and adjusts each month based on workload

• If current publisher T’s and C’s do not meet your financial requirements, the SAM

team must recommend more negotiations to the Procurement/Sourcing/Legal teams

• The key is to clearly articulate how the SW will be metered, how the OEM will be

able to measure and how SW licensing usage will be charged

 Creation of a new licensing model within a defined environment with tools for reporting and tracking actual consumption

 Develop a distributed server right to use or monthly license model that mimics the mainframe model

Challenges of Software Licensing

in the Hybrid Cloud

• Software licensing in a Hybrid cloud environment is a combination of the

Public and Private environment

• The critical component in a Hybrid environment is clarity on who owns the

HW and who owns the SW

 Infrastructure architectural diagram along with make and model  _{SW ownership defines who has the obligation}

 HW ownership defines who has the requirement to provide SW usage (Processors, Cores, PVUs)

• If Customer-owned SW, T’s and C’s and financial

obligations are with the customer, regardless of the HW ownership

• Leverage the creative licensing models outlined in the Private Cloud model.

Summary

Understanding what is and isn’t included in your monthly fees from your cloud service provider is critical

SW licensing obligations are no different in traditional data center deployments as they are in Cloud services deployments

_{Understanding how to utilize the cloud infrastructure is critical to} determining the necessary Terms and Conditions needed from your SW publishers

SW licensing in the cloud is not complex, but it requires diligence and a focused team of experts to analyze the deployment environment in order to maximize your software investment. Ensuring an efficient and comprehensive IT Asset Management Program is in place can have a significant impact on the Bottom Line.

About Siwel

 Founded in 1992; woman-owned business (WBENC)

 Top tier provider of IT solutions: hardware, software and services  17+ years providing ITAM solutions and services for our clients  Certified ITAM professionals; IAITAM Provider Member

 Headquartered in New York City; 125 – 150 employees

 Specializing in Cloud, Big Data Analytics, Storage Optimization

Contact Information

Frank B. Venezia

Senior Vice President | Client Services and Technology Contact Details:

Office #: (212)691-9326 x201 Mobile #: (516)317-3071 Email: [email protected]