SAM Optimization Model

1. SAM Optimization Model Partner Guide Presentation June 2008 version 7b

2. SAM Optimization Model (SOM) Definitions 3 SOM Review Methodology 18 SOM Review Deliverables 25 Appendix : Example Deliverables and Templates 28 Presentation Overview

3. SAM Optimization Model Definitions

4. SAM Optimization Model Basic SAM Ad Hoc Standardized SAM Tracking Assets Rationalized SAM Active Management Dynamic SAM Optimized SAM processes exist as well as tool/data repository. Information may not be complete and accurate and typically not used for decision making. Little control over what IT assets are being used and where Lacks policies, procedures, resources, and tools. Vision, policies, procedures, and tools are used to manage IT S/W asset lifecycle. Reliable information used to manage the assets to business targets. Near real-time alignment with changing business needs. SAM is a strategic asset to overall business objectives

5. SAM Optimization Model Tipping Point KPIs Basic SAM Ad Hoc Standardized SAM Tracking Assets Rationalized SAM Active Management Dynamic SAM Optimized

6. SAM Optimization Model Competencies * Additional SOM scorecard details are available to assist with objective testing.

7. Key Performance Indicators for each SAM Competency

8. Optimization Model : SAM Throughout the Organization Competency Question How has software asset management (with documented procedures, roles, responsibilities and executive sponsorship) been implemented in each infrastructure group? Supporting Document: SAM infrastructure group and IT organization chart. Basic A Project Manager is assigned to SAM related projects on a per project basis. SAM roles and responsibilities are not defined. IT resources are not assigned to meet SAM objectives, or those assigned have no previous SAM experience or training. Objectives To Become Standardized For each infrastructure group within the organization identify who has direct management responsibility for each unique SAM inventory throughout the organization. Specifically identify: 1) all locations, 2) estimated quantity of each hardware platform at each location, 3) a functional description of each group, 4) a representatives name with direct responsibility for the groups SAM processes, and 5) a description of the SAM process and/or tool used for the group. Objectives To Become Rationalized For each infrastructure group within the organization identify a complete and accurate organizational view of the enterprise. Specifically for each infrastructure group identify 1) an aggregated summary of hardware and software deployments; and again 2) identify who has direct management responsibility for each unique SAM inventory throughout the organization. Objectives To Become Dynamic Responsibilities of SAM stakeholders are defined in job descriptions throughout the organization. Awareness of SAM exists throughout the organization. SAM is a priority throughout the organization and is seen as a key strategic strength.

9. Optimization Model : SAM Improvement Plan Competency Question Does your organization have an approved SAM self improvement plan? Supporting Document: Current SAM improvement plan and approved SAM budget. Basic There is no documented executive vision for SAM. There is no SAM development plan. Communication with software vendors is rare or not occurring. Objectives To Become Standardized A SAM self improvement plan has been developed and has been approved with defined funding/budget which specifically defines scope, schedule and resources for SAM. Objectives To Become Rationalized Comparing the historical baseline of a previously developed SAM maturity assessment to a current SAM maturity assessment demonstrates evidence of increased maturity. Evidence of historical progress and a revised SAM improvement plan has been reviewed by SAM stakeholder sponsors and budget has been approved for the current plan. Objectives To Become Dynamic Software Vendor, SAM Partner, and Organization strategically partner together to meet common objectives of SAM and IT infrastructure. SAM goals are part of the executive scorecard which is reviewed and updated regularly. SAM is a strategic focus. Corporate SAM stakeholders are industry leaders; SAM stakeholders demonstrate thought leadership by presenting at SAM industry conferences and providing guidance for improved training materials.

10. Optimization Model : Hardware and Software Inventory Competency Question What percentage of user PCs and servers are included in the centralized software inventory/CMDB (configuration management database); which is populated by a software tracking tool? Supporting Document: Software and hardware inventory, by device, for all infrastructure groups. Basic Software and hardware inventories are only accessible locally (software administrator, subsidiary, business unit, division). There is no centralized, managed software and hardware inventory. Centralized asset inventory contains records for less than 68% of software. (1 std deviation in a normal curve) Objectives To Become Standardized A centralized hardware inventory contains between 68% and 95% of all Servers and between 68% and 95% of all PCs that have installed software owned by the company. A centralized software inventory representing between 68% and 95% of software spend includes software deployments from all hardware in the hardware inventory. Objectives To Become Rationalized A centralized hardware inventory contains between 96% and 98% of all Servers and between 96% and 98% of all PCs that have installed software owned by the company. A centralized software inventory representing between 96% and 98% of software spend includes software deployments from all hardware in the hardware inventory. Objectives To Become Dynamic Software inventory is dynamically reconciled with all software in the environment and on the network. Hardware inventory is dynamically reconciled with all hardware on the network. A centralized software inventory representing >99% of software includes software deployments from all hardware in the hardware inventory..

