Content Type: Article

If you are a CFO software management is critical to controlling costs.

CFO Software Management:  The reality of the situation

As the CFO, you have the mandate to protect the assets of your company, working closely with your legal team to ensure you are free from lawsuits and audits, while maximizing ROI in any venture your company takes on. You work tirelessly to Protect your organization, board and shareholders from unforeseen financial pitfalls. Risk Management has always fallen on the shoulders of the CFO, and that’s especially true when it comes to Software Management. If you are a CFO, Software Management is becoming a way to drastically reduce financial exposure and control and reduce overall spend.   Managing a company’s Software Assets has traditionally fallen in the lap of the I.T. team. Sure, there might be some oversight from the CFO but for the most part, Software Asset Management flies under the radar of a company’s Executive team. One fact that often gets over-looked is a strategy to understand and develop a Mature Software Asset Management (SAM) practice. Having a handle on SAM is one of the best and easiest ways for a company to drastically reduce costs and start to really drive ROI from the massive investments put into software. It is very likely that CFO software management in most companies could reduce overall cost associated with software by as much as 30% or even more when using the right approach.

Did you know that major Software Publishers such as Microsoft, Adobe, IBM, and Oracle are targeting their customer base with a Software Audit every 18-36 months?

I’ve written about this in the past. It’s no secret that Software Publishers are using the Audit as a revenue generating tool.

Click here to read – What triggers a Microsoft Audit       

Why wouldn’t they? They know most business do not have an accurate handle on their software deployments and don’t truly understand use rights. Software licensing is complex. For almost every CFO, software management in general is not widely understood. As technology shifts, software publishers constantly change and update use rights to protect their recurring revenue streams. Although I’m sure none would ever admit it, I believe it’s also to add additional complexity that often leads to non-compliance. Unfortunately for any business, an audit often means countless working hours wasted, gathering and compiling data for the auditor, which often turns into hefty fines and/or penalties. This is an expense that is almost never budgeted for. Money that could be used to grow and improve the business. Instead, that money goes to a Software Publisher that already makes a pretty penny off your business. Case in point, MetrixData 360 recently worked with a client that was found to have a $2.5 MILLION compliance gap. After a rigorous defense, the client paid just shy of $200,000 USD. While this can be seen as a victory to most, a proactive SAM strategy would have saved them having to pay out at all.

Did you know, that over 80% of Small/Medium businesses rely of Excel Spreadsheets to manage their Software License deployments?

Nostalgia is sometimes a good thing (when it comes to Atari video games and Star Trek re-runs), but when it comes to CFO software management, it’s time to move away from the old approach, and adopt new technologies. Technology is the future, and the future is NOW! The technology currently exists to get a near real-time update of potential exposure and risks. In the past, a company would often wait for a Software Audit, Contract Renewal or True-Up to understand their software inventory and deployments. By that time, it’s too late. Your company will over-spend when purchasing additional licenses, not to mention the Fines and Penalties that could be levied if any shortfall is found. There are SAM tools in the market-place right now, and while many are good, the clear majority fall short.

Click Here to read why Software Asset Management Tools Are So Bad At Software Asset Management —

Sometimes these tools are complex and difficult to install. Many tools don’t paint a complete and concise picture of all deployments and simply do not have the deep logic to normalize that data into usable outputs. The key really is combining tools and processes into one powerful solution; a solution like SAM Compass.  SAM Compass is a managed service offering from MetrixData 360 which provides you with a turnkey solution to Software Asset Management.  You get access to cutting edge SAM tools, proven processes and top SAM experts.   You get to free yourself up to do whats really important in your business while being confident that you have SAM under control.

When it comes to Software Asset Management, you can’t afford to be Reactive.

Today, for the Proactive CFO, it is vitally important to have near real-time, accurate data at their finger tips. Automation is key, and by leveraging the proper tools and processes that ensure an accurate understanding of all owned software licenses and deployments, you safeguard your business from inflated costs and penalties. Gone are the days when managing licenses using tools like Excel was sufficient. You will never truly free yourself of exorbitant and unexpected costs until you move from a Reactive stance to a Proactive Process! Leveraging a team of experts, like the professionals at MetrixData 360 can be the ace in your pocket. Utilizing a Tool or Managed Service Offering; like SAM Compass will give you the visibility you need to be proactive and successful at a fraction of the cost.

There’s no doubt, the role of CFO is challenging and appears to be growing ever more complex. Like we have all heard a million times; “work smart, not hard”. That saying has never been more applicable. A relatively small investment in the CORRECT tool and process, can protect the assets of your company; a key pillar in any CFO’s mandate!

