Before we dive into the details, let’s start off with a few necessary definitions:
- What is Software Lifecycle Management? Software Lifecycle Management (SLM) is maximizing the value of your software and cloud portfolios from requirements to retirement. Simply put, it is matching supply and demand, using what is purchased and renewing exactly what is required.
- What is Entitlement, Inventory and Consumption (EIC)? EIC is the enabler for Software Lifecycle Management.
- Entitlement is visibility into what you own.
- Inventory is visibility into what is installed.
- Consumption is visibility into what is actively used.
According to Gartner, effective SLM can cut software costs by up to 30 percent. Furthermore, the RightScale 2017 State of the Cloud Report reveals that measured actual waste of public cloud resources is up to 35% or more. SoftwareONE has discovered that many organizations simply budget for this overspend, but this doesn’t have to be the norm.
Governing, managing and optimizing software and cloud portfolio budget and spend is a challenge for most organizations. The key to overcoming this challenge is visibility. In the words of Mike Gersten, Global Innovation and Strategy Officer at SoftwareONE, “You can’t manage what you can’t see.”
The EIC model provides you with enhanced visibility into what software you own (Entitlement), what software you have installed (Inventory) and what software you are actively using (Consumption). Having visibility into this data helps you maximize the value of your software and cloud portfolios. This, in turn, is how EIC enables Software Lifecycle Management.
Let’s see how EIC can help you with SLM by reviewing a few ‘real-world’ scenarios.
Scenario 1 as shown in the graph below is when “Entitlement (E) > Inventory (I).” When E > I, the immediate indication is that you over purchased and there is opportunity to right size, reduce costs and optimize your portfolio. Looking at a combination of Inventory and Consumption will give you a full view of underutilized resources, so you can optimize more effectively. Any underutilized resources can be uninstalled, so you can save more costs; or you need to promote usage, so the assets are better utilized. Having visibility into EIC at the time of renewals will help you better negotiate and match supply to demand for your software and cloud portfolios.
Scenario 2 as shown in the graph below is when “Entitlement (E) < Inventory (I).” When E < I, the immediate indication is that you are at a compliance and audit risk. Looking at a combination of Inventory and Consumption will give you a full view of your audit and compliance risk. Any underutilized resources can be uninstalled to reduce your risk of compliance and audit. Having visibility into EIC will help you reduce your compliance risk and you will be better prepared at the time of audits.
How Can SoftwareONE Help with EIC?
SoftwareONE’s combination of services and its proprietary platform, PyraCloud, can provide you higher levels of visibility into EIC and enable you to put in place an effective SLM process.
PyraCloud provides you the capability to capture the entitlement information at the point of purchase; or it can be uploaded and normalized using the raw proof of purchase. Once all the entitlement information is captured in PyraCloud, the platform can be integrated with a Software Asset Management (SAM) tool to gain full visibility into EIC, see figure below.
The Bottom Line
Having insights into your Entitlement, Inventory and Consumption will help you to right-size your software and cloud portfolio, reduce costs and minimize compliance risk. It could save you upwards of 30 percent of your software and cloud budget – giving you back the time and resources to drive innovation and create a clear competitive advantage throughout the organization.