Software AssuranceSoftware AssuranceAdding Value To Your IT InvestmentsAdding Value To Your IT Investments

Julie GieraJulie Giera

Vice PresidentVice President

Forrester ResearchForrester Research

AgendaAgenda

Concerns around the value of Concerns around the value of software licensing software licensing

How Microsoft has improved How Microsoft has improved Software AssuranceSoftware Assurance

The benefits and business impact The benefits and business impact Forrester Research findingsForrester Research findings

How to take advantage of the How to take advantage of the benefitsbenefits

Next stepsNext steps

Business ConcernsBusiness Concerns

IT budgets are being scrutinizedIT budgets are being scrutinized Software licensing and support fees Software licensing and support fees

are are often targetedoften targeted

When asking for budget, When asking for budget, articulating the value of license articulating the value of license agreements is difficultagreements is difficult

License agreements need to License agreements need to provide specific, quantifiable value provide specific, quantifiable value that the boardroom can graspthat the boardroom can grasp

Microsoft’s Response… Microsoft’s Response… Add Value to Software AssuranceAdd Value to Software Assurance

Help improve productivityHelp improve productivity Increase the level of support Increase the level of support Provide powerful, useful tools Provide powerful, useful tools Make training easier and less costlyMake training easier and less costly

Main Focus AreasMain Focus Areas

Analyzing The ImpactAnalyzing The Impact

We’ve significantly increased the value of We’ve significantly increased the value of Software Assurance with Licensing 6.0Software Assurance with Licensing 6.0

Upgrade Protection is now only a small Upgrade Protection is now only a small portion of the entire value of SAportion of the entire value of SA

We asked Forrester Research to analyze We asked Forrester Research to analyze the financial impact an average the financial impact an average organization should expect from taking organization should expect from taking advantage of everything Licensing 6.0 advantage of everything Licensing 6.0 has to offerhas to offer

““Microsoft has been enhancing their licensing programs aggressively for the Microsoft has been enhancing their licensing programs aggressively for the past 6 months… Microsoft’s Software Assurance has raised the bar in the past 6 months… Microsoft’s Software Assurance has raised the bar in the entire software industry for the total value delivered to the customer”entire software industry for the total value delivered to the customer”

Julie GieraJulie Giera, VP, Research Fellow – , VP, Research Fellow – Forrester ResearchForrester Research

Improving ProductivityImproving Productivity

Home user rightsHome user rights Employee purchase planEmployee purchase plan New version rightsNew version rights

How can a license agreement How can a license agreement improve productivity?improve productivity?

““CIOs will find not only productivity benefits for corporate workers, CIOs will find not only productivity benefits for corporate workers, but there will be real dollars added to the budget as a result of the but there will be real dollars added to the budget as a result of the SA enhancements.”SA enhancements.”

Julie GieraJulie Giera, VP, Research Fellow - Forrester Research, VP, Research Fellow - Forrester Research

Home User Rights For Home User Rights For Office ProductsOffice Products Users are entitled to install the same Office Users are entitled to install the same Office

software they are licensed for at work on their software they are licensed for at work on their home PChome PC

Forrester Research found thatForrester Research found that Employees with access to the office from home average Employees with access to the office from home average

1.75 more hours of work per week for “free”; Salary 1.75 more hours of work per week for “free”; Salary Savings: $700-$8000/yr per personSavings: $700-$8000/yr per person

Telecommuting employees average 14.5 additional work Telecommuting employees average 14.5 additional work days per year; Salary Savings average $5,240 per year days per year; Salary Savings average $5,240 per year

Home User Rights software licensing savings range from Home User Rights software licensing savings range from $75-500 per person$75-500 per person

Revenue generating departments, such as sales, can Revenue generating departments, such as sales, can experience increases in revenues per employeeexperience increases in revenues per employee

Total “value” of Home Use Rights: Total “value” of Home Use Rights: $980-$13,500 $980-$13,500 per year per employeeper year per employee (not including added (not including added revenues/profits from revenue generating revenues/profits from revenue generating employees)employees)

Data provided by TEI research conducted by the Giga Data provided by TEI research conducted by the Giga Information Group, a subsidiary of Forrester Research, Information Group, a subsidiary of Forrester Research, Inc. and is maintained exclusively by Giga Information Inc. and is maintained exclusively by Giga Information Group. Group. 

