Software License Management Study Guide

International Business Software Managers Association Software License management Study Guide

OVERVIEW

At last, an introduction to the basics of software asset management (SAM) and software license management (SLM) for a wide-ranging audience! Based on our popular PCSLM course, this comprehensive guide is written in uncomplicated English and allows you to cover the course material at your own pace.

Organizations of all sizes and industries around the world have a need to The Study Guide manage software licenses proficiently. In fact, today the wide variety of is organized into individuals involved in IT service management—and even many non-IT seven chapters: staff—would benefit from a solid foundation in effective software license management practices. 1 Auditing and Compliance Basics 2 Licensing Overview What you’ll take away

3 Assessing Your SAM Learn practical tips and best practices. Proficiency Apply concepts to your work by completing the self-assessment exercises. 4 Tools and Technology Review illustrations, graphics and key terms in each chapter to 5 Making the Business understand how concepts relate and summarize main points. Case

6 External Audits Prepare to take the Practitioner Certificate in Software License Management (PCSLM) exam as well as administer an SLM program 7 Self-Audits at your company.

Through this guide you’ll learn practical tips and best practices for software license management that can be applied to your organization right away. We show many examples of SLM in practice to illustrate how, when successfully executed, SLM is a good business investment. The case studies also show how professionals who implement SLM best practices have thoroughly incorporated a “culture of compliance” in their workplace.

The guide’s self-assessment exercises enable you to apply each chapter’s concepts to your work environment. Illustrations and graphics show how concepts relate and summarize main points. There is also a handy list of key terms in the front of each chapter. You’ll find that the practice exercises enable you to figure out the best way to handle everyday SLM situations. We also provide the answers! International Business Software Managers Association Software License management Study Guide

Who should use this guide

IT service and software management pros at any size organization involved in the following areas: • Software or hardware inventory (whether automated or manual) • Purchasing • Technical support • Contract management • Legal • Compliance or internal audit

Plus, non-IT staff including business unit managers, project managers and administrative and support staff involved in acquiring, approving or distributing software, should also understand the essential elements of software license management and would benefit from this guide.

Certificate exam Practitioner Certificate in Software License Management Exam (PCSLM)

When you complete the study guide and exercises, you’ll be prepared to take the PCSLM exam as well as administer an SLM program at your company. The multiple-choice exam can be completed it in about one hour. Your exam will be scored and, if you pass, you’ll receive a certificate of completion.

Costs and how to order

The study guide is available in PDF format for $195. The exam fee is $150. Quantity discounts are offered. For more information Order the guide and exam online at visit IBSMA.com IBSMA.com/publications.html or call IBSMA at 1.734.930.1925.

IBSMA 400 North First Street | Ann Arbor, Michigan 48103 U.S.A. | O 1.734.930.1925 | F 1.734.930.2316 SAMPLE

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Software License managementCOPY Study Guide

International Business Software Managers Association SAMPLE

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SAMPLEContents

Introduction ...... 1 About this guide ...... 1 Who should use this guide...... 2 How to use this guide ...... 2 The main topics...... 2 How each chapter is organized...... 3 Other resources and help...... 3

1 Auditing and Compliance Basics ...... 5 The basics ...... 5 Key terms...... 6 Overview and objectives ...... 6 The starting point: Software license management terms ...... 7 Software compliance audits ...... 8 Motivations for compliance audits ...... 12 Testing your knowledge of compliance audits ...... 14 The self-audit...... 15 Getting audit-ready ...... 16 Case studyCOPY: Optimized license management...... 19 Study questions, review and exercises ...... 21

2 Software License Agreements: Terms, Types and Negotiation Tips ...... 25 The basics ...... 25 Key terms...... 26 Overview and objectives ...... 26 Proof of license ...... 27 Classifying licenses ...... 28 Quick self-check of licenses...... 33 Nine negotiation considerations ...... 34 Case study: Remixable license pools...... 44 Study questions, review and exercises...... 45

 Software License Management Study Guide

3 Assessing Your SAM Proficiency ...... 51 The basics ...... 51 Overview and objectives ...... 52 Key terms ...... 52 Embarking on a SAM self-assessment ...... 53 SAMPLEThe foundation: Six SAM process areas...... 54 Investigating your SAM processes ...... 56 Quiz: Applying ISO/IEC 19770-1...... 57 Starting a self-assessment...... 59 Case study: Conducting a self-assessment...... 62 Study questions, review and exercises ...... 64

4 Tools and Technology...... 71 The basics ...... 71 Key terms...... 72 Overview and objectives ...... 72 Criteria and constraints for tool selection ...... 73 Exercise: Identify your criteria for tool selection...... 75 Point, combined and suite solutions...... 76 Factors in selecting tools ...... 78 Mapping functions to standard process areas...... 81 Four performance priorities ...... 83 Integration ...... 84 Case study: Planning for a technology overhaul...... 85 Study questions, review and exercises...... 86 5 Making the BusinessCOPY Case: ROI ...... 91 The basics ...... 91 Overview and objectives ...... 92 Key terms...... 92 Business case basics...... 92 Developing the ROI-centric business case ...... 95 Respond to objections ...... 104 Bringing it all together: Sample business case ...... 105 Case study 1: Reporting return on investment ...... 107 Case study 2: Calculating ROI & starting an SLM program. . . . .108 Study questions, review and exercises...... 110

vi Contents

6 Managing External Audits ...... 121 The basics ...... 121 Overview and objectives ...... 122 Key terms...... 122 The auditors...... 122 SAMPLEOverview of the audit process ...... 124 Compliance review...... 125 How to handle an audit...... 125 Exercise: Determine your audit readiness...... 128 Commanding compliance ...... 129 Be honest, not defensive ...... 129 Case study: Cashing in on compliance...... 132 Study questions, review and exercises...... 136

7 Self-Audits ...... 143 The basics ...... 143 Standards and frameworks ...... 143 Overview and objectives ...... 144 Key terms...... 144 Exercise: Which would you use?...... 149 Establishing the control environment...... 150 Communicate and educate ...... 150 Self-audit execution...... 151 Case Study: Optimized software license management ...... 156 Study questions, review and exercises...... 159 Index...... COPY . .171

vii

Software License Management Study Guide

SAMPLEContents in Detail Introduction ...... 1 About this guide ...... 1 Who should use this guide...... 2 How to use this guide ...... 2 The main topics...... 2 How each chapter is organized...... 3 Other resources and help...... 3

