SAM Optimization Model

1 © 2008 Microsoft Corporation. All rights reserved.

SAM Optimization Model

Partner Guide PresentationJune 2008 version 7b


I. SAM Optimization Model (SOM) Definitions

3II. SOM Review Methodology

18

III. SOM Review Deliverables

25IV. Appendix : Example Deliverables and Templates

28

Presentation Overview


SAM Optimization Model Definitions


Basic SAMAd Hoc

Near real-time alignment with

changing business needs.

SAM is a strategic asset to overall business

objectives

Standardized SAM

Tracking Assets

Vision, policies, procedures, and tools are used to manage IT S/W asset lifecycle.

Reliable information used

to manage the assets to business targets.

Rationalized SAM

Active Management

Dynamic SAM

Optimized

SAM processes exist as well as

tool/data repository.

Information may not be complete

and accurate and typically not

used for decision making.

Little control over what IT

assets are being used and whereLacks policies,

procedures, resources, and

tools.

SAM Optimization Model


A representative with direct managerial responsibility for SAM has been identified for each infrastructure group within the organization.

Software tracking procedures have been formally documented and approved by stakeholders. SAM procedures are implemented throughout all infrastructure groups in the organization.

Senior executives have demonstrated that SAM is a top priority for the organization. All infrastructure groups in the organization use formally documented SAM procedures and have assigned resources that use a SAM system for tracking inventories.

A SAM self-improvement plan has been defined with scope, schedule and has an approved budget.

A SAM self-improvement plan has defined scope, schedule, assigned recourses and is based on continuing the improvement established after the previous self-improvement plan.

Continuous improvement SAM maturity processes are implemented to support a flexible controlled environment.

The percentage is not tracked but is between 68% to 95% The percentage is tracked and is between 96% to 99%

The percentage is tracked and is greater than 99%. Exceptions are continuously decreasing.

Reconciliation is done annually Reconciliation is done quarterly Reconciliation is done continuously.

The percentage is not tracked but is between 68% to 95% The percentage is tracked and is between 96 to 99%


Deployment and entitlement reconciliation is done annually

Deployment and entitlement reconciliation is done quarterly

Deployment and entitlement reconciliation is done continuously.

Individual software and hardware inventories are used by each function

A federated system is used which combines and/or reconciles individual inventories. Procedures are documented with assigned roles and responsibilities for stakeholders.

A single inventory/CMDB is used by all Operations Management functions in the organization. Formally documented procedures continually evolve with the organization.

The percentage is not tracked but is between 68% to 95%

The percentage is tracked and is between 96% to 99%. Procedures are documented with assigned roles and responsibilities for stakeholders.

The percentage is tracked and is greater than 99%. Exceptions are continuously decreasing. Formally documented procedures continually evolve with the organization.





Software on retired hardware is tracked and available for reuse; the percentage is between 96% to 99%. Procedures are documented with assigned roles and responsibilities for stakeholders.


Basic SAMAd Hoc

Standardized SAM

Tracking Assets

Rationalized SAM

Active Management

Dynamic SAM

Optimized

SAM Optimization Model Tipping Point KPIs


* Additional SOM scorecard details are available to assist with objective testing.

SAM Optimization Model Competencies

ISO 19770-1 Key Competency Competency Question

Organizational Management

SAM throughout Organization

How has software asset management (with documented procedures, roles, responsibilities and executive sponsorship) been implemented in each infrastructure group?

SAM Self Improvement Plan Does your organization have an approved SAM self improvement plan?

SAM Core - Inventory

Hardware and Software Inventory

What percentage of user PCs and servers are included in a centralized software inventory/CMDB (configuration management database); which is populated by a software tracking tool?

Accuracy of Inventory How often do you reconcile software inventories with other sources to verify accuracy of assumed license metrics (for example user counts based on HR employee records.)?

SAM Core - Verification

License Entitlement Records

What percentage of procured software licenses are recorded in a license entitlement inventory (a central repository/tracking of all licenses owned and/or previously acquired)?

Periodic Self Evaluation

How often do you reconcile software deployments (usage) to software entitlements (purchases)? Software entitlements are software licenses owned or previously acquired.

SAM Core -Operations

management and interfaces

Operations Management records interfaces

How do the various Operations Management functions (contracts, financial fixed assets, service support, security, networking) use software and hardware inventories in their daily roles?