11. Basic Inventories are based on manually collected deployment estimates; or discovery tools are not used. For example excel files with original build documentation are used to manage inventories. Complete and accurate reports are not available in a timely manner. Objectives To Become Standardized Once a year or more the centralized software asset inventory is reconciled with other independent sources to verify that it accurately includes all applicable software and hardware metrics required to reconcile software deployments and software usage to license entitlement. Objectives To Become Rationalized Once a quarter or more the centralized software asset inventory is reconciled with other independent sources to verify that it accurately includes all applicable software and hardware metrics required to reconcile software deployments and software usage to license entitlement. Objectives To Become Dynamic Dynamic Software configuration and change management can be adjusted on a JIT model without delay. Dynamic Discovery tools provide (daily) near real time deployment details. SAM Discovery tool collects and reports on appropriate licensing metrics. (For example: User, Concurrent User, Hyper threaded CPU, core, etc.) Hardware is tracked by RFID. The RFID can identify the appropriate location of the asset (data center, row, rack, etc.) Optimization Model : Accuracy of Inventory Competency Question How often do you reconcile software inventories with other sources to verify accuracyof assumed license metrics (for example user counts based on HR employee records.)? Supporting Document: Reconciliation of SAM inventory sources.

12. Optimization Model : License Entitlement Records Competency Question What percentage of procured software licenses are recorded in a license entitlement inventory (a central repository/tracking of all licenses owned and/or previously acquired)? Supporting Document: Entitlement records and inventories. Basic Procurement managers manage contracts and maintain local (subsidiary, business unit, division) records that are not accessible centrally. Procurement manages contracts that are not accessed by IT Managers. Objectives To Become Standardized For each infrastructure group and business units in the scope of the enterprise there is a centralized entitlement inventory which completely and accurately includes all records required to reconcile software deployments and software usage to deployment inventory. Objectives To Become Rationalized For each infrastructure group and business units in the scope of the enterprise there is a centralized entitlement inventory which is periodically reconciled with software vendor records. Objectives To Become Dynamic SAM Entitlement system interfaces with vendor entitlement system to track licenses used.

13. Optimization Model : Periodic Self-Evaluation Competency Question How often do you reconcile software deployments (usage) to software entitlements (purchases)?Software entitlements are the software licenses owned or previously acquired. Supporting Document: SAM executive report with sign – off. Basic IT operations is managed on an ad-hoc basis, like a fire drill. Tools are not leveraged to identify new hardware or track asset inventories. Objectives To Become Standardized Once a year or more SAM executive sponsors review and sign off on SAM reports; which include at least a deployment and entitlement reconciliation of high risk software titles. Objectives To Become Rationalized Once a quarter or more SAM executive sponsors review and sign off on SAM reports; which include at least a deployment and entitlement reconciliation of high risk software titles. Objectives To Become Dynamic System reconciliation and ITAM reports are available on demand to all stakeholders.

14. Optimization Model : Operations Management Interfaces Competency Question How do the various Operations Management functions (contracts, financial fixed assets, service support, security, networking) use software and hardware inventories in their daily roles? Supporting Document: Software and hardware inventories managed by Operations Management. Basic Operations management functions (i.e. IT support, financial fixed asset tracking, security, and network administration) do not follow an aligned strategy for SAM. SAM related strategies that exist are not communicated and committed to. SAM is not considered part of M&A risk planning and company integration. Objectives To Become Standardized Operations management functions (i.e. IT support, financial fixed asset tracking, security, and network administration) each manage inventories to track the assets they control. Objectives To Become Rationalized Operations management functions (i.e. IT support, financial fixed asset tracking, security, and network administration) manage a complete and accurate federated system for tracking assets which includes interfaces between asset inventories. Objectives To Become Dynamic All local business units, infrastructure groups, business functions, legacy acquired companies and corporate headquarters follow the same strategy, processes and technology for SAM.