1 Auditing and Compliance Basics ...... 5 The basics ...... 5 Key terms...... 6 Overview and objectives ...... 6 The starting point: Software license management terms ...... 7 Software asset management (SAM)...... 7 License compliance...... 7 License type...... 8 Software compliance audits ...... 8 Digging deeper into external audits ...... 9 Details on auditors...... 10 Publishers . .COPY ...... 10 Third parties...... 11 Motivations for compliance audits ...... 12 The cost of piracy...... 12 Reports of noncompliance...... 12 Random checks and other motives...... 12 Testing your knowledge of compliance audits ...... 14 The self-audit...... 15 Stakeholders ...... 15 Getting audit-ready ...... 16 Risk control ...... 16 Cost control ...... 17 Competitive advantage ...... 18 Case study: Optimized license management...... 19 Case study review questions ...... 21 Vocabulary quiz...... 22

viii Contents in detail SAMPLE

Exercise: Are you audit-ready? ...... 23 Answers and guidance ...... 24

2 Software License Agreements: Terms, Types and Negotiation Tips ...... 25 The basics ...... 25 Key terms...... 26 Overview and objectives ...... 26 Proof of license ...... 27 Classifying licenses ...... 28 Licenses by product type ...... 28 Evaluation...... 28 Sales channel...... 29 Upgrades and downgrades...... 29 Licenses by duration ...... 30 Licenses by metric ...... 30 Quick self-check of licenses...... 33 Nine negotiation considerations ...... 34 1. What software are you buying? What services does it include?...... 34 2. What product use rights come with the software?...... COPY. . . 35 3. When will you pay?...... 36 4. How much does the software cost now? ...... 37 5. How much might the software cost later?...... 38 6. How is a contract dispute or variance handled?...... 39 7. What happens if the relationship ends or changes significantly?...... 40 8. What common terms, or boilerplate, define the legal agreement?...... 41 9. What constitutes acceptance of customized software? Who will support/control the customizations?...... 41 Case study: Remixable license pools...... 44 Case study review questions...... 45 Vocabulary quiz...... 46 Exercise: Bolster your contracts ...... 47 Exercise: Self-assessment...... 48 Answers and guidance ...... 49

ix Software License Management Study Guide

3 Assessing Your SAM Proficiency ...... 51 The basics ...... 51 Overview and objectives ...... 52 Key terms ...... 52 Embarking on a SAM self-assessment ...... 53 SAMPLEThe foundation: Six SAM process areas...... 54 Organizational management processes...... 55 Core SAM processes ...... 55 Primary process interfaces ...... 55 Investigating your SAM processes ...... 56 Quiz: Applying ISO/IEC 19770-1...... 57 Starting a self-assessment...... 59 Stakeholders and organizational concerns...... 59 Setting the scope ...... 60 Case study: Conducting a self-assessment...... 62 Case study review questions ...... 64 Vocabulary quiz...... 65 Exercise: SAM self-assessment ...... 66 Answers and guidance ...... 70

4 Tools and Technology...... 71 The basics ...... 71 Key terms...... 72 Overview and objectives ...... 72 Criteria and constraints for tool selection ...... 73 Budget ...... 73 Business needs. COPY...... 74 Process maturity...... 74 Exercise: Identify your criteria for tool selection...... 75 Point, combined and suite solutions...... 76 Factors in selecting tools ...... 78 Mapping functions to standard process areas...... 81 Four performance priorities ...... 83 Urgency...... 83 Ease of use...... 83 Security...... 83 Core specialty emphasis ...... 84 Integration ...... 84 Case study: Planning for a technology overhaul...... 85 Case study review questions...... 86

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Vocabulary quiz...... 87 Exercise: Selecting the right tool for you...... 88 Answers and guidance ...... 90

5 Making the Business Case: ROI ...... 91 SAMPLEThe basics ...... 91 Overview and objectives ...... 92 Key terms...... 92 Business case basics...... 92 What is a business case? ...... 92 A five-point approach to business case development...... 93 Management commitment is paramount...... 93 Don’t forget other key stakeholders...... 94 Speak in business language...... 94 The best defense is a good offense...... 94 Success is contagious ...... 94 Developing the ROI-centric business case ...... 95 Establish context...... 95 Align with business objectives...... 96 Calculate ROI ...... 96 Defining exposure ...... 96 ROI in six simple steps...... 97 1. Tabulate software license figures...... 97 2. Calculate per-product exposure...... 98 3. Calculate net exposure ...... 98 4. Calculate benefit...... 100 5. Calculate investment ...... 101 6. Report return on investment ...... 102 Outline implementation alternatives...... 102 Respond to objections ...... COPY . .104 Bringing it all together: Sample business case ...... 105 Case study 1: Reporting return on investment ...... 107 Case study 2: Calculating ROI & starting an SLM program. . . . .108 Vocabulary quiz...... 111 Exercise: Calculate your roi...... 112 Answers and guidance ...... 115

6 Managing External Audits ...... 121 The basics ...... 121 Overview and objectives ...... 122 Key terms...... 122

xi Software License Management Study Guide

The auditors...... 122 Publishers...... 122 Publisher motivations...... 123 Compliance agencies...... 124 Overview of the audit process ...... 124 Notification...... 124 SAMPLECompliance review...... 125 Settlement...... 125 How to handle an audit...... 125 Demanding compliance...... 126 Consider your contracts...... 126 Work with publishers and tool providers...... 126 Keep your own records...... 127 Exercise: Determine your audit readiness...... 128 Commanding compliance ...... 129 Be honest, not defensive ...... 129 Talk with legal...... 130 Circulate nondisclosure agreements...... 130 Know the roles and clarify the methods...... 130 Always negotiate the settlement...... 131 Case study: Cashing in on compliance...... 132 Vocabulary quiz...... 137 Exercise: Preparing for an external audit...... 138 Answers and guidance ...... 142

7 Self-Audits ...... 143 The basics ...... 143 Standards and frameworksCOPY ...... 143 Adding value via conformance, compliance and certification. . . . 143 Overview and objectives ...... 144 Key terms...... 144 Frameworks: COBIT and ITIL...... 145 Standards bodies...... 146 ISO/IEC 19770-1 ...... 148 Exercise: Which would you use?...... 149 Establishing the control environment...... 150 Assess risk...... 150 Change your attitude...... 150 Communicate and educate ...... 150 Self-audit execution...... 151 Plan...... 152 Assemble...... 152

xii Contents in detail

Locate data ...... 152 Collect data ...... 153 Report...... 153 Costs, risks, optimizations and open loops...... 153 Action recommendations...... 155 Case Study: Optimized software license management ...... 156 SAMPLEVocabulary quiz...... 160 Exercise: Executing a self-audit...... 161 Answers and guidance ...... 170

Index...... 171

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xiii SAMPLE

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SAMPLEIntroduction

About this guide

Software license management (SLM) is the active manage- ment and administration of software allocation, deployment, licensing and contractual obligations. License management encompasses managing the risks associated with software license compliance as well as the costs of acquiring software.

In this chapter Software license management is an invaluable IT discipline, although just a few years ago programs dedicated to the field existed only in pockets of the corporate world, at the largest About this guide and most mature organizations. These trailblazing IT depart- ments realized the advantages of maintaining airtight control Who should use this guide over software licenses, to the tune of more favorable contracts with software publishers, enhanced public image, increased infrastructure security and hundreds of thousands—some- How to use the guide times even millions—of dollars in return on investment.