Lifecycle Process

Interfaces

Acquisition Process What percentage of total software purchases in your organization are made through or are controlled and tracked by centralized procurement?

Deployment Process

What percentage of total software deployed across organization's PCs and servers (considering all operating systems) is installed through centralized sources or through a controlled distribution environment?

Retirement ProcessWhat percentage of retired hardware assets are tracked in a way to enable the software on them to be reused?


Key Performance Indicators for each SAM CompetencyKey Competency Basic Standardized Rationalized Dynamic


SAM roles and responsibilities are not defined. Software tracking is not implemented throughout the organization (in every infrastructure group).


Software tracking procedures have been formally documented and approved by stakeholders. SAM procedures are implemented throughout all infrastructure groups in the organization.

Senior executives have demonstrated that SAM is a top priority for the organization. All infrastructure groups in the organization use formally documented SAM procedures and have assigned resources that use a SAM system for tracking inventories.

SAM Self Improvement Plan

There is no plan for implementing SAM; or no SAM improvement plan has been completed within the organization with executive sponsorship and budget.

A SAM self-improvement plan has been defined with scope, schedule and has an approved budget.

A SAM self-improvement plan has defined scope, schedule, assigned recourses and is based on continuing the improvement established after the previous self-improvement plan.

Continuous improvement SAM maturity processes are implemented to support a flexible controlled environment.

Hardware percentage Software Inventory

The percentage of total hardware and software tracked in a CMDB is not tracked but is less than 68%


The percentage is tracked and is between 96% to 99%


Accuracy of Inventory

Inventory details are reconciled with the original source rarely or ad-hoc Reconciliation is done annually Reconciliation is done quarterly Reconciliation is done continuously.


The percentage of license entitlement in a repository is not tracked but is likely less than 68%


The percentage is tracked and is between 96 to 99%


Periodic Self Evaluation

Deployment and entitlement reconciliation is done rarely or ad-hoc

Deployment and entitlement reconciliation is done annually

Deployment and entitlement reconciliation is done quarterly

Deployment and entitlement reconciliation is done continuously.

Operations Management records and interfaces

Operations Management functions generally do not use software and hardware inventories.

Individual software and hardware inventories are used by each function

A federated system is used which combines and/or reconciles individual inventories. Procedures are documented with assigned roles and responsibilities for stakeholders.

A single inventory/CMDB is used by all Operations Management functions in the organization. Formally documented procedures continually evolve with the organization.

Acquisition Process

The percentage of software purchases centrally controlled is not tracked but is likely less than 68%




Deployment Process

The percentage of software deployed using a centrally controlled procedure is not tracked but is likely less than 68%




Retirement Process

The percentage of hardware assets that are retired and recorded in a way to enable the software on them to be reused is not tracked but is likely less than 68%


Software on retired hardware is tracked and available for reuse; the percentage is between 96% to 99%. Procedures are documented with assigned roles and responsibilities for stakeholders.



Competency QuestionHow has software asset management (with documented procedures, roles, responsibilities and executive sponsorship) been implemented in each infrastructure group?

Supporting Document: SAM infrastructure group and IT organization chart.

BasicA Project Manager is assigned to SAM related projects on a per project basis. SAM roles and responsibilities are not defined. IT resources are not assigned to meet SAM objectives, or those assigned have no previous SAM experience or training.

Objectives To Become StandardizedFor each infrastructure group within the organization identify who has direct management responsibility for each unique SAM inventory throughout the organization. Specifically identify: 1) all locations, 2) estimated quantity of each hardware platform at each location, 3) a functional description of each group, 4) a representatives name with direct responsibility for the groups SAM processes, and 5) a description of the SAM process and/or tool used for the group.

Objectives To Become RationalizedFor each infrastructure group within the organization identify a complete and accurate organizational view of the enterprise. Specifically for each infrastructure group identify 1) an aggregated summary of hardware and software deployments; and again 2) identify who has direct management responsibility for each unique SAM inventory throughout the organization.

Objectives To Become DynamicResponsibilities of SAM stakeholders are defined in job descriptions throughout the organization. Awareness of SAM exists throughout the organization. SAM is a priority throughout the organization and is seen as a key strategic strength.