Employee Purchase PlanEmployee Purchase Plan

Employees get significant discounts on most Employees get significant discounts on most Microsoft productivity and consumer products Microsoft productivity and consumer products (even products not licensed at work)(even products not licensed at work)

Forrester Research found thatForrester Research found that The Employee Purchase Plan Builds retention and The Employee Purchase Plan Builds retention and

employee satisfactionemployee satisfaction Anecdotal evidence indicates employee satisfaction, Anecdotal evidence indicates employee satisfaction,

for employees using the benefit, improves by average for employees using the benefit, improves by average of 6% (Bristol Meyer Squibb employee benefit of 6% (Bristol Meyer Squibb employee benefit satisfaction survey – May, 2002)satisfaction survey – May, 2002)

Every 2 points of employee satisfaction results in 5% Every 2 points of employee satisfaction results in 5% reduction in attritionreduction in attrition

Average cost to replace technology worker is $67,000Average cost to replace technology worker is $67,000 A 15% reduction in attrition rates in a 100 person A 15% reduction in attrition rates in a 100 person

company translates to $80k-85k savings annually company translates to $80k-85k savings annually (attrition rates run an average of 8% these days)(attrition rates run an average of 8% these days)

Similar financial benefits as Home User Rights around Similar financial benefits as Home User Rights around doing additional work from home and telecommutingdoing additional work from home and telecommuting

Increased Levels Of SupportIncreased Levels Of Support

TechNet Concierge ServiceTechNet Concierge Service Free TechNet Plus subscriptionsFree TechNet Plus subscriptions Problem Resolution SupportProblem Resolution Support Extended Lifecycle HotfixesExtended Lifecycle Hotfixes

Reduce downtime and support Reduce downtime and support costscosts

The Cost Of DowntimeThe Cost Of Downtime

The average cost of downtime per The average cost of downtime per hourhour

ATM Service FeesATM Service Fees $14,000$14,000

Online Network FeesOnline Network Fees $25,000$25,000

Airline ReservationsAirline Reservations $89,000$89,000

Catalog SalesCatalog Sales $90,000$90,000

UPS/FedEXUPS/FedEX $150,000$150,000

EbayEbay $290,000$290,000

Credit Card AuthCredit Card Auth $2,600,000$2,600,000

BrokerageBrokerage $6,500,000$6,500,000* Source: Forrester Research* Source: Forrester Research

TechNet Concierge ServiceTechNet Concierge Service

One-on-one Web-based assisted search chat One-on-one Web-based assisted search chat sessions sessions between Microsoft online advisors and users between Microsoft online advisors and users

Forrester Research found thatForrester Research found that TechNet Concierge Service improves Mean time TechNet Concierge Service improves Mean time

to Repair (MTTR) for Microsoft-related incidents by to Repair (MTTR) for Microsoft-related incidents by between 5% and 50%between 5% and 50% Assuming the Concierge Service saves 1 hour of Assuming the Concierge Service saves 1 hour of

downtime per year; average savings will be $8000downtime per year; average savings will be $8000 Reduces support costs per employeeReduces support costs per employee

IT support costs an average company $829/employee; A IT support costs an average company $829/employee; A 1% reduction in support costs for a company with 5,000 1% reduction in support costs for a company with 5,000 employees would amount to $40,000employees would amount to $40,000

Total value of TechNet Concierge can range Total value of TechNet Concierge can range between $8,000 and $48,000+ per yearbetween $8,000 and $48,000+ per year

TechNet PlusTechNet Plus

Free subscription and unlimited installation of Free subscription and unlimited installation of TechNet Plus content on any Microsoft server for TechNet Plus content on any Microsoft server for use by administrators, employees, use by administrators, employees, and contractorsand contractors

Forrester Research found thatForrester Research found that TechNet Plus – Free subscription saves $999 per user per TechNet Plus – Free subscription saves $999 per user per

yearyear Like Concierge, TechNet Plus will improve availability and Like Concierge, TechNet Plus will improve availability and

reduce the costs reduce the costs of downtimeof downtime

Technet Plus can reduce support calls by at least 10%Technet Plus can reduce support calls by at least 10% Technet Plus can reduce support costs for Microsoft Technet Plus can reduce support costs for Microsoft

Products by 10%Products by 10% Technet Plus mitigates project risk and reduces upgrade Technet Plus mitigates project risk and reduces upgrade

project timelines; If timelines are reduced by only 1% project timelines; If timelines are reduced by only 1% for one Microsoft product upgrade in 3 years, the for one Microsoft product upgrade in 3 years, the business value: $100k-$250k depending upon size of business value: $100k-$250k depending upon size of companycompany

Reduced Help Desk calls – $1000 minimumReduced Help Desk calls – $1000 minimum Total value of Technet Plus can range betweenTotal value of Technet Plus can range between

$70,000 and $175,000$70,000 and $175,000 or more per yearor more per year

Problem Resolution SupportProblem Resolution Support

One-on-one Web and/or phone supportOne-on-one Web and/or phone support Forrester Research found thatForrester Research found that

Value gained for free versus paid support should average Value gained for free versus paid support should average $5,000 + per year $5,000 + per year

Improvements in MTTR of 50% – value $20,000 + a yearImprovements in MTTR of 50% – value $20,000 + a year Reduced support staff for Microsoft products by 5% – value Reduced support staff for Microsoft products by 5% – value

