Subtitles for Managing Microsoft Licenses The Cost Of Convenience

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good morning everybody looking
to this webinar hosted by Alter
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pleasure to be part of the
teamsters in this webinar to you
this morning before we continue
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we're lucky enough to have the
and Brian were managing director
cereals rhetoric of today as
well as good as gold renown and
at this time off during that
time with them
good morning everybody thank you
for taking time out your
schedule to join us this morning
about way of introduction my
name is Luis Moreno and I'm a
relatively new member of the
all-sports team I joining it
back last year and that he came
after a nearly twenty year run
with the Microsoft Corporation
where I spent considerable
amount of time both in the
consulting services organization
as well as with the world light
licensing and pricing group
responsible really put the
volume licensing agreements and
how those agreements often they
were for customized and have a
long long history a prior to
that I mean I can only say that
my range of interfaces human
interfaces goes from a tech
writer to an Apple watch and for
connectivity from the 300 baht
acoustic coupler to ubiquitous
wifi so that's who I am in a
nutshell I was presenting the
content for today's discussion
the Dan Ryan is is our Managing
Director for the aldrich
information technology asset
management service line down
like myself is a long-term
veteran has been in the years
better than 30 years with mostly
the larger companies whether CHP
menu just takes and others but
he brings a great deal of
experience and expertise in the
areas that are critical in court
to Rik asset management service
line ok we'll quickly is this
just a quick sort of high-level
description of who the aldrich
organization as many of you may
have already have relationships
with us through previous
engagement but at the top level
you know all the bridge is
organization has been around for
better than 14 years our core
focus has been on the same here
yet I T outsourcing I T network
management and advisory we have
extended our practice over the
years to include the service
line that I am focus with which
is I T asset management we
really do have more of a focus
on helping customers figure out
how to maximize their spanned
through a combination of
address of negotiating but also
contract transformation we're
not a general management
consulting company but we are an
independent offering code that
deals with the services that we
provide we represent no other
manufacturer or publisher we are
completely independent of bad
things that make us I think
unique in our particular
industry as the embeddedness in
which our relationships have
been able to be established and
maintained we actually have
what's called basically I know
divorce track record in
indicating that in every
instance where we have engaged
customers have been largely to
mostly satisfied with the
results and we never had the
opportunity to do anything with
them we do keep a very extensive
database with better than
300,000 data points
inclusive in it which helps us
track if you will the most
important price points and
differentiators between services
products that are available in
the marketplace
the engagements that we cover
today
typically it touched an address
upwards of five billion dollars
in annual market spend it as a
company where you know we were
about two hundred and fifty were
slightly larger now in the wake
of a recent acquisition of we
did in the UK with another I T
management company called source
so that's just a quick thumbnail
of who the aldrich organization
is and who's today's presenters
are so as it relates to our
agenda for today we've already
discussed a little bit about who
also urges what we're gonna do
with the rest of this
conversation yes for many of you
who are you know obviously
Microsoft licensee that rented
sure that none of you on the
call are new to Microsoft you
may have had no one or more
enterprise agreement experiences
with Microsoft maybe even more
but it helps for purposes of
understanding how the industry
is changing how Microsoft is a
component within this industry
changed to understand again how
these are these volume licensing
agreements work what their
design methods are what some of
the implications are of how
those agreements work and how
they treat some exposure around
the concept of software on its
what you can and should be
thinking about you and your
proactivity to kind of help you
not only with Microsoft with all
the other publishers
whose products you use I think
we're going to talk about today
maybe sort of stressed in the
Microsoft contact but it has
broad application to the
relationships you have with not
only Microsoft but with every
other major software publisher
whose products your license will
be talking about some of the
solutions at a very high level
if you don't already have a
solution in place these are
areas that you may want to spend
a little bit more time digging
into and they will have course
will punctuated with the
benefits that accrue to you once
you have been able to get your
arms around some more systemic
an automated asset management in
which you can help with respect
to decision making and overall
governance so that's those are
the two paths will file for
today by way of just sort of
refreshing everybody's memory
with respect to how does
Microsoft actually take it I P
and transfer a license to you as
an enterprise user
