This vendor-written tech primer has been edited by Network World to eliminate product promotion, but readers should note it will likely favor the submitter's approach.
Software asset management (SAM) covers a complex cross section of IT and business and can pose an integration problem between IT, purchasing and finance. For this reason the focal point of license management is transparency. And consistent transparency can only be realized through consistent data quality management.
In order to achieve this it's necessary to gradually expand the coverage of data collection while also keeping the existing data up to date, and in doing so the most diverse process steps must be followed.
Data gathering challenges
Over the last decade organizations in all industries have been consolidating data centers. As data centers are merged and centralized, some enterprises choose to outsource management of operations. Unfortunately, responsibility for license management has never been part of these outsourcing agreements, which results in negligent software cost management, and possibly compliance and legal trouble.
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Not surprisingly, the enterprises that favor outsourcing also release a good portion of their in-house IT professionals that were in charge of managing the different data centers. Suddenly nobody knows the answer to simple questions like, "How many servers are running Oracle Database and which services are using these?"
The IT environment in any large organization contains various platforms, from Windows and Linux/Unix to terminal servers, virtual servers and virtual clients. This means, on the one hand, you have to gather technical data across numerous platforms and, on the other hand, the more software your company uses the more and different data must be gathered to manage licenses.
Further complicating SAM is the fact that, although software vendors are gradually modifying their license metrics to accommodate virtual environments (e.g. cloud), the management tools have not yet adapted to the changes.
Ten years ago the majority of software was licensed on a per-installation, per-device, or per-user price model. Any tool that could discover software installations and/or devices could theoretically provide the necessary data to manage licenses. This is definitely no longer the case and processes are required to close the gap between today's software license models and the tools gathering data.
What is quality data?
Quality data is having all the information you need when you need it. The three basic criteria to determine quality are: completeness, consistency and timeliness.
Data completeness in license management is three-dimensional. It requires having a) full organizational data (legal entities, cost centers, users); b) tools to gather data on each platform, and c) comprehensive device data. The data is not complete if you need device information on a Unix server, but only have tools to gather data on Windows servers. If you need to know the number of CPUs on a device, but the asset inventory report does not have this, then you need to find a data source that does record this information and combine it with the other data you have.
Consistency draws on the reliability of the data. If device "SRV004" is recorded in your CMDB, then you should also find "SRV004" in your discovery data. If this is not the case, your data is not consistent. Similarly, if "SRV004" is marked in the CMDB as having four cores, then the scan data should provide the same information. Expected results vs. delivered results are a key factor to determine data consistency. If you expect 3,000 servers to be inventoried and only 1,500 show up in the data, then you have a consistency problem.
Quality data is up-to-date and on time. Having 80% of the data for all software in the organization all time is useless when you need 100% of the data for just one product. For example, your company needs to negotiate new purchase conditions with a software publisher. In order to complete this task you need information about all software and licenses in the organization from this publisher. Without this data your company is entering the negotiations blind. In other words: If the data is not current and available at the time you need it, then the quality is terrible.
Measuring SAM data quality
The key performance indicator (KPI) expected vs. delivered certainty rate is a proven method to measure data quality and progress.
This KPI is calculated based on data completeness and consistency. In the example below, the graph shows the data quality certainty rate for Oracle Database software in two legal entities. Completeness is determined by the data containing all relevant values for managing Oracle Database license metrics:
1. Completeness of devices: Legal Entity 1 should have 980 devices. However, as marked under "Delivered," only complete data on 400 devices is provided, meaning only 41% of device data is available.
2. Completeness of software: Of the 400 devices with complete data, only 200 of them (50%) have complete software data, or rather all relevant software information (product, version, edition, etc.) necessary to manage Oracle Database licenses.
3. Signed off: Of the 200 devices with complete device and software data, the person responsible for the devices could validate that 100 of them have consistent data.
4. Certainty: Combining these factors the final data quality certainty rate for Legal Entity 1 at the end of week one is very low: 10%. Legal Entity 2 has a data quality certainty rate of 60% at the end of week one; the organization overall is 35%.
The target for data quality certainty is determined by the risk avoidance factor commonly stated in the software purchase agreement as part of the audit clause. The greater part of vendors requires a 95% risk avoidance rate, and therefore, in our example, our target certainty rate is 95%.
A very important aspect of defending your company during an audit is not only to show compliance, but to prove that the underlying data is of high quality so the compliance results can be trusted. In this case, if the organization were to be audited by Oracle, it would not only have a difficult time to show compliance, but assuring Oracle that the data is reliable would be nearly impossible.
Effective SAM relies on the information provided, and is therefore driven by data management. The majority of organizations already have the necessary tools in place to act as data sources for SAM. For this reason, your SAM solution provider should work with you to improve the return on investment for these tools, by adapting and improving existing processes to account for the limitations and to enable higher quality data.
The process mistake most organizations make is to first purchase the software licenses, install the software, and then try to gather the necessary data. This process needs to be turned upside-down: Once a need for new software is established but before the licenses are purchased IT needs to determine how it can manage the software. If an organization does not have a reliable method to track devices, then it should definitely not purchase licenses with a device or installation-based price model. The same software could be licensed through a different price model, or the organization could discuss different metric options with the vendor. What SAM comes down to is: Don't buy it unless you can "count" it!