Optimization Model : SAM Throughout the Organization


Competency QuestionDoes your organization have an approved SAM self improvement plan?

Supporting Document: Current SAM improvement plan and approved SAM budget.

BasicThere is no documented executive vision for SAM. There is no SAM development plan. Communication with software vendors is rare or not occurring.

Objectives To Become StandardizedA SAM self improvement plan has been developed and has been approved with defined funding/budget which specifically defines scope, schedule and resources for SAM.

Objectives To Become RationalizedComparing the historical baseline of a previously developed SAM maturity assessment to a current SAM maturity assessment demonstrates evidence of increased maturity. Evidence of historical progress and a revised SAM improvement plan has been reviewed by SAM stakeholder sponsors and budget has been approved for the current plan.

Objectives To Become DynamicSoftware Vendor, SAM Partner, and Organization strategically partner together to meet common objectives of SAM and IT infrastructure. SAM goals are part of the executive scorecard which is reviewed and updated regularly. SAM is a strategic focus. Corporate SAM stakeholders are industry leaders; SAM stakeholders demonstrate thought leadership by presenting at SAM industry conferences and providing guidance for improved training materials.

Optimization Model : SAM Improvement Plan


Competency QuestionWhat percentage of user PCs and servers are included in the centralized software inventory/CMDB (configuration management database); which is populated by a software tracking tool?Supporting Document: Software and hardware inventory, by device, for all infrastructure groups.

BasicSoftware and hardware inventories are only accessible locally (software administrator, subsidiary, business unit, division). There is no centralized, managed software and hardware inventory. Centralized asset inventory contains records for less than 68% of software. (1 std deviation in a normal curve)Objectives To Become StandardizedA centralized hardware inventory contains between 68% and 95% of all Servers and between 68% and 95% of all PCs that have installed software owned by the company. A centralized software inventory representing between 68% and 95% of software spend includes software deployments from all hardware in the hardware inventory.Objectives To Become RationalizedA centralized hardware inventory contains between 96% and 98% of all Servers and between 96% and 98% of all PCs that have installed software owned by the company. A centralized software inventory representing between 96% and 98% of software spend includes software deployments from all hardware in the hardware inventory.

Objectives To Become DynamicSoftware inventory is dynamically reconciled with all software in the environment and on the network. Hardware inventory is dynamically reconciled with all hardware on the network. A centralized software inventory representing >99% of software includes software deployments from all hardware in the hardware inventory..

Optimization Model : Hardware and Software Inventory


Competency QuestionHow often do you reconcile software inventories with other sources to verify accuracyof assumed license metrics (for example user counts based on HR employee records.)?

Supporting Document: Reconciliation of SAM inventory sources.

BasicInventories are based on manually collected deployment estimates; or discovery tools are not

used. For example excel files with original build documentation are used to manage inventories. Complete and accurate reports are not available in a timely manner.

Objectives To Become StandardizedOnce a year or more the centralized software asset inventory is reconciled with other

independent sources to verify that it accurately includes all applicable software and hardware metrics required to reconcile software deployments and software usage to license entitlement.

Objectives To Become RationalizedOnce a quarter or more the centralized software asset inventory is reconciled with other

independent sources to verify that it accurately includes all applicable software and hardware metrics required to reconcile software deployments and software usage to license entitlement.

Objectives To Become DynamicDynamic Software configuration and change management can be adjusted on a JIT model

without delay.Dynamic Discovery tools provide (daily) near real time deployment details. SAM Discovery tool

collects and reports on appropriate licensing metrics. (For example: User, Concurrent User, Hyper threaded CPU, core, etc.)

Hardware is tracked by RFID. The RFID can identify the appropriate location of the asset (data center, row, rack, etc.)

Optimization Model : Accuracy of Inventory


Competency QuestionWhat percentage of procured software licenses are recorded in a license entitlement inventory (a central repository/tracking of all licenses owned and/or previously acquired)?Supporting Document: Entitlement records and inventories.

BasicProcurement managers manage contracts and maintain local (subsidiary, business unit, division) records that

are not accessible centrally. Procurement manages contracts that are not accessed by IT Managers.

Objectives To Become StandardizedFor each infrastructure group and business units in the scope of the enterprise there is a centralized

entitlement inventory which completely and accurately includes all records required to reconcile software deployments and software usage to deployment inventory.