This study guide is designed to help you learn about software The main topics license management as a subcategory of the larger practice of software asset management. When you complete the How each chapter is organized study guide,COPY you will be prepared to take IBSMA’s Practitioners Certificate in Software License Management (PCSLM) exam as Other resources and help well as administer an SLM program at your organization. You will learn the concepts and applications of software license management via various methods, from narratives about SLM to case studies to illustrations. All of these are designed to help you put the concepts and skills into practice as well as answer questions on the exam.

We show many examples of SLM in real-world situations and offer practical tips and best practices that can be applied right away. Each chapter includes a short case study to illustrate how SLM, when successfully applied and implemented, is a good business investment. The case studies also show how the professionals who implement SLM best practices have thoroughly incorporated a “culture of compliance” in their environment.

 Software License Management Study Guide

The self-assessment exercises are a key component of study time into sections. The chapters are logical seg- this guide and enable you to apply each chapter’s con- ments of work. cepts to your work environment. At the end, you will be prepared to take the PCSLM This guide includes several tools to help apply what exam and we recommend you take the exam as soon you learn. Illustrations and graphics show relationships as possible. The exam is offered online, has 30 multiple- SAMPLEof concepts and summarize main points. There is also choice questions and you can complete it in one sitting. a handy list of key terms in the front of each chapter. It takes about one hour. Once your exam is scored and You’ll find that the reviews and exercises in each chap- you pass, you will receive a certificate of completion ter enable you to practice figuring out the best way from the International Business Software Managers to handle the SLM situations that you’re likely to come Association. across in your work. We also provide the answers! When you purchased this book you were offered an opportunity to pre-pay the exam fee. If you did, contact Who should use this guide IBSMA when you’re ready to take the exam. If you did not pre-pay you can register online for the exam at any Organizations of all sizes, industries and nationalities have time at IBSMA.com and pay the exam fee. a need to manage software licenses. For small organiza- tions with fewer than 500 desktop computers and a few servers, typically one person is responsible for software The main topics license management, and it may be just one aspect of his In the first half of this book, we’ll cover the why, what or her job. For larger organizations with upwards of 5,000 and how of software license management: How to com- PCs and many servers, several people may be dedicated bat rising risks and costs from over- and under-licensing to license management or the job could be divided by through stating and meeting basic compliance objec- product or computing platform. tives; and how to negotiate strong software license In fact today, the wide variety of individuals involved in agreements and undertake self-assessments. IT service management—from software or hardware In the second half, we apply this knowledge. We look inventory (whether automated or manual), to purchasing, first at tools for automating software asset management technical support, contract management and legal ser- (SAM), then we detail how to craft a business case to vices—could all benefit from a solid foundation in effec- bringCOPY management onboard with a license manage- tive software management practice. Non-IT staff includ- ment program. We then delve into the action items ing business unit managers, project managers, adminis- that move external audits along and make self-audits trative and support staff involved in acquiring, approving effective. or distributing software should also understand the essential elements of software license management. The study guide is organized into seven chapters: This guide is designed to be the introduction to license 1. Auditing and Compliance Basics management for a broad audience and provide a founda- 2. Licensing Overview tion even for individuals with little technical background. 3. Assessing Your SAM Proficiency We assume, however, that our reader has basic familiarity with business concepts and experience in a commercial, 4. Tools and Technology government or educational work environment. 5. Making the Business Case 6. External Audits How to use this guide 7. Self-Audit

The average reader will need roughly 10 hours to com- The detailed contents section at the beginning of the plete the study guide and all the quizzes and exercises. book, outlines the topics, exercise and case studies You may choose to read straight through or break your included in each chapter (see Contents in Detail, page viii).  Introduction

How each chapter is organized

Each chapter uses the same structure to present the concepts and examples of successful implementation.

To get started, the In This Chapter and the first section introduce you to the main topics. The Overview and SAMPLEObjectives section states specifically what you will be able to do by the end of the chapter. TheKey Terms list summarizes all the new terms you will encounter.

Each topic area includes illustrations and tables to summarize graphically the concepts and their relation- ships. Key terms are introduced near the items they define. Icons for key terms, details and new ideas appear throughout the book.

Key Terms icon—indicates a new key term

Details icon—indicates details, key examples or a closer look at a concept

N ew Ideas icon—indicates new ideas, additional material and applying what you’ve learned

Reinforcing the learning . Exercises designed to help you recall the main points of a topic, as well as syn- thesize what you learn, entail answering questions about samples cases and include vocabulary quizzes.

Case study . A short story is included in each chapter based on real-world examples. These show how orga- nizations use software license management to improve operations and the bottom line. Each case study is followed by review questions and short quizzes.

Review questions, exercise—a review summarizes the main points of the chapter Quiz icon—indicates a short quiz or exam on the chapter’sCOPY contents Application to your organization . A final exercise helps you assess if you are ready to apply the ideas to your organization. This exercise consists of several parts that may include giving a current rating of your organization’s software license management capabilities compared to the ideal, and then listing action items that you’ll need to complete.

And finally the answers to the quiz in each chapter are the last section of each chapter.

Answers and guidance to case study and quizzes.

Other resources and help

The study guide includes a detailed contents list at the front as well as an index of topics at the back.

More than 500 software license and IT asset management terms are summarized in an online glossary which can be accessed at IBSMA.com/glossary.html.

Additional publications on software licensing, tools and SAM processes are available from IBSMA. For more information visit IBSMA.com.

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Index SAMPLEi indicates illustration t indicates table

A abandonware, 13 academic case study, 156–58, 170 acceptance of software, 36–37, 39, 41–42, 43t access restriction in audits, 127 in SAM tools, 79, 83 accountability for noncompliance, 151 accounting firms in external audits, 10, 123 acquisitions and mergers as audit trigger, 13, 15, 124 competitive advantage in, 18 provisions in software license agreements, 38, 40 activation key, 8, 27, 32 active metering, 32 additional hard costs, 98–99 administrative costs in calculating ROI, 99, 119 American National Standards Institute (ANSI), 146–47t annual licenses, 30t ANSI (American National Standards Institute), 146–47t Answers and Guidance audit andCOPY compliance basics, 24 audits, external, 138, 142 audits, self-, 170 business case and ROI, 115–19 licenses (software license agreements), 49 negotiations, 49 SAM tools, 90 self-assessment of SAM, 70 Apple Remote Desktop, 127 application dependency mapping tools, 155 asset types in self-assessment of SAM processes, 60 audit and compliance basics, 5–28. See also audits, external; audits, self- as component of SAM, 7i defined, 8 Exercise, 23 Overview and Objectives, 6 Quizzes, 14, 22, 24, 26, 28 Review, 21 and risk control, 16 audit control as SAM tool component, 79t, 82t 171 Software License Management STUDY GUIDE

