It's no secret that Microsoft volume licensing can create significant cost efficiencies for businesses and enterprise-level organisations in Australia.
But optimised Microsoft volume licensing isn’t automatic – it’s the result of careful analysis and the incorporation of strategies designed to maximise the effectiveness of Microsoft software deployments across your enterprise.
For starters, the volume licensing process should begin at least three months prior to the expiration of your current licensing agreement. This provides adequate lead time to get your volume licensing strategy and execution right.
Once underway, the volume software licensing process begins with a thorough understanding of the organisation’s current licensing environment, including an in-depth evaluation of your software asset management (SAM) program.
During this stage of the process, it’s advisable to perform a comprehensive assessment of the installed software base, paying attention to issues like existing contract terms, license types and entitlements, quantities and other variables that will inform enterprise agreement (EA) renewal.
After you have completed an analysis of your current licensing environment, your decisions regarding the scope of your licensing renewal will be determined by your standardisation goals and deployment objectives.
As you map out your needs, it’s a good idea to create a six-year financial forecast (two software upgrade cycles) to fully assess the financial outcomes associated with licensing renewal. This is especially important as more and more organisations opt for license mobility and the flexibility to deploy software hosted by service providers in the cloud.
Once you have your current state and desired future state in hand, you're ready to evaluate your volume licensing options. Making the right choices is critically important. For example, licensees that have standardised on a primary suite of Microsoft products require Windows 7 Enterprise features or subscribe to the Microsoft Desktop Optimisation Pack (MDOP) usually find that a Full Platform EA is the most appealing renewal option. In contrast, organisations that have mixed software requirements or are interested in standardising on a limited selection of Enterprise Products might do better with some of the other Microsoft enterprise software licensing alternatives.
To get the best possible results, it's a good idea to tap into the expertise of IT consultants that have a strong track record in Microsoft volume licensing. Our Datacom consultants, for example, will often find ways that our clients can save as much as 40 percent on their Microsoft software licensing costs.
In an economy where every penny counts, those savings drop directly to the bottom line. More importantly, getting the right software into the hands of your employees will enhance organizational productivity, which can drive even more profits and give you a huge leg up on the competition.
Posted by
Tracy Toth on Mon, Feb 20, 2012 @ 04:52 PM
Software asset management offers enterprise organisations a smarter approach to software licensing and deployment.
Previously, on our Australian Enterprise IT Blog, we've discussed how software asset management can reduce enterprise risk. But software asset management (or SAM) also helps enterprise organisations lower IT costs, in both their Microsoft volume licensing process and the deployment of other software assets across the enterprise.
In our experience, the strategic nature of SAM allows organisations to target efficiencies in their Microsoft volume license arrangement, as well as in software licensing arrangements with other vendors. Armed with detailed information about their existing software license assets and enterprise needs, organisations are more prepared to enter the enterprise agreement (EA) renewal process and to minimise new purchases through the redeployment of owned Microsoft software licenses.
Saving money on software licensing is just one of many ways that SAM can lower IT costs. SAM also allows organisations to reduce the management costs associated with software and related assets, streamlining processes and creating a more efficient IT environment. For example, compliance is usually a resource-heavy and labor-intensive activity. But by utilising SAM technology and methodologies, organisations can automate compliance monitoring and management functions, creating a much more cost-efficient software licensing compliance program.
Some of the other ways a carefully designed software asset management program can deliver cost savings can include improvements in the organisation's ability to forecast software needs and to track ROI on software licensing investments.
As an added bonus, for companies that leverage Microsoft software extensively, as is the case with many of our Asia/Pacific Datacom clients, we find that improving Microsoft desktop and technical support is an important element of a comprehensive SAM program and is another way to tap into significant cost savings. Training and support help the organisation maximise the value of deployed software assets and avoid the high costs of underutilized or malfunctioning software assets.
While all of the cost savings we've discussed can add up, the real value of a SAM program lies in its ability to accurately align people, technology and processes across the enterprise. Organisations that prioritise the deployment of the right people and the right technologies (as well as processes that emphasise best practices) have the greatest potential to achieve big cost savings through optimised software asset management.