As an organization’s software needs grow and mature, Software Asset Management becomes more complex and difficult to manage. These difficulties and complexities have led to the emergence of Software Asset Management as a service. For many businesses, an entire team is often needed to stay on top of Software Deployments, and contractual obligations while ensuring Compliance and Optimization. Many times, that team is tasked with not only with keeping track of a single software publisher but, many. Of course, staffing a team that is dedicated to such an important portfolio is an expensive prospect, especially at a time when businesses are looking to reduce over-all spend. With Software Audits being such a common revenue generating tool for all software publishers, it has never been more important to truly understand your company’s licensing position at any given time.

While we can certainly agree that it is important to have a firm grasp on your Software Asset Management practice, the difficult question remains; “ What is the best and most cost effective approach to managing software deployments and Software Asset Management as a whole?”

Let’s take a look at some of the main benefits to Software Asset Management As A Service.

Benefits of SAM as a Service

Software Asset Management As A Service:
What Can I Do To Learn More?

Is SAM As A Service something your organization would like to learn more about? Would it help you sleep better at night, knowing you have a clear and concise picture of your company’s software deployments and total certainty in your effective license position in the face of potential audit or contract renewal activities, MetrixData 360’s Software Asset Management Service; SAM Compass, is the answer!

Regret… We’ve all been there and hate this feeling. I want to talk to you about regret and the software licensing assessment or pre-audit. It’s a truly terrible feeling knowing that you could have done something differently, something that could have changed the way things unfolded.  Maybe, its missing a loved one’s birthday or maybe its wishing you had spoken up when you really know you should have said something.  In my case it could be when I said “yes” to hot sauce on my lunch burrito…Just sayin, the software audit experience can be much more painful if you aren’t ready for it.

I feel like there are two types of regret that we commonly experience.  When we regret “DOING” something or alternatively when we regard “NOT DOING” something.  In the Software Asset Management world, I think we often regret the NOT DOING or not taking action earlier.  We find out too late that there was something wrong… Lapsed support, changing licensing rules that affect compliance… general non understanding of product use rights, the list goes on and on and there are some serious potential consequences at play when you “DO NOTHING”. The worst part is that in almost every case,  if we had only known about it we could have taken simple actions to make the issue go away.

Specifically, in the software licensing world, regret usually settles in when a software publisher notifies you that your organization has been selected for a software compliance audit or, a Software Asset Management (SAM) Engagement.  Pro Tip – they are basically the same thing!   The auditors come in,  run their scripts and turn over their ultra conservative Estimated License Position (ELP) which reveals something you didn’t expect.  Perhaps it was a server that accidentally provided indirect access to much of your organization to a software application (which they are all not licensed for).  It could be that the proof of licensing entitlement that you thought was rock solid isn’t being accepted by the auditor.  Maybe you didn’t implement or properly deploy a good software asset management tool or a SAM Managed Service?  Either way it opens the door to a costly settlement and casts clouds of doubt on your competence as a Software Asset Management Professional.  This is never a good place to find yourself.

So, What Can you Do About It?

I could write a novel about how to build a SAM practice….Oh wait we basically did on this blog, but, I’m going to assume you have some things in place.  If you need ground floor guidance or just a thumbs up from a third party of experts who help others deal with or prevent the regret I’ve described,  just drop us a line and we can talk. I strongly recommend a software licensing assessment.

Bring in an friendly outside auditor who understands how the software vendor will act and behave.   Don’t bring in a software re-seller who says they can do it.  They’ll do it for free but,  ask yourself why…there is some truth to the old saying that you get what you pay for.   Is a software vendor funding it?   How much business intelligence are you just giving away? Who profits from selling additional licenses if there is a compliance gap found?

When MetrixData 360 does software vendor assessment on a specific software publisher, we run them as closely as possible to the way the publisher themselves would run it. How do we know that we are running them the same you are wondering, Many of our internal resources are ex-auditors that have experience running hundreds of audits and understand not only the licensing but, also the internal objectives of the software publishers.  MetrixData 360 will ask for the same sorts of data from you (and help you get it if you don’t know where/how to get it).   We will prepare a report for you (like the one on the right) and coach you on how to bridge any licensing gaps. We do this to make sure there are no surprises in a real audit. We recently completed a software licensing assessment for a company targeting OpenText. We uncovered an initial gap that could have resulted in a claim in the tens of millions of dollar range.   Luckily, we identified it and the client was able to take a few simple actions to eliminate the exposure!  Do you think they were glad they engaged in a software licensing assessment?  You bet they were, absolutely no regret there!