auditors, external, 9–12, 122–24. See also audits, compliance with ISO/IEC 19770-1, 148 external as component of SAM, 7i questions from, 138–39, 142 defined, 8 types, 10–12 documenting, 127 audits, external, 121–42 executing, 151–55 actions and objectives, 129t Exercises, 140–41, 161–70 SAMPLEauditors, 9–12, 122–24 external parties in, 15–16 Case Study, 132–35, 142 frequency of, 15, 151 by compliance agencies, 19–11, 124 need for, 143 compliance review in, 124–25 Overview and Objectives, 144 as component of SAM, 7i planning, 151–52 defensive tactics, 125–31 provisions in software license agreements, 39 defined, 8 questions for, 152 Exercises, 23, 128, 138–42 Quizzes, 14, 28, 160, 170 increase in, 5, 10 reporting, 151, 153–54 language, 39, 126–27, 145 Review, 159 managing, 121–31 risk control and, 15–16, 154–55 motivations for, 12–13, 123–24 roles in, 15, 152 notification, 124–25, 127 sample report, 154 Overview and Objectives, 122 scope of, 151–52 phases of, 124–25 stakeholders in, 15–16, 152 preludes to, 9, 121 standards and frameworks, 143–48 preventing, 94, 125–27 triggers for, 9, 15 provisions in software license agreements, 39–40, auto-discovery 124–27 in audits, external, 40 questions from auditors, 138–39, 142 in audits, self-, 151–52, 154 questions to ask, 131 in calculating ROI, 97 Quizzes, 14, 22, 24, 28, 137, 142 defined, 73 reactions to, 129 as SAM tool component, 76–77, 79t, 82t, 151 Review, 136 automated contract management, 5 roles in, 129–31 automatic renewals, avoiding, 40 scope of, 11 awardsCOPY for copyright infringement, 16. See also and self-assessment of SAM processes, 56 settlements settlements, 12t, 124–25, 129t, 131 statistics on, 95, 122 b strategies for, 125–31 backing up documentation, 28, 152–53 surveys on, 10, 95, 122, 124 bankruptcy, publisher, 40 terms of, 124–27, 130–31, 133 bargaining power. See negotiating software license by third-party agencies, 9–11, 124 agreements timeframe, 124–25, 130–31 benchmarking, 64, 71, 127 triggers, 9–10, 12–13, 40, 123–24, 127 benefits of audits, internal. See audits, self- self-audits, 15–18, 131 audits, self-, 143–70 software asset management (SAM), 5, 16–18, 95–96, action recommendations, 140–41, 155 100–101 assembling, 151–53 software license management (SLM), 1, 5, 95–96, and audits, external, 94, 125 100–101, 150 benefits of, 15–18, 131 best practices Case Studies, 19–21, 24, 156–58, 170 and conformance, 148 and compliance reviews, 125 defined, 52 frameworks, 144–45

172 Index

SAM process areas, 54–55 self-assessment of SAM processes, 62–64, 70 boilerplate, 41, 43t case studies, using in business cases, 94 bridges, database, 84 certificates of authenticity, 27–28 British Standards (BS), 146–47 certification BSA (Business Software Alliance), 11, 124 conformance vs. compliance, 145t budget contract renewal as audit trigger, 15t defined, 144 SAMPLEbudget for SAM tools, 73–75 IBSMA Practitioners Certificate in Software License business case for software license management, Management (PCSLM), 1–2 91–120 of ISO/IEC 19770-1 compliance, 148 Case Study, 107–9, 115–16 change management considerations in, 93–94, 105–6 defined, 8, 55 defending, 94 and risk control, 16i defined, 92 as SAM tool component, 79t, 82t developing, 95–106 and software asset management, 7 Exercise, 112–14, 116–19 change managers and SAM tools, 80 for optimization of self-audits, 155 client access license (CAL), 31t Overview and Objectives, 92 CMDBs (configuration management databases), 146, presenting, 105–6 155 Quiz, 111, 116 COBIT (Control Objectives for Information and related return on investment (ROI), calculating, 96–102 Technology), 145, 147t, 161 Review, 110 combined tool, 76–77 sample, 105–6 communication of compliance, 150–51 and SAM tools, 73–74, 78t competitive advantage benefits stages of, 95 calculating, 100–101 supporting data for, 95 communicating, 150 business language, 94 defined, 96 business needs and SAM tool selection, 74–75, 81–82t and return on investment (ROI), 91, 100–101 Business Software Alliance (BSA), 11, 124 of self-audits, 15, 18 business units competitive upgrade licenses, 29–30 in reporting self-audit results, 154 compliance in self-assessment of SAM processes, 60 agencies, 9–12, 124 business value components of SAM tools, 81–82t automationCOPY of, 148 basics of, 5–28 C calendar, 15 CAAST (Canadian Alliance Against Software Theft), 11, Case Study, 132–35, 142 124 and certification, 145t CAL (client access license), 31t commanding, 129–31 Canadian Alliance Against Software Theft (CAAST), 11, culture of, 93, 150–51, 156–57 124 defined, 7, 144 canceled checks as proof of license, 27 demanding, 126–27 caps and limits on maintenance fees, 38, 40 educating, 150–51 Case Studies initiatives, 125 audits, external, 132–35, 142 with ISO/IEC 19770-1, 148 audits, self-, 19–21, 24, 156–58, 170 negotiating terms of, 37, 39, 127 licenses (software license agreements), 44–45, 49 proving, 143, 148 optimization of software license management, reporting (See audits, self-) 19–21, 24, 156–58, 170 review (See audits, external) return on investment (ROI), 107–9, 115–16 risk assessment of, 150 SAM tools, 85–86, 90

