Reduce Business Costs with Software & Technology Asset Management

Selecting a License Compliance Discovery Tool

2012-01-09T09:50:00.000-05:00

This post is an answer to a LinkedIn question regarding selecting a compliance discovery tool. There is a wide range of considerations when you are interested in investing in this tool. These are only a few. For additional information, please look over The Institute's online Knowledge Brief: “Selecting & Using the Systems Discovery Tool.”

It looks to me like you are primarily concerned about compliance but it's important to recognize that the discovery tool, in and of itself, is not going to do much more than let you know what's present. The most effective discovery tools will contain a dynamic database that includes identifiers for a majority of software products. When it runs the systems, it will compare what you have loaded against its database to identify what you actually have present. This information should include, at least, the precise name of the product, version &/or release, copyright data, size of the executable file & date the executable was finalized. Part of the reason for all this is to prevent users from merely re-naming a file so that it's "hidden" from the tool (that strategy won't work with a good discovery tool). An effective discovery tool will also permit you to add legacy applications (or others not currently in the database) so that you can adjust to your specific environment. The quality of this database, as well as your ability to adjust for missing products, represent serious considerations in selecting a product.

A key element of the database also includes whether or not you can adjust the system to run specialized scans for items such as fonts, graphics, or other problem products that show up as "surprises" during audits. You should also be capable of looking for MP3s, games, &/or video files.

What you want to accomplish with the discovery tool is a baseline analysis of configurations - what's loaded. You'll then compare this baseline against your proofs of possession (licenses & etc) to determine what "should" be on the systems. From that baseline you'll eventually begin monitoring the systems to identify two factors:

What products "should" be present but are missing
What products do not belong but are present

In the first case, you have a need to add correctly licensed missing products. In the second, you will have identified products that may or may not be non compliant. If non compliant, they should be removed or licensed (but ensure the install dates match up with your proofs of purchase). When you monitor by exception, you significantly reduce your work load.

What all this implies is that you genuinely have all your proofs of possession under control for eventual entry into the "approved product" database. This side of the discovery tool permits you to establish what you are legally permitted to possess and it will help you reconcile against the configurations. This provides you with a snapshot of compliance status.

As to an uninstall tool: Recognize that the "built-in" uninstall tool for your operating system is not very dependable. It tends to leave elements of applications behind that "could" expose you to hidden audit issues. Depending on your size & systems environment, you can possibly acquire an open source uninstall tool. However, an effective uninstall tool is critical to to compliance assurance.

Another very important issue that Karan mentions is the entire discovery tool acquisition & implementation process. You should be able to have a discovery tool operational in less than 5 hours on a client-server network - more or less depending on the number of client systems the tool has to audit as well as the focus of your install team. Of more importance will be the amount of bandwidth the tool sucks up as it runs the systems reviews - keep it low and minimize the downtime time while it audits a device. Also keep in mind that you may want to run independent reviews of systems that are not accessed via the network - or on remote systems. This option should be considered in tool selection.

Further, is the discovery tool easily managed by a "normal" human being? I.E. a non-techie? Too many of these tools are so over-engineered that it requires an unnecessarily costly team to manage & operate the product. Be sure that any advanced clerical worker can generate & manipulate reports as well as manage the over-all system. This will drastically reduce ongoing costs.

Finally, if you are doing compliance for the sake of compliance, you are wasting money. I know that sounds wrong but, in reality, the majority of cost & risk reductions for your enterprise will be derived from effective life cycle management of both software AND hardware. Yes... You DO have to maintain compliance, but do not stop there. Usually, enterprises that stop with compliance miss out on the true value of SAM & ITAM. The core issue with this comment is that, whenever you select a discovery tool, ensure that it will also help you monitor your hardware configurations.

At the end of the day, it's important that we begin our search for "just the right tool" with a clear concept of what we want that tool to accomplish, in what environment, and with what level of internal talent. There is significantly more to this topic but, since we cover it in our online training, it's best for those who are interested to follow up with the specialized training.

Please let me know if this helps or if you need additional information!

Project Failure or Project Success – How Will You Know?