Software Licensing Assessment – What Can I Do To Learn More?

We really want to help you.  Software licensing and SAM is our passion and we are always willing and happy to have a discussion with folks!  Just click the button below to book some time to talk and we can just on a call.  There’s no commitment and frankly the SAM community is pretty small and tight knit.  We’re honestly just interested in licensing and SAM discussions.

I’ve worked in software asset management with hundreds of SAM teams and helped organizations set up successful SAM practices for almost 25 years. One thing seems to hold true. Almost all software asset managers are either Star Trek or Star Wars fans. I can appreciate Star Wars but, I’m a Trek geek at heart. Having said that, I am not here to fight the holy war of Star Trek vs Star Wars. I’ll leave that up to you. I like my Star Trek old school so I’m focused on the original series. Yeah all you kids with your new-fangled Star Trek reboots best stay off of my lawn! That being said, I can’t help but draw parallels between the world of software asset management and Gene Roddenberry’s iconic universe and the voyages of the Star ship Enterprise. So, lets boldly go where no man has gone before and look at my vision of software Asset management through the Star Trek lens.

Tools and Equipment

The USS Enterprise

Beautiful to look at and the home of her crew as they travel the universe in search of adventure on a voyage of exploration. This iconic vessel is your company and you need to defend it against audit and bad software contracts. It may not do Warp 9 but its home and it’s what we all are serving and protecting with our Software Asset Management Practices/ITAM/ITIL.

The Faithful Tricorder

I love the tricorder. It’s the ultimate Swiss army knife of a tool and still futuristic even today. It never fails, the away team beams down and likely the first tool they whip out is the trusty tricorder. Why you ask? It gives them the important data they need in order to make informed decisions. Is it a Class M planet? Is there an indigenous population? Are there specific minerals? To me, it’s like your SAM tools. You need to quickly scan your environment (and you only have limited time to install tools) and get to the data that’s important to you so you can make SAM/ITIL decisions. We really like Certero Asset Studio for Enterprise SAM. It can be installed in a matter of hours and it even helps SAM integrate with IT Service Management (ITSM).

Star Fleet Academy

When a young person joins Star Fleet they usually start their career spending some time at Starfleet Academy. Here they learn what it takes to become an effective Star Fleet officer and gain the knowledge they need to survive in dangerous situations. As a SAM practitioner knowledge is power. An understanding of a variety of software licensing models is necessary in order to keep the auditors at bay and your organization safe from the threat of non-compliance. MetrixData 360 has created a series of e-Learning modules that help you to better understand Microsoft licensing. If you are looking to get a handle on Microsoft Licensing, unleash the power and optimization potential locked up in Active Directory today.

People and Aliens

Spock

Cool, supremely intelligent and eminently logical. A green blooded scientist and a diplomat who calmly brings the, dare I say it, LOGICAL, data driven solution to the SAM/ITIL team. If you’re a SAM Manager this is likely to be the character that you kind of resemble on the team. You enjoy looking at the puzzle that is Software Asset Management and are able to tease out the patterns using deployment tools and licensing statements to find creative solutions. Live long and prosper!

The Red Shirt

Ah, the infamous disposable red shirt. Always eager to join the away team with Kirk and friends and unlikely to return to the ship without a blast mark (or worse) on their chest. We all know this person. When dealing with SAM, sometimes things just don’t go your way. Despite all your best efforts, you need a sacrificial lamb. While I would never advocate this, sometimes you just need to blame someone and a savvy SAM Manager knows who that person is.

Scotty

Montgomery Scott the Chief Engineer and the only person who may love the USS Enterprise more than Captain Kirk. He complains about the urgent requests that come from the bridge crew as they ask for the seemingly impossible. At the last moment, Scotty always finds a technical solution that gives the team what they need to be successful. Stuck down in engineering away from the rest of the core crew Scotty reminds me of your server team or perhaps the DBA team. Tell me if this sounds familiar…. “You need root access in order to get your Certero AssetStudio to run properly.” You need to speak with the stressed out DBA/Server Administrators who are terrified that running a full agent based scan will slow or bring down their priceless environment. You persist, they are able to give you what you need and just like Scotty, you are able to save the day with a full and meaningful picture of the software assets deployed on your entire network.

