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1 }w!"#$%&'()+,-./012345<ya MASARYKOVA UNIVERZITA FAKULTA INFORMATIKY Software asset management in a Large (Academic) Organization DISSERTATION PROPOSAL Mgr. Martin Jakubička Supervisor: doc. RNDr. Tomáš Pitner, Ph.D. Brno, September 2011 Supervisor:

2 Contents 1 Introduction Dissertation Objectives The asset management The purpose of AM What do we own? What is important? What is a deferred maintenance? What is the asset condition? What is the remaining service life? What should we fix first? Software asset management Principles of SAM: The Software Management Life Cycle Policy and code of ethic development Establish Acquisition and Registration Procedures Establish an Education Program Periodic audits Features of SAM Benefits of SAM Risk management Cost savings Good control Competitive advantage The possible problems Implementation approaches Identification of SAM system issues The general issues Basic types of license Microsoft products Desktop applications connected with device. 21 Operating systems for PC license based on number of copies for devices Developer tools license based on number of users Online services

3 Servers Operating Systems Servers Management Servers Servers Server/CAL Servers Per Processor Servers Specialty Servers Various types of licensing in SAM system Issues arising from deployment of SAM system in academic environment SAM in a large academic organization Design of the SAM system at MU Demand for the software license Assigning and installation to the computer Change of the state Checks Connection to other systems Advanced licensing Academic licenses Virtual environment The licensing problem Thesis plan Software distribution 36 Virtual environments 36 License models 37 8 Appendix A: Publications

4 1 Introduction Software asset management (SAM), [13] does not only represent an inevitable part of organization s asset management but brings many serious aspects and issues not seen in other domains of asset management. Though it might be often overlooked as a "plain management" task by computer science researchers, we believe that design and development of advanced SAM systems represent a complex, nontrivial problem demanding a deep understanding, a careful analysis, and a broad overview in many areas of IT, law, and management. The complexity of SAM at universities - i.e. in statutory organizations aimed at research and education, large and heterogeneous - is even higher since every aspect is taken to the extreme: correctness of the evidence, complexity of the IT infrastructure, manifold software portfolio, specific position of (particularly higher-ranked) academics, different from employees in the business sector but also incomparable with government and public administration sectors. Another significant issue for SAM is virtualization (clusters or clouds). It is one of the most quickly adopted technologies in recent years, and for good reasons. In recent months, interest of companies in cloud computing has increased rapidly. In subsequent years, the market continues to grow, and cloud computing has a promising future ahead, according to analysts. The shift from traditional software model to the network will cause the license administration even more difficult, [7]. Most traditional software license management tools have not yet evolved to the point where they can simultaneously and comprehensively support licensing schemes for both virtualized and non-virtualized environments. Most of them use inventory tool which offers comprehensive support for software installed in traditional non-virtualized environments and can identify the presence of every virtual server license. However, it is not able to detect software installed in virtualized environments. 1.1 Dissertation Objectives Primarily, we would like to suggest SAM methodology for academic environment, design and implement SAM system which comply with 3

5 1. INTRODUCTION the methodology (deployment issues in this type of organization will be discussed in Chapter 4.2). Afterwards, the system will be extended special types of licenses occurred in academic environment will be supported. Next, we would like to develop a methodology, and subsequently design, prototype implement, and test a system for management of software licenses in virtual environments. At present, it is very difficult to check the current state of installed software across the entire organization where the traditional software model is not the only one used. Problems related to licensing in virtual environments are described in Chapter 6. The thesis is organized as follows. First, we provide the basic principles of asset management (AM) and SAM. In addition, we identify general issues and issues arising from deployment of SAM system in the academic environment. Chapter 6 is focused at two problems of advanced licensing academic license and virtual environment. In the last chapter, we select two major problems which we are going to work at. 4

6 2 The asset management The Asset Management (AM), [12] is management of physical assets (their selection, maintenance, inspection and renewal) plays an important role in determining the operational performance and profitability of industries that operate assets as part of their business. Additional categories of assets covered by the scope of this discipline include: information, finance, competence, etc. A common objective of AM is to minimize the whole life cost of assets but there may be other critical factors such as risk or business continuity to be considered objectively in this decision making.this emerging professional discipline deals with the optimal management of physical asset systems and their life cycles. Information technology AM is the set of business practices that join financial, contractual and inventory functions to support life cycle management and strategic decision making for the IT environment. Assets include all elements of software and hardware that are found in the business environment. ICT organizations usually need to manage a lot of assets software is one of them. A few types of assets that should be managed within ICT organization are computer and network equipment, software assets, buildings, processes and policies, documentation and contracts, employees. Unfortunately, software is probably the most complex to manage because the complexity of its lifecycle (see chapter Principles of SAM). Furthermore, it brings legal and financial risks associated with characteristics [17]: Using of some software without valid/purchased license can occurs if some software is simply installed or used before authorization. Even with authorization, software may not be properly reported in case volume-licensing contracts. It typically allow for installation before reporting (paying for the software). There is no physical requirement to purchase a license before using it, so there is increased reliance on internal controls to ensure the correct report. Proof of purchase can be discarded after some time from the organization accounting. It s alright from the perspective of ac- 5

7 2. THE ASSET MANAGEMENT counting but proof must be kept for the whole time of using software because proof of purchase is one of documents authorizing the using of the software. Externally obtained software typically has complex legal conditions that can be misunderstood. Further, software is frequent -ly upgraded and license conditions can change too. There is a risk of incorrect reliance of resellers. 2.1 The purpose of AM The purpose of an asset management information system is to provide answers to the following questions of the asset management. The issues reflect: What do you own? What is important? What is the deferred maintenance? What is the asset condition? What is the remaining service life? What do you fix first? What do we own? This question deals with organization s assets. Almost all qualitative and quantitative attributes of a general asset are applicable to software assets, at least to some extent. Primarily, the assets are located at a physical place. It s possible to do various calculations with regard to locations in the same area and so on. 6

8 2. THE ASSET MANAGEMENT What is important? Once it s identified what an organization owns, it s necessary to identify what is important. For the calculation of the asset value, one of the six following value types is used: the historical costs, the appreciated historical costs of an asset calculated in present day (taking inflation and deflation into account), the costs of the current asset replacement, the performance in use value the value of an asset for the user, the cost of the loss of an asset, the market value. It is possible to appreciate of organization s assets this way. However, the calculation and the recording of the costs are neither simple nor straightforward. Large organizations usually archive costs of assets and bring them forward to present day (using known economic principles) What is a deferred maintenance? A part of problems associated with financial and technical questions can be directly ascribed to recent history and the recession, especially insufficient maintenance. The deferred maintenance is not only a sum of the annual maintenance deficits. It is also increasing effect of the deferred maintenance from one year to the next. This effect is similar like the interest on a debt. If the maintenance is not finished in year one, then the cost of maintenance, repair or replacement is higher in other years. De sitter s Law of Fives [16] approximates this effect. If the maintenance is not done, then the cost of the reparation is five times the deferred maintenance costs. In turn, if the repairs are not performed, then the costs of the renewal can be five times the repair costs. The timed expenditures for renewals and repairs reduce the deferred maintenance. 7