2011-10-20T17:55:00.000-04:00

Frankly, more than 70% of the project managers, software asset managers, or IT asset managers that I come into contact with have literally no framework for identifying whether their projects have succeeded or failed. The primary reason?

Project managers, software asset managers, & IT asset managers frequently fail to accurately define what failure or success look like.

Further, many of the hundreds of IT asset management or software asset management projects I've reviewed over the years have completely failed to define their deliverables. If you don't know what you are trying to accomplish, you have no way of identifying whether or not you have hit the target. Of course, for the optimists in the group, this also means that no matter what you accomplish – its right.

Control failures are not listed in the recipes for a successful professional career.

So, try these simple steps toward more successful projects:

Always clearly identify the specific goals and objectives of the project. In their most simplistic form, these are your deliverables.
Ensure that your deliverables meet SMART criteria – specific, measurable, achievable/accountable, realistic/relevant, and time-bound.
Write a clear definition of “project failure.” Some people refer to the typical constraints of time, cost, quality. Others have more complex definitions (PMI has increased the old "Triple Constraint" number with the PMBOK 4^th Edition).
Write a clear definition of “project success.” Again, the same basic constraints may come into play.

Now that you have clear goals and objectives (deliverables), begin monitoring and controlling your progress toward these deliverables from minute one of the project or SAM / ITAM initiative. When you recognize that you are deviating from expectations – fix the problem(s) immediately before everything accelerates out of control.

Example of Constraint "Controls" - Some enterprises will accept a project budget surge of up to 10%. Others expect all projects to finish precisely on budget. Some may even expect you to finish below budget. Whatever the parameters - get them documented so you can control to that degree of performance.

If you do nothing more than take these four very basic steps, you will improve the odds of successful projects. As usual with The Institute for Technology Asset Management deliverables, these common sense adjustments will cost you nothing to implement, yet they have the potential for enormous enterprise project management, software asset management, and IT asset management improvements.

For a simplified online self-paced session on SMART goals & objectives, visit www.TAMinstitute.org and look at InstituteTV under the Knowledge Center.

IT Asset Management Standards Lack Backbone - #1

2011-09-02T10:51:00.002-04:00

For over 7 years I have been researching the "state of information technology asset management" (ITAM / TAM) and I have discovered some very distressing trends. The most discouraging trend is this:

Truly effective ITAM initiatives are the exclusive domain of prosperous enterprises in developed countries.

The reasons for my perspective? How do we create & support a professional framework that few enterprises and individual practitioners can genuinely afford? The typically available of solutions, best practices, and options for managing business technology assets are altogether too costly to purchase, implement, train for, and maintain for the vast majority of enterprises that genuinely need the results. Some of these standardized solutions are so complex to implement and manage that most enterprises have neither the in-house talent nor the consulting budget to get them operational, let alone managed on a day-to-day basis.

What's more, many of the so-called ITAM best practices on the market today are kept within a serious proprietary strangle-hold by suppliers or groups that have locked them down via copyright or business process patents.

Don't believe me? Simply go out and price an end-to-end ITAM or SAM solution for your enterprise. (You can't afford it.)

It's my mission, and the mission of The Institute for Technology Asset Management to over-turn this self-serving trend and put business technology asset management and software asset management back into the hands of the average ITAM and SAM practitioner - accessible for the average enterprise. We're focusing on building a credible profession of software asset managers, IT asset managers, and IT portfolio managers. Our core deliverables are long term and strategic in nature: the cost-effective, common sense-based professional development processes, procedures, and best practices that can be used by a majority of enterprises, in a majority of industries, in a majority of countries around the globe - without the crippling budget hits.

It may take us a while but, with the support of practicing asset managers, and the enterprises who are searching for qualified professionals in the ITAM/TAM/SAM and TPM fields, we think our comprehensive approach is the one that the profession desperately needs. Care to join us?

Software Piracy Settlement - Delhi, India

2011-08-17T14:19:00.000-04:00

In August, 2011, a small enterprise in Delhi, India was confronted for hard disk loading. The consequences for this enterprise were costly but there was a critical hidden message for every software asset manager behind this court case. When fewer than 10% of software piracy, or license non compliance, settlements are made public, it pays to know how to respond to the few that DO show up in public.