173 Software License Management STUDY GUIDE

compliance (cont’d) duration of, 13 and risk control, 16i education employees on, 150–51 as SAM process area, 55 Copyright Royalty and Distribution Reform Act of 2004, statistics on, 95 16 in university case study, 156–57 core SAM process areas. See SAM process areas concurrency licenses core specialty emphasis and SAM tool selection, 83–84, SAMPLEdefined, 31t 86 and license pools, 84 corporate governance, 7, 55 monitoring, 32, 36 corporate responsibility, 5 tracking data for audits, 153 cost allocation as trigger for self-audits, 15t confidentiality cost control in audits, 10, 123, 130 in Case Study, 20 in software license agreements, 41 from self-audits, 15–18 configuration management statistics on, 95 involvement in SAM self-assessment, 59 costs configuration management databases (CMDBs), 146, in calculating ROI, 96–101, 119 155 future, 38, 43t configuration vs. custom development/implemenation, hard, 96–99 41 identifying in self-audits, 154–55 conflict provisions in software license agreements, one-time, 37 39–40, 43t, 126 of piracy, 12 conformance provisions in software license agreements, 36–38, 43t and certification, 145t recommendations for, 155 defined, 144 of SAM implementation alternatives, 102–3 to ISO/IEC 19770-1 and audits, 56, 148 soft, 96–97 constraints for SAM tool selection, 73–74 counterfeit software, 27–28 consulting firms, 10, 15, 99, 101 credits, 38, 40 contract disputes, provisions for, 39–40, 43t, 126 criteria for SAM tool selection, 73–74, 78–80, 83–84 contraction activity, 36 Exercise, 75, 88–89 contract management. See also documentation cross-platform conversion rights, 38 calculating ROI with tools, 97 culture of compliance, 93, 150–51, 156–57 defined, 28, 55 customizedCOPY software, 36–37, 41–43, 84 need for, 28 as SAM tool component, 71, 78t, 81t D contract renewals/obligations and self-audits, 15t damage awards, 16. See also settlements contracts. See software license agreements data assembly for self-audits, 152–53 contract specialists, 94, 126, 130 database bridges, 84 control environment, 150–51 data collection, 130–31, 151, 153 and data collection, 152 data location, 151–53 defined, 150 data normalization, 79t, 80 Exercises, 162 defensiveness in audits, 125, 129–30 as SAM process area, 55 defensive tactics in presenting a business case, 94 and SAM tool components, 81–82t definitions in software license agreements, 37–39, 41 and universities, 156–57 delivery Control Objectives for Information and Related of software, 34, 36, 41 Technology (COBIT), 145, 147t, 161 of tech support, 38 control of resources as audit trigger, 10t demonstration software/licenses. See evaluation conversion rights, cross-platform, 38 software copyright deployment damage awards, 16 defined, 8

174 Index

double, 126–27 enforcement, employee, 151 and license pools, 84 enhancements, 38 and software asset management, 7 enterprise licenses, 31–32, 40 descriptions in software license agreements, 34–35, entitlement, 28 41–43 error correction, 38 direct support (SAM tools), 81–82t errors, payment, 39 SAMPLEdisaster recovery, 35, 127 EULAs (end-user license agreements), 27 discontinued software, 40 evaluation activity in software license agreements, 35 discounts, 37 evaluation software discovery software. See auto-discovery licenses, 28–29 disputes, provisions for, 39–40, 43t, 126 and piracy, 13 Distributed Management Task Force (DMTF), 146–47t provisions in software license agreements, 35, 127 divestiture activity event notification as SAM tool component, 79t, 82t as audit trigger, 15t, 124 Exercises provisions in software license agreements, 38, 40 auditing and compliance basics, 9, 13 DMTF (Distributed Management Task Force), 146–47t audits, external, 128, 138–42 documentation, software, 27, 34 audits, self-, 161–70 documentation of audit process, 131 calculating ROI, 108–9, 112–14, 116–19 documentation of software license agreements. See licenses (software license agreements), 33, 47–49, also contract management 166–67 and audits, 125–27 piracy, 13 backups, 28, 152 respond to objections, 104, 115 proof of license, 27–28 SAM tool selection, 75, 88–89 double deployment, 126–27 self-assessment of SAM processes, 66–70 downgrade licenses, 30, 153 standards and frameworks, 149, 161, 170 due diligence as trigger for audits, 10t, 15t expansion activity, 36 duration of acceptance period, 42 expenses. See costs duration of licenses, 28, 30, 37 exposure calculating, 98–99 E defined, 96 ease of use and SAM tools, 83, 85 and implementation alternatives, 102–3 education on compliance, 150–51, 156 extensionCOPY options, 40 embedded third-party software, 39 external parties in self-audits, 15–16 employees external references for software license agreements, compliance, encouraging, 93, 150–51, 156–57 34–35 costs of, 101 defining, 35 F monitoring, 153, 155 FAST (Federation Against Software Theft), 11, 124 and SAM tool selection, 80 feature and function components of SAM tools, 79t, 82t in self-assessment of SAM processes, 53, 59–60 Federation Against Software Theft (FAST), 11, 124 in self-audits, 15, 152 fees in software license management, 2, 94 in calculating ROI, 99, 101 surveys, 15, 150 maintenance, 36–38, 40, 155 tips on noncompliance, 12 one-time, 37 end-user license agreements (EULAs), 27 financial forecasting, 17 end-users. See also culture of compliance financial management as SAM tool component, 78t, 81t as audit triggers, 10t fines as stakeholders, 94 avoiding through self-audits, 15 surveys for self-audits, 15, 150 in calculating exposure, 98–99

175 Software License Management STUDY GUIDE

fines (cont’d) (Information Technology Infrastructure Library) compliance agencies and, 11, 124 infrastructure, defined, 16 as hard cost, 96 installation settlements, 12t, 125, 129t, 131 configuration, 41 forecasting install/move/add/change (IMAC) activity, 55, 61, 78t and budgeting for SAM tools, 73 provisions in software license agreements, 35–36, 41 SAMPLEfinancial, 17 and usage data, 153 usage, 36 integration of SAM with IT services frameworks as optimization, 155 COBIT and ITIL, 61, 145–46, 147t and SAM self-assessment, 53, 61 compared to ISO/IEC 19770-1, 147t and SAM tools, 84 defined, 144 and self-audits, 152, 155 Exercises, 149, 161, 170 internal audits. See audits, self- value of, 143 International Business Software Managers Association Freescale Semiconductor, 93 (IBSMA), 1–3 freeware, 13, 29t International Electrotechnical Commission (IEC), 52, future costs, 38, 43t 146–47t International Organization for Standardization (ISO), 52, G 146–47t. See also ISO/IEC 19770-1 gap analysis. See self-assessment of SAM processes interoperability of SAM tools, 79t, 82t, 84 glossaries in software license agreements, 37–38 inventory management and inventories Glossary of Software License and IT Asset Management in calculating ROI, 97 Terms, 3, 145 defined, 8 government agencies as auditors, 10–12 Exercise, 166–67, a27 in SAM, 7, 16, 55 H as SAM tool component, 71, 79t, 81–82t hard costs, 96–99 for self-audits, 152–53 hard-disk loading, 27–28 investment, return on. See return on investment (ROI) hardware, 13, 15, 60, 166 invoices, 27–28, 37 harvesting, 84 ISACA (Information Systems Audit and Control help desk, 59, 74t, 80,108, 116, 170 Association), 145, 147t honesty and audits, 129–30 ISO/IECCOPY 19770-1 compared to IT frameworks, 147t I conformance/compliance, 56, 149 IBSMA (International Business Software Managers defined, 52 Association), 1–3 Exercises, 68–70, 149, 161, 170 IBSMA Practitioners Certificate in Software License optimization recommendations, 155 Management (PCSLM), 1–2 Quiz, 57–58 IEC (International Electrotechnical Commission), 52, SAM process areas, 54–58 146–47t and SAM tools, 74, 77, 81–82t, 148 ignorance as a defense, 13, 129 self-assessment against, 51–52, 56–61, 66–69 IMAC (install/move/add/change) activity, 55, 61, 78t ISO/IEC 19770-2, 148 implementation alternatives, outlining, 102–3 ISO/IEC 19770-3, 148 incident management, 16, 55, 79t, 82t ISO/IEC 20000-1, 146 indemnification, 39, 127 ISO/IEC 20000-2, 146, 147t indirect support (SAM tools), 81 ISO (International Organization for Standardization), 52, Information Industry Association, 11 146–47 Information Systems Audit and Control Association ITAM, 17, 59, 95 (ISACA), 145, 147t ITIL frameworks, 61, 145–47, 161 Information Technology Infrastructure Library. See ITIL ITIL (Information Technology Infrastructure Library), 61

