I met a very insightful man today, his name is Ray Murphy. We spent a couple of hours in my office discussing iQuate’s recent verification by Oracle (the first software company in the world to receive such an accolade), Software Asset Management pitfalls and Big Ticket license negotiation (a speciality of Ray’s).
Ray outlined how he looks at the Software Asset Management lifecycle that drives the need for software like ours, and services like his. There was nothing particularly new or revolutionary in what he was saying, but he described the cycle so succinctly that it crystallized for me – effectively he outlined the cycle as follows:
| • Risk | Someone identifies that the company is potentially under or over licensed, or perhaps a request for vendor audit is received. |
| • Discovery | A discovery process kicks off whereby the company tries to create an accurate inventory of their deployment(s). This can be performed manually, or automated (using a tool like iQSonar). |
| • Reconciliation | A process of mapping software deployed to licenses purchased is undertaken. Gaps are identified. |
| • Negotiation | The customer seeks to eliminate gaps (in ongoing support costs if there has been over expenditure, or to purchase licenses for items which have been over deployed), typically there is a restructuring whereby new licenses are procured while inefficient expenditure is eliminated. Getting this balance right, at the lowest possible cost is where Ray’s services come in. |
| • Implementation | The software which has been procured is implemented. |

Problems arise when implementation leads back to risk. Perhaps an enterprise license agreement has been arranged with “Vendor X” – the agreement is likely to cover several products, but typically won’t cover ALL products with ALL configuration options. The message goes out from IT that an ELA has been reached with Vendor X for the next three years. And that’s where the problems start – not everyone in the chain understands exactly WHAT products, options, etc. are covered by the ELA. Typically deployment starts to leak out the edges and the company slowly violates the ELA – generally unintentionally and because an employee, department or group start using something which isn’t strictly speaking part of that ELA.
This somewhat depressing endless loop – which may be excellent for Vendor X, who comes back to renegotiate the deal in three years time to find a gold mine waiting (or sooner if tipped off!) – does the company no good at all. The good news is that with a combination of tools and process, the risks can be mitigated and the loop avoided.
Unlike a manual discovery/audit process, which is typically not feasible to repeat against every server in the organization on a frequent basis (weekly/monthly) iQSonar can frequently monitor the current situation.
With appropriate checks and balances (someone has to look at the tool and take action as required!), the spread of options or products not covered by the ELA can be nipped in the bud – and the endless self feeding loop can be avoided.
Thanks for the inspiration Ray!
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