$20,000$20,000 Improve server to support ratios by 10% – value $20,000 Improve server to support ratios by 10% – value $20,000

or moreor more Microsoft project timeline and quality improvements of 5% Microsoft project timeline and quality improvements of 5%

– value $100,000/year– value $100,000/year Improved time to market for business initiatives involving Improved time to market for business initiatives involving

Microsoft server Microsoft server platforms by 5% – value $30,000 +platforms by 5% – value $30,000 +

Reduced Help Desk calls – value $2,000 +Reduced Help Desk calls – value $2,000 + Total business value per year: Total business value per year: $197,000$197,000

Extended Lifecycle HotFixExtended Lifecycle HotFix

2 years of additional hot-fix support 2 years of additional hot-fix support beyond the normal 5 year lifecyclebeyond the normal 5 year lifecycle

No longer required to pay for this No longer required to pay for this service up front – only if you need it service up front – only if you need it

As always, security fixes are As always, security fixes are automatically extended to customersautomatically extended to customers

Allows you to upgrade your systems Allows you to upgrade your systems at your own pace, not according to at your own pace, not according to our release scheduleour release schedule

Powerful, Useful ToolsPowerful, Useful Tools

Corporate error reportingCorporate error reporting Enterprise source licensingEnterprise source licensing Windows pre-install environment Windows pre-install environment

Save time and reduce support and Save time and reduce support and deployment costsdeployment costs

Corporate Error Reporting – CERCorporate Error Reporting – CER

Provides a clear and easy way to monitor Provides a clear and easy way to monitor and review error information to control and review error information to control deployment of fixes and resolutions deployment of fixes and resolutions

CER lets IT professionals map solutions to CER lets IT professionals map solutions to crashescrashes Identify which systems are failing and whyIdentify which systems are failing and why Connect to up-to-date knowledge and fixesConnect to up-to-date knowledge and fixes Determine actionable information when Determine actionable information when

escalation is required escalation is required Forrester Research found thatForrester Research found that

CER reduces the number of Microsoft incidents CER reduces the number of Microsoft incidents by 2%-5% per year; Business value – $5,000 +by 2%-5% per year; Business value – $5,000 +

Help Desk call reduction $2,000+Help Desk call reduction $2,000+ Reductions in support technicians $10,000+Reductions in support technicians $10,000+ Total value of CER – Total value of CER – $17,000/year$17,000/year or more or more

Enterprise Source Licensing Enterprise Source Licensing

Eligible customers with 1,500 or Eligible customers with 1,500 or more licensed desktops can access more licensed desktops can access Microsoft Windows source code for Microsoft Windows source code for internal development and support internal development and support

Forrester Research found thatForrester Research found that Value will vary widely depending upon Value will vary widely depending upon

how the source is used; Benefits to how the source is used; Benefits to having source available includehaving source available include The ability to customize Microsoft The ability to customize Microsoft

products to fit the needs of the business; products to fit the needs of the business; Value $100k+Value $100k+

Ability to run non-supported releases of Ability to run non-supported releases of Microsoft productsMicrosoft products

Value: Value: Highly variableHighly variable – – $100k to $100k to Millions of dollarsMillions of dollars

Windows Pre-Install EnvironmentWindows Pre-Install Environment

WinPE is a tool that allows IT staff to build WinPE is a tool that allows IT staff to build custom solutions that speed up custom solutions that speed up deployment through automation, deployment through automation, spending less time and effort keeping spending less time and effort keeping desktops updateddesktops updated

Forrester Research found that WinPEForrester Research found that WinPE Reduced Windows Deployment Time by 5%Reduced Windows Deployment Time by 5% Reduced Errors for Windows DeploymentsReduced Errors for Windows Deployments Facilitates the application of Fixes and Facilitates the application of Fixes and

UpdatesUpdates Mitigates impact and risk to the businessMitigates impact and risk to the business Reduced calls to the help deskReduced calls to the help desk Value: From Value: From $20k +$20k +

Easier, More Cost Effective Easier, More Cost Effective TrainingTraining

Built in e-Learning on Microsoft Built in e-Learning on Microsoft productsproducts

Third-party training vouchers for Third-party training vouchers for advanced learningadvanced learning

Make your technology dollars work Make your technology dollars work harder; Keep staff trained on the harder; Keep staff trained on the latest technology for lesslatest technology for less

e-Learning On Microsoft Productse-Learning On Microsoft Products

An engaging, effective learning An engaging, effective learning experience for employees who need to experience for employees who need to upgrade their skills and knowledgeupgrade their skills and knowledge

Can be used as traditional training or as a Can be used as traditional training or as a just-in-time reference resource – either just-in-time reference resource – either online or offline online or offline

