And Why You Should Care
Software Portfolio Rationalization
What is It? And Why You Should Care.
It’s time to try something different. Software Portfolio Rationalization is a fresh idea with a much broader justification base than Software Asset Management (SAM). It has the very real benefit of addressing three compelling problems at the very top of every CIO’s agenda; defending against software audits, migrating to Windows 7 and reducing operational costs.
Asset Vision™ White Paper Scalable Software, Inc. November 2012
Executive Summary ........................................ Page 2 Where’s the Beef ............................................ Page 3 Windows Vista It’s a Question of Scale ................................... Page 3 Software Portfolio Rationalization to the Rescue ................................................... Page 4 A Complete Software Inventory Classification Usage Metering and Business Alignment Reconcilation and Rationalization Justifying a Software Portfolio Rationalization Project.................................... Page 5 Summary .......................................................... Page 6
Table of Contents
Asset Vision™ White paper Scalable Software, Inc. November 2012
Software Portfolio Rationalization
What is It? And Why You Should Care.
Executive Summary
Two seemingly disconnected external forces – recessionary pressures since 2008 and the w idespread avoidance of Windows Vista as an upgrade path – have created a problem for those responsible for managing corporate w orkstations. It’s becoming a real drag on IT efficiency.
Ask yourself the question: Do you think you have just the right amount of software installed on device endpoints to exactly match the requirements of your organization?
At first blush, it may seem strange that a single discussion document embraces such d isparate external pressures; but the impact of these two events, on the task of managing a workstation-‐based software portfolio, is almost identical. To illustrate the point, ask yourself the question: Do you think you have just the right amount of software installed on device endpoints to exactly match the requirements of your organization? Is it conceivable that some of that software deployed to the company’s desktops and laptops is lying idle month after month? The questions are clearly rhetorical, but there are significant reasons why you should care.
Asset Vision™ White paper Scalable Software, Inc. November 2012
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So Where’s the Beef?
Conventionally installed software has an amazing ability to proliferate around an organization. Even the most well-‐disciplined w orkstation management teams find it a challenge to confidently state how many copies of a certain software package are installed. Moreover, for those packages that can be identified as being installed, it is difficult to be certain whether the primary user of the workstation requires them. Unfortunately, the above situation is never considered critical until o ne of two things happen: 1) an audit letter arrives, or 2) a migration project starts. Since the start of the global economic crisis, and the arrival of Windows 7, audits and migrations have become ever-‐ present. Windows Vista: Migration to a new platform is often a cathartic experience, rather like moving house. You can use the opportunity to get rid of all that old junk that’s been accumulating over the years; stuff you no longer need or use. Over the years Microsoft has introduced new Migration to a new operating systems with a platform is often a fairly reliable cadence. cathartic experience, rather like moving And organizations have house. You can use developed good processes the opportunity to get for migrating endpoints to rid of all the old junk the newer systems. that’s been However, with Vista, accumulating over the Microsoft quite literally years; stuff you no missed a beat. longer need or use. Organizations were advised by trusted voices to w ait for Windows 7, as Vista w ould be unmanageable. The result is that many workstations have used the same operating systems environment now for almost 10 years.
Asset Vision™ White paper Scalable Software, Inc. November 2012
It’s a Question of Scale
The scale of unused, but deployed, software packages is far beyond anything most IT professionals would imagine. According to a study by HP1 many workstations have between 200% and 300% more software installed as a consequence of the extended lifecycle for Windows XP than would normally be expected. That’s 200% -‐ 300% more applications to test for compatibility with Windows 7, and a higher probability of an audit finding something unexpected. Scalable’s own analysis2 has shown that between Scalable’s own 22% and 37% of all analysis has shown software packages that between 22% deployed in an and 37% of all organization for use on software packages deployed in an workstations is either organization for use unused within the last 90 on workstations is days or used in ways that either unused within would indicate entirely the last 90 days, or the wrong package is used in ways that installed. would indicate entirely the wrong package in If you want to get onto installed. Windows 7 without massive cost over-‐runs and delays, reduce your very real risk of a negative audit outcome, or make a profound reduction in software related costs, this software portfolio must be rationalized as a matter of supreme urgency.
1
http://h30507.www3.hp.com/t5/Client-Computing-Best-Practices/SoftwareRationalization-An-Opportunity-to-Optimize-and-Save/ba-p/78618 2 Anonymous data gathered from over 200 Software Portfolio Rationalization engagements.
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Software Portfolio Rationalization to the Rescue In 2007, Bruce Michelson, a fellow at HP, coined the phrase “Software Rationalization” for the first time. In a book published shortly thereafter he went on to describe an IT practice that continuously sought to eliminate the build-‐up of software detritus in a workstation environment. Since that time, several large consulting companies, including Camwood and CA Services, have begun offering Software Rationalization as a service to their customers. In order to rationalize a portfolio of software, a number of key steps must be undertaken. 3
Usage Metering and Business Alignment This aspect of Software Portfolio Rationalization is arguably the most complex. Identifying w hether an individual software package is used, and whether the measured usage is material or not, cannot be undertaken lightly. Questions such usage frequency, and type (read-‐only vs. read/write); the value to the organization of occasional use; whether the use is foreground or background, etc. all factor in rationalization decisions. Metering requires extensive automation and the ability, in reports, to overlay detailed organizational alignment onto granular usage information.