176 Index

IT service management (ITSM). See ITSM (IT service licenses (software license agreements), 25–50 management) annual, 30t IT services audit provisions in, 125–27 and SAM, 7, 16 backing up, 28, 152–53 SAM integration with, 53, 61, 84, 152, 155 Case Study, 44–45, 49 and SAM self-assessment, 61 classifying, 8, 28–32 SAMPLEsoftware license management in, 5 client access license (CAL), 31t ITSM (IT service management) competitive upgrade, 29–30 defined, 61 concurrency, 31–32, 36, 84, 153 integration of SAM processes, 61 and custom development, 41–42 SAM tools, 79t, 82t defined, 8, 28 IT standards. See standards documenting, 27–28, 125–27, 152. See also contract management J downgrade, 30, 153 JTC1 (ISO/IEC), 146 duration of, 28, 30, 37 enterprise, 31–32, 40 K evaluation, 28–29 key, activation/license, 8, 27, 32 Exercises, 33, 47–49, 165–67 key concepts, explaining, 95 by metric, 31t Key terms, 6, 26, 52, 72, 92, 122, 144 millions of instructions per minute (MIPS), 31t negotiating, 34–43 L network, 31t language, audit, 39, 126–27, 145 open source, 31t language, business, 94 original equipment manufacturer (OEM), 29t leasing software, 13 Overview and Objectives, 26 legal departments and ownership, 25 and audits, external, 125–26, 129t, 130–31 per device, 31–32 and audits, self, 15 perpetual, 30t, 155 and business case creation, 94 per user, 31–32 and software license agreements, 41 product descriptions in, 34–35 legalese, 41 by product type, 28–30 liability, vicarious, 13, 129–30 proofCOPY of, 27–28 liability limitations, 39 Quiz, 46, 49 license agreements. See software license agreements retail product, 29t license compliance. See compliance Review, 45 license compliance audits. See audits, external SaaS (software as a service), 29t license metrics self-assessment, 48–49 and calculating ROI, 97 shareware, 29t defined, 28 site, 31–32, 36 and license types, 30–32 solution provider, 29t and negotiations, 30, 32, 35–37, 127 subscription, 8, 30t, 155 and pricing, 35–37 suite, 29t and SAM tool budget, 73 summary of considerations, 43t tabulating, 97 terminating, 40 tracking for self-audits, 152–53 types of, 8, 28–32 license pools, 44–45, 84 upgrade, 29–30, 38 license reconciliation, 152–54. See also audits, self- volume, 8, 31–32 defined, 73, 151 license surpluses. See over-licensing Exercise, 168–69 license transfers, 13, 35 as SAM tool component, 78t, 81t

177 Software License Management STUDY GUIDE

life-cycle management and cost control, 17 as part of SAM, 7, 55, 76 Exercises, 47–49 and payment, 36 and integration of SAM and IT, 84 and SAM tools, 71, 74, 77–78t, 81t and license metrics, 30, 32, 35–37, 127 life-cycle process interfaces (ISO/IEC 19770-1) Overview and Objectives, 26, 34 optimization of, 155 Review, 45 SAMPLEas SAM process area, 55, 61 net benefit, calculating, 100–101 and SAM tool components, 81–82t net exposure, calculating, 98–99 limits on maintenance fees, 38, 40 net hard cost, 98 litigation, provisions for, 39 net investment, calculating, 101 network licenses, 31t M niche specialties in SAM tools, 84 maintenance fees, 36–38, 40, 155 no-charge items, 35 maintenance of custom software, 42 noncompliance management costs of, 16, 91, 98 business case for software license management, employee accountability, 151 91–103 reasons for, 25 and culture of compliance, 150–51 settlements and rewards, 12t, 124–25, 129t, 131 involvement in self-audits, 15 nondisclosure agreements, 125, 129–30 and SAM self-assessment, 59 nonproductive applications, 18, 101 manual inventories and calculating ROI, 97, 100–101 normalization, data, 79–80 market domination and audits, 123 notification of audit, 124–25, 127 measuring. See metering; metrics, license Medavie Blue Cross, 93 O mergers and acquisitions OASIS (Organization for the Advancement of Structured as audit trigger, 13, 15, 124 Information Standards), 146–47 competitive advantage in, 18 objections, responding to, 104, 115 provisions in software license agreements, 38, 40 OEM (original equipment manufacturer) licenses, 29t metering, 32, 153–54. See also metrics, license OGC (Office of Government Commerce), 146–47 metrics, license open loops, 154–55 and calculating ROI, 97 open source software, 7, 13, 31t defined, 28 operationsCOPY management and interfaces (SAM process and license types, 30–32 area), 54–55, 81–82t and negotiations, 30, 32, 35–37, 39, 127 optimization of software license management and pricing, 35–37 Case Studies, 19–25, 28, 156–58 and SAM tool budget, 73 defined, 154 and software costs, 37 recommendations for, 155 tabulating, 97 oral agreements, 133 tracking for self-audits, 152–53 organizational concerns in SAM self-assessment, 59 migration, hardware/software, 13, 15, 35, 126 organizational management SAM process areas, 54–55, MIPS (millions of instructions per minute) license, 31t 81–82t monitoring tools, 18, 32, 153, 155. See also metering; Organization for the Advancement of Structured metrics, license Information Standards (OASIS), 146–47 motivations for audits, 9–10, 12–13, 40, 123–24 original equipment manufacturer (OEM) licenses, 29t outside assessors, 127 n over-deployment, 15, 124. See also under-licensing negotiating software license agreements, 34–43 overlap periods, 35 audit terms, 38–40, 124–27 over-licensing considerations in, 34–42 and audits, self-, 15

