Balram Pandey, EY

How to build eye opening and convincing business case for SAM?
Today’s topics
• About this presentation
• What is SAM?
• Business case – what and why?
• Approach to a business case
• Outline of a roadmap
• Final thoughts
• Q&A
Short introduction
• Balram Pandey
• Technology Consultant @ EY
• 25+ years of industry experience
• Local and global roles
• Practitioner of multiple industry best practices
• Pragmatic thought leader!
What does this PPT cover and does not cover?

Two environments - Servers and End-Users Cloud & DevOps environments

Provides approach to create a business case It is not a business case
Numbers and values are based on industry License types and metrics
recommendations
Can be refined for a specific need
What is SAM?

ITIL definition of SAM: Goal of SAM is to reduce information

technology (IT) costs and limit
…all of the infrastructure and business and legal risk related to the
processes necessary for the effective ownership and use of software, while
management, control and protection maximizing IT responsiveness and
of the software assets… throughout end-user productivity.
all stages of their lifecycle.
What about business insights in a
broader context?
What is a business case and why we need one?

What is a business case? Why is it needed?

A formal justification of the value A rational and effective means to

achieved by investing in SAM prioritize investments, set “value”
transformation expectations and evaluate
achievement
 Eye opening numbers
Savings Savings Savings Savings
identified realized identified identified
Software
contract value $4M $2+M
~$11M ~$30M
$22M
Canadian Global company
company with with 200K+
$6M $6M
40K+ employees employees

Risk avoidance Avoidance

identified realized
 Approach to create a business case

1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI
 Approach to create a business case
1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI

✦ Cost Saving or Avoidance?

✦ Vulnerability and Security Reliable and trustworthy asset
✦ Audits and Compliance data provide valuable insights
✦ Application Rationalization
 Approach to create a business case
1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI

✦ End-user software usage

✦ End-user software spend and growth
✦ Server software usage
✦ Server software spend and growth
 Approach to create a business case
1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI

✦ Audits (frequency, effort)

✦ Compliance/Security breaches
✦ Resource/manual effort
✦ Product support activities
 Approach to create a business case
1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI

Cost of a Software Asset Management tool ✦

✦ SAM as a
Cost of operating model design and implementation ✦
Service
Cost of day-to-day operation ✦
 Approach to create a business case
1 2 3 4 5
Collect Collect Develop
Know Your Determine
Tangible Intangible Roadmap and
Need(s) Costs
Data Data Calculate ROI

Prioritize products / vendors ✦

Develop multi-year roadmap ✦
Calculate annual costs ✦
Calculate annual benefits ✦
 Outline of a roadmap
Year 1 Year 2 Year 3 Scope
Server Vendor: IBM, Oracle; Geography: All
Software Vendor: Microsoft; Geography: All

End-User Vendor: Microsoft; Geography: All

Software Vendor: Adobe; Geography: All
Capabilities • Catalog, Request • Extend capabilities • Extend capabilities
/ Functions • Effective License Position • Add - procurement, • Add - deployment,
• CMDB integration change integration metering, harvesting
• Recurring: $ • Recurring: $ • Recurring: $
Costs • One-time: $ • One-time: $ • One-time: $
• Total: $$ • Total: $$ • Total: $$
• Hard $ (saving) • Hard $ (saving) • Hard $ (saving)
Benefits • Soft $ (avoidance) • Soft $ (avoidance) • Soft $ (avoidance)
• Risk reduction • Risk reduction • Risk reduction
Final thoughts

Get a vendor to collect consumption data and estimate costs

Do not boil the ocean, start small and show benefits
Stay focused!
Questions?

Thank you
very much for
listening!

Contact:
[email protected]