IBM Tivoli End-to-End Software Asset Management Solutions

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IBM Tivoli Business and Performance Automation

© 2005 IBM Corporation | Aug – Sep 2005 Tivoli Data Center Pest Practice Seminar End-to-End SAM Presentation

IBM Tivoli End-to-End Software Asset Management

Solutions

IBM Tivoli License Compliance Manager for z/OS,

IBM Tivoli Contract Compliance Manager,

and IBM Tivoli License Manager

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Agenda

ƒ

Software Asset Management (SAM) Overview

ƒ

The IBM Tivoli Solutions

IBM Tivoli SAM Solutions Value

IBM Tivoli License Compliance Manager for z/OS

IBM Tivoli Contract Compliance Manager

IBM Tivoli License Manager

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What is Software Asset Management (SAM)?

IT Asset Management (ITAM)

Hardware

Software

Contracts

Software Asset Management

HW Cost Trends SW Cost Trends

“In the first year (1991), we identified 76 products that were seldom or never used and could be eliminated. We saved $1.25MM in software license and maintenance costs.”

- Global Oil Producer

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Software Asset Management Value

Uncontrolled Budgets

ƒ “Over a period of 5 years, our Software budget had tripled.”

Cost Management

ƒ “With the help of Isogon’s SoftAudit reports we're now better able to control software costs.”

ƒ “Over the past 3 years we have been able to drive down mainframe fully loaded costs/MIP by more than 60%.”

Cost Management has lead to growth

ƒ “We've been able to keep software cost increases to a minimum while overall

workload and capacity has more than doubled over the past several years.”

Flexibility aligned with business demand

ƒ “We're able to negotiate more flexible

agreements with features that (as an example) can allow us to possibly pick up new products and discard obsolete or low usage products.”

Before

After

5 years

Soft

ware Budget

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Software Asset Management Value

License Compliance

ƒ “Armed with the list of products, we determined some products were not licensed properly”

ƒ “These licenses were corrected, some at increased cost”

Cost Management

ƒ “Some licenses were identified for products no longer installed. These licensed were promptly terminated.”

ƒ “In the first year we identified 76 products that were seldom or never used. We saved over $1.3 million in license and maintenance costs.”

SAM Actions

Major International Oil Company

Software Cost Reduction with MIPS Growth

ƒ Consolidated 5 data centers into one

ƒ Tripled mainframe computing capacity

ƒ Reduced mainframe software costs by more than half.

SAM Results

5+ years

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Software Asset Management Value

Cost Reduction

ƒ We were able to eliminate several products and optional add-ons to other products that had little or no use.”

Cost Management

ƒ “By understanding what we have, where we have it and who is using it, we have been able to manage our hardware planning more effectively.”

ƒ “We can make decisions on how many versions of software we want to

maintain.”

ƒ “We identify and re-bill our internal customers for expensive “must have” product that only they are using.”

SAM Actions

Boise Cascade (an Isogon Customer Reference)

Software Cost Reduction with MIPS Growth

ƒ “Our actual mainframe ISV expenses were 24% less than 5 years ago and we now have a lot more processing.”

SAM Results

5 years

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IBM Tivoli’s Approach

Align IT Software Spending

with Business Priorities

Tivoli’s Unique Capability

What software do I have? Auto-discovery of software assets

What software assets are in use? How is this different that what was purchased?

Use monitoring: measurement of software use activity trends

How much does each software asset cost now and in the near future?

Contract management: compare use activity to corresponding contracts

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IBM Tivoli SAM Solutions Help Achieve…

Software Cost Management

– Identification and reduction of no and low use software

– Efficient server consolidations

– Effective software and hardware upgrades

– Vendor contract negotiation leverage

– Reduced software fees through competitive replacement

– Improve operational performance and reduce maintenance costs

– Invoice validation

– Effective charge-back

– Disaster recovery and business continuation

Compliance Risk Reduction

– Software vendor license compliance audits

– Sarbanes-Oxley Act Section 404

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IBM Tivoli Software Asset Management Value

IBM Tivoli End-to-End Software Asset Management solutions help reduce software costs and compliance risk so that additional resources can be allocated to priority projects.

These solutions provide a single view of software inventory, use activity, and

contracts across mainframe and distributed environments. The solutions help you:

– Identify software inventory with no or low activity to reduce license fees

– Monitor software activity trends to proactively plan future capacity needs

– Gain contract negotiation leverage

– Determine where software is used and not properly licensed

The integration of Isogon’s zSeries software asset management technology is a significant milestone in the execution of the IBM Mainframe Charter’s goal of enhancing value and lowering the cost of computing of zSeries solutions in a way that is compelling, clear, and consistent.