Ready to get started? Talk to our experts about our software asset management services.
Posted by
Tracy Toth on Sun, Feb 19, 2012 @ 04:39 PM
Many organisations don't fully appreciate the fact that software licenses are business assets that require effective management strategies like any other business asset.
Software asset management (SAM), as it's known in the enterprise IT world, is the management, control and protection of software-based assets -- and it is essential for organizations that want to get a better handle on their software assets.
According to current estimates, software licensing and maintenance expenses comprise more than 30% of enterprise IT budgets (on average). With that kind of investment at stake, the implementation of a strong SAM program should be a top IT priority at every Australian corporation, government entity and educational institution.
Implementing a SAM program typically makes organizasions more productive and can lead to enhanced profitability. For example, a review of software assets might lead to the identification of significant cost-saving opportunities via Microsoft volume licenses. Alternatively, it might lead to the discovery of software assets that have been paid for but have never been deployed.
In addition to laying the groundwork for an efficient software licensing renewal process, software asset management project helps organisations optimise their existing software investments, allowing the enterprise to accomplish more with the assets that are already in its arsenal.
Unfortunately, despite the potential benefits of software asset management, it's easy to start down the SAM path and get sub-optimal results. In our experience working as software asset management consultants, we find that the best outcomes occur when SAM policies are crafted with executive-level backing and tailored to achieve buy-in from across the organisation.
Posted by
Tracy Toth on Thu, Feb 16, 2012 @ 05:03 PM
Software asset management (SAM) is a critical business activity for enterprise organisations. The inadequate or unsuccessful management of software licenses and other software-based assets can have a crippling effect on the enterprise, resulting in operational rigidity, inefficiencies and impaired returns on software investments.
If it's done well, SAM also mitigates many risks typically associated with enterprise-level software deployments, including these four enterprise IT software risks:
- IT service interruption risk - Since SAM leverages a coordinated, strategic approach to software, it is less likely that the enterprise will experience IT service disruptions that can occur when software is utilised in a random or haphazard fashion.
- Risk of deterioration in the quality of IT services - Interruptions are one thing, but it can be equally or even more damaging if software resources are available but there are quality issues. With a properly executed SAM plan in place, software tends to do what it's supposed to do -- facilitating business operations and never putting organisational quality at risk.
- Legal and regulatory exposure - In many enterprises, the labor-intensive demands of legal and regulatory compliance can jeopardize the integrity of the organisation's software licensing program. A robust SAM agenda, on the other hand, promotes full compliance and organisational efficiency by leveraging technology to automate the enterprise's licensing environment.
- Risk of damage to public image - Perhaps the most important way that software asset management reduces enterprise risk is by protecting the organisation's most valuable asset: brand reputation. When software and IT assets function poorly or fail to comply with regulatory requirements, there is a very real risk that the brand will sustain a blow to its public image -- an outcome that can be easily avoided by prioritising a software asset management program across the enterprise.
In addition to addressing these critical risks, SAM lowers the financial risks related to the acquisition and licensing of enterprise solutions. By matching licenses and software deployments to the organisation's precise needs, SAM allows the enterprise to avoid the risk of overbuying licenses or purchasing software that won't be adopted across the enterprise.
For organisation's that are positioned to leverage Microsoft volume licensing, enterprise risk may be further reduced by maximising the value of software deployments through access to Microsoft or third-party desktop support/technical support.
Posted by
Tracy Toth on Mon, Feb 13, 2012 @ 05:36 PM
With the upcoming release of SQL Server 2012 on March 7, Microsoft is offering a plethora of new and improved features that will be useful to Datacom clients in Australia and elsewhere.
SQL Server 2012 will be available in three main editions: Enterprise, Business Intelligence and Standard. For many Datacom clients, the most anticipated new version is the Business Intelligence (BI) version, which adds some nice new features such as data quality services and the Power View data-discovery tool. We are also seeing strong interest in the Enterprise Edition, which includes all the functionality of the BI edition but adds advanced security, high-availability capabilities and a columnar data store.