Objectives To Become RationalizedFor each infrastructure group and business units in the scope of the enterprise there is a centralized

entitlement inventory which is periodically reconciled with software vendor records.

Objectives To Become DynamicSAM Entitlement system interfaces with vendor entitlement system to track licenses used.

Optimization Model : License Entitlement Records


Competency QuestionHow often do you reconcile software deployments (usage) to software entitlements (purchases)?Software entitlements are the software licenses owned or previously acquired.Supporting Document: SAM executive report with sign – off.

BasicIT operations is managed on an ad-hoc basis, like a fire drill. Tools are not leveraged to identify new

hardware or track asset inventories.

Objectives To Become StandardizedOnce a year or more SAM executive sponsors review and sign off on SAM reports; which include at

least a deployment and entitlement reconciliation of high risk software titles.

Objectives To Become RationalizedOnce a quarter or more SAM executive sponsors review and sign off on SAM reports; which include at

least a deployment and entitlement reconciliation of high risk software titles.

Objectives To Become DynamicSystem reconciliation and ITAM reports are available on demand to all stakeholders.

Optimization Model : Periodic Self-Evaluation


Competency QuestionHow do the various Operations Management functions (contracts, financial fixed assets, service support, security, networking) use software and hardware inventories in their daily roles?

Supporting Document: Software and hardware inventories managed by Operations Management.

BasicOperations management functions (i.e. IT support, financial fixed asset tracking, security, and network

administration) do not follow an aligned strategy for SAM. SAM related strategies that exist are not communicated and committed to. SAM is not considered part of M&A risk planning and company integration.

Objectives To Become StandardizedOperations management functions (i.e. IT support, financial fixed asset tracking, security, and network

administration) each manage inventories to track the assets they control.

Objectives To Become RationalizedOperations management functions (i.e. IT support, financial fixed asset tracking, security, and network

administration) manage a complete and accurate federated system for tracking assets which includes interfaces between asset inventories.

Objectives To Become DynamicAll local business units, infrastructure groups, business functions, legacy acquired companies and corporate

headquarters follow the same strategy, processes and technology for SAM.

Optimization Model : Operations Management Interfaces


Competency QuestionWhat percentage of total software purchases in your organization are made through or are controlled and tracked by centralized procurement?

Supporting Document: List of approved vendors and users with entitlement record access.

BasicEnterprise software licenses are purchased in bulk and not based on usage inventories. End-users can

individually purchase and expense software (pro-cards) without central approval or coordination. Software is purchased on a per project basis without reviewing licenses that may be available or are not be being used optimally.

Objectives To Become StandardizedSoftware purchases are controlled through policies established by centralized procurement using approved

vendors.

Objectives To Become RationalizedSoftware entitlement contract purchases are based on periodic deployment/entitlement reconciliation

reports; and entitlement records are accessible to IT Operations and other organizational stakeholders (i.e. End-users, Legal, HR, CIO) through approved usage rights.

Objectives To Become DynamicAll purchases are made using a pre-defined asset catalogue.Software charge-backs are paid for among business units based on actual metered usage (similar to an

electric bill).

Optimization Model: Acquisition Process


Competency QuestionWhat percentage of total software deployed across organization's PCs and servers (considering all operating systems) is installed through centralized sources or through a controlled distribution environment?Supporting Document: List of approved deployment software and users with deployment recordsaccess.

BasicSoftware is deployed by end-users in distributed locations and is not controlled by centralized IT.

Objectives To Become StandardizedSoftware deployments are controlled through policies established by centralized IT, and only approved

software is deployed.

Objectives To Become RationalizedSoftware deployment summary reports and records are accessible to Procurement and other

organizational stakeholders (i.e. IT Operations, End-users, Legal, HR, CIO) through approved usage rights.

Objectives To Become DynamicSoftware is dynamically available to users when needed in a JIT basis similar to software as a service.

Optimization Model: Deployment Process


Competency QuestionWhat percentage of retired hardware assets are tracked in a way to enable the software on them to be reused?

Supporting Document: Evidence that retired assets and software licenses are tracked centrally& added back to entitlement inventories for reuse.

BasicSoftware that is installed on machines is disposed of with the hardware asset, and licenses are not tracked.