9 2. THE ASSET MANAGEMENT What is the asset condition? It is described a detailed process in which the asset s condition can be evaluated using the volume of deferred maintenance and comparing that to its cost of replace value (CRV) in present dollars. In this process, the asset manager first identifies the maintenance that was deferred, and then he/she tries to provide an estimate of the current costs of that deferred maintenance. The Facility condition index (FCI), [17] is a comparison metric calculated as the costs of deferred maintenance divided by the CRV. Some studies illustrate that assets having FCI higher than 0.15 are problematic. However, FCI equaling zero is also not advisable. The FCI is an efficient metric for evaluating the assets and using it for analysis in a portfolio What is the remaining service life? After the spectrum of a portfolio is known (the value and condition are determined), the asset manager has to establish the remaining service life calculations of the life cycle for alternative maintenance, repair or replacement. Techniques provide estimates for the remaining life of components and systems. These techniques predict remaining life based on studies of similar constructions. However, these techniques need the collection of amounts of the relevant data What should we fix first? The deferred maintenance is not the only problem for the asset manager; likewise there are uninterruptedly new maintenance and repair requirements. There are also issues related to periodic capital renewal. Nothing lasts forever it must be renovated sooner or later (as a renewal of the complete system or just its part). For example, if manager knows that the roof should be repaired after 20 years or the windows after 10 years, he/she should reflect these prognoses in the budget. This question can be answered by practical methods for renewal planning. The methodology is related to FCI discussed earlier and 8

10 2. THE ASSET MANAGEMENT it s called Capital Renewal (CR), [17] analysis. This analysis calculates the renewal cost and spreads this cost to the future expenditures equally around the planned renewal date. 9

11 3 Software asset management SAM could be described in various ways and it means different things to different people. One of the known definitions is [2]: SAM is all of the infrastructure and process necessary for the effective management, control and protection of the software assets within an organization, throughout all stages of their lifecycle. SAM system brings a lot of advantages such as saving financial resources (planning of the purchases), license overviews and so on. If an organization has a lot of computers, it s difficult to keep the count of used licenses and the count of purchased licenses in a consistent state [3]. Examples of advantages: overviews of purchased and used licenses are accessible anytime, basis of short-term or long-term planning of a software purchase, warez using prevention, information about actual state for managers and users. The centralized administration is necessary for successful planning and purchasing. It means the only one department needn t control every purchase; however the user shouldn t buy any software myself. Two-level structure seems optimally. Faculties can be the first level and the rectorship can be the other in the case of academic oragnizations. 3.1 Principles of SAM: The Software Management Life Cycle Principles of SAM are managing, controlling and protecting an organization s assets [13]. SAM should be able to manage of the risk arising from the use of those software assets. A clear vision and strategy are very important need for establishing SAM. Generally, policies 10

12 3. SOFTWARE ASSET MANAGEMENT Figure 3.1: SAM Life Cycle have to be established and delivered effectively to the entire organization. Example of a content of a Software Policy is attached. When organization is going to use some SAM system and devising SAM plan, a cyclic process should be followed to ensure effectiveness. This process consists of five phases: policy and code of ethic development, acquisition and registration method, education programs, periodic audits, once a year reviews Policy and code of ethic development According to Certified Software Manager Student Manual [13], there are three steps to developing policy. First, identify parts of the plan, which are the issues obstacles. Find out which components are suitable and which components need to be added. Second, make a suggestion to address and overcame issues obstacles. The written plan will be the product of the solution. A well-designed and carefully 11

13 3. SOFTWARE ASSET MANAGEMENT software policy may reduce software conflicts and questions. Third, implement it and spread the plan throughout the organization. The single source of contact (the software manager) is a key component to developing an effective software management plan. He/she is reliable for establishing policies that define optimal software usage. Furthermore, budgeting, purchasing, application and version control, and education programs should be established by the software manager. An organizational policy and its success are depending on the software manager s decision. The software manager can limit user access to software. Installing applications on the network abbreviates distribution but it complicates license compliance. Accordingly, the software manager has to monitor software access, for example by: a software metering utility included with the software, a metering utility purchased separately or network controlling. The best way to ensure license compliance is using of active metering software that could lock up unauthorized users from the software. A software metering utility provides some statistics too. It s very important for the software manger due to planning and the other purchases. If the need of a software access frequently exceed number of purchased licenses, it indicates that additional copies of the software are required. Conversely, if there is no need for some software, it reflects an independency from this software. It makes possible the organization to eliminate software or further upgrades. To enforce these specifications, make a written policy and code of ethics to clarify organization s intention to comply with all licenses. Many employees may not understand the purpose of the policy. Therefore, it necessary to represents an importance behind the policy. The code of ethics, which is signed by all employees, ensures knowledge about software compliance and it includes information about penalties too. 12

14 3. SOFTWARE ASSET MANAGEMENT Establish Acquisition and Registration Procedures Acquisition of software brings some problem to many organizations. In some firms, procedures for installing and evidence new software are not existed, eliminating a proof of purchase. Each organization should outline the next: person or department who is responsible for purchasing software, rules for bringing of own software into the organization, procedures for requesting new software by employees, individual responsibility for installing software, employee obligations arising from record-keeping compliance. Software should be handled like any other asset of the organization. If an organization s asset management system is not able to work with software, it is necessary to buy/develop appropriate system. The system should be documented to ensure compliance and understanding. Standardization of organization s software will minimize support and purchasing efforts. There are a lot of licensing conditions/models and it is sometimes very hard to determine which of amount of licenses organization needs. It is better to install software on servers not on individual computers. This provides for easier administration (installation, upgrading, etc.). Organization also has to set rules of remote/home, shareware or user-owning software using. If the organization permit this, it is more difficult to ensure software compliance. Fox example, because of it is not possible to keep all licenses user-owning software s proof of purchase is not recorded in the organization s evidence (property of employee), etc Establish an Education Program Organization s employees are very important factor when deploying SAM system. They often copy software from computers and bring 13