well long gone are the days when
software used to be delivered in
prepackaged Pakistan Palestine
landed on your loading dock the
volume licensing model has been
around for a better than 15
years and it does give customers
the ability to conveniently
download and install software
with a what's called a reusable
installation K and if you can
remember back to the days when
you actually bought discs and
DVDs and you install software
for the installation process
required the import of a
specific installation key which
was very specific to that one
instance volume licensing gives
you a break from not having to
worry about multiple instances
of installation key a particular
products simply has with it one
installation key that covers
many times that product is going
to be installed which separates
it from the way many other
assets are actually covered I
mean if you look at a hardware
asset and also take a notebook
as example typically one of
their prized purchases I know
but it does go through basically
an inventory process and
ultimately gets an inventory
asset X which differentiates
that notebook from any other
notebook is currently in
circulation the result of having
a common installation key for
Microsoft software is that there
are instances where
installations that go on your
own largely unnoticed
and consequently on inventories
and when you think about the
implications of that in just a
few license is whether it's
Microsoft Office Microsoft
Project ur busy oh the
combination of those licenses
alone typically exceed the value
of the notebook and if you're
looking at server-based software
whether its Windows Server
sequel Server System Center by
the time you install one or more
licenses on hardware flights
typically the cost to the
company for that software is
greater than the cost of the
servers but because software
recent physical things you know
suffered doesn't necessarily
lend itself to the same level of
asset management scrutiny that
we otherwise in part on our
hardware assets so that's just
kind of a more about about
positioning point than anything
else just to make sure that we
understand it typically most
organizations treat hardware and
software asset management
differently when it comes to
Microsoft Volume Licensing I
mean the common installation key
does create the opportunity for
many customers to simply deploy
the product at will without
really worrying about too much
and there's really very little
by way of a mechanism to track
those installations and
understand what order placement
obligations are required for you
to fill in order to remain
compliant now the approach is a
good approach from Microsoft
this is really about giving you
the convenience and simplicity
of being able to use the
software that Microsoft makes
available and to that end it
works very well but when it
comes time to start looking
exactly at it is this the
difference between what you're
entitled to run and what you're
actually have deployed most
customers I would say 99% of
customers will find ultimately
that they have more deployed
instances of certain products
and they have entitlements for
there are cases when it flips
the other way that a customer
may have an inventory of
entitlements but yet the
deployments don't necessarily
show that they've actually
consumed at all but that's more
the exception than it is a rule
and this of course puts clients
in a difficult spot when they
have to start the negotiating
with Microsoft who once they
understand that there's an
imbalance between deployments
and entitlements the remediation
efforts really begin to sort of
come front and side
so as a son who work for
Microsoft for many years there
was a time when the the mere
discussion of auditing a
customer was taboo Microsoft was
very fearful of the public
relations implications to quit
along with an audit you know
there was a worry that that sort
of behavior with seemed
heavy-handed and so for many
years
audits were very very
exceptional and only manifested
in the most extreme cases where
it was just know that there was
something wickedly wrong going
on with a particular customers
use Microsoft's IP but today the
market is different and
Microsoft is taking a different
look at software August and like
most of the other publisher
appears that they have really
begun to not knowing look at
audits as an exception but more
as a mainstream process that
they actually embedded in their
cells motion to the degree that
Microsoft feel sellers are
actually assigned to revenue
targets that explicitly tied
them to being able to recover
remediation dollars spoken in
other words compliance dollars
from customers who are
high-paying customers and so it
begins here is a now a very
embedded process that Microsoft
execute across its entire
customer segments and Microsoft
the most part has to be
segmented has customers like
yourselves who they consider
enterprise customers it also has
a segment like most other
companies market to the small
and medium business but every
customer is now included in a
process flow which they will
ultimately be contacted with
respect to doing either passive
or very specific audit in order
to show proof of entitlement for
the particular products that
they're currently running and
processes you know can they can
begin with something as benign
as simply a self inventory where
Microsoft will send you a
document that you were supposed
to complete that document in a
specific amount of time turn it
back in and nothing ever result
from that but you makin
again there's nothing that
precludes Microsoft from
escalating the requests just