178 Index

costs of, 96, 154 interfaces (ISO/IEC 19770-1) credits for, 38–39 primary process interface area, 54–55, 81–82t. See also exposure calculations, 98 life-cycle process interfaces (ISO/IEC 19770-1) reasons for, 51 privacy in audits, 130 recommendations for, 155 problem management, 16, 55, 79t, 82t Overview and Objectives process areas. See SAM process areas SAMPLEaudits, external, 122 process maturity, 74–75 audits, self-, 144 procurement and requisition as SAM tool component, basics of auditing and compliance, 6 78t, 81t business case and ROI, 92 procurement departments, 15, 59, 94 SAM self-assessment, 52 product activation key. See activation key SAM tools, 72 product catalog, 78t, 80, 153 software license agreements, 26 product descriptions in software license agreements, ownership, proof of, 27–28 34–35 ownership of software, 7, 25, 42 product exposure, 98. See also exposure productivity P calculating, 119 paperwork. See documentation of software license monitoring, 155 agreements product schedules, 35, 37, 41 parameterization, 41 product type licenses, 28–30 passive metering, 32 product use rights, 7, 35–36, 43t payment, proof of, 27 professional service agreements (PSAs), 42 payment terms, 36–39, 43t Profiles in Excellence, 93 PCSLM (IBMSA Practitioners Certificate in Software profiling in SAM tools, 83 License Management), 1–2 project management expenses, 101 penalties. See fines proof of compliance. See compliance per device licenses, 31–32 proof of license, 27–28 perpetual licenses, 30t, 155 proof of payment, 27 per-product exposure, calculating, 98 proprietary information, 41 personnel. See employees Provance, 84 per user licenses, 31–32 PSAs (professional service agreements), 42 piracy publishersCOPY as audit trigger, 10t, 12, 123 aggressive, 122–23 and control environment, 150–51 audit motivations, 10t, 12–13, 123–24 costs, 12–13, 16 as auditors, 10, 122–24 defined, 12 and audits, self-, 15 Exercise, 13 bankruptcy, 40 hard-disk loading, 28 defined, 10 reasons for, 25 involvement in software license management, planning and implementation (SAM process area), 55, 125–27 81–82t, 155 and ISO/IEC 19770-2, 148 platforms in SAM self-assessment, 61 and ISO/IEC 19770-3, 148 point tools, 76–77, 83 merger, acquisition, and divestiture activity, 40 policies, management negotiating with, 17, 34–43, 124–27 and culture of compliance, 36, 93, 150–51, 156 records, 27, 132–33 in self-assessment of SAM processes, 59–60 relationships with, 40, 43t, 123–25, 129–30 presentation, business case, 92, 94–95, 104–6 purchase orders, 27 pricing and use, 35–37. See also metrics, license purchasing processes, centralizing, 5 primary life-cycle interfaces. See life-cycle process pushback on business case, 94, 104, 115

179 Software License Management STUDY GUIDE

q Quiz, 111 questions Review, 110 for negotiations of software license agreements, of SAM tools, 84 34–42 of self-audits, 15 for self-audits, 152 revenue generation as audit trigger, 10t, 12–13, 123 Quizzes Reviews SAMPLEauditing and compliance basics, 14, 26, 28 auditing and compliance basics, 25 audits, external, 137, 142 audits, external, 136 audits, self-, 160, 170 audits, self-, 159 business case, 111, 116 business case and ROI, 110 licenses (software license agreements), 46, 49 licenses (software license agreements), 45 return on investment (ROI), 111, 116 negotiations, 45 SAM tools, 87, 90 SAM tools, 86 self-assessment of SAM processes, 57–58, 65, 70 self-assessment of SAM processes, 64 rewards, whistle-blower, 12t r rights random check-ups as audit trigger, 10t, 12–13 audit, 32 recommendations from self-audit, 154–55 cross-platform conversion, 38 reconciliation, license, 152–54. See also audits, self- second-use, 32, 153–54 defined, 73, 151 use, 7, 35–36, 43t Exercise, 168–69 risks. See also control environment as SAM tool component, 78t, 81t and audits, 15–16, 154–55 record-keeping. See also contract management costs of exposure, 91, 98–99, 102–3 of audit process, 131 ROI. See return on investment (ROI) for audits, 125–27, 132–33 backups, 28, 152 s proof of license, 27–28 SaaS (software as a service) licenses, 29t, 83 redundant purchasing, reducing, 17 sales channels and license types, 29–30, 37 relationship management, 55 sales departments and audits, 133 relationships with publishers SAM. See software asset management (SAM) and audits, 123–25, 129–30 SAM consultants and external audits, 123 negotiating with, 17, 34–43 SAMCOPY process areas. See also ISO/IEC 19770-1 remixable license pools, 44–45 compliance certification, 148 removal of installations, 16, 154–55 Exercise, 68–69 renewals, automatic, 40 integration with ITIL (Information Technology renting software, 13 Infrastructure Library), 61 reporting and analysis as SAM tool component, 78t, 81t overview, 54–58 reports SAM tools and, 74–75, 81–82t, 148 in business case presentations, 95 self-assessment, 51–70 self-audit, 153–54 SAM tools, 71–90 resistance to software license management, 94, 104, and audits, external, 125 115 and audits, self-, 15t, 151, 153–54 retail product licenses, 29t automated compliance, 148 return on investment (ROI), 91–120 in calculating ROI, 84, 97, 101 business case, developing, 95–106 Case Studies, 85–86, 90 calculating, 96–102 combined, 76–77 defined, 92 components, 78–79t, 81–82t Exercises, 108–9, 112–14, 116–19 and concurrency licenses, 32 presentation of business case, 91–92, 102, 105–6 costs of, 101

180 Index

criteria, 73–74, 78–80, 83–84 service level management, 55 defined, 71 service providers in self-audits, 15 Exercise, 75, 88–89 services agreements, professional (PSAs), 42 integration with IT services, 84 services included in software license agreements, 34–35 and ISO/IEC 19770-1, 81–82t, 148 settlements, 12t, 124–25, 129t, 131 metering with, 32 shareware licenses, 29t SAMPLEOverview and Objectives, 72 SIIA (Software & Information Industry Association), performance priorities, 83–84 11–12, 124 point, 76–77, 83 site licenses, 31–32, 36 Quiz, 87, 90 SLAs (service level agreements), 79t, 82t Review, 86 slide show sample of business case, 105–6 sizes of, 76–77 SLM. See software license management suite, 76–77, 80, 83–84, 155 snapshot of compliance. See audits vendors, 15–16, 125–27 soft costs, 96–97 Sarbanes-Oxley, 5 software scope asset inventory, 16 of audits, external, 11 custom, 36–37, 41–43, 84 of audits, self, 151–52 demonstration, 13, 28–29, 35, 127 of calculating ROI, 97 embedded third-party, 39 defined, 53 evaluation, 13, 28–29, 35, 127 of implementation options in presentations, 102–3 free, 13, 29t and selection of SAM tools, 83 leasing, 13 of self-assessment of SAM processes, 60–61, 67 migration, 10, 13, 15, 126 scoping access restriction, 83 nonproductive, 18, 101 script linkages, 84 open source, 7, 13, 31t SC7 (subcommittee 7), 146–47. See also ISO/IEC 19770-1 renting, 13 second-use rights, 32, 153–54 as a service (SaaS), 29t, 83 security unlicensed, 61, 166 as reason for SAM self-assessment, 51 unsupported, 13 and SAM tools, 79t, 82–83 unused, 40 self-assessment of SAM processes, 51–70 used, 13 and audits, 56 virtualized,COPY 166 business case for, 94 software asset management (SAM). See also SAM Case Study, 62–64, 70 process areas; SAM tools defined, 51 benefits of, 5, 16–18, 95–96, 100–101 Exercises, 66–70 components of, 7i Overview and Objectives, 52 defined, 7 Quizzes, 57–58, 65, 70 implementation options in presentations, 102–3 reasons for, 53 and incident management, 16 Review, 64 infrastructure, 16 roles in, 59–60 integration with IT services, 53, 61, 84, 152, 155 and SAM tool selection, 77, 81 and problem management, 16 scope of, 60–61 publisher and vendor involvement, 126–27 stages of, 53i self-assessment, 51–70 stakeholders in, 53, 59–60 software license management as part of, 5 starting, 59–61 success of, 93 self-assessors, 59–60 surveys, 10, 17, 95, 122 service desk, 59, 80 terms, basic, 7–8 service level agreements (SLAs), 79t, 82t Software & Information Industry Association (SIIA), 11–12, 124