For a quick review of this incident, and a more comprehensive discussion of how asset managers in this region should respond, take a look at my commentary HERE. (Or click here for a link to the original IndianExpress.com article by Utkarsh Anand). At the end of the commentary you will also find a link to the full Institute for Technology Asset Management PDF Knowledge Briefing that will provide you with strategies & tactics to respond to events similar to this in your geographic area.

THESE are the some of core competencies that are only exhibited by Institute-trained Software Asset Management Professionals.

Software Asset Managers (SAMs) Beware: This scenario represents one of the most frequent blindsides in our industry. A single reseller who violates copyright regulations - if linked to your enterprise - can cost you hundreds of thousands of dollars - in many cases, it'll even cost you your job. (Conveniently enough, you don't even have to have done anything wrong...)

The Institute for Technology Asset Management

2011-03-13T12:23:00.000-04:00

The Institute for Technology Asset Management provides professional development and public training programs in the fields of Software & Copyright Compliance Assurance (SCCA), Software Asset Management (SAM), Information Technology Asset Management (ITAM / TAM), and Technology Portfolio Management (TPM).

The Institute's information technology asset management professional development programs are anchored in the front line common sense experiences of working IT asset managers - representing our global membership. These practitioners also have deep expertise in such areas as project management, contract management, business process improvement, internal auditing, negotiations, ITIL, ISO standards, and other complimentary fields. In addition, our programming is unique in the industry, having been organized and delivered at the collegiate level to optimize both depth of coverage and alignment of competencies with both academic principles and real world IT asset management operations.

Our primary goals? To develop and deliver the IT asset management industry's most cost-effective and comprehensive professional development knowledge and credentialing programs.

Our supportive goals? To deliver our programming to a global audience, enabling businesses of all sizes, operating in any industry or cultural environment, to gain maximum ROI value for their business technology investments while minimizing technology related risks.

The Institute for Technology Asset Management training is the first programming to be based on globally recognized professional competencies as documented in the standardized Guide to the Technology Asset Management Body of Knowledge – TAMBOK™. The uniquely affordable TAMBOK documents the competencies necessary for practitioners – or enterprises – to establish and support a wide range of information technology asset management initiatives.

The Institute's training programs re-enforce and enhance the process behind the proven TAMBOK competencies. While the Institute programs integrate a wide range of standards and best practices, our members believe that there is a significantly higher percentage of ROI results to be generated from a renewed focus on basic business processes and practitioner competencies. As a direct consequence, IT asset management training from The Institute delivers significant value at minimal expense – with no need to purchase costly standards, consulting, or support products.

The Institute is the only non profit [501(c)(3)] practitioner-driven association of IT asset management professionals in the world, having been established to fill the void of providing cost-effective training and open knowledge transfer to information technology asset managers as well as to the general public. The Institute also leads the IT asset management field in providing the only non-proprietary professional development and credentialing programs designed around a functional interdisciplinary knowledge framework.

The Institute's TAMBOK-focused professional development programs have been available online since 2006 with custom-built instructor-led IT asset management programming currently available on a scheduled basis. Institute programming is also being delivered at the university level via workforce development programming. The Institute will resume scheduling open-to-the-public – instructor led - programming via its new web site in 2^nd quarter 2011.

Are you drinking the "Cloud" fruit punch?

2011-03-06T10:33:00.000-05:00

There are literally tens of millions of dollars being spent in a campaign to convince you that cloud computing (also being referred to as SaaS or software as a service) is the next best and greatest thing for managing the business technology portfolio. While I won't argue that, in some instances, offloading your controls of specific technology requirements may not cause a problem, I recommend you carefully consider any cloud-related decision from a perspective that is both tactical and strategic (short term as well as long term).
Since the early 90's I have been recommending that smart business management absolutely needs to adopt an intelligent business process improvement framework to help minimize costs and risks while maximizing the ROI on business technologies. Cloud computing is a great place to start your technology asset management improvement initiative.
Consider: A majority of your current licenses for operating systems and software are perpetual - you pay once for the use of the product and you do not have to pay again until you upgrade or change products. In many cases this single up front payment permits you to use the same product for five or more years - only requiring change when absolutely necessary.
Moving to the cloud will take this level of cost control away from you. No matter how prettily the software industry tries to wrap the cloud package, it will always look just like a yearly subscription fee once you get past the honeymoon stages. (You will be paying for the product again and again, every year you use the service.)