simply being a voluntary request
to a compulsory quest
when this happens and when
Microsoft discovers there are
licenses that are deployed that
are not yet
underlying entitlements
associated with them this does
shift the burden to you all to
show and prove why these
licenses are not in service
lot of customers will you know
make representations that these
are Devon test licenses are
these are licenses that were
never properly swept off of a
machine that was taken out of
service and while those are me
be absolutely points of truth
you're going to have to now
produced evidence to support
your position otherwise
Microsoft will take the position
that these are production
licences ultimately microsoft
does windup collecting some form
of remediation Riverview
typically it's a significant
amount of memory because most
customers don't necessarily have
all of the history to support
some of their claims that why a
particular instance of software
is not a production piece of
software so one way or the other
Microsoft is gonna find a way to
get something out of this nigga
at your expense moreover if this
falls and Microsoft is able to
collect some remediation revenue
and in the course of death death
audit or that same engagements
really learn that you don't have
a asset management solution or a
license management solution in
place it does set up the
opportunity for them to kind of
kind of particular for
themselves at you know maybe in
two to three years come back and
take another bite at the apple
so just enough but I just told
you is not simply an exception
handling protocol anymore this
is systemic this is mainstream
Microsoft Business blow is to
now integrate remediation and
compliance dollars into their
overall revenue next so this
leaves us with this discussion
that alright so I would target
potential target to Microsoft
what is it that I can do how can
I protect myself or at least
make myself a whole lot more
ready to deal with the fact that
an audit is coming my way so
this is involves having a little
bit more of a proactive strategy
in order to respond to the
invitation that Microsoft will
also
only sent if they have it all
ready to participate either sam
engagement or even worse a
full-scale are you have the
opportunity to kind of turn the
scenario around by making it
very clear to Microsoft that
you're not managing your
licenses and your entitlements
and your employment in a in a
reactive way that you have a
very robust oversight of what's
going on in each of those arenas
to be able to sort of take in
combination with the actual
licenses the agreements that are
used to transact those licenses
the inventory that will actually
depict where these licensees are
running and the corresponding
purchase history of these are
all three parts that have to
come together in order to form
the basis of a software asset
management solution there are a
lot of systems out there that
can do to stop worry that can
find instances of software that
is installed but they sometimes
fall short of having the full
feature set to include things
like how do I understand what
agreement these licenses were
purchased under how do I
integrate the entitlement
history that my publisher in
this case Microsoft has so that
I can do more automated
reconciliation myself versus
having to wait for a third party
to come in
equally important part once you
have established a baseline for
yourself the opportunity to use
some of these systems to do
better workflow automation and
to impart better controls if we
go back to some of the points we
made in the earlier slide about
the simplicity of being able to
simply deploy software because
of the common installation key
no one is suggesting that we
change the convenience
maybe we do a better job of at
least overseeing and watching an
auditing and making sure that we
Journal such activities when
they happened so that we don't
have to find these instances by
way of exception and this is all
in part to make sure that we
tried as much as possible to
oversee our installations such
that none of them take place in
the vacuum that oversight also
likely just to the opportunity
to be able to start looking at
the status of a license is a
licensed that's out there
deployed is it actually aside
or it's sitting I hope is that
license belong to a device that
license belong to a user is that
you still with the organization
or as a user less of this all
sets up an interesting a very
powerful ability to look at
licensed inventory and to be
able to do a lot more
repurposing of unused or
underutilized assets versus
either repurchasing or treating
them up if you're operating
under an enterprise agreement
that all those points
collectively create a very
compelling presentation back to
Microsoft that makes it clear
that Microsoft has has no
leverage to simply arbitrarily
squeeze revenue from you because
you don't have a message for our
system to deal with your product
deployments you really are not
dealing in the water with mis
ninos the plot and product
deployment but very specifically
well managed product
appointments that fact alone
will change the tone and tenor
of your future licensing
negotiations because it is this
fact that customers sometimes do
not place enough emphasis on
Software Asset Management that
does shift levers to Microsoft
when it comes time to negotiate
their agreements by having a
more complete and comprehensive
view of how you're going to deal
with your product licenses
deployments the entitlements
that Microsoft has available
does give you a far more
leverage position in
negotiations and allows you to
leave that negotiation instead