While there are many benefits to be gained from upgrading to Microsoft SQL Server 2012 -- including enhanced availability, usability, productivity, and manageability -- IT departments should think critically about how they will make the change, particularly with respect to software licensing.
There are numerous changes to the Microsoft volume licensing terms for the SQL Server 2012 release. Based on the most recent information from Microsoft, SQL Server 2012 Enterprise Edition and SQL Server 2012 Standard Edition will be available on a core-based model, with licenses sold in two-core packs. In addition, SQL Server 2012 Standard Edition will be available on a server plus CAL (client access license) basis. The BI edition is only available via server-plus-CAL licensing.
Datacom consultants are available to assist you with Microsoft volume licensing purchases for SQL Server and other Microsoft products. Based on recent client experiences, this can lead to reduced software licensing costs -- often with as much as 40% savings.
As summer break ended for Australian employees, new issues emerged for IT professionals.
While holiday gifts previously stayed at home, now millions bring their Kindle Fires, Galaxy 2s, iPhone 4Ss or the newest Windows 7 phones into the office. About mid-January, many IT departments found themselves responding to requests from eager employees to the tune of “I’d like my work email on my iPad, please.”
The “Consumerisation of IT” has exploded. While new mobility offers huge opportunities for today’s employees and businesses, it’s created some serious IT headaches.
With quick access to email and work documents that can be used practically anywhere, smartphones can be susceptible to breaches and quick downloading of personal data.
Also, the explosion of mobile devices has led to a proliferation of several popular operating systems. iOS, Android, Windows, Symbian and Blackberry are all widely used and IT departments need a functional knowledge of all of them and how to work them into the enterprise.
The loss of control is worrying to IT departments. With mobility, it seems you can no longer specify when files can be retrieved, turn off access, and wipe phones when they’re misplaced. It seems you can no longer become fantastically literate on a specific piece of hardware or operating system.
Fortunately, there are a wide variety of solutions available to help manage the additional risks that come with the increasing number of new devices.
Mobile device management (MDM) software helps companies monitor, manage and secure mobile devices within one network, reducing support costs and limiting risk. Endpoint security solutions specifically secure devices against malware, intrusion and data loss, both on and off the company network. Updated remote management and data wipe software can lock access to specific data or remove it completely in case of a lost or stolen personal device.
Mobile devices will continue to advance, and so will the technology IT departments use to manage them.
As IT professionals, we're in the business of enabling increased innovation and productivity to the business, and mobile devices help us help the workforce do just that. It’s up to us to adapt and address this lack of control – these new IT headaches – so users have access while the business is secure.
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About Michael Harman
Michael Harman is the Director of Datacom Systems, New South Wales, responsible for the overall strategy and leadership of the company. With an ICT career extending over 24 years, Michael has experience leading the engagement of large, complex IT projects that span multiple geographies. Michael is passionate about all things technology, keeping his pulse on emerging trends in order to solve the unique business challenges of NSW businesses through leading innovation.
Posted by
Tracy Toth on Sun, Feb 05, 2012 @ 07:49 PM
With IT departments embracing cloud computing and heavy virtualization more extensively than ever, it was only a matter of time before Microsoft, analysts and enterprise organizations realized that the traditional Microsoft software licensing mechanism no longer made sense.
As a result, software licensing for Microsoft products -- in Australia, New Zealand and around the globe -- has changed dramatically in recent years. If you haven't reassessed your Microsoft software licensing strategy lately, you may be surprised by all of the changes.
Why so much change in Microsoft volume licensing programs?
Software licenses are now invoked on demand, with computing power coming from shared servers that are used dynamically based on need. Software companies are scrambling to adjust to the new era because their software licenses were written before cloud computing and virtualization took center stage in the IT world.
Per-processor and per-server license agreements don't align with an IT environment that activates processing power and software on demand to meet user needs.
Datacom's consultants keep up-to-date regarding the latest changes in Microsoft software licensing as it applies to enterprise organizations in Australia and New Zealand. We can assist you if your organization is moving to the cloud and embracing virtualization but is not sure how to approach your Microsoft licensing requirements.