Bottom Line: Higher software costs...

Consider: This yearly fee for access to operating systems or software is the TOP reason why mainframes have been priced nearly out of existence. The problem isn't merely the carefully crafted yearly fee structure that magically keeps changing. Instead, the core problem with the yearly subscription model is that, once you are committed to it, the copyright holders are well aware that conversion costs will literally force you to accept any changes they choose to send your way. (I've seen countless examples of companies under yearly subscription plans being held hostage with threats of "...reduced or discontinued access unless you agree to this new contractual change...") After all, once committed, what are your options? With the cloud licensing model you have given up virtually all of your negotiations capabilities.

Bottom Line: You'll Take What They Give You...

Consider: The vast majority of enterprises operating at any level around the globe do not honestly read or understand the licenses, terms, and conditions that govern their acquisition and use of operating systems and software. (After all, if you genuinely understood the onerous vendor licenses, you probably wouldn't accept the majority of these agreements.) The cloud agreements are even more deadly - read them. (Now, read them again and note all the "We have all the rights - You have all the responsibilities..." clauses.)

Bottom Line: They're Not Going to Give You What They Say They're Going to Give You...

Consider: Under the current licensing models, you – the business technology consumer – determine when you will move to the new releases or versions of products. There are plenty of costly land minds you have to negotiate such as: will your computers support the new product; or will the new product be compatible with all your other software; or will the new product be compatible with your printers or other devices. Managed incorrectly, your costs for a single upgrade could easily exceed the value of your existing hardware base.
Moving to a new product under the existing license is determined in-house or, in worse case scenarios, when the provider refuses to support that perfectly acceptable product you purchased six years ago. Under the cloud, you'll move to the new product when the supplier says you'll move. After all, your hardware and compatibility issues are of no concern when you have no cost-effective alternative, right?

Bottom Line: You'll No Longer Control Upgrade Frequency of Software or Hardware

Consider: Coming full circle to my original comment - All this money being spent on the hard sell for cloud computing isn't being spent to educate you about the wonderful new silver bullet business technology solution. Instead it is being spent to ingrain the new "miracle service" in the executive psyche and ensure that business technology consumers fail to recognize the true costs and risks relating to relinquishing control over the systems your enterprise must rely on to survive.
Prior to any cloud-related decision, conduct a seriously honest and scrupulous cost-benefit analysis. This step alone could help you reduce the artificially inflated costs and risks relative to virtually all business technology goods and services. If you want to increase the real world return on your technology investments, THIS is one of your key steps toward successful business process improvement.

Software Asset Management Tools

2011-02-25T16:38:00.000-05:00

When it's time to purchase automated technology asset management software, it's also time for a little reality orientation. Vendor hype aside, there is no silver bullet tool that will deliver miraculous value for peanuts. To gain maximum ROI from any IT asset management software acquisition you need to identify and prioritize which tool to purchase, in what order, and establish your preferred functionality criteria.

When it comes to automated information technology asset management tools you will always gain the best bang for your buck by starting with a quality discovery tool. The discovery tool enables your IT asset manager and/or software asset manager to conduct a hardware and/or software audit in minutes (compared with hours and days using the hand audit processes). The IT asset management discovery tool usually operates on a server, auditing systems when they are started at the beginning of the work day, or according to a pre-set schedule. (But, with many, can also conduct local or online audits of systems.)

Caution: Not every technology asset management software product can be used to discover both hardware and software. While some tools may be adjusted to function in both capacities, a tool that isn't designed for both hardware and software can be a complete disaster. What's more, many tools cannot be tweaked to add new items to the discovery search - a serious problem when you decide to audit for illegal music or MP3 files.