it to follow it
what we do with customers in
this particular area is if you
don't have a software asset
management solution or maybe you
have something that you might
think is a solution as I
mentioned there are products out
there that do a really good job
of discovery even Microsoft
System Center product can do a
good job of collecting
information about a hardware
about the licenses that are
associated with that hardware so
at least you can get an idea of
what's running but they kinda
end there and if you look at
what we were trying to mention
there are several factors are
attributes that we really want
to help people understand and
put into their decision-making
criteria
if and when they begin the
process of evaluating software
asset management solutions
there are some very obvious
attributes the first attribute
is his ability you know how
robust is this product
what janet discover on my
network and its cover all
publishers to discover instances
running on not only PC form
factors that may be the newer
form factor so being able to
understand how wide a net the
solution can't test in order to
know what devices it could
include incident or process once
the inventory is done what other
identifying attributes Jennifer
5 you can't help me with
understanding the metadata that
software title is basically
coded by remember a lot of
publishers microsoft chief among
them produced products into the
sink title but with different
editions you know there are
pretty standard editions their
professional editions their
Enterprise editions of different
products being able to make sure
that not only did I discover a
particular instance of the
software but can I also
understand all the metadata that
went along with that particular
title because that may become
important later on when I'm
doing optimization I need to
know if some of the higher end
editions of particular product
are in place where the use cases
actually justify it or am I
paying a premium for a product
where there's no underlying used
case then when you think about
the decision-making criteria so
now you've got you've found
items you got clarity around
what those items are killing
help you now stack rank when
it's found and give you some
sense of where the critical
issues what are the issues that
require my immediate and urgent
attention so that I can get
myself out from any possible
compliance circumstance so this
again is again these are this is
where you see products like
System Center and other IT
network discovery tools begin to
cover for a test they're not
designed to give you this added
intelligence with respect to how
do i process the data when it
comes to efficiency one of the
things that we want to be able
to do with the information that
comes to us is how does it help
me understand why use cases had
it under help me understand
and where I have competing
products that may be providing
overlapping services does it
give me the added insights know
how to be more agile in the
planning for how to purchase
moving forward
can i gather details in
perspective from this
information that again will help
me reshape some of my
assumptions that have been used
to do you like bill of materials
in the past
remember one of the things that
Microsoft and many software
sellers are very effective app
is up selling particular
licenses that have higher level
of additions and selling them
into customers basis don't make
a lot of representations about
the value these products can
deliver and all too often what
typically happens is when they
are successful and getting these
higher edition products landed
in your environment based on the
off on the promise that is going
to be able to do something that
the lesser addition couldn't do
very rarely do customers ever
have the opportunity to exercise
whatever those features are
there were contained in the
higher additions such that you
know they really got the
business value from it that
Microsoft or any other publisher
whose product come in multiple
positions was indicating that
you could otherwise get so there
is no there is that ability to
sort of be able to look at
exactly how do I use the product
and whether or not I am over
purchasing for particular use
case and the last item is so the
continuing services improvement
one of the things that you want
to be able to talk about work
flow and the ability to use the
system to avoid if you will have
the unintended consequences of
deployments that take place in
the vacuum when you look at some
of the workflow and automation
that's available in these
operating systems to get the
advantage of seeing exactly how
you can put better controls on
how software is requested
who is giving sort of the
opportunity to approve or
disapprove how that particular
software installation then is
logged tracked and monitored
from here forward specifically
as to whether or not it remains
and assigns license or becomes
an unassigned license that can
be put
back into inventory as well as
this day is your major tool to
deal with the invitation for an
audit so the whole area
governments when you can have
any solution that provides all
of the features and all of the
attributes that we've just
described you really have got
complete governance around your
software asset state when we
look at the marketplace we also
kind of help understand the bear
the various players whose
products are out there who
comply with the attributes that
we just discussed in a previous
life so companies like like
Sarah spent a snow excess at
ServiceNow you know we've
reviewed all of these solutions
and all these solutions provide
