Overview of IT Asset Management
Integration of the
physical, financial, and
contractual attributes of
IT assets
Enables the delivery of
timely business
knowledge to better
manage and control the
business and IT.
Software Asset
Why IT Asset Management?
License Noncompliance
Overpaying for IT assets
Inaccurate hardware and software counts
Unnecessary IT asset purchases and possible
penalties and fines
Inefficient use & lower productivity of skilled
resources
Higher cost of ownership
Unmanaged IT assets increase business risk potentially resulting in a direct, negative
impact to an organization’s bottom line:
…not to mention other intangible costs such as:
Risk Exposure
Bottom Line Impact
Public embarrassment
Loss of potential customers
Savings Potential
Organizations achieve the greatest benefits by identifying where their true pain points
reside and working to resolve those first…
Area of Benefit
Savings Potential
Uncovering Invoice Errors
1.5-8.5%
Vendor Management
0.5-3.5%
Sourcing Consolidation
2-8%
Hardware Lease Management
5-20%
Software License Management
10-50%
Cost Avoidance
0.5-5%
Productivity Savings
5-10%
Retirement
1-3%
Business Decision Support
Up to 5%
Total Potential
2.5-5%
The ITAM Lifecycle
Plan
Bill/
Manage
Chargeback
Deploy
Pay
Receive
Order
Request
Retire
ITAM Process and Sub-Process Areas
Planning
•
Capacity Planning
•
Capital Planning
•
Expense Planning
•
Budgeting
•
Refresh Planning
•
New software purchases/upgrades
Request
•
User Request (includes approval process)
•
RFI/RFQ/RFP
•
Contract Negotiation
Procurement
•
Ordering
•
Receiving
•
Payment
Deployment
•
Request Fulfillment
•
Hardware Refresh
•
Enterprise SW Upgrades
Chargebacks
•
Internal/External Billing
Management
•
Contract Administration
•
Installs, Moves, Adds, Changes (iMAC)
•
Break/Fix
•
Software License True-Up/Down
•
Software License Compliance Management
•
Software Removals
Retirement
•
Employee Off-boarding
•
Software License Recapture
•
Hardware Disposal
•
Software License Retirement
Key Facets of an ITAM Function
People
•
ITAM Roles and
Responsibilities
Technology
•
IT Asset Repository
IT asset record creation
IT asset record modification
IT asset record retirement
Integrations/Interfaces (ERP, contract
management system, CMDB, Service Desk, etc.)
•
Discovery Technology
Discovery footprint
Reconciliations to IT Asset Repository
Policies/Regulations
•
ITAM Policies
•
Regulations
Metrics
•
Key Performance Indicators (KPIs)
•
Critical Success Factors (CSFs)
•
SLAs
Reports
•
ITAM reporting and frequency
•
Report content and receivers
IT Contract Management
•
Contract review/renegotiation frequency
•
Bulk purchasing/discounts
The Software Asset Management Lifecycle
Plan
Bill/
Manage
Chargeback
Deploy
Pay
Receive
Order
Request
Retire
ITAM Process and Sub-Process Areas
Planning
•
Capacity Planning
•
Capital Planning
•
Expense Planning
•
Budgeting
•
Refresh Planning
•
New software purchases/upgrades
Request
•
User Request (includes approval process)
•
RFI/RFQ/RFP
•
Contract Negotiation
Procurement
•
Ordering
•
Receiving
•
Payment
Deployment
•
Request Fulfillment
•
Hardware Refresh
•
Enterprise SW Upgrades
Chargebacks
•
Internal/External Billing
Management
•
Contract Administration
•
Installs, Moves, Adds, Changes (iMAC)
•
Break/Fix
•
Software License True-Up/Down
•
Software License Compliance Management
•
Software Removals
Retirement
•
Employee Off-boarding
•
Software License Recapture
•
Hardware Disposal
•
Software License Retirement
Key Facets of an ITAM Function
People
•
ITAM Roles and
Responsibilities
Technology
•
IT Asset Repository
IT asset record creation
IT asset record modification
IT asset record retirement
Integrations/Interfaces (ERP, contract
management system, CMDB, Service Desk, etc.)
•
Discovery Technology
Discovery footprint
Reconciliations to IT Asset Repository
Policies/Regulations
•
ITAM Policies
•
Regulations
Metrics
•
Key Performance Indicators (KPIs)
•
Critical Success Factors (CSFs)
•
SLAs
Reports
•
ITAM reporting and frequency
•
Report content and receivers
IT Contract Management
•
Contract review/renegotiation frequency
•
Bulk purchasing/discounts
Process First
Focus on stopping the bleeding first before cleaning up the blood on the floor…
Plan
Bill/
Manage
Chargeback
Deploy
Pay
Receive
Order
Request
Retire
Only if we need to
purchase new
licenses
License recovery
and tracking
Check license
inventory
Track license inventory levels
Pull from inventory rather than buy
Recover licenses during hardware retirement
Software License Compliance
•
Purchase information
•
Contract information
Volume discounts
Premier support
Extended warranties
•
Entitlement information
•
One time and reoccurring costs
•
Discovery / usage information
Proactively managing software licenses and their use by tracking and reconciling:
The Three Legged SAM Stool
Purchased
Software
Licenses
Terms & Conditions /
Usage Rules
Software
License
Software License Compliance
Discovered
Licensed
Reconcile
Software License Compliance
Gain Anywhere from 10 –
50% Savings from Software
License Management
Software Purchased
Software Used
Software Usage Rules /
Ts&Cs
Usage Rules
Compliance Report
Collecting The Right Information – Software Purchase Records
Collecting The Right Information – Software Installations
Collecting The Right Information – Software Usage Rules
The right information is needed before an internal software reconciliation can be
conducted.