When setting your functionality expectations, consider the following:

How difficult is the product to install / implement? Can your internal team perform the implementation or will you have to bring in an expensive provider team?
How difficult is the product to manage / administrate on a day-to-day basis? Can your existing personnel do the work or will you be forced to hire a dedicated technician? Is training cost-effective and will it cover your unique needs?
Can the product be set to "manage by exception"? This means that, once you have established your configuration audit baseline, the product primarily searches for changes to that baseline - quicker and more cost-effective.
How easily does the product generate reports? What pre-designed reports are included? How difficult is it to produce a customized report? Are reports developed around a common source, or is the process proprietary?
How easily and accurately does the tool discover hardware? Can your personnel adjust the scan for a specific hardware item?
How easily and accurately does the tool discover software? Can your personnel adjust the scan for a specific range of software titles? Can it scan for products belonging to a specific copyright holder (a MUST during a license compliance audit)?
Does the product contain, maintain, and accurately update an internal software product and copyright holder dictionary against which it compares what it discovers? How frequently is this database updated?
Will the database accept data covering legacy applications - those that were written in-house or are otherwise not on the typical software publisher roles?
Can the product be used to discover "rogue" products such as those MP3s mentioned earlier, or video/movie titles, graphics, fonts, or even games? (Do not try to convince me that none of your systems has any of the items on that list - they do...)
And the beat goes on...

Want more? There are other considerations to bring into the picture. We haven't discussed licensing terms and conditions, or volume purchasing agreements, or any of a wide range of details - but do you get the picture?

Need any questions answered or additional information? Check out the Knowledge Briefings on the BizTechNet.org web site. Interested in bringing in one of our experts to consult or provide advice? Interested in getting supplier-agnostic training in how to deliver effective technology asset management or software asset management value? Contact our training division at TAMinstitute.org.

Technology Asset Management Body of Knowledge - TAMBOK

2010-08-21T13:38:00.013-04:00

I'd like to present the industry's first Technology Asset Management Body of Knowledge - the TAMBOK. You can find it by clicking on the link below, but please take a moment to read this brief introduction.

I've been in the technology asset management industry for over twenty years. Fair warning: I rarely talk about “me” but, today, for this purpose, I’m giving you my personal/professional perspective. Here’s where I’m coming from…

In 2000, I designed and delivered two of the first professional certification programs in our industry - one for Software Asset Management and another for Technology Asset Management. For over twelve years I have been developing and delivering collegiate-level programs in Negotiations, Buying Technology Assets, Project Management and other related business topics. However, in 2004 I found myself forced to take a step back and to view the asset management professional development industry from a new perspective. I've spent nearly half a dozen years in intense study of credentials and of the credentialing processes used by some of the top professions - and I have been highly disappointed in the existing certification programs in our field.

We need a paradigm shift
Frankly, fewer than 5% of technology asset management-related training programs I’ve reviewed are performing an effective job of establishing and building our profession. Don't get me wrong: As a sort of "training wheels" beginning, we've produced some decent certifications over the past eight or so years - but we STILL haven't kicked the proprietary supplier/product habit. The vast majority of our training and certifications have been designed by, and in many cases are still delivered by, partners, pals, and allies of the very industry suppliers that created the financial and liability needs to establish technology asset management systems in the first place.

I think it’s well beyond time that we converted our professional preparation into a supplier- and product-agnostic process – one genuinely designed and developed by practitioners, FOR practitioners – a program series that is based on academic methodologies (Think Bloom’s Taxonomy) and shaped to help you obtain and retain professional career employment by delivering serious business value to the enterprise. This is the main reason why I worked with other asset managers to create the industry’s first non profit organization specifically focused on helping asset management professionals: The Institute for Technology Asset Management. It’s also why we’ve chosen to formally document our profession in the Guide to the Technology Asset Management Body Of Knowledge.

TAMBOK = What you need to know
So... Here's what I've done. I've spent the last five years working with over three hundred business professionals, academicians, and asset management practitioners to re-envision our collection of certificates into a serious credential program - one based on a publicly available Body of Knowledge as well as a credible credential preparation program of study. Together, we have built this Guide to the Technology Asset Management Body of Knowledge (TAMBOK) to accurately reflect the skills you need to perform well in the fields of Software & Copyright Compliance Assurance (SCCA), Software Asset Management (SAM), Technology Asset Management (TAM/ITAM), and Technology Portfolio Asset Management (TPM).

