Software Asset Management

This is a guide on software asset management.

 

Software asset management is an IT practice for managing and optimizing the software applications used within an organization, from request, to approval and deployment, all the way to retirement, with various processes and management tactics in between.

 

- SAM reduces compliance exposure. When auditors come knocking, they will find that you are paying for what is being used.

- The recued risk from practicing good SAM, will save your organization from all potential legal, financial, and reputational damages and liabilities.

 

Some of the other objectives are, effective management of software and hardware assets throughout their lifecycle, which turn helps in achieving governance and control over the entire IT environment.

 

- Good SAM program monitors usage on an ongoing basis, allowing you to identify reharvesting and reuse opportunities.

- Ongoing usage monitoring, also empowers organizations to purchase software assets based on their true usage.

- Additionally, SAM helps limit rogue purchases and potential chargebacks.

 

Overall, an effective SAM process will help us to maintain a compliant position, to make sure we never go out of compliance, and at the same time we do not end up overspending on our assets.

 

The legal rights pertaining to the authorized use of digital material. It is a major part of IT service delivery, and a software license is an agreement between you and the owner of a software program that allows you tro do certain things would otherwise be an infringement of copyright law.

 

The license metric is the element of the of the software licensing model which is counted and to which pricing is applied.

 

Software customers and publishers negotiate pricing, based on both the perceived value of the application, and how the application will be used. License types are majorly categorized based on.

 

Perpetual - is a nonexpiring license to use an application. The customer has no application to pay for support or update services. It is simple to deploy and manage. Customers may be able to expense the purchase as capital, but difficult to securely handle machine upgrades and software development. Publisher is locked into the old license policy for years. Customers may end up using very old software versions to save money.

 

Perpetual+Maintenance - A support and maintenance license are typically used as an addon to the perpetual license. It is normally used to provide software updates, and fixes to a license software product, purchased under a perpetual license. Maintenance is bought on a yearly basis, and once bought, customer will be protected for all upgrades on any release, as well as enjoying priority support.

 

Subscription - A renewable license, usually annual, including software support, and updates, during the coverage period. The license is automatically terminated, unless it is renewed. Customers can annually expense the budgeted license renewal fees. Less price discounting pressure, encourages ongoing clinet vendor relationship.

 

Trial License - A trial license is like a fixed duration license, but with the main difference that publishers are allowing access for a user, to allow them to test their application, with the hope that they will ultimately purchase a license. The trial period is normally defined in advance. The trial license also allows you to control what features, or aspects of your application can be accessed, during t, during the trial period.

 

Per Something - This license has a periodic fee based on usage. Payment can be before or after use. Exempt cases: overdrafts, utility pricing based on time or work done. Price is most closely related to value. Encourages steady revenue flow to publisher. Lowest initial cost for the customer. The customer is never denied a license. License policy can be changed at any time. Customers may be able to expense the license fees as they occur, perhaps monthly. It requires most license management overhead. Reliable license usage reports must be created periodically, and mid cycle to check against budget. Licensing must be integrated into CRM or accounts receivable systems.

 

Concurrent - A type of software license that enables a pool of licenses, to be shared across a group of potential users, with the licensing mechanism ensuring that, at no point in time is the maximum concurrent number of licenses exceeded. In some cases, a vendor may also provide overdraft licenses, which allows the maximum number to be temporarily exceeded, often with additional usage charges applying.

 

Floating - A floating license allows you to define a specific number of licenses to an application, that are shared among a specific group of people. For example, you may provide 10 floating licenses to a company, but that company may have 30 people who may request a license from the floating pool of 10 licenses. Once all 10 licenses are checked out, no other access is permitted until a license is returned to the pool.

 

Client Access License - CAL, includes both devices and user metrics - CAL allows users to connect to server software, to use the software's features and functions.

 

Licensee Managed - Hosting essentially means that you buy your software solution from a publisher, or Value Added Reseller (VAR), and then have the software installed at a data center or hosting center, where either physical or virtualized servers that you own or lease, or finance are setup. You then would implement the solution, very much like it would be implemented on premise, or at your offices.

 

Licensor Managed - The network license manager of licensor takes care of managing license resources, on a network named user or concurrent license.