Forrester Research found thatForrester Research found that Reductions in training budgets – Value Reductions in training budgets – Value

$10,000+$10,000+ Reductions in help desk calls for “how-to” Reductions in help desk calls for “how-to”

questionsquestions Improved user productivity – 24 x 7Improved user productivity – 24 x 7 Reductions in Support CostsReductions in Support Costs Reductions in Travel and ExpenseReductions in Travel and Expense Value: Value: $50,000 +$50,000 +

Third-Party Training VouchersThird-Party Training Vouchers

Receive training vouchers for training on Receive training vouchers for training on select courses from Microsoft Certified select courses from Microsoft Certified Technical Education CentersTechnical Education Centers

Forrester Research found thatForrester Research found that Reductions in training budgets – Value Reductions in training budgets – Value

$10,000+$10,000+ Improvements in support/availabilityImprovements in support/availability Improvements in Employee satisfaction and Improvements in Employee satisfaction and

retentionretention Reductions in support costsReductions in support costs Reduced project time and costReduced project time and cost Improved time to market for business Improved time to market for business

initiativesinitiatives Ability to offer new products and servicesAbility to offer new products and services Reductions in errorsReductions in errors Value: Value: $50,000+$50,000+

Overall Business ImpactOverall Business Impact

Simpler budgeting for software and Simpler budgeting for software and supportsupport

Improved productivity for Improved productivity for knowledge workers and IT staffknowledge workers and IT staff

Quicker, simpler deployments, Quicker, simpler deployments, support and management with support and management with advanced, powerful, useful toolsadvanced, powerful, useful tools

Significant savings in training costsSignificant savings in training costs

BetweenBetween $417,000$417,000 and and $716,000$716,000 per year. per year.– – Forrester ResearchForrester Research

Future ValueFuture Value

Corporate management toolsCorporate management tools Solution Accelerators (coming Solution Accelerators (coming

2004)2004) Six Sigma Six Sigma Business Business

Intelligence                                Intelligence                                Team CollaborationTeam Collaboration Integrated communicationsIntegrated communications

SA also makes available future benefitsSA also makes available future benefits

Personal ProductivityPersonal Productivity Mobil WorkforceMobil Workforce Enterprise Project Enterprise Project

ManagementManagement Business Process Business Process

automationautomation

Activating Your SA BenefitsActivating Your SA Benefits

Does not require the purchase of a Does not require the purchase of a new contractnew contract

Current, new, and renewing SA Current, new, and renewing SA customers are entitled to receive customers are entitled to receive new SA benefitsnew SA benefits

Assign an internal Assign an internal Benefits Benefits Administrator*Administrator*

Work with your LAR to facilitate Work with your LAR to facilitate benefits access and utilizationbenefits access and utilization

How do I take advantage of the How do I take advantage of the extended value of SA?extended value of SA?

SummarySummary

The responsibility of articulating the The responsibility of articulating the value IT rests on the shoulders of the CIOvalue IT rests on the shoulders of the CIO

Microsoft has significantly and tangibly Microsoft has significantly and tangibly expanded the value of Software expanded the value of Software Assurance through things such asAssurance through things such as Home user rights, built in support, advanced Home user rights, built in support, advanced

tools, and tools, and training vouchers training vouchers

The over all business impact of SA is The over all business impact of SA is substantial, saving between $1.5mil and substantial, saving between $1.5mil and $2.1mil over 3 years (Forrester)$2.1mil over 3 years (Forrester)

Third-party analysis has found Third-party analysis has found tremendous value has been added to SA tremendous value has been added to SA at the expense of Microsoftat the expense of Microsoft

Take advantage of these benefits now Take advantage of these benefits now available to youavailable to you

Next StepsNext Steps

Contact your software provider for Contact your software provider for help with managing benefits across help with managing benefits across your organizationyour organization

Ensure your license notices Ensure your license notices contacts are aware of the software contacts are aware of the software assurance benefits and assurance benefits and communicate them to your communicate them to your employeesemployees

Register your Benefits Register your Benefits Administrator through the Microsoft Administrator through the Microsoft Volume Licensing Services Web site Volume Licensing Services Web site (licensing.microsoft.com) (licensing.microsoft.com)

Assign benefits to your employees Assign benefits to your employees in order to utilize your SA benefits in order to utilize your SA benefits right awayright away

More ResourcesMore Resources

Microsoft Volume Licensing Web Microsoft Volume Licensing Web site: site: www.microsoft.com/licensing/progrwww.microsoft.com/licensing/programs/ams/sasa

Benefits Support Center Benefits Support Center E-Mail: E-Mail:

mvlshelpa@msdirectservices.commvlshelpa@msdirectservices.com Phone: 1-866-230-0560 for benefits Phone: 1-866-230-0560 for benefits

assistanceassistance

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