Understand that the copy of the TAMBOK currently available - the Third Edition - is the culmination of a series of short, yet comprehensive, reviews to bring together the major components of a credential series that not only speaks to what you KNOW, but more importantly, speaks to what you can DO with that knowledge. The major components include the following:

• Four Life Cycle Process Groups
o Procurement
o Distribution
o Operations &
o Governance

• Six Practice Areas
o Portfolio Management
o Business Management
o Financial Management
o Risk Management
o Contract Management &
o Project Management

• And Over Fourteen Applied Competency Areas
o Think about focused applied capabilities in topics such as Negotiations, Audit Methodologies, License Management, Documentation Management, and others.

We've come a long way with these professions since I first developed and implemented the knowledge infrastructure of my former association. After extensive research and development, our working group determined that we need to take the next step of converting the traditional certification process from a few hours of lecture followed by a memorization test to a credible credentialing process that mirrors the success of such credentialing programs as those provided by the Project Management Institute, the AICPA, the Contract Managers Association, and others. (There is an extensive list of organizations from which we drew samples, guidelines, and advice in the TAMBOK Appendix.)

That next step begins with a formal Body of Knowledge - the TAMBOK - on which we can build and evolve a solid foundation of applied capabilities. The TAMBOK is not a derivative work that attempts to bend technology skills into a new service added on to the responsibilities of enterprise technicians. Instead, this is an entirely new perspective of capabilities to be applied to the Business side of the Technology Portfolio.

And, to further clarify the potential of the TAMBOK, we’ll soon be presenting a Knowledge Briefing Series of how "What you know," is converted into "What you can actually apply," which translates into "The value you can deliver with a significantly more credible credential."

We'll be the first to admit that the TAMBOK isn't perfect - it's a work in progress. But this document IS the first supplier- and product-neutral effort by a credentialing body in our industry to bring order from chaos and to place your cost-effective Professional Development Blueprint in your hands where it belongs.

The TAMBOK is available HERE.

Comments are welcome - as are qualified practitioner volunteers to help evolve the next release.

Before you spend BIG MONEY for big software - read this!

2010-05-05T15:33:00.003-04:00

This post is in response to, and supplemental to, the article on ZDNetAsia: "4 tips for buying 'big' software," by Patrick Gray - as posted in TechRepublic on 5 May, 2010.

I've observed well over a hundred negotiations where enterprises spent tens of millions of dollars for highly complex software (and/or hardware). In parallel actions I've seen thousands of small to medium-sized companies spend enormous percentages of hard-won revenue for products they didn't need, couldn't effectively use, and shouldn't have touched. In virtually every case, the enterprise or company making the purchasing has been hammered by supplier negotiating teams.

Here's a few issues to consider BEFORE dropping all your spare bucks on big money software or other business technology goods and/or services.

Nobody is permitted to speak with ANY supplier about the project - PERIOD!

Why do I bring this up? Because, time after time, I've seen people come back from conferences or conventions where they have "found the perfect product to solve all our problems."
Major violators of this rule? Technical people and management. Rein them in BEFORE they damage your options.
Result? The supplier already knows precisely what your project looks like; its schedule; its budget; who will be on the internal team; and who will be part of the decision tree.
Since the supplier has also conveniently learned the details of ALL your requirements, their product or service is going to somehow magically fit exactly inside your needs analysis.
When - not if - this happens, you can kiss negotiations goodbye - because you will have no leverage with this supplier.

Conduct, and follow, accurate analysis - EVERY time.

If your company is typical, you purchase new technology goods and services for nearly ALL the wrong reasons. (Don't get all defensive on me until you read on.)
Conduct clearly defined, honest, and complete analysis. Make sure that they are accurate and not filled with vendor hype - as well as supporting "pet" projects.
Pick one or more, then DO IT: Needs Analysis, Cost-Benefit Analysis, Feasibility Study, Forcefield Analysis, Business Case Analysis, Cause & Effect Analysis, Stakeholder Analysis - ANY of these will take you further than you are already going in terms of whether or not the acquisition or project is genuinely necessary. (Incidentally, The Institute for Technology Asset Management - www.TAMinstitute.org - is the only professional organization of its kind that actually teaches you how to conduct over 16 of these critical business analysis.)
The key is this: Fewer than 10% of enterprises actually conduct any serious level of structured analysis prior to beginning the acquisition process. Of that number, fewer than half ever follow up to ensure that the goods or services acquired actually ADHERE to the expectations. Even more critical is the tendency, in nearly ALL analysis, to insert personal perspectives in place of quantifiable documentation. Result? Decision makers are coming to conclusions that are NOT based in fact or actual business needs.