the upper and functionalities
that we've discussed it's
interesting that when looking at
the combination of these
solutions and the publishers
whose products you actually run
there may be instances where
some products really need to
take advantage of the full
spectrum of teachers and others
do not so these again these are
some of the year is that we
would potentially come and work
with you ought to understand
exactly how much or how little
of a particular solution makes
sense for purposes of
implementation so that you
cannot simply overextended tool
including using a nuclear fly
swatter on some instances where
the problem just doesn't want
the solution that you're putting
it placed these solutions
typically come in a variety of
different configurations
increasingly a lot of the
companies are moving their
services are moving their
solution to a service so you'll
see a lot of folks who actually
make their solution available as
a hosted service subscription
others have their products
installed but in many cases even
the folks whose products have
been legacy install products are
making a software subscription
option available as well you
need to make sure that there are
they all have various license
manager so they can go a very
good job of doing the inventory
in the meta data recovery from
licenses they have a great
agreement managers so even know
based on whether you're working
with enterprise agreement or an
ad hoc purchase agreement where
these licenses change from as
people that play licenses in the
future
being able to understand what
agreement those licenses will
actually transact under they all
do a great job of doing hardware
discovery so when we talk about
these tools we've been talking
about in the context of a
software but of course you
really can't do this offer
discovery without doing the
underlying hardware discovery
and sold many customers benefit
from being a perhaps very broad
view of the total hardware
software state some of these
products do a better job and
others in making sure that the
virtual instances all the
servers that are not physical
servers that are running
neither TSX or hyper be or any
of the other hypervisors being
able to understand where they
are how they are configured
whether or not they are simply
file servers where their mail
servers or database servers
being able to get all of the
detail on those virtual
instances the concept of
optimizers distance to some of
the points I was making about
you know efficiency agility
being able to produce
information about what's been
discovered that can help shape
our reshape some of the
assumptions that you have been
using to decide on what the
purchase and help refine if you
will have your contracts going
forward will actually be shaking
again one of the areas here is
making sure that you don't have
overlapping products that are
supporting the same used case
you don't have instances where
you have higher edition products
that are really supporting lower
use chase needs and then your
workflow automation being able
to take advantage of the ability
to use these tools to not only
provide all of the hedging
against what you would need to
produce in the event of an audit
but from a governance and
overall efficiency perspective
just making sure that moving
forward
everything that you do is being
done under a system watched with
automation and workflow so what
I wanted to do as I wanted to
pause here for a moment and
allows the group to our brady
will probably be free
person who describes whether or
not we will process questions
that have been included into the
question window or whether we
will take like arson so at this
point Brady I'm gonna go ahead
let you damn Ryan again I got a
college eyes for technical
difficulties during the early
stages of the call it where I
wasn't able to come on but we do
have a few calls me a few
questions in the in the question
box now so let me let me read
those off and then you can
answer all your help with not
having to worry about when
licenses were purchased and he
offers some advantages because
depending on whether or not
products that you are currently
have enrolled I mean there's a
few whatever products are
enrolled in an EA you have this
opportunity to add incremental
quantities of those products
during any contract year and
place an order for those
incremental quantities at the
agreement anniversaries halt the
Microsoft rule so for products
that are contained in the bill
of materials you do get the
advantage of being able to run
them use them and reconcile with
them on an annual basis if
you're looking to add a product
that wasn't on your ETA you know
there's a different ordering
protocol that he took place if
you're not in any case if the
question was he a centric I'll
just briefly touch on the fact
that outside of Nea if you're
ordering products off of a
Select Plus or the newer
Microsoft products and services
agreement you do for me to you
do have the option to install a
product and then pay at the end
of the month under which the
product was installed ok thank
you
another question that came in
was how does this work in a blog
yesterday confirmed the strategy
of what we're talking about
today
with other entitlements such as
they in the end training credits
acceptor the beauty of
Gloucester these systems have
surely the ones that are showing
on the screen right now is day
off an import facility to
capture the data that is
contained in what Microsoft
calls the Microsoft license
statement called the MLS this is
Microsoft's version of the truth
with respect to a time as I can
respect of what the customer
might have this MLS is always