There is no organized retirement process. Un-utilized software is not tracked and reassigned. No IT asset retirement policy or procedure is documented.

Objectives To Become StandardizedUpon retirement of hardware, installed software on retired assets is tracked within a centrally controlled

inventory.

Objectives To Become RationalizedUpon retirement of hardware, installed software on retired assets is tracked within a centrally controlled

inventory; deployment and license records are updated and license entitlements are available for re-use.

Objectives To Become DynamicSoftware deployments have been optimized to minimize any duplication of software. Upon retirement of hardware, a comprehensive process is automated to ensure that once flagged for

disposal, installed software is recorded and licenses are tracked and controlled centrally.

Optimization Model: Retirement Process


SAM Optimization Review Methodology


This SAM Optimization Review is best executed in the context of a project with the customer.As seen to the left, the main phases of the SAM Optimization Review are the Infrastructure Analysis, SAM Discussions, and Optimization Planning.These phases are kicked off with Coordination and Planning discussions and as the review progresses standard Project Management tools such as status reporting will be delivered. The project timeline varies according to resource constraints and turn around times.

SAM Discussions

Infrastructure Analysis

Optimization and Planning

SAM Optimization Review Overview



SAM Discussions


SAM WorkshopCommunication

InfrastructureGroup

IO Questionnaire

SAM Survey

SAM IOWork Paper

SAM OptimizationAnalysis

OptimizationValue Analysis

Example Milestones and DocumentsC

usto

mer

Fac

ing

SAM

Par

tner

Planning and Coordination

Onsite Discussions Reporting and Next Steps


Infrastructure Analysis: Microsoft Partners will discuss the organizations infrastructure with the key stakeholders and review the information Microsoft Infrastructure Optimization questions with the organization.

Refer to Infrastructure Optimization Questions document in Appendix A.

SAM Discussions



SAM Optimization Review Fieldwork: Infrastructure Analysis


SAM Discussion: Discussion questions may be sent to the company prior to the workshop for review and preparation.

The workshop process is iterative and may be customized based on the company’s environment.

During the workshop Microsoft Partner will lead with open-ended questions to gain an understanding of the current state of the company’s SAM.

Results recorded in the SAM Optimization workbook.

Refer to the SAM Optimization Work Paper in Appendix B.

SAM Discussions



SAM Optimization Review Fieldwork: SAM Discussions


Optimization and Planning: Microsoft partners will discuss initial observations with customer in order to develop customized deliverables that are strategically aligned with the customer’s priorities.

Microsoft partner may analyze the information from the onsite discussions and

deliver a: SAM Optimization Analysis Optimization Value Analysis

Descriptions of the deliverables are available in the next section of this

presentation and examples can be found in the appendix.

SAM Discussions



SAM Optimization Review: Optimization and Planning


1. Basic to Standard Implementation2. Competitive Value Book3. Deployment Entitlement Reconciliation4. …5. …

Sample Follow On Projects


SAM Optimization Review Deliverables


The SAM Optimization Analysis is Microsoft Partner’s primary deliverable at the completion of the SAM Optimization Review.

An example report may follow the outline seen to the right and provides the company with analysis based on the discussions regarding their SAM position and the company’s future goal for SAM maturity.

In the SAM Optimization Review, Microsoft Partner provides summary information for each competency, specific observations and subsequent recommendations.

1 Executive Summary

1.1 Background

1.2 Infrastructure Optimization

1.3 Approach

2 Infrastructure Optimization and SAM Review

2.1 Present State Analysis

2.2 Future State Analysis

3 Action Plan

3.1 Action Plan and Recommendations

3.2 Road Map

4 Appendix

4.1 SAM Optimization Model

4.2 Business Case

SAM Optimization Analysis


SAM OPTIMIZATION ASSESSMENT EXAMPLE Company Name

ISO 19770-1 Categories Key Competency Current Optimization and

Rating (Initial) Observation


SAM throughout Organization Standardized


2 Resources are not assigned to SAM initiatives.


SAM Improvement Plan

BasicIf a self assessment SAM improvement plan have been completed within the company they have not received executive sponsorship and/or budget.

1 Budget is not designated for SAM improvement.

SAM InventoryHardware and Software Inventory

DynamicThe percentage is tracked and is greater than 98%. Exceptions are continuously decreasing.