Negotiate based on what you expect to happen, not based on supplier representative assurances.

If you do nothing that I recommend, at LEAST do this. Nearly every software or technology agreement that I have read in the past 23 years has a clause somewhere that clearly states that ANY statement or assurance given to you is null and void - the agreement supercedes ALL verbal discussions. (You don't have to believe a word I say. Just get up out of that chair and go read a software license - any license to confirm my rantings.)
So? If you want any specific issues made clear in the agreement you will have to negotiate them in. (Trust me, suppliers do NOT appreciate it when I give this advice. It means that they have to actually deliver the value they claim.)
This interestingly hidden little caveat also seems to forget to mention that the functionality of the product, as delivered, does NOT have to match what you were told it would do. Again, if you expect to get the value for what you purchased, you better negotiate your specific expectations into the agreement.

The actual costs of this acquisition are NEVER what you think.

You should already know this but nearly ALL of us tend to forget. We get excited about the new toys and slip off into Christmas morning... What to do?
Patrick covers this but I'll expand - When you conduct the Cost-Benefit Analysis, step the process out at least three to five years. Check with anyone and everyone who has touched this product. Find out what worked out well and...well...what didn't work out. Document it ALL as part of the CBA - BEFORE you spend a single penny!
Check out implementation costs and be sure to match them with the specific talent brought to bear on the project. If you think your internal team is going to implement better than a highly trained and highly experienced (think: expensive) support team, you may be in for quite a financial surprise. But, if you planned and budgeted for the difference in team talent, you may find financial relief.
What about defects and patch management? Upgrades? Ongoing support? Check into the actual details of each and every one of these items. Look over the actual supplier contracts for the "rough" spots. Does support cost more if your own team implements the project? Is this product so full of defects that the supplier has a monthly patch day scheduled for every consumer of every product? Are there cute little items such as the "product cannot be used more than 15 miles from the server" or implementation support is billed out as "$180 per call"? (If you don't know about these interesting little revenue stream items, you really should spend some quality time in one of my asset management courses.)

Beware the Reference Fruit Punch Shuffle!

Patrick mentions being alert to what I would call "happy people" references. You know the ones I mean: "I invented Windows 7." Keep in mind that a supplier would NEVER connect you with someone who had a nightmare failed implementation. If you rely on supplier connections, you'll only hear from the folks who consumed the entire cup of fruit punch.
As an element of this particular common scam is the supplier advertising budget. If the product is so great, why do you have to spend so many tens of millions of dollars TELLING me about it? If implementation and ongoing support are so simple, why do I constantly hear, or read, about over budget, over time, and failed projects? You want references? Check with the people who have lost tens of millions on failed projects with this product line or supplier. THOSE folks will give you a totally different story than the ones who had plenty to spend and plenty of talented techies to contribute to implementation and ongoing support.

Manage the Project

Patrick's observations regarding the implementation partners is right on track. Keep in mind that any enterprise that has reached the "Partner" stage of a relationship with a major software publisher has also consumed massive quantities of that ever present fruit punch. These folks make their livings via their relationship with the given software publisher. If you honestly expect them to admit the product is a dog - don't hold your breath. Instead, they'll follow the supplier pattern of letting you pay to resolve the problem so the supplier can wrap it into the next release - the one you'll pay to acquire.
For a major software acquisition & implementation either use your own project manager or follow Patrick's advice and bring in an independent PM to monitor the project - even a spot check will be better than nothing. But, let's take this a little further...
IT projects fail significantly more frequently than they succeed. There are plenty of reasons for this - some of them are even reason-able. But, as a PMP and a faculty member teaching project management I have found that the key to project success - or failure - all-too-often rests on the heads of project sponsors, executive management, and the initial planning team. THESE folks need to be visibly and aggressively on board or the project manager might just as well be a NATO observer.
Remember that "negotiation" thing we discussed? It also comes into play right here. Place serious penalties in the acquisition agreement to "encourage" the implementation company to get it done right. Wrist slapping does not belong in this clause. If it is going to cost you $1M for the product, $2.5M for the implementation, and $5M to correct failure - include those costs in the failure clause. Otherwise (as clearly stated in the software license) the software publisher needs only refund the price of the software after it fails and they blithely walk away from your completely devastated IT environment.

