The document discusses how software usage metering can help enterprises optimize costs by identifying unused software licenses and inefficient IT spending. It provides examples of how usage metering data can help answer key questions to restructure license agreements and reallocate spending. The software vendor OpeniT offers a usage metering tool that generates insights to lower software and IT costs through rightsizing, standardizing procurement, and automating license harvesting.

1. Drive Cost Optimization for your Enterprise
with Software Usage Metering
Jim Muckle, Account Executive
jmuckle@openit.com
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2. Traditional Way of Cutting Costs...
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3. Do you know…
How much of your
budget is spent
on software and
hardware that is
not being effectively
used?
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4. What are your firm’s five (5) most important corporate business
priorities over the next 12 months?
Grow overall company revenue 65%
Lower the firm’s overall operating costs 57%
Acquire and retain customers 51%
Improve quality of products and/or processes 42%
Improve workforce productivity 41%
Improve our ability to innovate as an organization 36%
Drive new market offerings or business practices 32%
Improve business flexibility and resilience: faster time-to-… 28%
Expand into new geographic markets 26%
Comply with government regulations and requirements 24%
Re-engineer core business processes 21%
Improve overall corporate governance and performance… 21%
Improve our ability to collaborate outside the walls of the … 19%
Improve corporate environmental sustainability and… 13%
Other priority 1%
Base: 2741 North American, European, Asia Pacific, and Latin American IT budget decision-makers
Copyright OpeniT, Inc. All rights reserved Source: Forrsights Budgets and Priorities Tracker Survey, Q2 2011 3

5. Top priority for IT: Improving IT Efficiency
“Which of the following initiatives are likely to be your IT organization’s top IT management
priorities over the next 12 months?”
High priority Critical priority
Improve the efficiency of IT 50% 31%
Improve or streamline business processes 48% 29%
Improve our customer management capabilities 49% 27%
Increase IT capacity/resources to drive
48% 27%
business innovations
Increase the scope of IT's centralized or shared
47% 23%
services
Improve the measurement of IT's impact on
47% 22%
business performance
Define strategy for risk and compliance 47% 21%
Expand eBusiness or Internet initiatives 38% 23%
Improve the sustainability and energy efficiency
40% 15%
of IT operations and infrastructure
Market the IT department within the firm 38% 13%
Improve IT performance by adopting processes
36% 13%
like CMM or ITIL
Base: 2,803 IT executives and technology decision-makers from companies worldwide with 100 or more
employees, selecting “high” or “critical” priority to the above initiatives
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6. Inefficient IT is a waste of CAPEX and OPEX
CAPEX OPEX
 Overprovisioning  Low IT asset-to-IT admin ratios
 Low utilization  Poor operational best practices
 Unnecessary redundancies  Lack of policy enforcement
 Misallocation of resources  Lack of energy management
 Misallocation of devices  Inadequate skills
 Poor needs assessment  Inadequate system management
 Overly conservative
 Inadequate capacity planning
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7. Key to IT Optimization
• Standardize the justification process for new IT investments
– Based on measurable IT usage data
– Document how assets have been used over time
– Cut waste
– Document shortages
• Do not let politics be the enemy of a sound investment decision
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8. Get Insight Into How your Company is Using IT Resources
• Multiple views provide
critical insight:
– By business unit/ location
– By application/ application
suites
– By users/User-group
– By fixed vs. variable costs
– By vendor
– By project
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9. Back up Software License Agreements with Usage Data
• Server-based, CPU, or core-based licensing
– Licenses for each eligible server, CPU, or core
• Named-user licensing
– One license for each named person that has access
• Concurrent licensing
– Licenses shared among users
• Enterprise licensing
– Open-ended or high number of
licenses to cover global enterprise
• Actual-use licensing
– Paying license fees for actual use
• A combination of the above
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10. Create a Global Hub for Usage data
Copyright OpeniT, Inc. All rights reserved
Open iT, Inc. All rights reserved.
9

11. What customers say…
“$ 1.35 Million in documented first year savings.”
“47% annual savings on our engineering applications.”
“10 % cost reduction on overall software licenses.”
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12. Burlington Resources
Cost of Savings over $5 Million
-36% software maintenance cost (Year 1)
-19% software maintenance cost (Year 2)
-3%
software maintenance cost (Year 3)
Y0 Actual Y1 Actual Y2 Actual Y3 Actual
Maintenance New Software
Usage metering tool used: OpeniT
Copyright OpeniT, Inc. All rights reserved . 22