15 3. SOFTWARE ASSET MANAGEMENT some software and copy it to the organization s computers. They are responsible for more than 80 percent of the viral infections [1]. Furthermore, employees also change software into productive output. So, they need to understand how to use the software. Using of a standard set of legally acquired software is optimal solution and it simplifies employee s education. Employees are basic variable in the process of implementation process and the success of deployment depends on cooperation with them. It is necessary to inform employees why SAM system is deployed and how it concerns with them. If the whole deploying process will be misunderstood by users, they never stop with copying and borrowing software. Then, policies may seem restrictive but they are actually in the best interests of employees and the organization. They should be continually updated and available to all users Periodic audits Software audit brings ensuring of software license compliance and information about user needs of software. It is necessary to outline specific procedures and establish some conditions, such as: software asset management have to cooperate with users during audit, the time for performing audits should be established, frequency of performing audits (semi-annually, annually). Procedures should be written and reviewed before each audit. 3.2 Features of SAM SAM eliminates waste, overlap, and duplicate purchases throughout your organization. By optimizing organization software assets and streamlining internal processes, SAM can help save time and money, improve workflow, and increase competitiveness as company grows in size and maturity. Some of the benefits of SAM are easy to see, such as better control over software price points and better record keeping. Other long-term benefits may not be immediately apparent, but they will manifest themselves over time. 14

16 3. SOFTWARE ASSET MANAGEMENT Figure 3.2: SAM Life Cycle Benefits of SAM There is no need to remember that well-implemented SAM system brings a lot of benefits to any organization [5]. These benefits should exceed implementation costs. SAM eliminates waste and duplicate purchases throughout entire organization. By optimizing software assets and arrangement internal processes, SAM can help save time and money, improve workflow and increase competitiveness of an organization. There are a few ways how to categorize them. Next, one approach will be discussed. Risk management SAM can help the management of some business risks, such as legal and financial exposure, damaged reputation, unexpected financial impact, interruption of operations and so on. Legal and financial exposure comes from a poor control of externally obtained software. The problems may cause enforcement agencies directly (police, customs), industry associations, such as BSA (Business Software Alliance) or FAST (Federation Against Software Theft) or software manufacturers. All of them may start their work by giving one s 15

17 3. SOFTWARE ASSET MANAGEMENT some tip to them (usually employees), by software manufacturer or by luck (police check throw the entire organization to prove their licenses). The characteristics of obtained software assets form the basis of following exposures: installed software without a proof of purchase, loss of a proof of license or incorrect reliance on resellers. Damaged reputation relates with previous. If the public knows the organization has problems with proving licenses then an organization s reputation may be damaged. It may means problems with support, licensing, etc. Problems in SAM, such as licensing, can have fundamental unexpected financial impact in areas such as cash flow. Cost savings Correct SAM can save significant amount of money, not only in expenditures on software, but also in related infrastructure costs. So, right SAM helps to improve organization s cost control - there are some specific ways in which cost control can be improved such as improved planning, prevention of software over-deployment, reduced hardware costs or better negotiating position. Infrastructure planning can be improved with better knowledge what is installed and used. As a result of, an organization is able to determine what it will be need in the future and find dominant software manufacturer to reduce software costs. Prevention of software over-deployment brings better identification of user needs can eminently reduce software requirements and cost. It relates with reducing hardware cost because over-deployment of software brings higher requirements for hardware too. Finally, if SAM manager knows organization s software assets well, he/she has better negotiating position with software manufacturers. SAM system may bring competitive advantages too, such as better quality making of decision or faster connection with market. Good control SAM helps achieve good control by complying with local laws and internal policies. It s best to address company s compliance with laws and regulations methodically, through careful analysis and planning. Compliance requires that each organization evaluate its internal con- 16

18 3. SOFTWARE ASSET MANAGEMENT trols and demonstrate effectiveness through proper fiscal reporting. SAM can help you achieve compliance with laws and regulations that require strict standards of IT governance and controls. With a implemented SAM plan, an organization will have a thorough, upto-date record of all of its software assets and licenses, as well as well controlled internal processes. Competitive advantage Thoroughly implemented SAM gives an organization competitive advantage in the ways such better quality decision making or faster time to market. Having an accurate view of software assets in real time, facilitates better quality management decision making. SAM can provide the transparency required to allow IT departments be assessed against business priorities. An effective SAM program will allow your enterprise to complete a controlled roll out of new technology when market conditions require new functionality to react to new customer requirements The possible problems Many of the following problems that may arise are similar to the problems of all system initiatives but some of them have particular relevance to SAM. The first one may be conflict with decentralization culture. The philosophy of decentralization can work in many areas, but has considerable limitations in the area of SAM many of the significant benefits are achieved by centralization and many risks are best managed on a centralized basis. Decentralized approaches can create global risk for the organization because legal authorities will persecute the organization (not an organization unit). The second problem may be lack of clear responsibilities. In practice, it may be difficult to define responsibilities clearly because SAM combines a few organization departments, e.g. ICT, human resources department or department of economics. Other problems may be lack of end user support without personal benefit, legal requirements may require unexpected amounts of effort to comply with local legislation, or lack of communication. 17

19 3.2.3 Implementation approaches 3. SOFTWARE ASSET MANAGEMENT The implementation of SAM system is very large and time-consuming task. If an organization decides to implement someone, it can use one of many different approaches which can be split into three different categories: internal projects needs resources from organization and necessary SAM skills and knowledge, partnership project using external partner to assist with implementation of SAM system (it should be used where there is lack of resources or skills within organization), outsourced project using of external firm to implement whole SAM system. Internal or partnership projects depend on skills and resources within organization but it s easier to take ownership of the strategy and make decisions on information provided. This approaches can be applied both implementation of SAM processes and their continued operation. 18

20 4 Identification of SAM system issues Issues can be divided into two basic groups. The first group are general issues they result from variety of software licensing and possibilities of software deployment. The second group are the other issues arising from deployment of SAM system in an academic environment which is quite different from the other (commercial) sectors - differences especially come from setting of an organization s policy. 4.1 The general issues In this part, there will be introduced a licensing policy with sufficient amount of products and ways of licensing Microsoft products licensing. After that, some recommendations responsive to Microsoft licensing for SAM system will be mentioned Basic types of license Generally, software licenses can have many different characteristics for description purposes, such as duration, measure of usage, enduser type, license management responsibility or upgrades. The first characteristic (duration) can be broken into perpetual the use rights are permanent once purchased, and subscription or rental licenses that can be used for a specific period of time and may or may not include upgrade rights. Another characteristic (measure of usage) can be divided into per copy, concurrent usage, per server speed, per processor, client/server or enterprise/site. Historically, most sold licenses have been on a per copy basis. It should be taken note of licensing is sometimes based on device count than just computer, e.g. printers counts are important for downloading fonts. Mobile device have licensing requirement as well but may not be recognized by many approaches to license management based just on computers. Concurrent usage allows a specified number of users to connect and use software simultaneously. It is relatively understandable licensing approach and there are many applications to help monitor and control concurrent usage. Licensing per server speed is linked to the server speed or power, while licens- 19