Usage Rules
Software
Licensing
Models
Contract Terms &
Conditions
Vendor
Websites
Common Software Licensing Models
Time Based
Perpetual
• Owned forever
• Annual maintenance fees usually apply
(for upgrades, patches, etc.)
Term / Leased / Subscription
• Term based / subscription based
• Annual maintenance fees usually
included in subscription fee
Location Based
Site / Location
• Unlimited number of installs at a specific location
Restricted
Restricted Licenses
• Environment restrictions (Development,
Test, Production, Training, etc)
• Embedded applications
• Number of CPUs, sockets, cores, etc.
Unrestricted Licenses
• No environmental or other restrictions
User Based
Named User
• License assigned to a specific user / individual
Concurrent
• Limited pool of licenses exist and only a specific
number of people can use the software at any one time
• Software installed on a server where multiple people
can access the application
Device Based
Single Device / Single Install
• Single license for one machine
SAM Benefits Seen Elsewhere
IT Asset Management provides supporting information to processes
throughout the ITIL lifecycle…
• Provides supporting information for incident and problem resolution
• Enables relationship creation between tickets and software assets
• Supports change and release management planning
• Supports availability and capacity planning
• Provides a basis for software CIs within the CMDB
• Supports KPIs / metrics reporting and management dashboards
• Supports software and hardware annual planning
Challenges and Value Delivered
Challenges
•
Intangible
•
Different licensing models by vendor
•
Licenses are typically negotiated – different
terms and conditions for each contract/vendor
•
Mergers and acquisitions
•
Rogue and poorly managed purchasing
•
Illegal sharing
•
Internet downloading
•
Publisher audits (BSA / The Software
Alliance)
•
ISO 19770 – single guideline
Value
•
Automation of “True-Up”
•
License Retirement and Re-Use
•
Upgrade Entitlements
•
Maintenance by Usage
•
Identification of Redundancies
•
Easier Invoice Reconciliation
Need Indicators
Software Compliance Risk
•
Do I own enough licenses to ensure compliance?
•
Do I understand 3
rd
party requirements in case I’m faced
with an audit?
•
Am I utilizing my licenses efficiently?
•
Are applications installed that make my organization
vulnerable?
Financial Risk/ Portfolio Management
•
Am I overspending?
•
Are my assets being under-utilized?
•
Are my invoices accurate?
•
Do I understand my baseline well enough to support my
Business Continuity Plan or make business critical
decisions?
Legal Implications
•
Does my disposal process adhere to environmental
regulations?
•
Do I adhere to local accounting and tax regulations?
A New Jersey based provider of
home oxygen therapy and clinical
respiratory care, had to pay
$150,000 to settle claims that it
had unlicensed copies of Microsoft
Corp., Symantec Corp. and
McAfee Inc. software installed on
office computers.
A regional insurance provider
realized that there was little
accountability for laptops and
desktops which was resulting in
the loss and theft of corporate
equipment. The organization was
able to gain oversight of their
asset purchases and inventory by
implementing a central asset
repository and standardized ITAM
processes which greatly reduced
replacement expenses.
Common Misconceptions
Asset Management is a Standalone Function and is just about managing assets
Once I’ve finished implementing ITAM, all of my asset management problems will be solved
Asset Management is easy if I have the right tools
Asset Management will allow me to achieve cost savings day one
Implementing Asset Management means I need to reduce my staff
I don’t need a physical inventory
Protiviti’s Approach
Protiviti offers a complete spectrum of services to assist you in developing your IT asset management program.
These programs are typically delivered using a multi-phase approach and our teams can provide a mix of services
tailored specifically to your needs.
•
ITAM Business Case Assistance provides an understanding of how ITAM can be maximized to produce tangible
results. Protiviti’s consultants define your potential savings, the investment requirements for an enterprise ITAM
program, and your return-on-investment (ROI) potential.
•
ITAM Strategy and Roadmap Development helps you define and articulate the value and strategy for your ITAM
program. We establish a shared vision for IT asset management from the executive level down. The result is a
roadmap that provides a well-defined strategy and clear path forward based on Protiviti best practices.
•
Maturity Assessment evaluates the effectiveness of your current infrastructure and resources against Protiviti
best practices to identify opportunities to reduce costs and improve utilization of assets.
•
ITAM Process and Procedure Design enables the development and validation of your ITAM processes and
procedures (financial, contractual and physical). The result is a process-centric program ensuring that your IT
assets are managed most efficiently and effectively from requisitioning through retirement.
•
ITAM Architecture Design enables the development of both the logical and physical architecture required to
support an ITAM program. The result is an architecture that integrates your environment with your business and
operational systems to best manage the life cycle of your assets while gaining maximum efficiency.
•
ITAM Organization and Transformation provides the guidance for establishing the organizational structure, skills,
measurements and metrics for a successful ITAM program, including the communication and transformation
Protiviti’s Software License Compliance Assessments
Our team will collect installation data for all software installed on workstations and servers. The
installation data coupled with terms and conditions and purchase data will then be analyzed for
risks in software non-compliance.
C o lle c tio n o f C u rr e n t E n v iro n m e n t a n d D o c u m e n ta tio n Discover Total Install Base of Licensed Products
Develop Gap, Usage, and Reconciliation Models for Measurement
of Compliance and Risk
Reconciliation of Data: Software Installations and Allocations Reconciliation Reporting
Finalize Reporting Findings and Document Results
Analysis of Processes for Management of Software
Identify Recommendations and
Gaps for Software
Develop Final Briefing and Results
Deliver Final Reports and Work Products