13. Framework for Incorporating Usage Data into Decision Making
Analysis
Modeling
Integration
Degree of
Interaction
with the
Usage Data
Question:
Monitoring at the Beyond:
License Manager Level
What’s the difference between CPU
Monitoring
the # of licenses we purchased
- Start/stop metering DB
& &Feature by feature
Reporting
- the # of licenses actually
- License Manager
being checked out?
Server by server Application Network
(Server) (Desktop) Storage
Spectrum of Sources for Usage Data
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14. Get Answers
Question:
Monitoring What’s the difference between
the # of licenses we purchased
& Reporting & the # of licenses actually
being checked out?
License Manager
(Server)
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15. Customizable Reporting
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16. Framework for Incorporating Usage Data into Decision Making
Question: Question: the Client
Monitoring
(Application Location)
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
- CPU, I/O, mouse/keyboard
& Reporting the # of licenses being checked out &and executables actually
- DLL the # of licenses
out? being used?
- Active vs. Inactive use
License Manager Application
(Server) (Desktop)
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17. Get Answers
Question: Question:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
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18. We Quantify whatthein Use
Help you Harvest is Savings
Max available (290)
35 licenses @ $30,000 = $1,050,000 { Max total concurrent (265)
115 licenses @ $30,000
= $3,450,000
Max active concurrent (150)
Copyright OpeniT, Inc. All rights reserved
Open iT, Inc. All rights reserved. 14

19. Framework for Incorporating Usage Data into Decision Making
Question:
Modeling How can we best restructure or
(Higher Level remix our license agreements
with our software vendors?
Analysis)
Question: Question:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
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20. Get Answers
Question:
Modeling How can we best restructure or
(Higher Level remix our license agreements
with our software vendors?
Analysis)
Question: Question:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
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21. Application Dashboards
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22. Framework for Incorporating Usage Data into Decision Making
Establish: Establish:
Modeling How can we best restructure or How can we establish and
(Higher Level remix our license agreements configure a rules-based
with our software vendors? framework to actively recapture
Analysis) licenses based on actual usage ?
Resolve: Resolve:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
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23. Framework for Incorporating Usage Data into Decision Making
Establish: Establish:
Modeling How can we best restructure or How can we establish and
(Higher Level remix our license agreements configure a rules-based
with our software vendors? framework to actively recapture
Analysis) licenses and support change
back?
Resolve: Resolve:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
Copyright OpeniT, Inc. All rights reserved 17

24. Automated License Harvesting
Copyright OpeniT, Inc. All rights reserved
Open iT, Inc. All rights reserved. 18

25. Framework for Incorporating Usage Data into Decision Making
Establish: Establish:
Modeling How can we best restructure or How can we establish and
(Higher Level remix our license agreements configure a rules-based
with our software vendors? framework to actively recapture
Analysis) licenses and support change
back?
Resolve: Resolve:
Monitoring What’s the difference between What’s the difference between
the # of licenses purchased & the # of licenses being checked
& Reporting the # of licenses being checked out & the # of licenses actually
out? being used?
License Manager Application
(Server) (Desktop)
Copyright OpeniT, Inc. All rights reserved 19

26. You can be a hero in your organization!
“$ 1.35 Million in documented first year savings.”
“47% annual savings on our engineering applications.”
“10 % cost reduction on overall software licenses.”
Copyright OpeniT, Inc. All rights reserved 21

27. OpeniT Company
• OpeniT is an independent software vendor with offices in North
America, Europe and Asia. Financially solid, debt-free.
• OpeniT meters the usage of software applications and licenses, with
functionality for globally deployed, dynamic use models including
concurrent licensing and pay-per-use agreements. Meters also
hardware usage to support optimization and usage based charge-
back models.
• Key business value includes: Harvesting Unused Licenses, Cost
Optimizing for IT Procurement & Operations, Increasing User
Productivity, Prepare for Migration to the Cloud.
• Key industry segments:
Energy/Oil&Gas, Aerospace/Defense, Automotive
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28. THANK YOU!
Jim Muckle jmuckle@openit.com
WWW.OPENIT.COM
Copyright OpeniT, Inc. All rights reserved