used as the benchmark for what
Microsoft believes was properly
acquired and and then being able
to import that data so
irrespective of what the titles
are whether it's MST and or any
other product it will be able to
bring that an established that
as you're entitled to it and you
know again
compare and contrast what you're
entitled to what is to start
right now when you think about
the more robust software asset
management solutions you know
you have what I call the license
management module and the
agreement management module
which is where you would be able
to create if you will what your
software assurance entitlements
are most people understand that
software assurance is the rights
to run a current version of the
product that's not that's not
difficult to grasp or understand
but there are other benefits
that accrue with some products
some of them take the form of
supporting students that come
along with particular past you
some of them with training
vouchers and other sort of end
user benefits all of that
software assurance entitlement
you know can be managed inside
of these systems and if
Microsoft is cells are actually
evolving some of their
customer-facing systems for
Software Assurance such that
over time you know there be a
little bit better experience for
customers trying to track their
software assurance consumption
entitlements but challenge for
US customers is that those
refinements are being ushered in
as part of the new business
model for Microsoft which is
which has been called a
Microsoft product and services
agreement which is Billy at time
0 moving forward
there's no historical for
collecting of any of your
previous purchase history into
this environment where you would
be able to benefit from
Microsoft's updated interface so
in the meantime customers who
really want to be able to get
better traction in better
understanding of their software
asset benefits you know can
leverage these systems sued
because that detail is imported
and is presented in such a way
that no end users can see
whether or not they're leaving
benefit on the table which is
bad thing you've paid for
entitlements you pay for
software insurance benefits they
do expire at the end of each
contract year so you don't wanna
be a situation where you know
three years into the future you
found that you've left a
material amount of benefit other
table that you can recover ok
thank you
another question in addition to
what you've already outlined
what are some of the warning
signs that Microsoft is
preparing to teach you just need
to execute every day with the
expectation that Microsoft is
going too hard to you may be one
of those folks where they story
happened and you have your own
war stories that go along with
their experience maybe you took
away some some change ideas or
some suggestions that you would
implement to make the next
thought it may be a little less
stressful but unfortunately in
what we see is that many
customers you know once the heat
is off and they you know they
feel like they've got a little
bit of a of a window where they
won't see Microsoft come back
anytime soon
you know some of that follow up
isn't necessarily actually acted
upon but if you haven't been on
it or you haven't been asked to
participate in the same you will
be so there's nothing that you
can do to insulate yourself from
the audit experience all you can
do is work to make it less
stressful and less disruptive at
all why sometimes can be ok
thank you
there another question you may
have just answered that with
your your last answer but I
asked you anyway it's i think im
going to get a new account
manager
sir what can you expect but you
know I expect and how should I
prepare well there's no there's
a natural turn Yorkshire if you
will with account executive so
depends on the circumstances
some executives naturally a
tailspin no two three maybe four
years in an account relationship
before they move on to a new
role and they are replaced and
other instances there's been a
problem with the previous
encounter up and now for
customer satisfaction
reasons a new personality have
been answered it's what our
customers that are in the
enterprise into it to a large
degree in the SMB space are
facing even though it's not
explicitly discussed by their
Microsoft rep to them is all of
your expected to grow microsoft
money do their annual budgeting
and their annual course I what's
there is no customer not that
are given flat year-over-year
across you know you don't know
the details behind how much
growth in may be looking for
from you but your new rap
probably gonna have to
demonstrate some serious changes
if you will in terms of how much
trading relationship between you
and Microsoft Microsoft grows
every year beginning in July the
Salesforce is basically marching
to the drumbeat of some new
specific initiatives whether
their online initiatives office
365 initiatives as your sequel
any changes every year we keep
our finger on the pulse of what
those messages are corrupted
Microsoft sellers are taking to
you or your negotiations are
getting a new rap what you're
going to be hearing is a fresh
face going down the list of
initiatives that Microsoft has
tasked him or her with to get
you to grow so I wouldn't be
surprised if everyone's talking
about online so if you're not
online customer today that
conversation is either under way
or it's going to start up real
soon there are going to be
substantial price increases that
Microsoft will release to the
market
that will begin the second half
of this calendar year so they
should be talking to you about
what some of those price
