Can you get to all your software license certificates within 48 hours? Did you know the law may require you to?
Licensing is complex. Every software publisher has their own rules, and they can change frequently, making it an intense challenge to stay current with licensing agreements from publisher to publisher, year after year. Even within a single developer there can be many versions and permutations of license agreements, which means someone has to stay on top of all the licenses, policies, users and renewal dates. In a medium to large company, overseeing licensing compliance can be a full-time job - and it's an important one. That's because 100% compliance is coming fast, pushed forward by powerful software developers and the Business Software Alliance (BSA) who are willing to do whatever it takes to end illegal, unlicensed software usage. In order to avoid substantial penalty fines in this new era, your company needs a solid compliance strategy.
Software Asset Management' (SAM) is a strategy implemented by world-class organizations to properly manage software assets and stay ahead of the game. SAM enables businesses to save money in procurement, network uptime, server consolidation and asset retirement, as well as to manage technology changes efficiently, increase competitiveness and reduce risk.
Software Management Systems (SMS), Inc. and Zones have teamed up to offer Zones customers a confidential consultation to become software compliant. The founders of SMS, Inc. have managed licenses since 1980 and during that time have carried responsibility for millions of dollars in software assets. SMS, Inc. approaches software asset management from the perspective of how it fits into a total IT governance picture using a series of best practices. Over the years, SMS, Inc. has culled these best practices from a broad spectrum of companies in a myriad of industries to bring you a complete, streamlined package of action points.
Consider these 10 questions to determine if your company is staying compliant with its software licensing agreements:
- Do you know precisely what software is installed on each computer?
- Do you perform ongoing inventories of installed software electronically?
- Can you put your hands on all your licenses within 48 hours?
- Are computers locked down to prevent users from downloading or installing software?
- Are administrative rights restricted and enforced?
- Are software purchasing, budgets and upgrade plans centralized?
- Do you maintain a current list of approved software licenses?
- Do you reconcile your purchases with installations quarterly?
- Do you have access to a trained software licensing expert?
- Does your policy manual describe the proper use of software and procedures for acquiring software?
If you answered "yes" to these ten questions, your company most likely values the idea of a strong software-compliance initiative. There is a lot more you can do, though. Learn more about the six action steps developed in the SAM strategy to ensure complete software compliance across any business.
Here are the top six actions SMS, Inc. will guide you through for increased software license compliance:
- Know your system and configuration.
Other members in any business keep track of the assets they manage. The CFO knows to the penny the company's cash position at any given moment. The inventory manager has immediate access to the quantities and the SKUs of each item in inventory. Fleet directors can tell how many vehicles are in the fleet. IT managers, directors and CIOs should be no different - they should know how many desktops, laptops, hand-helds and servers are in their charge. Furthermore, they should understand the value of the software on those computers.
- Treat licenses as other corporate contracts.
End-User License Agreements (EULA) are contracts and should receive the same care and protection that other contracts do, including safekeeping in fireproof, waterproof, locked cabinets. In case an insurance claim is filed, the carrier will require documentation before covering any damaged or lost software. Licenses need to be retained for extensive periods of time to establish chain of ownership through multiple version upgrades. They need to be retrievable within 48 hours - a new requirement by the Federal Rules of Civil Procedure.
- Automate software asset management processes.
The use of technology is the foremost recommendation to remedy non-compliance deficiencies and weaknesses. Today, inventory, discovery, deployment, usage monitoring and security tools are available - many of which are fully integrated into IT asset management solutions. These tools enable firms to identify underused software and to collect licenses for redeployment elsewhere.
- Centralize software purchases, plans and budgets.
Consolidate purchases to take advantage of greater discounts in software pricing offered through volume license agreements. SAM can free up as much as 20% to 30% of overall budgets.
- Adopt internationally recognized standards for software asset management.
It has been shown that well managed businesses are 20% more profitable, achieve 22% higher valuations, and return triple to investors than their counterparts without IT governance.
- Reconcile software installations to license documentation and to reseller records quarterly.
Some companies are required to go out for bid for all purchases. When they are mandated to accept the lowest prices, the company ends up with several resellers. Reseller documentation becomes a challenge to manage. There are three stacks of information that need to be reconciled: (1) the inventory of software actually installed on computers, (2) the resellers purchase histories, and (3) the company's own records of purchases. By maintaining records of purchases and reconciliations, the company can demonstrate compliance with software licenses.
Why a software asset audit?
Most companies are over-licensed in some software and under-licensed in others. When businesses buy a license for every computer or user just to be on the safe side, they end up buying too many without enough return. But tools are available today that enable companies to track their software - how it's being used, how often and by whom. This enables businesses to determine which software assets contribute to productivity and profitability, and which are wasting valuable budget dollars. Additionally, businesses can take advantage of greater discounts offered on volume license plans by consolidating purchases. An audit by SMS can assist in getting your software purchase and license record keeping in order, not to mention save you from overspending on unnecessary software. SMS, Inc. will even help you determine the best asset management software for your specific industry and requirements.
Why SMS, Inc.?
With a self-audit, companies are often forced to use in-house IT staff and/or administrative personnel unfamiliar with federal copyright laws, best practices and procedures. SMS excels in this area of expertise. Furthermore, most IT professionals are already overburdened with their day-to-day tasks; adding a time-intensive job like software compliance audits only increases this strain. The hard and soft costs associated with refocusing internal staff to perform a self-audit is typically much greater than outsourcing to SMS, especially when the impact of lost IT productivity is taken into account.
Participating in a software compliance program with SMS demonstrates a company's commitment to become and stay legal to its employees, investors, business partners, customers, software vendors and enforcement groups.
To Place an Order or for More Information,
CONTACT: Your Account Manager or Zones Licensing Business Desk 800.418.9663 or email at software.licensing@zones.com
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