21 4. IDENTIFICATION OF SAM SYSTEM ISSUES ing per processor is linked to number of processors within the server. Many licenses correspond with physical installation, but there is an important category of licenses that do not correspond with it these are client access licenses. They give a client device the right to access a server application, regardless whether or not there is client software associated with it. Last and increasingly used type of license is enterprise or site licensing. Many sold licenses are of this type and they require just a count of workstations or employees commonly. This type is usually easier for administration purposes. Nevertheless, in this case may be user per copy approach if it is not understood the contractual definition of the enterprise. End-user type can be structured into commercial, academic (usually less expensive than commercial) and personal. The risk of the academic licenses is that they can be purchased without authorization. Some licenses distinguish between commercial and personal use. This is common with some shareware or freeware packages. Vendor or customer may have responsibility of license management. In the first case, license management products are in place of software manufacturers. End user can be largely absolved of the license management aspect of SAM. In the second case, most license management requires customer management. Special types of licenses are upgrades. There are many types of upgrades, each typically with detailed conditions for the upgrade. Common problem is that upgrade can be purchased but there is not valid license (previous version). So, product is invalid to use. Upgrades have a few common characteristics: upgrades normally refer to a later release of the same product, language upgrades let the use of more expensive product with different languages, many software manufacturers offer upgrade insurance, i.e. they allow the purchasers to use any upgrades that are released during the period of the insurance, technology guarantees are limited-duration upgrade rights that a software manufacturer may grant to purchasers of one ver- 20

22 4. IDENTIFICATION OF SAM SYSTEM ISSUES sion of software, when a new version is expected but not yet released Microsoft products Previous article was concerned with a basic division of software licenses. It is followed by particular example of types of licenses according to Microsoft [4]. Microsoft products are grouped into nine licensing models. Each model has a base of set of license terms but there are universal license terms too. These universal license terms apply to all products. These product use rights include sections for each licensing model. They are: Desktop Applications, Desktop Operating Systems, Developer Tools, Online Services, Servers Operating Systems, Servers Management Servers, Servers Server/CAL, Servers Per Processor, Servers Specialty Servers. Desktop applications connected with device It s necessary to have one license for each device from which the user will use or access the software (locally or remotely). The user can install one or more copies to the computer but these copies can access only device that has a license for the software. 21

23 4. IDENTIFICATION OF SAM SYSTEM ISSUES Operating systems for PC license based on number of copies for devices It s required to obtain one license for each device from which the user will use or access the software (locally or remotely). Only one copy of the operating system can be installed to the device. If the user acquires Software Assurance he is authorized to use higher version of OS (e.g. Windows 7 Enterprise instead of Windows Professional) and use to four additional copies on the device. Developer tools license based on number of users Each developer needs license to access or use the software. It s possible to install more copies to more than one device. These copies can be used only by licensed user. He/she is allowed to use these copies to design, develop, test and demonstrate programs. Online services Online Services are subscription-based. They provide access to software and services. Licensing under this model consists of: User or Device Subscription License (USL or DSL): USLs or DSLs are needed for each user or device that accesses the online service. Services Subscription License (SSL): it applies to the entire organization s use of the online service. Servers Operating Systems With most products, a license has to be assigned to a server for each instance of the server software that it is run on that server. That instance may be run in a physical or virtual operating system environment on that server. Some products provide broader use rights (e.g. Windows Server 2008 R2 Enterprise license). With some products it s possible to run any number of instances at the same time as long as you license each physical processor on the licensed server. 22

24 4. IDENTIFICATION OF SAM SYSTEM ISSUES Almost all Server Operating System products require a CAL license for each user or device accessing the server software. There are two types of CALs: Device CAL: Licenses a device for use by any user to access instances of the server software User CAL: Licenses one user to use any device to access instances of the server software Servers Management Servers It s necessary to assign a license to a server for each instance of the management server software that you run on that server. There are two categories of management licenses: one for servers and one for non-servers: Licenses required for managed server: For each server operating system environment (OSE) on a device that will be managed, the device will need a server management license (ML). If there is more than one OSE, it s necessary to have an equivalent number of MLs for that device. Licenses required for non-servers: For each non-server OSE on a device that will be managed, the device will need a client ML. There are two types of client MLs: OSE MLs and User MLs. The Core CAL and the Enterprise CAL Suite licenses also permit management of any number of non-server OSEs on a device under one license (per device). Servers Server/CAL Conditions are very similar like Servers operating systems. Servers Per Processor It s required to assign a license to a server for each processor on that server that the software uses. For software running in physical OSEs, 23

25 4. IDENTIFICATION OF SAM SYSTEM ISSUES each physical processor has to be licensed. For software running in virtual OSEs, only the virtual processors the software uses has to be licensed. CALs or EC licenses are not needy because Per Processor licensing allows any number of users to access the software from any number of devices. Servers Specialty Servers Each instance of the server software that runs on the server has to be assigned a license to. That instance may run in a physical or virtual OSE on the server. By exception, some products provide more specific use rights Various types of licensing in SAM system As you can see, the licensing models are very heterogeneous and there are a lot of another exceptions (only basic structuring was mentioned). In addition, there was described product licensing of the one firm only. In principle, licensing for desktops is the easiest to keep a record. SAM system has to be able to join one or more bought software license to particular computer from existing database of organization s assets. More interesting case of licensing is developer tools licensing in which particular persons are authorized to use the software from any organization s computer. It s necessary to ask: what is right method of recording. Firstly, a bought license can be connected with a user but there is no information about it on a computer. It means the software is installed on the computer but computer s list of software 1 doesn t contain the software (information is joined to the user) worse demonstrability to an SW auditor. Secondly, a bought license can be connected with a computer on which software is installed. However, connection to authorized user has to be also known. Model, called online services, brings problems of licensing too. It is not clear who bought licenses should be joined to if they are limited by number of users/computers USL or DSL type. There is no 1. A list of installed software on particular computer which is printed and signed. 24