increases are but if they can't
get the growth organically or
they can get the growth which he
willingly giving it to them then
what this whole conversation has
been about becomes the next best
option and that is if you're
saturated or you're near century
if your licensing at the desk
top professional if you're in
the programs that Microsoft has
as their core programs and
you're basically licensed your
state Microsoft has to find
creative ways to extract
additional sums of revenue from
you again either they can do
that by selling you value added
new products and services which
sometimes they can but more
often than not some of those
value-added products and
services don't have used cases
that are mature enough in your
organization to benefit from
them so you know the the
compliance option is there if so
you may be in the queue for a
audit at some point the distant
future but if you're not
necessarily you know performing
or eating expectations you know
your position in the queue may
be bumped up thank you we got a
couple more here the next one is
what's the worst thing you can
do when when Microsoft wat
launches a hand on it
that's why there are so many bad
practices I don't even know
where to begin on that one but
certainly you don't want to
begin the process of randomly
removing software you know
that's just simply a knee jerk
reaction and quite frankly it
don't you may not even know
where the software is there
should be more doing then there
should be not doing when you
know that you have a heart
attacks on the horizon it's
probably the right time if you
don't have the heart if you
don't have the expertise for the
tools in house to have your
personal the truth to match up
to Microsoft's version of the
truth is probably the best
single thing that you can do and
a lot of customers will do that
Microsoft gonna come in and
they're going to foot the bill
for whatever the intervention is
going to go and they're going to
pay somebody to do the networks
can to do the reconciliation and
to produce a surprise license
position now they do work for
Microsoft and they are therefore
motivated to make sure that
Microsoft extracts but its
business objectives are from
that I am NOT saying that
they're here they're working
specifically but you know their
biases to make Microsoft happy
that said a lot of our customers
you will run a parallel exercise
one that they are financing in
paying for and which the third
parties acting as their advocate
versus simply a pair of hands
during Microsoft's work so I
would say that if if you're in a
situation where you really feel
exposed that it don't really
know what's deployed you don't
have tools available to really
ascertain what you have deployed
its not a reason to panic but a
sister reason to sort of think
about protecting your interest
and not necessarily defaulting
to what Microsoft will produces
their version of the truth when
you should have a corresponding
report yourself ok thank you one
last question is what is the
best way we can get started on
building in life
strategy but we gotta figure out
which publisher you really
wanted to apply there was those
practices too so you know that
actually takes me to a couple of
different points and I wanted to
to sort of kind of clothes on
here so everything we've talked
about really is with an eye
towards you're going to have an
audit going so I don't think
anybody should leave this call
taking it as anything they can
do that will prevent the
inevitable audit all you can do
is prepare for it right and what
we're talking about here is the
solutions to help utilized the
licenses that you have more
efficiently if in fact if you
are either over by or underlying
being able to take the licenses
that you have a median inventory
in them with respect to either
signed or unsigned to use that
information to help you get
yourself a better structure to
your contract which is one of
the one of the two things that
we really work hard to help
customers at 10 certainly we're
always trying to help them get
the best market price that's
available for customers in their
category but sometimes the
longer term benefit which
manifests when you've done
things inside the contract that
hedge risk for the future maybe
give you a datapoint but you
know you can take to the bank
for something that will happen
one to three years into the
future and of course that
sometimes means taking an
understanding what your software
roadmap should be with relatives
your strategy as far as the
architecture so for those
products were you have these
types of activities is where you
really want to spend some time
thinking through them so this
particular slide this is
actually as of the last flight I
will present before turning this
over 22 Brady but we've talked
about this in the context of
Microsoft and certainly
everybody runs microsoft you
know and most people run
Microsoft under enterprise
agreement albeit many smaller
customers will use open or or
some of the older ad hoc
dogs but Oracle's notorious for
audit IBM Cisco VMware has any
these are all companies depth
have basically a footprint
somewhere in most of the
organizations where everything
that we talked about relative to
Microsoft has equal application
to these publishers as well so
these are the years and we
actually focus our practice on
to help customers achieve the
levels of your software
management that we've been
talking about the couple more
questions that came up and you
mentioned that microsoft expects
companies to keep growing in
their purchases with Microsoft
so so the question is how do
they expect companies that might
