How to maximise the benefit of your software costs in compliance with the software licence agreements? How an enhanced software asset management can help optimizing your IT costs?

1. Contract Compliance Services
Software License / Asset Management (SAM)
Getting back in control
ADVISORY

2. Key issues
Issue Examples Impacts
 Software agreements Overhead
 Entitlements and restrictions are not always properly understood by those of responding to
operating the software (e.g. system administrators and end users) inbound audits
 Ambiguous terms can compound compliance issues; for example, even if the
software has not been accessed, it can be deemed as in ‘use’ if available Liabilities
Under for unplanned
licensing
g  In-bound vendor audits
expenditure
 Vendors are increasingly invoking their right to audit; this increased level of
Reputation
threat means that end users need to proactively address under-licensing over legal matters
 Audits may result in paying back maintenance charges as well as settlement on
unpaid licenses
 Software surplus “shelf ware”
 Software is being purchased even though ‘spare’ licenses already exist or just Financial
too difficult to harvest losses in buying
 Unnecessary software renewals are being made for software that is obsolete or more than
Over required
no longer in use (e.g. p
g ( g post rationalisation / merger)
g )
deployment Efficiency
 Systemic configuration errors in not using assets
 Software can be inadvertently made available across an entire IT estate (e.g. available
added to the standard build / image)
 Development, test and DR plat o s can be introduced into p oduct o
evelop e t, a d platforms ca t oduced to production
environments without a full understanding the license implications
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 1

3. Value proposition
We assist our clients to :
 Better understand the risks and exposures faced relating to software licensing
 Develop a plan that would enable them to implement effective Software Asset Management practices
In implementing the plan, this will:
p g p ,
• Better understand and manage license entitlements, locally and globally
Improve management
practices
• Reduce software license compliance risks that could impact budgets and reputation
• Enhance the existing processes to better manage costs
• Identify areas where under utilised software can be reallocated or removed
Identify opportunities
to reduce costs • Provide better levels of awareness amongst the user communities to support the
reallocation and/or retirement of under-utilised software
• Better manage and respond to software vendors requests for reports on the utilisation of
Improve vendor software
management
• Structure better commercial licensing terms to fit current and future requirements
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 2

4. Our approach to SLAM
“Top Down” Assessment of Software Asset Management
Review IT
management
g practices: design effectiveness
practices (people, process, and technology competencies)
( l dt h l t i )
Only a combined approach provides complete
SLAM transparency to root issues
“Bottom Up” Deep dives of licenses and deployment
‘deep dives' to positions: operating effectiveness
obtain key
license (variances between deployment and entitlement provide
positions evidence of license usage)
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 3 3

5. Methodology – test of design
We meet with key stakeholders and discusses 20 domains for Software Asset
“Top Down”
Review IT
Management . These components address Software Asset Management from the
management perspectives of people, process, and technology.
practices
The Software Asset Management Workshop constitutes a high-level, top-down
approach to understanding the current management practices. Each component is
scored on a scale of 1-4 and the definitions for each domain component:
SLAM
 1 - Basic (Low Maturity)
 2 - Standardized
 3 - Rationalized
“Bottom Up”
‘deep dives' to  4 - Dynamic (High Maturity)
obtain key
license positions
Basic Standardized Rationalized Dynamic
y
Generally, Entitlement has been SAM system
Software Licenses entitlement records Entitlement records and interfaces with vendor
and Entitlement contracts are readily reviewed and validated
and contracts are not by significant software system t d
t to dynamically
i ll
Inventory readily available available track licenses
vendors
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 4

6. Example output – test of design
This output shows
the various levels
of maturity against
our 20 areas of
assessment.
We can use this to
help highlight the
gaps between
current state (e.g.
basic) and required
state (e g
(e.g.
standardized).
This also serves to
help prioritise
actions for
example, address
‘basic’ aspects
first.
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 5 5

7. Methodology – deep dives
The diagram below illustrates the two areas where would seek a license position on key selected products
as part of our overall SLAM approach:
Test of Design (IT Management) Test of Design (Vendor Management)
Procuremen
t
Deployment Vs
Vs Vendor
Entitlement sales
records
Infrastructure data Scanned / paper Vendor purchase
from inventories, tools copies of procurement history records &
and scripts e.g. SMS ‘Deep Dive’ and financial records ‘Deep Dive’ finance
Test of Test of
Effectiveness Effectiveness
The clouds represent the test areas (‘deep dives’) where would seek clarity on current capabilities to match
software deployment with entitlements and commercial arrangements.
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 6

8. Example output – test of effectiveness
The output below illustrates the results of a point in time deployment
and entitlement analysis which would lead to an Effective License
Position that can be used to help address any surplus and shortfalls
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 7

9. Why KPMG?
• We have developed a unique methodology for SLAM, combining the principles from ISO 19770-1 framework and
key aspects from ITIL’s service management model
• Our definitions, ratings and output are used consistently on a global basis across our practices and we have recently
conducted a survey of 1000 companies using this method. This provides KPMG with the unique ability to
benchmark Software Asset Management maturity levels across peers and other industry sectors
• In addition to providing independent client side SLAM services, we also work extensively with vendors, providing
them with global license compliance programmes. This provides KPMG with an unparalleled depth of
understanding of licensing models, products and platforms
• In support of the tools and methodology that we have developed, we have a well trained and experienced set of
SLAM practitioners; some of whom have helped develop methodologies and have practical delivery experience of
ISO 19770-1
Current Future
State State
© 2008 KPMG SA, a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.
This document is confidential and its circulation and use are restricted. KPMG and the KPMG logo are registered trademarks of KPMG International, a Swiss cooperative. 8