There are a number of stumbling blocks to be avoided as you make the change. On the flip side, many of our clients find that there are tremendous cost savings to be had during the migration process as a result of some of the new Microsoft volume licensing offerings that are available to Australian companies and New Zealand companies through Datacom.
2011 was a big year. With the rapid adoption of new technologies, the ubiquity of the tablet, consumerisation of IT and the growing interest in BYOD there was a lot for IT leaders and managers to deal with. And this was just the thin end of the wedge.
As we start the New Year, your focus will return to enabling agility and flexibility within your business, and handling all of the technology challenges that come with it. But in tackling this, don’t forget about some of the few simple – but crucial – “Technology 101s” that are worth revisiting.
Take Control of Server Sprawl
With highly virtualised environments and easy access to cloud services, server sprawl is now even tougher to control. When performing health checks across our clients’ server environments, we constantly see significant overinvestment. On average, our large clients have 20% too many servers for their needs. Fixing server sprawl has instant impact in terms of savings on volume licensing, reduced management costs and more efficient hardware use.
Proactively Manage Capacity
Proactively planning for business, service and component capacity demands is critical to avoiding bottlenecks that could become major problems. Investment in prevention of bottlenecks is the key to cost savings. Rather than throwing either hardware or IT support team time (or both) at the problem when it hits, invest in predictive analysis that can significantly streamline the processes. Identifying current demands, analysing how they could change over time and planning how best you will provide this capacity will optimise performance and efficiency, ultimately reducing pressure on infrastructure and reducing financial investment. With the rise of cloud computing you have many more options available to you.
Understand your Assets
Like any other business asset, your organiation’s hardware and software fleet needs to be well-managed to ensure it delivers maximum return on investment. Gaining control of inventory and uncovering potential savings through process improvement is critical to business success. However, many organisations don’t have a clear inventory of assets, or a software asset management strategy. For example, when performing an asset analysis, we’ve often found that organisations have underestimated their application use by 10%. Such lapses could incur fines and a retrospective bill for out-of-date licenses. More importantly for the business, incomplete asset evaluation could impede critical decision making and further escalate unnecessary costs.
If you don’t already have your eye on these basics, make 2012 the year you put processes in place to ensure they’re handled. You’re sure to free up funds, avoid risk of fines and divert fewer resources to managing them on an ongoing basis.
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About Chad Basham
Chad Basham is the General Manager of Professional Services for Datacom, NSW. With 20 years of global technology experience, Chad leads a team of solution architects focused on designing agile IT environments that result in more productivity and overall cost savings for Datacom clients. His team’s goal is to help internal IT departments focus on strategy, including creating overall technology roadmaps, designing efficient end-user computer and infrastructure environments, and implementing a variety of vendor solutions, including Microsoft desktop software.
Like any other business assets, an organisation’s software and hardware assets need to be well-managed to ensure they deliver maximum return on investment. Logging details on a bulging spread-sheet – no matter how detailed – just can’t offer the level of detail required to deliver an effective asset management strategy.
A recent study by KPMG International revealed that 74% of the companies polled used a manual license tracking process, often fraught with human error. The involvement of multiple departments, multiple authors and multiple lists wasted valuable time – often resulting in fragmented and incomplete reporting, which incurred steep fines for out-of-date licences.
Unfortunately, it’s only after a surprise discovery that has an impact on an organisation’s bottom line that CIOs choose to make hardware and software asset management a strategy. A few of the surprises I see most often in larger organisations involve the following:
Application downloads: During an asset management evaluation for a large mining client, original estimates reported that only 15 applications were used throughout the organisation, so only these would require migration to a new platform. However, the final count revealed more than 300 applications in use, many tied to a specific task in the mining industry, demonstrating the scale of “application creep” throughout the organisation.
Security risks: Unauthorised software can be a significant security risk. As tech-savvy staff members discover applications to assist with workflow, they often download viruses, security cracks or cookies that could present a genuine security issue for the organisation.