4 Communication with vendor is not occurring.

SAM Inventory Accuracy of Inventory Dynamic Reconciliation is done continuously. 4 Communication with vendor is

not occurring.

SAM VerificationLicense Entitlement Records

Basic The percentage is not tracked but is likely less than 80%. 1 Management does not have SAM

goals/initiatives.

SAM Verification Periodic Self Evaluation Standardized Annually. 2 Management does not have SAM

goals/initiatives.

SAM Operations Management and

Interfaces

Operations Management Interfaces

RationalizedOperations management functions manage a complete and accurate federated system for tracking assets which includes interfaces between asset inventories.

3 SAM is not perceived throughout the organization.

Lifecycle Process Interfaces

Acquisition Process Basic The percentage is not tracked but is likely

less than 80%. 1 Enter observation.


Deployment Process Basic The percentage is not tracked but is likely

less than 80%. 1 Enter observation.


Retirement Process Dynamic The % is known and is greater than 98%.

Exceptions are continuously decreasing. 4 Enter observation

Analysis Deliverable #1 – Example Output Sent to Microsoft


Deliverable # 1: SAM Optimization Analysis

SAM Component Assessment for CompanyMicrosoft's Partner has considered the components of SAM and has ranked their maturity across the four levels. Results indicate that a majority of Company’s SAM components are of the standardized level. The following slides present a breakdown of our findings across People, Process, and Technology.

Retirement Process

SAM Improvement

Plan


SAM Operations/Mgmt Interfaces


License Entitlement

Records

Acquisition Process

Hardware &SoftwareInventory

Deployment Process

Periodic Evaluation

BasicStandardize

dRationalize

dDynamic


Deliverable # 1: SAM Optimization Analysis – Future StateStandardized Rationalized DynamicBasic

SAM not considered part of M&A risk plan and company

integration.

No organized retirement process.

Assets deployed by end-users in distributed

locations; no centralized IT.

Assets purchased on a per project basis; without a

review of current availability.

IT operations managed on ad-hoc basis.

Procurement manages contracts; not accessed

by IT managers.

Manual inventory; no discover tools.

No centralized inventory or < 68% assets in central

inventory.

No SAM development or communication plan.

Project Manager assigned but SAM roles and responsibilities not

defined.

Operations manages separate asset inventories.

Software retirement is tracked.

Only approved software is deployed.

Software purchases use approved vendors.

Annual sign-off on SAM reports.

Complete entitlement records exist across

organization.

Inventory sources reconciled annually.

> 68% - 95% of Hardware and Software in Inventory.

SAM plan is defined and approved.

Direct SAM responsibility is identified throughout

organization.

Operations manages federated asset inventory.

Retired software is reused.

Software deployment reports are accessible to

stakeholders.

Software purchases based on deployment/entitlement

reconciliation.

Quarterly sign-off on SAM reports.

Entitlement records reconciled with vendor

records.

Inventory sources reconciled quarterly.

> 95% -98% of Hardware and Software in Inventory.

SAM Improvement is demonstrated.

Each functional group actively manages SAM.

All business units, etc. follow the same strategy, process,

and technology for SAM.

Upon retirement, a comprehensive process is

automated.

Software is dynamically available to users on

demand.

All purchases are made using a pre-defined asset

catalogue; based on metered usage.

System reconciliations and ITAM report available

on demand.

SAM entitlement system interfaces with vendor

entitlement to track usage.

Dynamic discovery tools provide near real-time deployment details.

99%+ - Asset inventories reconciled dynamically.

SAM goals part of executive scorecard; reviewed

regularly.

SAM responsibilities defined in job descriptions

across organization.SAM Throughout

Organization

SAM ImprovementPlan

Hardware and Software Inventory



Periodic Evaluations

SAM OperationsMgmt and Interfaces

Acquisition Processes

Deployment Processes

Retirement Processes


Deliverable # 2: Optimization Value Analysis (Optional)

Value Analysis for Customer SAM Optimization• SAM Partner Supplied

• Based on Present State Analysis findings • Format is flexible

• SAM Partner specified• Customer appropriate


Appendix : Example Deliverables and Templates


Description

Appendix A: IO Questionnaire – See Attached

Appendix B:•SOM Work PaperSee Attached

Appendix C:• SAM Optimization AnalysisSee Attached

Appendix