Captain Kirk

The brave Captain of the Starship Enterprise. He’s considered a brilliant tactician (although a lot of the credit should really to go to Spock) who cares deeply about his ship and his crew. Quick witted and able to acknowledge his mistakes, Kirk leads from the front. He balances military action with diplomatic solutions and scientific research. He’s probably not unlike your CIO. Your CIO juggles reports from the SAM/ITIL team with the fiscal realities of the business unit. The CIO always tries to do what is best for your Star Ship Enterprise and cares about their staff. They realize that having a robust SAM practice is of the utmost importance. They protect and nurture the SAM/ITIL team from both internal and external elements who don’t understand or appreciate their work. In the case of an audit or a Software Contract renewal, the SAM/ITIL team may be the final and best line of defense.

Tribbles

I’m sure you all remember the cute and cuddly tribbles! Ohura brought one on board and they bred like crazy and soon the ship was overflowing with them. They remind me of Microsoft Visio, Microsoft Project, and Adobe Acrobat. Small ticket items that get inside your networks and then sneakily breed on the network. Often you only find out when you’ve been hit with an audit. Luckily with our SAM Compass managed service we can provide you with regular ELP’s to ensure there are no surprises!

Pavel Chekov

The weapons officer who has mastered the defensive and offensive capabilities of the USS Enterprise. He waits for the command to unleash the power of his phasers and photon torpedoes at whatever threatens the safety of his ship when diplomacy has failed. Sometimes in a negotiation with a software publisher, it can be advantageous to play a bit of good cop, bad cop. This tactic can add some value in a Software Contract Negotiation or audit and we have seen it utilized in a number of circumstances. You do however, need to know when diplomacy has failed and to push back and say enough is enough. Charge up your weapons systems and hit them when their shields are down! Here at MetrixData 360 we help you understand when you need to go on the offensive and where/when you can push back.

Hikaru Sulu

The USS Enterprise’s navigator and pilot. His steady hand keeps her safe from harm as he punches it to Warp 8! In the SAM World the navigator is often the person who has the institutional memory around SAM/ITAM and software contracts. This person has seen it all and knows where are the bodies are buried and can tap into resources from other teams. You might say they can navigate their way around your organization. Yeah it’s a bit of a groaner, I know but, these people are indispensable once you find them. They often know the history of why an old Microsoft contract was set up the way it was or how a prior negotiation resulted in a company specific amendment to your contract. Keep these people close as you never know when you need to pick their brains.

Leonard “Bones” McCoy

The Chief Medical Officer on the Enterprise. He’s good friends with Kirk and Spock but, compared to the calm, logical Spock, he is more likely to be the voice of emotion to Kirk and crew. A brilliant doctor, he nonetheless wants to follow his gut reaction in a crisis. Kirk usually takes council from both Spock and McCoy before finding a middle ground. Sometimes, as passionately as we try to convey SAM/ITIL concerns and strategy, it lacks a certain level of emotion. Embrace SAM team members and their passion for Software Asset Management. Harness that passion for the common good!

Nyota Uhura

The communications officer of the USS Enterprise. Lieutenant Uhura is well versed in many languages and maintains communication between the Enterprise, other vessels, Starfleet and pretty much handles all things relating to external communication. She reminds us of of how important it is to maintain communication during an audit and not to go radio silent. Software Auditors are trained to see a client who doesn’t respond to emails, phone calls or requests as a red flag that the audit is going off the rails and that perhaps you have something to hide regarding software license compliance. SAM Teams should also use their communications systems to celebrate their victories. Make sure people in your organization know that your team is making a difference!

The Villains

Star Trek offers us such classic villains as the Klingons and the Romulans. These alien races have very distinct societies and motivations behind their actions. They usually are not aggressive in a way that is out of character with their species. Usually on some level, you can understand where they are coming from. Obviously in the SAM world the villains are any software publisher that is or potentially could be auditing your organization. You may not agree with their motivations but you can usually see what they are trying to do from a tactical perspective. When these villainous auditors rear their heads, your organization will be glad they have you and have invested in SAM. This is where you will need to use your SAM Tools, software education and all the members of your team to gain a win. You may even need to call in some extra help to make sure you emerge victorious. MetrixData 360 is here to help your team with Audit Defense and with SAM Managed Services. Just drop us a line for a free consultation.

I hope you enjoyed this lighthearted look at SAM Teams through a Star Trek Lens. Live Long and Prosper!

We hope this video has prepared you for the most common issues you will face with Software Asset Management. More information about successful SAM strategies and potential pitfalls can be found in our learning center. If you have more questions about maintaining your software environment or to inquire about our SAM services, please reach out to us and one of our customer success reps will respond within 24 hours.