Armed with information on who uses which software, when and how… benefits of Software Portfolio Rationalization are immediately clear.
A Complete Software Inventory The first step is to identify, as effortlessly as possible, the list of software packages that are installed within the estate. This task provides the baseline from w hich rationalization decisions can be made. Identifying the packages is crucial, and different from identifying the executables. As we shall see later, only by identifying packages can you correctly measure the impact of software portfolio rationalization.
Classification Once a baseline of installed packages is obtained, classifying and normalizing is the next important step in the process. For reasons beyond the scope of this document, software packages do not identify themselves in a consistent way; identical packages may appear differently on different machines. This phenomenon requires that naming variations be eliminated through a process of normalization in order to get make a baseline usable. In addition, adding package classification, such as “Office Tools” or “Graphics Packages” makes it possible to spot duplication.
Reconciliation and Rationalization Armed w ith information on who uses which software packages, when and how; benefits of Software Portfolio Rationalization are immediately clear. In conjunction with objectively measurable costs, associated w ith each identified software package, it becomes possible to embark on precisely focused rationalization exercises. Organizations can expect to eliminate from the environment the software that is no longer required; reclaim any software licenses freed up as a result; ensure compliance w ith license agreements, and position the organization for a more efficient migration to newer platforms.
3
http://en.wikipedia.org/wiki/Software_Portfolio_Rationalization
Asset Vision™ White paper Scalable Software, Inc. November 2012
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Justifying a Software Portfolio Rationalization Project In October of 2009, Michael Silver of Gartner Research estimated an application migration cost of $550 per PC for organizations migrating to W indows 74. This was based on several assumptions; not least of w hich is that in the average 2500 seat organization 250 apps needed to be compatibility tested in preparation. Similarly, Gartner has suggested in a seminal study in 20085 that by effectively re-‐ using existing software rather than simply purchasing new licenses, as they are apparently required, organizations can reduce year-‐one software costs by u p to 25%. Software License Optimization6 (which is really a subset of software portfolio rationalization) specifically addresses this issue.
ROI for 2500 Seat Industrial Organization Calculated Using Scalable’s ROI Technology
The net of the proceeding paragraphs is that any http://www.scalable.com/return-on-investment-calculator competent IT Professional, who wishes to rationalize his organizations software portfolio, will have no problem whatsoever finding detailed, credible studies that can support a justification w ith measureable hard-‐ cash savings.
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http://www.tgdaily.com/business-and-law-features/44337-gartner-veep-outlines-windows-7-migration-costs http://www.gartner.com/id=598409 6 http://www.forrester.com/Introducing+Software+License+Optimization/fulltext/-/E-RES60435 5
Asset Vision™ White paper Scalable Software, Inc. November 2012
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Summary Despite many attempts by well-‐intentioned and knowledgeable IT Professionals to get executives support for Software Asset Management (SAM) projects, SAM has never caught on. Even Forrester pointed out in their September 2011 research note, introducing Software License Optimization, that SAM, as defined in ITIL and ISO, is effectively obsolete7. SAM is viewed by many CIOs as, at best, a luxury item and at worst a compensation for poor fundamental software management practices. Also, SAM has been pigeonholed as addressing just the issue of general software license compliance, w hich no study has ever placed on the CIO’s top 10 lists of concerns. It’s time to try something different. Software Portfolio Rationalization is a fresh idea with a much broader justification base than SAM. It has the very real benefit of addressing three compelling problems at the very top of every CIO’s agenda; defending against software audits, migrating to W indows 7 and reducing operational costs.
SAM, as defined in ITIL and ISO, is effectively obsolete (Forrester Research 2011)
Software Portfolio Rationalization … has the very real benefit of addressing three compelling problems at the very top of every CIO’s agenda; defending against software audits, migrating to Windows 7 and reducing operational costs.
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http://www.forrester.com/Introducing+Software+License+Optimization/fulltext/-/E-RES60435
Asset Vision™ White paper Scalable Software, Inc. November 2012
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About Scalable Software
Scalable Software is an established software developer providing cost-‐ effective IT Asset Lifecycle Management solutions for business users. Scalable sells and supports our solutions through a network of long-‐standing partner relationships worldwide. Since 1999, over 10,000 organizations w orldwide have used Scalable solutions to manage, optimize and reduce costs, reporting a substantial return on investment (ROI) and reduction in the total cost of ownership (TCO). Scalable solutions help IT professionals rapidly understand their software estate, analyze the financial risks and opportunities associated with various licensing models and implement appropriate remediation plans.
For more information, visit www.scalable.com
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