Pricing Trend

Time

100

IBM Operating System

100

Middleware

Parallel Sysplex License Charge Introduced

OS/3900 Introduced (sum of part less)

New Application Lic. Charge Introduced

Lower PSLC prices over certain

MSU levels

Lower OS PSLC prices for certain

MSU levels Lower OS PSLC for

certain MSU levels

Workload License Charge Introduced "flat" & variable product pricing Growth Opportunity License Charge introduced zELC Introduced Target 10 - 15%+ P/P ISV Software WLC Pricing Enhancements

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• Privately held company

• Based in New York, with sales office in UK. • 90 employees

• Founded in 1983

• Business Partner of IBM’s since 1997

• Auto-discovers mainframe software assets

• Measures software use activity • Compares use activity to relevant

software contracts

Isogon’s Industry-Leading Software Asset Management • Over 200 customers worldwide

including IBM Global Services • Over 20% of Fortune 500 are

Isogon customers

• Isogon also has several large outsourcing clients as well as federal and state agencies Customers

With this acquisition, IBM has the industry's only end-to-end software asset management solution -- combining Isogon's asset management software for mainframe environments with IBM's Tivoli software for distributed environments.

IBM Tivoli – The Acquisition of Isogon Corporation

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IBM Tivoli License Compliance Manager for z/OS Mainframes IBM Tivoli License Manager

UNIX, Intel & Other Distributed Servers

PCs

IBM Tivoli Contract Compliance

Inventory & Usage

Inventory & Usage

Combination of IBM and Isogon

End-to-end Software Asset Management

By combining Isogon’s mainframe software asset management (SAM) products for zSeries with IBM’s Tivoli License Manager for distributed, IBM is able to provide the only end-to-end SAM solution capable of measuring software use activity and comparing it to corresponding contracts, ensuring software costs are in line with business priorities.

(Formerly SoftAudit for z/OS)

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Tivoli License Compliance Manager for z/OS Views

Tree View

List View

Property View

ƒTree View (Left): A consolidated view of enterprise-wide contractual information organized to show specific hierarchies. ƒList View (Middle): Information about the selected data in the tree view. ƒProperty View

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Tivoli Contract Compliance Manager Views

ƒTree View (Left): A consolidated view of enterprise-wide contractual information organized to show specific hierarchies. ƒList View (Middle): Information about the selected data in the tree view. ƒProperty View

(Right): Detailed information about the List View.

Tree View

List View

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Tivoli License Manager Views

(for Distributed Systems)

Schedule Inventory Scans

View Installs by Product or Agent

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End-to-End Software Asset Management

IBM Tivoli License Compliance Manager for z/OS IBM Tivoli License Manager

Contracts & Financials

Inventory & Use Activity

SAM Activities

Tools Buy-In Process Purchasing Strategic Planning Budgeting Day-to-Day End-of-Life Growth Business Contingency Planning Tools Buy-In Process Tools Buy-In Process Purchasing Strategic Planning Budgeting Day-to-Day End-of-Life Growth Business Contingency Planning IBM Tivoli Contract Compliance Manager PCs

UNIX, Intel & Other Distributed Servers

Mainframes

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Customer Successes

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Benefits from SAM Activities

I have it

I use it

I’m contracted for it

9

Eliminate unnecessary licenses

9

Verify license compliance

I have it

I use it

I’m contracted for it

9

Invoice validation, leverage contract negotiations

I have it

I use it

I’m contracted for it

I have it

I use it

I’m contracted for it

9

Cancel maintenance or Verify install process

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SAM Success Stories

I have it I use it

I’m contracted for it

9Verify license compliance

C o n d ition Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

C o n d ition Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

C o n d ition Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

C o n d ition Ben e fi t

A Large Financial Organization

ƒ

“Over nine years ago, the organization

set up a data repository containing

information on contractual obligations,

purchase dates, renewal dates and

maintenance agreements related to

mainframe software. We use a

repository to monitor compliance with

vendor contracts.”

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SAM Success Stories

A Global Oil Producer

ƒ “In the first year (1991), we identified 76 products that were seldom or never used and could be eliminated. We saved

$1.25M in software license and maintenance costs.”