26 4. IDENTIFICATION OF SAM SYSTEM ISSUES problem with SSL because all organization s employees can use software. Then, a license can be joined to all organization s computers. Least trivial is SAM according to server models. Adequate number of licenses has to be joined to server for each instance of the server software running in a physical or virtual system environment. If software runs in a physical environment, licensing may be very similar like desktop applications licensing. But if software runs in a virtual environment, it can bring some problems. Particularly, if a virtual system runs on more computers (cluster or clouds) and it can migrate across them. In this case, license has not to be joined directly to computer. Present SAM systems are not able to record most of mentioned licensing models correctly. So it s necessary to design how solve less common types of licensing. After that, own solution should be designed to cover these cases enough. 4.2 Issues arising from deployment of SAM system in academic environment As already mentioned, the academic environment is usually quite different from the other companies or public administration sectors. It exists a guidance intend for public administration sectors but it is not suitable for the academic environment (very strict). Accordingly, some universities solve SAM with their own procedures and rules. Observance of the rules is ensured by a particular guidance. Academics have, in this respect, some freedom and some of them would not want their computers to be scanned integral part of most available SAM systems. A certain way may be the transfer of responsibility to end users. This can be achieved for example by signing a declaration that no legal software will be installed on computer. In the interest of the users will be entrusted to have the computer fine (all legal). SAM for private companies it is not so easy to describe. It is a heterogeneous environment where subjects approach different ways to manage software licenses not only at the level of quality of evidence, but also existence of the evidence. In a case of low level quality evidence it often leads to software piracy. It is not possible to man- 25

27 4. IDENTIFICATION OF SAM SYSTEM ISSUES age software licenses with a large number of computers without adequate SAM system which helps to keep bought and used licensed in consistent state. 26

28 5 SAM in a large academic organization The SAM information system must undertake the record-keeping function. Primarily, it must be able to link licenses with the current evidences within organization (assets, employees,...). The main part of the system would not be much complicated so as not to be disclaimed by asset managers. However, it won t be simple to find a suitable compromise between complexity and simplicity it s necessary to record all requirements of the software and keep simplicity of the system. The various extends, i.e. license extending, upgrade, downgrade or license delegating to other organization units, are separated chapters of the design. Of course, the main part of the system needs a few support applications. For example, application for group assigning licenses (computer study rooms, parts of organization), transfer informations from one license to another (e.g. in case of its expiration), managing of groups with an access to the system, etc. Overviews are also necessary. The asset managers need information for checking, planning and purchasing of the software assets. The user has to have the control over assigned licenses to him by the asset manager. If the user finds inconsistence out, he/she can contact his asset manager. The system should provide help for fewer advanced users. 5.1 Design of the SAM system at MU For the system design, it s important to appreciate the person roles, theirs possibilities and all software license lifecycle. Each point of the lifecycle will be discussed in the context of person role and the application support [9]: demand for the software license, purchase of the license and filling of the main information to the system, license assigning and installation to the computer, 27

29 5. SAM IN A LARGE ACADEMIC ORGANIZATION Figure 5.1: SAM Life Cycle change of the state, checks. Person roles: The main manager: Each organization unit (faculty) would have one person (called the main manager), who is responsible for the quality of the software evidence. The main manger is the user, who enters the main information about bought software licenses to the system. The main manager can delegate the assigning administration (PC, users) to so-called delegated managers. The delegated manager: It is a person who helps to the main manager with administration of the system. The common user: It s employee or student Demand for the software license If the user miss some software license, he/she could contact the main manager. The demand can be agreed or rejected by the main man- 28

30 5. SAM IN A LARGE ACADEMIC ORGANIZATION ager. After agreeing, the main manager checks, if the license has already bought and recorded or not. In the first case, the main manager only assigns the license to the user or computer. If the user miss the license which has not been bought yet, the main manager must buy a software license first. Then, the main manger records the information about the license to the system. It s necessary to connect the license with the proof of purchase. The demands do not only come from employees who use computers owned by the university. The university buys the multi-licenses for its students and employees too. These licenses can be usually used for one year. Of course, these licenses have to be recorded in the system and students/employees can assign licenses themselves. The main information about the license which has to be recorder in the system is: the name of the software and the producer, the proof of purchase (important), the count of purchased licenses, the expiration date, localization (some licenses are purchased with no localization), identification of the owner some faculty or institute, installation keys and so on. The record of the information could only be performed by the main manager as he/she is responsible for the correctness. Next operations can also be performed by delegated managers Assigning and installation to the computer The main manager, delegated manager or common user can assign license to somebody or himself (some licenses can be installed on private devices too). After assigning, license is possible to install in the computer by the authorized person or computer user. The computer user is responsible for correctness, i.e. assigned licenses in the system are actually installed on his computer. The overviews are available to the user too. 29

31 5.1.3 Change of the state 5. SAM IN A LARGE ACADEMIC ORGANIZATION The SAM system has to allow the change of the license state which should come during the license using. It means: the computer user has changed, the computer has excluded, etc. It s useful to perform these operations collectively by the manager. The separate chapter is a support for license extending and upgrading Checks The main manager certainly appreciates automated checks. For example, if he/she is informed via every week. Information is related to: brand new computer (with no software) has been purchased, new proof of software purchase has been added into organization s accounting, the computer with assigned license has been excluded, the job of the employee with assigned license has finished, and other various events. 5.2 Connection to other systems When the SAM system come into existence within organization, there are usually other systems such asset management system (physical inventory) or personnel system. It is necessary to connect or integrate the SAM system with other systems it is preferred online connection to individual exports from systems. The most important is the connection to the database of documents of purchases, PCs, and people. If it is correct, audit of organization software assets may be easier. The SAM system must be linked to both systems, but as you can see from the picture, there is some connection among them too. For example, each physical asset purchased by MU is recorded into the system, including proof of purchase. Then, the proof of purchase can be easily found for all assets. 30

32 5. SAM IN A LARGE ACADEMIC ORGANIZATION Figure 5.2: SAM Life Cycle In the case of SW assets, only a small part of the software is added to the database (depends on the price of the product). SAM system should keep all the purchased software. It follows that any license assets should be linked to the license in the SAM system. Likewise, it is set for physical assets (PCs) but physical assets are all recorded into database. Then, SAM system can refer to a specific PC, i.e. the device on which the software is installed and used. The computer may also be linked with a specific person (in user role) from the personnel system. Licenses can also be linked directly to the person (some types of licenses required). Due to the portability of the system, it is important to select the appropriate communication interfaces and common technologies such as Web services. The main benefit of Web services is the adoption of protocols as standards of inter-system communication. Thus creating a suitable tool for communication among corporate systems and thereby streamline business-to-business transactions. 31

33 6 Advanced licensing Most commercially available tools for managing software licenses are focused on the common types of licenses, which can easily bind them to any device or person. I think the main limitation can be broken into two major things: recording of special types of licenses for the academic purpose and recording of software installed on virtual operating system environment. 6.1 Academic licenses Academic licenses are a special type of licenses, which are usually benefited in some way from the common types of licenses. Normally, they are not limited by number of installed or used licenses, but they are limited by time or scope of users within the university. But is also required to know how many licenses is used - the need for registration. The problem is that the quantity of licenses within university can be enormous, and many of them also do not run on devices that are owned by the university. 6.2 Virtual environment Virtualization is one of the most effective methods to save costs, increase availability and improve infrastructure agility organization. According to Gartner Inc. [15], twenty percent of IT industry will migrate away from hardware and other traditional IT asset management by 2012, which means cloud computing will be one of the most important factor to lead IT asset management industry. But cloud computing potentional does not begin and end with PC s transformation into a thin client. The mobile platform is going to be heavily impacted by this technology as well. License management is a major issue faced by mobile cloud computing paradigm [14]. Virtualized environment can be more easily adapted to the needs of user, easier to use and it can hide irrelevant details to users (such as deployment of hardware resources). You can virtualize at different levels the computer (called a virtual machine), the individual hardware com- 32

