Getting in trouble in the jungle of licenses

Have you ever thought about the fact that, almost without exceptions, organizations have far more money in their licenses than in hardware? Despite this fact, software assets are not carefully being taken care of in organizations. As the IT environment is changing rapidly, data amounts are increasing and cloud services becoming more and more popular, license management has become no doubt more challenging.

Software Asset Management is particularly challenging in server environment. Usually organizations are unfamiliar with the license terms, and license terms that are constantly changing won´t make it much easier. In addition to the correct tools, license management requires knowledge and experience.

I claim that especially larger organizations take a needless risk and lose a lot of money if they try to manage their licenses by themselves. Furthermore, it’s not very sensible when thinking about business development. The bigger the organization, the bigger the risks.

Too much or too little?

We have been observing and examining the IT environments of various organizations, and have noticed that up to 80 % of the companies have for example IBM products which have been either under or over licensed. We have even detected software thserversat is active in production although should have actually been uninstalled.

Under-licensing includes a risk in breaking license contract terms. If the contract terms are not met, it can end up in massive costs for the organization if and when the software vendor conducts auditions. Finnish companies for example usually follow the contract terms strictly and violations are not made consciously, it happens more without noticing. The issue is that the license amount simply don’t cover the required amount that for example the server capacity needs. Another problematic example is virtual environments in which optimizing the correct amount of licenses is challenging and there are more different factors having an effect on the correct number of licenses.

Besides the cost savings our customers gain peace of mind when using our ILMT* service, which is specifically designed for this kind of license optimization. Choosing ILMT* service, we will take care of the IBM License Metric Tool installation, reporting and also the possible trouble occasions.

When acquiring new servers, organizations usually have the licenses up to date. The problems start when making changes in the environment or for example buying new hardware without paying enough attention to the licenses. Whatever the industry, the changing cycle regarding to IT architectures is becoming shorter all the time, and licensing craves more effort. Concentrating license acquisitions and co-operating with an experienced reseller, like COMPAREX, it is easier to avoid problematic situations.

So far have we never met an organization with all licenses being optimized. Approvements will no doubt be found in every environment. Most of our customers are surprised when their environment has been observed profoundly with the appropriate tools and, first and foremost, with the help of an experienced license specialist, who has the deep knowledge of license and contract terms of different vendors.

Cost savings, big time

According to research company Gartner, optimizing and effectively managing licenses will create 20-30 % cost savings. This is a noticeable benefit. Software asset management is important to all companies, but the benefits increase as the company size and complexity are increasing. The savings are easily hundred of thousand euros and in large enterprises even millions a year. What’s more, the costs of the traditional “On-Premise” licenses are increasing and companies weigh an option to replace them by cloud environments. This means new aspects to consider when thinking about software asset management.

With our help, our customers have gained significant cost savings. In addition to the financial savings, our services also save time and work load in managing licenses. Our customers can now use their time in more productive tasks and development to the fullest. Why use the precious time dwelling on the mess-up of license and contraction terms? There are several tools available for license management, but the tool itself is not enough to create an optimized license environment. Experience and knowledge are crucial, as well as comprehensive services. Updating, acquiring and managing licenses will run much more smoothly with the help of a professional.

The value of a professional service has been taken into account in companies, since more and more organizations are interested in taking control of their licenses. Our service in COMPAREX includes typically the tools, tool maintenance and services from an experienced specialist. We offer our customers transparency and cost savings, not to mention the peace of mind, in their projects.

Time is important. The Finnish landing page:
Our ILMT -webinar recordings in English and Finnish are available here.

*) IBM License Metric Tool (ILMT) is a mandatory cost free tool provided by IBM for its customers. More information can be found from IBM Passport Advantage 

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