Advisory Services Risk Management Services IP Risk and Compliance Management
Are you in
Control? Many organisations are still not aware of how unmanaged software assets can result in significant unplanned costs (or unrealised savings).
Are you in control of your software infrastructure? Do you think these controls are adequate? Are you confident that your organisation would be able to successfully navigate an unexpected software compliance review? The inability to report software allocation in compliance with vendor regulations is increasingly becoming a challenge for many organisations. In many instances, organisations have been made liable for damages. This issue usually arises due to improper implementation of license agreements, inadequate policies and procedures, undefined cross-departmental processes, lack of software monitoring tools, and the absence of overall software license ownership and accountability. Software vendors are increasingly intensifying their endeavours to confirm deployment figures provided by their clients. However, many organisations are still not aware of how unmanaged software assets can result in significant unplanned costs (or unrealised savings). To address these challenges, organisations need a strong program the set-up and alignment of organisation, processes and infrastructure to effectively manage, control and protect software assets throughout all stages of the software lifecycle. The successful implementation of such a program can lead to greater controls by bringing necessary visibility, lower costs by empowering senior management with adequate data points, license compliance and audit readiness.
How PwC can help How PwC can help
PwC has assisted many organisations to govern there IT systems, designed frameworks for strategic Software investments and assisted in better managing software compliance. We can help you to establish better transparency on your software deployment situation. In order to optimise software costs and ensure compliance with license agreements, we can help develop and introduce mechanisms for efficient control, customised for your organisation and aligned with industry standards.
Steps in the Software Lifecycle
PwCs reference model facilitates impact at every stage of the software lifecycle.
Allocation Software allocation is based on the assessment of specific business requirements, enabling an optimal balance of user needs and software costs. User or group profiles are matched to specific software editions.
Monitoring A centralized database and a corresponding reporting infrastructure provide for full transparency of deployed software. This allows for quick identification of unused installations and for timely intervention before over-deployment. Costly last minute efforts before audits are also avoided. Alignment Removal mechanisms facilitate the cleanup of unused and unauthorized installations and align the install base with actual demand. In case of persisting mismatches between software use and number of licenses, license agreements are adapted according to a specific alignment process.
Business Requirements
Selection Evaluation of product alternatives
Provisioning Introduction of new products
Disposal Cleanup of all systems
Software Lifecycle Management
Monitoring Analysis of deployment and usage
PwC
Approach to Software Lifecycle Management
Our approach typically includes three components. A. Compliance assessment While we develop customised solutions for your organisations, a compliance assessment, typically, consists of the following steps: Understanding company-specific licensing models; Verification of licensing statements for completeness; Assessment of licensing statements for accuracy; Cross-checking with license agreements; and Identification of issues and savings potential. B. Designing framework for software investments We can assist you in: Design of a framework for planned, strategic and evaluated software investments and associated processes; Definition of roles and accountability; Centralised license procurement documents and contracts, and Driving implementation and transition to business as usual. C. Realising savings (achieving quick wins) As we work with you to set up a framework and compliance processes, you will experience quick wins delivered by: Identification of unused licenses and rationalization; and Cost saving by buying from the right source in the right way with good negotiation justifying the business needs.
PwC Experience We have done this before. PwC associates are wellversed on the multi-faceted aspects of Software Licensing. We have also implemented processes based on standards such as ITIL, ISO/IEC 19770. Based on our experience and studies, we have observed significant savings for our customers by: Creating the correct business justifications for software use Evaluating competitive products Identifying the right reseller Having the right data to negotiate Purchasing using best methods (transaction and licensing) Optimizing deployments and usage to meet business needs
Software Licensing Roadmap
Software entitlement Proof of entitlement documentation including: software license agreements, T&Cs, purchasing documentation and license reference material
Business Strategy
Software deployment Inventory of installed applications across server and desktop estate
Current State Software usage Inventory of actual usage of deployed applications including: frequency, user group and geography
Acquisitions or disposals Restructuring of corporate entities or functions Additions or reductions in headcount Outsourcing of operations Moving to a shared service centre IT strategy arrangement Migration to different software platforms or virtualisation Increased or decreased use of software vendor services, consulting or support Adoption of new software products Implementation of standardised applications
Financial drivers Total operating costs Direct cost savings at an item and business level Efficiency savings and value to the business Cost/benefit analysis relating to new business units and acquisitions Tax savings
Future State
Non-financial drivers
Dependent hardware inventory Inventory of hardware assets that contribute to licensing calculations
Ease of implementation, from deployment to individual training Global coverage and consistent policies Regulatory compliance and remediation Ease of periodic gap analyses to determine policy effectiveness Short- and long-term objectives
Our experience in working with organisations demonstrates that Effective establishment of software lifecycle management controls translate into both operational efficiencies and strategic financial gains. Operationally licensing of software would align to its lifecycle. Financially the total cost of ownership of your organisations software infrastructure shall be optimised. From an operational perspective, Software License Management (SLM) will align the licensing of your software to its lifecycle. Financially, SLM will help to optimise your organisations software costs.
Supratik Chandra +91 99990 55524
supratik.chandra@in.pwc.com
Prashant Mehendru +91 98101 44387
prashant.mehendru@in.pwc.com
Without SLM Software (installed vs. licensed) Under- licensing Software install base Unused installations Used installations Time Over- licensing Software licenses
With SLM Software (installed vs. licensed) Reduced costs and risks
Cost reduction
Time
Through PwCs independent approach we can help you to: Effectively manage and mitigate risks from any non-compliance; Initiate processes and guidelines to work on the path of only strategic investment and reducing risks of unplanned investments; Rationalise spend vs. return on strategic investments; Control cost in case of with contract renewals and maintenance; Save costs through rationalising structured reporting of procurement, deployment and retirement of software; Centralise documents and contracts with respect to license procurements; Identify bottlenecks and leakages due to delay or over deployments or over buying; and Make budgets and spends on software visible to the CFO and CIO. 2012 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Private Limited (a limited liability company in India), which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity.