34 6. ADVANCED LICENSING ponents or just software environment (operating system virtualization). It is a server virtualization technology at the core operating system. It can be seen as a kind of division of one physical server into several smaller parts (called virtual environments, virtual private servers, guests, zones, etc.). From a user s perspective, each part looks and feels like a separate server. Support infrastructure in the operating system has a low overhead, which helps maximize the use of server resources. This technology is capable of running hundreds of virtual private servers on one physical server. In contrast, techniques like virtualization (VMware) and paravirtualization (Xen or UML) cannot achieve a degree of density, because every virtual system must run a separate kernel. On the other hand, virtualization at the OS does not run different operating systems (other cores), although the library and distribution may vary. Virtual machines are also used in education. For example, it is quite possible, commonly used in the classroom to teach students to install proprietary software or edit. If we want students to learn how to install any software, and the same lesson would be carried out in several successive groups, it would always be necessary for teaching to uninstall, otherwise it would not be possible to teach software to install again. This procedure would be very time consuming and put a considerable burden on teachers. The previous paragraphs show that the administration of licenses under virtual environment is not a trivial task. It is also necessary to remember the license within a virtual environment [11] [8]. For example, if Windows operating system is installed on the server and there is a virtual environment on it (also with Windows operating system), two licenses to the operating system must be purchased. But the question arises of software registration and its connection to a particular device the virtual environment (within the cluster) can migrate across different physical devices. In this case, it can be used neither a computer scan nor a connection to particular physical device. 33

35 6. ADVANCED LICENSING The licensing problem It s easy to see the possibilities of virtualization and its promise for organizations that choose to adopt it. It s also easy to imagine how such a significant shift inevitably challenges old assumptions and brings new uncertainties. One concern regularly overlooked is the software license agreements, most of which do not provide specific guidelines for applications running on virtual machines. In addition, most traditional software license management tools have not yet evolved to the point where they can simultaneously and comprehensively support licensing schemes for both virtualized and nonvirtualized environments [10]. Next, we would like to illustrate the following scenario: Some software asset manager works at some large corporation. He/she has implemented several virtual servers to isolate applications. Like most IT professionals, he/she understands that every instance of software being run on a virtual machine must have its own separate license, as does every desktop to which virtualized software is streamed. He/she has also deployed the Microsoft Windows 2003 R2 Enterprise Edition operating system to one of his physical servers. Microsoft s End User License Agreement specifically permits four virtual instances for each physical license, two of which he/she has deployed to virtual servers running on the licensed machine. He/she is very conscientious about software compliance and had previously implemented a license management tool that periodically inventories all software installed across his network. This license management tool, which offers comprehensive support for software installed in traditional non-virtualized environ -ments, can identify the presence of every virtual server license. But he/she is not aware that in order to find out the applications residing on each virtual server, he/she needs to deploy the tool s inventory client to each virtual machine. In addition, license management technology does not allow him/her to distinguish between applications running on physical machines and their associated copies residing on virtual machines. If he tries to monitor compliance by deploying an inventory client to all virtual machines, any applications that allow multiple instances to be run on virtual servers under a single license will be over-counted-and will therefore likely appear to be 34

36 6. ADVANCED LICENSING out of compliance. Under this scenario, reports will indicate he/she is running three unique copies of 2003 R2 Enterprise OS, two of which are incorrectly flagged as non-compliant. Paradoxically, if he/she deploys the inventory client only to physical machines, the applications running on the virtual servers will likely not be properly inventoried or accounted for from the licensing perspective, leading to the false conclusion that they are compliant with their license agreements. Finally, although he/she knows that in order to remain compliant with his software contracts, physical desktops must have individual licenses for any virtualized applications they access, his license management tool is not able to report on virtual software usage. In order to ensure the applications are properly licensed, he needs to find and deploy yet another system that allows him to find out software on virtual applications streamed to physical desktops. All these factors and requirements make the model behind a SAM system extremely complicated, as recognized by Buchanan [6] who also stressed the needs for taking the Total Costs of Ownership of the software being maintained into account when designing a SAM system. 35

37 7 Thesis plan Now I would like to summarize the state-of-the-art and formulate my research objectives. The core of the SAM system for Masaryk University has implemented and tested. Currently, many records are in the system and many licenses are assigned to the person or computer and all licenses in the system refer to their proof of purchase. The system has been used at two units and it s going to be used at the others. Software distribution Next, I would like to focus to extending the system for supporting of special types of (academic) licenses. This is not fully covered by conventional SAM systems. Moreover, some of the software regularly deployed in the academic environment can also be distributed within the organization via SAM system saving the distribution costs. However, this process must be managed [2]. Licenses are allowed to be registered and installed (at organization or even at the user s computer) by end users, too. However, the software manager has to know, record, and maintain the actual state of used licenses. To resolve the research issues related, design and prototype such an extension will be the first objective of my PhD work. Virtual environments Further, we are going to solve issues arising from software using in a virtual (cloud or other) environment. As already mentioned, it is very difficult to manage software licenses in a virtual environment. There is even not a suitable inventory tool which is able to reveal software installed within environment which is virtualized, which makes even the primary stage of SAM (physical inventory and monitoring) difficult [10][14]. In the thesis, the model and prototype of a monitoring agent for clouds (or other virtual environment) interoperable with the SAM inventory system will be proposed. This will have even more consequences. The Brno Complex Event Processing Group, hosted at Masaryk University and driven by the team of Institute of Computer Science and Lasaris Research Lab, focuses at Surveillance Centers encompassing also monitoring of virtual environments. Therefore, there is a large common "lab" to test such prototypes. 36

38 7. THESIS PLAN License models Other serious issues emerge from unclear contracts and/or purchase documents (invoices) between the software provider and consumer/client in case of classical (server-based) and virtualized environments. Frequently, the contracts do not precisely specify what is meant by a CPU (not a single CPU but one core might actually be meant) [6]. Many times even the concept of user is fuzzy it can mean either both physical person and an automated tool (script) while in other cases the automated tool is excluded (disallowed). Clarifying this kind of issues must additionally be provided by the SAM manager and the SAM system must allow to propagate them to the license model while, at the same time, maintaining the history of such changes. This represent another significant requirement not yet covered by conventional SAM. Design and implementation of a subsystem of the legacy SAM system supporting this issue will be the next implementation objective of my further work. 37