ƒ “We had a modeling product that cost $144,000 per year but was used by only one application to produce a weekly service station sales report. Converting that application to a PC spreadsheet eliminated the service station sales report.”

ƒ “We also identified products that were licensed on multiple CPUs, but were only required on one. Since 1991, we have been able to eliminate

approximately 200 licenses.”

IBM Tivoli License Compliance Manager for z/OS

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

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SAM Success Stories

A Fortune 500 Manufacturer

ƒ

To give some insight to how effective

the mainframe SAM product has been

for us, consider our experience:

“We started 1998 with 635 MIPS, 150 program products, and

software expenses that were a little over $7,000,000; the software

cost per MIP was around $11,000.”

“In 2002 we have ~ 1,100 MIPS, 65 program products, and software

expenses around $4,400,000. Today our software cost per MIP is

around $4,000.”

IBM Tivoli License Compliance Manager for z/OS

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

Cond it io n Be ne fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

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SAM Success Stories

European Patent Office

ƒ The European Patent Office and IBM Global Services - Integrated Technology Services worked together to implement the Tivoli License Manager software.

ƒ The Tivoli License Manager software monitors usage of approximately 6,000 to 7,000 applications. The applications include Microsoft Internet Explorer, Adobe Acrobat, IBM Lotus Domino, Microsoft Visio and

Microsoft SQL server software.

ƒ With information obtained through the Tivoli License Manager software, EPO executives expect to reduce related software costs by being better positioned to negotiate new software contracts, plan for future software deployments and match resources with demand. The EPO believes that it will only need to achieve a few percentage points of savings to realize a full return on investment for the new Tivoli software solution.

IBM Tivoli License Manager

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

C o n d it io n Be n e fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

C o n d it io n Be n e fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

C o n d it io n Be n e fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it

C o n d it io n Be n e fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

C o n d it io n Be n e fi t

9Eliminate unnecessary licenses

I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

C o n d it io n Be n e fi t I have it I use it

I’m contracted for it I have it

I use it

I’m contracted for it

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SAM Success Stories

Tata Consultancy Services

ƒ The leading computing systems integrator company in India.

ƒ TCS faced challenges related to employees' compliance with corporate

software licensing policies, software distribution and asset management, and server monitoring and maintenance. To satisfy requirements for becoming listed on India's stock exchange, TCS had to ensure compliance with national standards related to controls for enterprise software licenses.

ƒ To manage employee behavior and gain better control over software and similar assets, the company established an enterprise system management program. Company goals were to collect complete asset inventory across the entire organization and comply with regulations related to licensing.

IBM Tivoli License Manager I have it

I use it

I’m contracted for it

9Verify license compliance

Co n d itio n Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

Co n d itio n Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

Co n d itio n Ben e fi t I have it I use it

I’m contracted for it

9Verify license compliance

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SAM Success Stories

Large AG Insurance Company

ƒ “Based on our knowledge of usage

through our mainframe SAM product we

are able to re-negotiate contracts with several of our largest vendors and maneuver the distribution of their products on our systems to become better aligned with our end users needs while also reducing costs.”

ƒ “Now we have enough information to drive LPAR pricing, and in the future vendors will have to step up to that requirement or face replacement. We are better able to negotiate software contracts from a position of strength and

make demands of vendors that we might otherwise back away from. When you have confidence in your resource allocations you are not as easily persuaded into wasteful agreements.”

IBM Tivoli License Compliance Manager for z/OS

9Invoice validation, leverage contract negotiations

I have it I use it

I’m contracted for it

Co n d it io n Be n e fi t

9Invoice validation, leverage contract negotiations

I have it I use it

I’m contracted for it

Co n d it io n Be n e fi t

9Invoice validation, leverage contract negotiations

I have it I use it

I’m contracted for it

Co n d it io n Be n e fi t

9Invoice validation, leverage contract negotiations

I have it I use it

I’m contracted for it

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IBM Tivoli SAM Value Summary

“Enterprises that begin an asset management program experience up

to a 30% reduction in costs the first year.. and continue savings of

5-10% for the next 5 years” – Gartner

IBM Tivoli End-to-End Software Asset Management solutions help reduce software costs and compliance risk so that additional resources can be allocated to priority projects.

These solutions provide a single view of software inventory, use activity, and contracts across mainframe and distributed environments to help you:

– Identify software inventory with no or low activity to reduce license fees

– Monitor software activity trends to proactively plan future capacity needs

– Gain contract negotiation leverage

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