181 Software License Management STUDY GUIDE

software license agreements, 25–50 basic terms, 7–8 annual, 30t defined, 1, 5, 7 audit provisions in, 125–27 as part of software asset management, 5 backing up, 28, 152–53 surveys, 94–95 Case Study, 44–45, 49 software licenses. See software license agreements classifying, 8, 28–32 software metering. See metering; metrics, license SAMPLEclient access license (CAL), 31t Software Publishers Association, 11 competitive upgrade, 29–30 solution provider license, 29t concurrency, 31–32, 36, 84, 153 specialty emphasis and SAM tool selection, 83–84 and custom development, 41–42 spreadsheets in self-audits, 153–54 defined, 8, 28 St. Thomas University, 93 documenting, 27–28, 125–27, 152. See also contract stakeholders management in audits, external, 10–12 downgrade, 30, 153 in audits, self-, 15–16, 152 duration of, 28, 30, 37 in business case creation, 93–94 enterprise, 31–32, 40 in self-assessment of SAM processes, 53, 59–60 evaluation, 28–29 standards Exercises, 33, 47–49, 166–67 bodies, 146–48 by metric, 31t defined, 144 millions of instructions per minute (MIPS), 31t Exercises, 149, 161, 170 negotiating, 34–43 and frameworks compared, 147t network, 31t self-audit, 143–48 open source, 31t statement of purpose, 53, 64, 66 original equipment manufacturer (OEM), 29t statistics on software license management, 95, 122 Overview and Objectives, 26 streaming SAM tools, 84 and ownership, 25 subcommittee 7 (SC7), 146–47t. See also ISO/IEC 19770-1 per device, 31–32 subscription licenses, 8, 30t, 155 perpetual, 30t, 155 suite licenses, 29t per user, 31–32 suite SAM tools, 76–77, 80, 83–84, 155 product descriptions in, 34–35 surpluses, license. See over-licensing by product type, 28–30 surveys proof of, 27–28 COPYin business case creation, 94–95 Quiz, 46, 49 of end users, 15, 150 retail product, 29t 2008 Survey Report on Software and IT Asset Review, 45 Management, 10, 17, 95, 122, 124 SaaS (software as a service), 29t suspicion of noncompliance as audit trigger, 10t, 12 self-assessment, 48–49 shareware, 29t t site, 31–32, 36 tabulating software license figures, 97 solution provider, 29t TAG (U.S. Technical Advisory Group), 147t subscription, 8, 30t, 155 targeting business units in self-assessment, 60 suite, 29t taxes, 9–10, 37, 41 summary of considerations, 43t TCO (total cost of ownership), 38, 78t terminating, 40 technical support, 38 types of, 8, 28–32 termination of software license agreements, 40 upgrade, 29–30, 38 terms volume, 8, 31–32 basic, 7–8 software license compliance. See compliance defining in software license agreements, 37–38, 41 software license management test environments, 153

182 Index

third-party agencies, 9–12, 124 business case, 111, 116 third-party software indemnification, 39 licenses, 46, 49 timeframe return on investment (ROI), 111, 116 of audits, 124–25, 130–31 SAM tools, 87, 90 in implementation alternatives, 103t self-assessment of SAM processes, 65, 70 of usage in software license agreements, 127 vocabulary terms, basic, 7–8 SAMPLEtips of noncompliance, 9–12, 124 volume licenses, 8, 31t, 32 tools, SAM. See SAM tools tools for self-audits, 151 w total cost of ownership (TCO), 38, 78t warranty terms, 36, 39 transfers of licenses, 13, 35 whistle-blower awards, 12 trial licenses. See evaluation software wizards, 79t, 82t triggers, audit, 9–10, 12–13, 40, 123–24 workflow management, 79t, 82t defining in software license agreements, 127 for self-audits, 9, 15 true-up purchases defined, 11, 122 as hard cost, 96 pricing in software license agreements, 37 from self-audits, 15, 155 u unauthorized copying. See piracy under-licensing, 51, 96, 123–24. See also fines; true-up purchases university case study, 156–58, 170 unlicensed software, 61, 166 unused software, 40 updates vs. maintenance, 38 upgrade licenses, 29–30, 38, 42 urgency and SAM tool selection, 83, 85 U.S. Technical Advisory Group (TAG), 147t COPY usage tracking tools, 155 used software, 13 use rights, 7, 35–36, 43t user interface/data fields of SAM tools, 79t, 82t V variance in implementation alternatives, 103t vendor management with SAM tools, 78t, 81t vendors. See publishers verification and compliance (SAM process area), 55, 81–82t vicarious liability, 13, 129–30 virtualized software, 166 Vocabulary Quizzes auditing and compliance basics, 26, 28 audits, external, 137, 142 audits, self-, 160, 170

183 Software License Management STUDY GUIDE

Software SAMPLELicense management Study Guide

At last, an introduction to the basics of software asset management (SAM) and software license management (SLM) for a wide-ranging audience!

Organizations of all sizes and industries around the world have a need to manage software licenses proficiently. In fact, today the wide variety of individuals involved in IT service management—and even many non-IT staff—would benefit from a solid foundation in effective software license management practices.

Based on our popular Practitioners Certificate in Software License Management (PCSLM) course, this comprehensive guide is written in uncomplicated English and allows you to cover the course material at your own pace.

Learn practical tips and best practices. Apply concepts to your work by completing the self-assessmentCOPY exercises. Review illustrations, graphics and key terms in each chapter to understand how concepts relate and summarize main points.

Prepare to take the PCSLM exam as well as administer an SLM program at your company.

We show many examples of SLM in practice to illustrate how—when successfully executed—SLM is a good business investment. The guide’s self-assessment exercises enable you to apply each chapter’s concepts to your work environment. Illustrations and graphics show how concepts relate and summarize main points. There is also a handy list of key terms in the front of each chapter. You’ll find that the practice exercises enable you to figure out the best way to handle everyday SLM situations.

For more information visit IBSMA.com.

International Business Software Managers Association 184