39 Bibliography [1] Certified Software Manager Student Manual for the U.S. and Canada. Washington DC: Software Publishers Association, [2] Practice for Software Asset Management. ITIL, Managing IT services, [3] The Business Benefits of Software Asset Management. Business software alliance, [4] Microsoft Licensing Product Use Rights. Microsoft corporation, [5] Benefits of SAM. Microsoft corporation, URL [6] S. Buchanan. Software Licensing and Pricing Best Practices. Gartner Inc., URL com/it/content/991700/991712/june3_software_ licensing_and_pricing_best_practices.pdf. [7] Daniel Gull and Alexander Wehrmann. Optimized software licensing combining license types in a license portfolio. 1: , /s [8] W. Ziegler M. Gozalo H. Rasheed, A. Rumpl. Demonstration of the SmartLM License Management Technology for Distributed Computing Infrastructures. Lecture Notes in Computer Science, Springer, Heidelberg, [9] M. Jakubička. Systém pro evidenci softwarových licencí na MU [10] J. Kelsey. Going Virtual? Stay True to Licensing Rules. Express Metrix, URL com/products/software-license-management/. 38

40 7. THESIS PLAN [11] F. J. Pfreundt M. Dalheimer. GenLM: License Management for Grid and Cloud Computing Environments. CCGRID 09 Proceedings of the th IEEE/ACM International Symposium on Cluster Computing and the Grid, IEEE Computer Society Washington, DC, USA, [12] Richard O. Michaud and Robert O. Michaud. Efficient Asset Management: A Practical Guide to Stock Portfolio Optimization and Asset Allocation. Number in OUP Catalogue. Oxford University Press, [13] D. C. Yen N. F. Holsing. Software Asset Management: Analysis, Development and Implementation. Information Resources Management Journal, [14] A. K. Sarje P. B. Thorat. MobiLim: An Agent Based License Management for Cloud Computing. Communication in Computer and Information Science, Springer, Heidelberg, [15] Ch. Pettey. Gartner Highlights Key Predictions for IT Organizations and Users in 2010 and Beyond. Gartner Inc., URL [16] W. R. De Sitter. Costs for Service Life Optimization: The Law of fives. Durability of Concrete Structures, Workshop Report, [17] D. J. Vanier. Why industry needs asset management tools. Journal of Computing in Civil Engineering, 15(1):35 43,

41 8 Appendix A: Publications Here we provide full texts of research papers written by Martin Jakubička: Martin Jakubička and Tomáš Pitner. Software Asset Management in a Large Academic Organization. In Datakon. Mikulov, Martin Jakubička. Software Asset Management. In 2010 IEEE International Conference on Software Maintenance. Timisoara, Romania: Politehnica University of Timisoara, Martin Jakubička. Evidence softwarového majetku. In Tvorba softwaru Ostrava: Ekonomická fakulta VŠB-TUO,

42 Software Asset Management in a Large Academic Organization Martin JAKUBIČKA 1, Tomáš PITNER 2 1 Katedra počítačových systémů a komunikací, FI MU, Ústav výpočetní techniky MU, Botanická 68a, Brno 2 Katedra počítačových systémů a komunikací, FI MU Brno Botanická 68a, Brno Abstract. Software asset management represents an important part of software maintenance. This article describes main issues arising from several aspects such as management, and finance. It analyses the design of a software asset management system developed for university purposes and addresses the most significant issues in this environment. Keywords: software asset management, license, software manager. 1 Introduction Software asset management (SAM) does not only represent an inevitable part of organization's asset management but brings many serious aspects and issues not seen in other domains of asset management. Though it might be often overlooked as a "plain management" task by computer science researchers, we believe that design and development of advanced SAM systems represent a complex, nontrivial problem demanding a deep understanding, a careful analysis, and a broad overview in many areas of IT, law, and management. The complexity of SAM at universities - i.e. in statutory organizations aimed at research and education, large and heterogeneous - is even higher since every aspect is taken to extreme: correctness of the evidence, complexity of the IT infrastructure, manifold software portfolio, specific position of (particularly higher-ranked) academicians, different from employees in the business sector but also incomparable with government and public administration sectors. Primarily, this paper will focus on asset management as a management discipline at the crossroad of operation, strategic, and financial management thus demanding a fully-fledged IT support. Later on, the paper will demonstrate the typical and differentiating aspects of SAM in the university environment. It shows that there is no out-of-the-box solution commercially provided and there cannot be a monolithic solution at all. Based on real-life experience from analysis, design, and implementation of a concrete SAM solution for Masaryk University (40+ k students, nearly 4000 employees), we show both scientific and practical problems encountered in SAM.

43 Software asset management in a Large Academic Organization 2 The asset management The purpose of an asset management information system is to provide answers to the following questions of the asset management. The issues reflect [5]: What do you own? What is important What is the deferred maintenance? What is the asset condition? What is the remaining service life? What do you fix first? 2.1 What do we own? This question deals with organization s assets. Almost all qualitative and quantitative attributes of a general asset are applicable to software assets, at least to some extent. Primarily, the assets are located at a physical place. Systems like GIS (Geographical information system), CAD (Computer aided design), and relational database management systems are used to capture information about the geographical allocation of an asset in the organization s portfolio. It s possible to do various calculations with regard to locations in the same area and so on. Other domain closely related to GIS is CAD. CAD systems are aimed on maintaining and providing targeted and accurate data about characteristics of the individual assets for engineers, technical, and management staff. Dimensional data (for example areas and lengths of the particular assets) can give valid data about the extent and value of the portfolio. CMMS (Computerized Maintenance Management System) is another tool that can be used to record what assets are owned by an organization. There are a lot of various kinds of CMMS applications, which can be used for storing of inventory, preventive maintenance scheduling, and the like. 2.2 What is important? Once it s identified what an organization owns, it s necessary to identify what is important. For the calculation of the asset value, one of the six following value types is used: the historical costs, the appreciated historical costs of an asset calculated in present day (taking inflation and deflation into account), the costs of the current asset replacement, the performance in use value the value of an asset for the user, the lost of the loss of an asset, the market value. It is possible to appreciate of organization s assets this way. However, the calculation and the recording of the costs are neither simple nor straightforward. Large organizations usually archive costs of assets and bring them forward to present day (using known economic principles).