be shrinking like distress oil
companies gas engine companies
how how how does that work where
they're going to beat reach with
Microsoft classic opportunity
for them to sell into the host
services model where they will
say listen your traditional
perpetual license relationship
for Microsoft committee jus 26
quantity going into a three-year
term they were very little
provisions in the agreement to
do anything but add to it you
could not reduce your commitment
once you enrolled in an
enterprise agreement is so if
Microsoft is still being asked
to find a way to help a customer
who is going through contraction
then they're gonna really try to
shift your way from perpetual
licenses into either
subscription licences or two
hosted services where they will
make the point that well you
have the opportunity every year
to update whatever the number of
participants arts now depending
on how many participants you
have enrolled in a particular
program offering your price
point obviously is tightened
number of entities and so
Microsoft may be able to extract
more rapidly enough they still
may be able to extract revenue a
view by accepting a smaller
number of enrolled entities or
subscribers but by increasing
the price of the units that
those entities who have to pay
so these are you know these are
some of the the toggle in the
leaders that Microsoft will try
to exploit
there are gonna be some
instances where it would just be
you know pushing ropes at
circumstances are just so dire
that you know they can't find
any possible way to get
year-over-year growth that of
you but believe me they will
work real hard up to the final
moments before they can see that
ground ok we have we have
another question come in and
it's what is your opinion of
having a large performance
assessment largest are part of
the Microsoft jail bars are paid
for and compensated by Microsoft
mars really do need to curry
favor with Microsoft because
it's a big part of their revenue
mix inside of every large you
will find personalities that are
at least giving your parents are
trying to be objective and third
party and not wait to
Microsoft's and and that's that
is true from time to time but
Microsoft will use the law are
in many instances to actually
execute the Software Asset
Management motion and the large
is intended to help Microsoft
recovery remediation replica so
I would say that if it's not
your best resource and I if you
think you have exposure if you
feel comfortable that your
processes and your systems and
your governance are pretty much
in place and working for you and
that you don't think you're
gonna wind up exposing yourself
to any downside then there's
there's no reason not to use the
Army is not going to cost you
anything
but if you have any uncertainty
if you're not a hundred percent
confident that you've got your
arms around everything that you
really want to have them around
your your setting up a dynamic
that I mentioned to you earlier
that you know you're not
prepared for the US or you're
worried that something's gonna
come out of this and then you
need to do basic your side by
side assessment one that
Microsoft paying for and the
provider of that service does
have a motivation to make sure
that Microsoft doesn't get
something out of the effort and
your provider trying to make
sure that whatever is discovered
is interpreted correctly
especially when it comes to
understanding whether or not you
have Devin test instances
whether you have been over
deployed with particular
editions of a product at a
higher level addition to have no
place supporting that use
chasing me you know we've been
very successful in changing the
outcome of Microsoft's version
of how the artist to close
versus however ultimately closed
because we know we do very good
work on making sure that we
completely isolate different
tests we completely make sure
that virtual instances that were
entitled to be there based on a
software insurance benefits are
not counted as separate licenses
and where Microsoft is making
the claim that they have sold
into a particular use case a
higher edition of particular
product and we've said there was
never used case to support that
you are you acting in the
customers best interests or not
and to get that basically turned
off so those are some of the
year is where an independent
provider of the service
personnel are is going to work
better for you
okay thank you lose that last
question we have pretty we want
to open up the phone lines or
what do we do next
what's going close up to give
drivel couple minutes back to
their day I do want to mention
before we close up with you have
some additional information
around software on its licensing
you can find that on altrec.com
where you can find that on our
blog at wordpress.com Java
traditionally inside an idea and
software licensing 12 out of
response strategies what we
heard today we also have a
couple of upcoming webinars here
in the coming months or in
Reigate or regulatory compliance
remark office automation pricing
trends so I keep an eye out for
it you know we'll be sending out
invites after you guys can also
go to source leadership dot com
to see additional information
but I'd like to think we were
dancing the time out of their
day 22 prisoners to us today and
thank everyone for attending the
webinar will have little mention
of the beginning of the call
will send an email tomorrow with
a link to the recording studios
can wash again if you need to or
hit the highlights
thank you very much and have a
great yesterday thank you thank
you

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