15. Optimization Model: Acquisition Process Competency Question What percentage of total software purchases in your organization are made through or are controlled and tracked by centralized procurement? Supporting Document: List of approved vendors and users with entitlement record access. Basic Enterprise software licenses are purchased in bulk and not based on usage inventories. End-users can individually purchase and expense software (pro-cards) without central approval or coordination. Software is purchased on a per project basis without reviewing licenses that may be available or are not be being used optimally. Objectives To Become Standardized Software purchases are controlled through policies established by centralized procurement using approved vendors. Objectives To Become Rationalized Software entitlement contract purchases are based on periodic deployment/entitlement reconciliation reports; and entitlement records are accessible to IT Operations and other organizational stakeholders (i.e. End-users, Legal, HR, CIO) through approved usage rights. Objectives To Become Dynamic All purchases are made using a pre-defined asset catalogue. Software charge-backs are paid for among business units based on actual metered usage (similar to an electric bill).

16. Optimization Model: Deployment Process Competency Question What percentage of total software deployed across organization's PCs and servers (considering all operating systems) is installed through centralized sources or through a controlled distribution environment? Supporting Document: List of approved deployment software and users with deployment records access. Basic Software is deployed by end-users in distributed locations and is not controlled by centralized IT. Objectives To Become Standardized Software deployments are controlled through policies established by centralized IT, and only approved software is deployed. Objectives To Become Rationalized Software deployment summary reports and records are accessible to Procurement and other organizational stakeholders (i.e. IT Operations, End-users, Legal, HR, CIO) through approved usage rights. Objectives To Become Dynamic Software is dynamically available to users when needed in a JIT basis similar to software as a service.

17. Optimization Model: Retirement Process Competency Question What percentage of retired hardware assets are tracked in a way to enable the software on them to be reused? Supporting Document: Evidence that retired assets and software licenses are tracked centrally & added back to entitlement inventories for reuse. Basic Software that is installed on machines is disposed of with the hardware asset, and licenses are not tracked. There is no organized retirement process. Un-utilized software is not tracked and reassigned. No IT asset retirement policy or procedure is documented. Objectives To Become Standardized Upon retirement of hardware, installed software on retired assets is tracked within a centrally controlled inventory. Objectives To Become Rationalized Upon retirement of hardware, installed software on retired assets is tracked within a centrally controlled inventory; deployment and license records are updated and license entitlements are available for re-use. Objectives To Become Dynamic Software deployments have been optimized to minimize any duplication of software. Upon retirement of hardware, a comprehensive process is automated to ensure that once flagged for disposal, installed software is recorded and licenses are tracked and controlled centrally.

18. SAM Optimization Review Methodology

19. SAM Optimization Review Overview Infrastructure Analysis SAM Discussions This SAM Optimization Review is best executed in the context of a project with the customer. As seen to the left, the main phases of the SAM Optimization Review are the Infrastructure Analysis, SAM Discussions, and Optimization Planning. These phases are kicked off with Coordination and Planning discussions and as the review progresses standard Project Management tools such as status reporting will be delivered. The project timeline varies according to resource constraints and turn around times. Optimization and Planning

20. Example Milestones and Documents SAM Discussions Infrastructure Analysis Optimization and Planning Infrastructure Group SAM Survey Customer Facing SAM Workshop Communication SAM Optimization Analysis Optimization Value Analysis IO Questionnaire SAM IO Work Paper SAM Partner Planning and Coordination Onsite Discussions Reporting and Next Steps

21. SAM Optimization Review Fieldwork: Infrastructure Analysis Infrastructure Analysis SAM Discussions Optimization and Planning Infrastructure Analysis: • Microsoft Partners will discuss the organizations infrastructure with the key stakeholders and review the information Microsoft Infrastructure Optimization questions with the organization. • Refer to Infrastructure Optimization Questions document in Appendix A.

22. SAM Optimization Review Fieldwork: SAM Discussions Infrastructure Analysis SAM Discussions Optimization and Planning • SAM Discussion: • Discussion questions may be sent to the company prior to the workshop for review and preparation. • The workshop process is iterative and may be customized based on the company’s environment. • During the workshop Microsoft Partner will lead with open-ended questions to gain an understanding of the current state of the company’s SAM. • Results recorded in the SAM Optimization workbook. • Refer to the SAM Optimization Work Paper in Appendix B.