44 Vybraný příspěvek 2.3 What is a deferred maintenance? A part of problems associated with financial and technical questions can be directly ascribed to recent history and the recession, especially insufficient maintenance. The deferred maintenance is not only a sum of the annual maintenance deficits. It is also increasing effect of the deferred maintenance from one year to the next. This effect is similar like the interest on a debt. If the maintenance is not finished in year one, then the cost of maintenance, repair or replacement is higher in other years (Figure 1.1). De sitter s Law of Fives [1] approximates this effect. If the maintenance is not done, then the cost of the reparation is five times the deferred maintenance costs. In turn, if the repairs are not performed, then the costs of the renewal can be five times the repair costs. Figure 1.1: Deferred maintenance Figure 1.2: Reduction of deferred maintenance The timed expenditures for renewals and repairs reduce the deferred maintenance. On Figure 1.2 is illustrated reduction of the deferred maintenance with various levels of maintenance funding. The asset manager should keep in mind that the maintenance and repair funding should be applied to assets of the type in curve (b) of figure 4 (assets with the highest degradation).

45 Software asset management in a Large Academic Organization A relational database usually keeps only the newest information in its records. However, in the most cases there is a need to keep snapshots of the current state periodically. These snapshots could be in the form of CMMS database records like entries about repairs, scope or costs of the repairs. This data could be saved and retrieved in the future to reveal trends for the strategic planning. 2.4 What is the asset condition? NACUBO (National Association of College and University Business Officers) describes a detailed process in which the asset s condition can be evaluated using the volume of deferred maintenance and comparing that to its CRV (cost of replace value) in present dollars. In this process, the asset manager first identifies the maintenance that was deferred, and then he/she tries to provide an estimate of the current costs of that deferred maintenance. FCI (Facility condition index) is a comparison metric calculated as the costs of deferred maintenance divided by the CRV. The studies of the NACUBO illustrate that assets having FCI higher than 0.15 are problematic. However, FCI equaling zero is also not advisable. The FCI is an efficient metric for evaluating the assets and using it for analysis in a portfolio. CAS (Condition assessment surveys) is another tool to establish the condition of assets. CAS generates a benchmark for comparison various assets in the same time or various times of the same asset. With CAS, the asset manager can define the set of simple planning elements such as replacement costs or remaining life of assets. The asset managers are better able to develop optimal plans for maintenance and repair. 2.5 What is the remaining service life? After the spectrum of a portfolio is known (the value and condition are determined), the asset manager has to establish the remaining service life calculations of the life cycle for alternative maintenance, repair or replacement. Techniques occupied databases such as EMS (Engineered management system) and mathematical modeling provide estimates for the remaining life of components and systems. These techniques predict remaining life based on studies of similar constructions. However, these techniques need the collection of amounts of the relevant data. 2.6 What should we fix first? The deferred maintenance is not the only problem for the asset manager; likewise there are uninterruptedly new maintenance and repair requirements. Figure 1.3 illustrates the accumulated maintenance supposing hypothetical zero maintenance expenditures. The curve of the permanent maintenance (c) in Figure 1.3 can fluctuate based on the asset growth or reduction and the age of equipments. The curve (a) is a sum of the deferred maintenance (curve (b)) and on-going maintenance (curve (c)). Figure 1.4 represents the accumulated maintenance with hypothetical budget of 3 million dollars per year to eliminate the delay.

46 Vybraný příspěvek Figure 1.3: Accumulated maintenance Figure 1.4: Renewal payment There are also issues related to periodic capital renewal. Nothing lasts forever it must be renovated sooner or later (as a renewal of the complete system or just its part). For example, if manager knows that the roof should be repaired after 20 years or the windows after 10 years, he/she should reflect these prognoses in the budget. The NACUBO also provides practical methods for renewal planning. The methodology is related to FCI discussed earlier and it s called Capital Renewal (CR) analysis. This analysis calculates the renewal cost and spreads this cost to the future expenditures equally around the planned renewal date. 3 Software asset management system at the Masaryk university The SAM information system must undertake the record-keeping function. Primarily, it must be able to link licenses with the current evidences at the Masaryk University (MU) for persons and assets. The main part of the system would not be much complicated so as not to be disclaimed by asset managers [2]. However, it won t be simple to find a suitable compromise between complexity and simplicity it s necessary to record all requirements of the software and keep simplicity of the system. The various extends, i.e. license extending, upgrade, downgrade or license delegating to other parts of MU, are separated chapters of the design.

47 Software asset management in a Large Academic Organization Of course, the main part of the system needs a few support applications. For example, application for group assigning licenses (university computer study rooms), assigning from one license to another in case of its expiration, managing of groups with an access to the system, etc. Statements and overviews are necessary too (the feedback of the system). Sides, having overview, are the asset managers, rector s office and the user of the workstation (employee). The asset managers need information for checking, planning and purchasing of the software assets. The user has to have the control over assigned licenses to him by the asset manager. If the user finds inconsistence out, he/she can contact his/her asset manager. The system should provide help for fewer advanced users. 3.1 Why is SAM system important? SAM system brings a lot of advantages such as saving financial resources (planning of the purchases), license overviews and so on. If an organization has a lot of computers, it s difficult to keep the count of used licenses and the count of purchased licenses in a consistent state. Examples of advantages: overviews of purchased and used licenses are accessible anytime, basis of short-term or long-term planning of a software purchase, warez using prevention, information about actual state for managers and end users. The centralized administration is necessary for successful planning and purchasing. It means the only one department needn t control every purchase; however the user shouldn t buy any software myself. Two-level structure seems optimally. In our case, faculties can be the first level and the rector s office can be the other. 3.2 The software license lifecycle For the system design, it s important to appreciate the person roles, theirs possibilities and all software license lifecycle. Each point of the lifecycle will be discussed in the context of person role and the application support [3]: demand for the software license, purchase of the license and filling of the main information to the system, license assigning and installation to the computer, change of the state, checks.

48 Vybraný příspěvek Figure 2.1: The software license lifecycle Person roles: The main manager: each faculty of MU would have one person (called the main manager), who is responsible for the quality of the software evidence. The main manger is the user, who enters the main information about bought software licenses to the system. The main manager can delegate the assigning administration (PC, users) to so-called delegated managers. The delegated manager: is a man who helps to the main manager with administration of the system. The common user of the MU s computer (employee or student). Demand for the software license If the user wants some software license, he/she could contact the main manager. The demand can be agreed or rejected by the main manager. After agreeing, the main manager checks, if the license has already bought and recorded or not. In the first case, the main manager only assigns the license to the user or computer. If the user wants the license which has not bought, the main manager must first buy a software license. Then, the main manger records the information about the license to the system. It s necessary him to connect the license with the proof of purchase. Demands can t only come from the employees who uses computers belonged to the university. The university buys the multi-licenses for its students and employees too. These licenses can be usually used for one year. Of course, these licenses have to be recorded in the system and students/employees can assign licenses themselves. The main information about the license which has to be recorder in the system is: the name of the software and the producer, the proof of purchase (very important), the count of purchased licenses,

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