 

Enterprise - Enterprise license means a license model, that permits use of specified software for a number of licensee's employees, throughout licensee's organization and sites. An enterprise license enables a licensee to standardize all licensee sites, on the specified software.

 

Government and Military - These types of software are created for military and government use only. This type of license is designed to support collaboration, between multiple people who work for specific purpose. In this licensing model, the customer purchases a main license from the licensor, and then grants entitlements to access the licensed application on to the team members. These team members can then access the application under the main license.

academic license is not really a distinct license model. Rather, it is a license provided to a distinct group of people. The academic licensing model is typically used by companies providing educational, or engineering applications to schools and universities. It provides access to an application, for that specific group of users and, the license typically has different commercial terms.

 

NGO/Non-Profits - Custom made licensing programs, and types are available for the specific use.

 

A software upgrade is a new version of the software, that offers a significant change, or major improvement over your current version. In many cases, a software upgrade requires the purchase of the new version of software, sometimes at a discounted price, if you own an older version of the software. If you bought your software recently, and an upgrade is released soon after that, some software companies off the upgrade to the latest version for free. Be sure to register the software when you install it, so you know if you qualify for these types of deals. Some of the main upgrade types available are:

- Version upgrade

- Edition upgrade

- Language upgrade

- Platform upgrade

 

OEM - An OEM license refers to the license that a manufacturer installs on new devices. If this is your case, the product key is not transferable, and you cannot use it to activate another installation.

 

Retail - The software you purchase as an individual consumer, at a retail store generally, is only for use on up to, about five computers. If your organization is small, and you do not have many computers onto which you need to download software, purchasing a single license may be the best choice. You receive the CD with the software, the product key, to authenticate the software, and a user manual with your purchase. You may also receive limited term software support, from the software publisher with your purchase.

 

Volume - A volume license, on the other hand, is probably the best choice, if you must download software to more than five computers. Volume licenses are typically best suited for larger organizations. A volume license does not come with a cd, to use or install the software on each computer. The download process occurs through a web based service, that makes it easy to download the software to download the software to computers remotely. Even though your volume license does not come with a printed user guide, it may be possible to purchase additional support, through the software vendor.

 

Free or Open Source - License requires no purchase but the copyrights are still held by the developer. Developer can sell the software in the future and does not distribute the software.

 

Software upgrade - A software upgrade is a bit different. instead of building on your existing program, a software upgrade is a new version of the software product entirely.

 

Stepup - A stepup license enables a customer to move from a lower level edition of a product to a higher level edition of a product without having to pay the full price for the higher level of the product.

 

Software Maintenance - Provides access to product updates and enhancements, as well as technical assistance and support resources to help you maintain your product, optimize performance, and effectively implement new software functionality.

 

- The license terms and conditions contains all the contractual obligations like scope, grant, PURs, which bind with the software agreement.

- It is also known as End User License Agreement (EULA).

 

- Identification of software assets

- Verifying the software assets

- Identifying gaps

- Taking action to close any gaps

- Taking action to close any gaps

 

- These are the specified terms and conditions that apply to use of a product.

- PUR defines the use rights for each product and version.

- Downgrade rights

- Multiple use rights

- Virtualization rights

- License exemptions

- Secondary use rights

- Upgrade rights

 

- Level 1. Installation assessed. Identify software and hardware installed.

- Level 2. Usage understood. Reconciliation performed on ad-hoc basis. Point in time management of licenses and contract.

- Level 3. Automated reconciliation. SAM processes in place for continuous license compliance.

- Level 4. Optimization. Minimize license consumption and software spend.

 

- Level 1. Installation assessed. What do I have from both hardware and software perspective. Most organizations have a good handle on the hardware installed, and have tools and processes in place, to track hardware through its lifecycle.

- Level 2. Usage understood. What is deployed and how is it being used. understanding what software is installed, and how it is being used, sounds simple but has a significant set of challenges.

- Level 3. Continuous Compliance. Are we compliant with our software license agreements. Level 3 enables the organization to identify what is entitled versus consumed.

- Level 4. Optimization. Is the enterprise software optimized. At this level, organizations are fully leveraging their software license entitlements, product use rights, proactively, to minimize license consumption, and reduce ongoing costs for software.