Soaring IT support costs: As multiple versions of popular software are released, demands on the IT team for supporting those versions escalate. For example, although staff may believe they are on the latest version of Adobe, this may not be the case. Extrapolate this scenario across the many different packages and applications being used within your organisation and you can see how IT support costs will soar.
Are you managing your organisation’s assets to avoid surprise discoveries?
During a Software Asset Management project, you'll likely discover unused equipment, multiple gaps in information-sharing and multiple versions of the same software throughout your organisation. Incomplete information could impede critical decision-making and escalate unnecessary costs.
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About Gary Wainwright
With more than 15 years of experience in the IT industry, Gary Wainwright specialises in providing technology solutions that result in high dollar savings and increased agility for a broad range of large clients. In 2010, Gary joined Datacom Systems to focus on achieving growth in the integrator market. As the General Manager of Professional Services for Datacom in Western Australia, he leads a team of solution architects who work on a variety of projects, including helping organisations better understand their infrastructure and better manage their hardware and software assets.
With the seemingly unlimited capabilities of today’s smart phones
, people are essentially already carrying mini-computers in their pockets at all times. The truth is, however, that mobile operating systems have always offered experiences wildly different from that of desktop versions. This made sense in the early days of smart phones, as the mobile devices were not capable of running advanced applications like those on a desktop. But today’s mobile technologies, including the increasingly popular tablet PCs, are more than capable of handling the additional bells and whistles, leaving many experts calling for an all-in-one OS solution.
And that’s exactly what they will get in 2012. Microsoft’s Windows 8, the first OS capable of running on both desktop and mobile devices, is set to debut next year. The merging of desktop and mobile software will no doubt be a hot topic among experts, mostly because when executed properly, a cross-platform OS would save a lot of people both time and money. Web and mobile application developers, for one, would be able to write just one program that works on both desktop and mobile platforms. This can drastically reduce the costs many businesses incur when working with app development experts. Users would be able to continue using the tools they are familiar with on their desktop and phone or tablet, saving the time to get up to speed on new versions of the software. And most importantly for business executives, organisations would be able to buy one software package that works in both environments.
Windows 8 promises to include all those benefits, as well as unveil a new integrated Windows software store, similar to Apple’s Mac App Store. A free preview has already been leaked to the public and there has already been much written on what Windows 8 could mean for the industry. Among the other notable benefits are fewer regulations for app developers, the ability to support app “free trials” and a revenue sharing plan that rewards successful apps. That revenue share base for all apps in the Windows store will start at 70% (same as Apple’s) but increase to 80% once the app reaches $25,000 in revenue.
Microsoft is also catering to customers like Datacom’s mid- and large-sized businesses who are looking to or are already involved in Microsoft Enterprise Agreements for their software licensing. According to Microsoft, enterprises will have more control over the mobile operating system, which will be crafted with its ubiquitous design language “Metro.” In short, as part of the enterprise group policy, IT administrators will be able to choose the access employees have to the Windows store and its apps. In addition, enterprises can choose to deploy Metro apps directly to PCs, without having to go through the store infrastructure. These changes will help each business customise the software for their organisation and help IT departments better control app management, of particular relevance to many remote locations in Australia.
But as the Windows 8 launch date draws nearer, the main questions most organisation leadership teams will now face is: Should we make the switch in 2012? The answer is that it’s too early to tell. Organisations involved with enterprise software arrangement should consult their Microsoft reseller partner to learn more before making any drastic changes. As one of only a few licensed Microsoft large account resellers in the Australian and New Zealand markets, we’ll be closely monitoring the Windows 8 launch and be sure to pass along updates as we get them. It will certainly be an exciting time in software development as the gap between desktop and mobile could be closing for good.
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About Todd Gorsuch
Todd Gorsuch is a director with Datacom focused on developing national programs and capabilities that meet the software, hardware and IT service needs of large organisations in Australia and Asia. Leading a national team, his goal is to ensure Datacom clients receive maximum cost savings, added value and increased agility with each IT purchase. His philosophy is that when a technology environment is created or updated with the organisation's customers in mind, and built around their unique culture, a competitive edge is gained and revenues increase.