23. SAM Optimization Review: Optimization and Planning Infrastructure Analysis SAM Discussions Optimization and Planning Optimization and Planning: • Microsoft partners will discuss initial observations with customer in order to develop customized deliverables that are strategically aligned with the customer’s priorities. • Microsoft partner may analyze the information from the onsite discussions and deliver a: • SAM Optimization Analysis • Optimization Value Analysis • Descriptions of the deliverables are available in the next section of this presentation and examples can be found in the appendix.

24. Sample Follow On Projects • Basic to Standard Implementation • Competitive Value Book • Deployment Entitlement Reconciliation • … • …

25. SAM Optimization Review Deliverables

26. SAM Optimization Analysis The SAM Optimization Analysis is Microsoft Partner’s primary deliverable at the completion of the SAM Optimization Review. An example report may follow the outline seen to the right and provides the company with analysis based on the discussions regarding their SAM position and the company’s future goal for SAM maturity. In the SAM Optimization Review, Microsoft Partner provides summary information for each competency, specific observations and subsequent recommendations.

27. Analysis Deliverable #1 – Example Output Sent to Microsoft

28. SAM Improvement Plan Accuracy of Inventory Retirement Process Deliverable # 1: SAM Optimization Analysis SAM Component Assessment for Company Microsoft's Partner has considered the components of SAM and has ranked their maturity across the four levels. Results indicate that a majority of Company’s SAM components are of the standardized level. The following slides present a breakdown of our findings across People, Process, and Technology. SAM throughout Organization License Entitlement Records Periodic Evaluation Hardware & Software Inventory Acquisition Process Deployment Process SAM Operations/ Mgmt Interfaces Basic Standardized Rationalized Dynamic

29. Basic Standardized Dynamic Rationalized SAM Throughout Organization Project Manager assigned but SAM roles and responsibilities not defined. Direct SAM responsibility is identified throughout organization. Each functional group actively manages SAM. SAM responsibilities defined in job descriptions across organization. SAM Improvement Plan SAM goals part of executive scorecard; reviewed regularly. No SAM development or communication plan. SAM plan is defined and approved. SAM Improvement is demonstrated. Hardware and Software Inventory No centralized inventory or < 68% assets in central inventory. > 68% - 95% of Hardware and Software in Inventory. > 95% -98% of Hardware and Software in Inventory. 99%+ - Asset inventories reconciled dynamically. Accuracy of Inventory Dynamic discovery tools provide near real-time deployment details. Manual inventory; no discover tools. Inventory sources reconciled annually. Inventory sources reconciled quarterly. License Entitlement Records Procurement manages contracts; not accessed by IT managers. Complete entitlement records exist across organization. Entitlement records reconciled with vendor records. SAM entitlement system interfaces with vendor entitlement to track usage. Periodic Evaluations IT operations managed on ad-hoc basis. Annual sign-off on SAM reports. Quarterly sign-off on SAM reports. System reconciliations and ITAM report available on demand. SAM not considered part of M&A risk plan and company integration. SAM Operations Mgmt and Interfaces Operations manages federated asset inventory. All business units, etc. follow the same strategy, process, and technology for SAM. Operations manages separate asset inventories. Assets purchased on a per project basis; without a review of current availability. Software purchases based on deployment/entitlement reconciliation. All purchases are made using a pre-defined asset catalogue; based on metered usage. Acquisition Processes Software purchases use approved vendors. Assets deployed by end-users in distributed locations; no centralized IT. Software deployment reports are accessible to stakeholders. Software is dynamically available to users on demand. Deployment Processes Only approved software is deployed. Upon retirement, a comprehensive process is automated. Software retirement is tracked. Retired software is reused. Retirement Processes No organized retirement process. Deliverable # 1: SAM Optimization Analysis – Future State

30. Deliverable # 2: Optimization Value Analysis (Optional) Value Analysis for Customer SAM Optimization • SAM Partner Supplied • Based on Present State Analysis findings • Format is flexible • SAM Partner specified • Customer appropriate

31. Appendix : Example Deliverables and Templates

32. Appendix