Is there more? Oh, absolutely! In fact, there are literally hundreds of "gotchas" hidden inside every software acquisition - whether it's a simple operating system or a major overhaul. If you expect to gain value from business technologies, you absolutely must learn to identify, define, and pursue that value. Otherwise, the suppliers are in control of your money and (lack of?) results.

Leasing Hardware? PAY Attention to the Lease Terms!

2010-04-28T10:41:00.004-04:00

Because, if you PAY attention to the lease, you won't PAY penalties at end of lease. Or, if you have business technology money coming out of your ears, and you like spending unnecessary cash, you can ignore my suggestions...

The companies that lease hardware to people like you and me know full well that they're going to make some serious fun-money at the end of the lease. These folks are very aware that the odds are incredibly high you will fail to read, understand, or follow the terms of the agreement. Of equal importance, they know you will fail to monitor "end of lease" requirements. However it plays out, you'll be sending them some hefty un-budgeted checks.

To begin a lease value initiative, start with the big money issues:

1. Precisely when does your lease end? (Miss this date, by even a day, and pay an enormous penalty.)

2. Precisely what is the return process you will be expected to follow? (Fail to follow the process to the letter = pay penalties.)

3. At what date, or dates, must you begin the replacement initiative? (We ALWAYS wait until too late to begin this process - big penalties for being late as well as in disruption of operations while your techies scramble to catch up.)

4. Where is every single leased system and who is responsible for it? (Think you know where everything is located? Think again. Just go try and find a few systems today and consider the cost of this scramble if you wait.)

5. What hardware or software has been added to each system and how will the changes impact the lease terms? (In most cases, leased systems must be returned configured precisely as they were originally delivered. Think you'll remember?)

6. Create and follow - In Advance - a precise plan for for collecting, replacing, auditing, and returning every system covered in the lease. (If you do the planning and management, now, you'll pay a lot less later.)

Remember: The business technology leasing folks KNOW you are going to fail to follow even these basic common sense procedures. They are PLANNING on the penalties you will pay. (Try fooling them.) If you take nothing more than these simple steps, you will significantly reduce the costs, and increase the business value, of leasing technology systems.

Minimizing Costs & Risks of Business Technologies - Online Seminar Series

2010-04-17T19:03:00.006-04:00

Free Online Knowledge Briefing - April 22nd, 2010

For over ten years, I have commented that we lose way too many of our technology dollars to essentially empty IT spending. Industry studies have consistently backed up my perspectives, with some actually placing losses at more than $10 for every $1 spent. There a plenty of purported solutions to this waste. Unfortunately, very few of them are designed to produce positive ROI without serious additional spending.

On April 22nd, 2010 I'll deliver the first of an online Knowledge Briefing Series covering a wide range of methods any company can use to minimize risks while putting the brakes on wasteful IT spending - without negative impact on your budget or operations.

Tired of the unnecessarily high costs & risks of business technologies? This is your chance to identify the life cycle technology asset management issues that create those problems and to walk through the simple, common sense, and cost effective procedures that you can use to begin saving serious IT dollars.

Each registered participant receives a customized Session Workbook to use in documenting delivered content. We'll add to the Workbook with each new online session we deliver.

Let's conduct a quick cost-benefit analysis...

The Costs?

It's free...
The methods are proven,
I'm not selling you anything and,
It's only a single hour out of your day...

The Benefits?
Your company could easily begin converting those all-too-frequently negative technology investments to gaining $5 (or more) in value for every $1 you spend.

You have absolutely nothing to lose and everything to gain.

Series intro URL: Minimizing Technology Costs & Risks, April 22.

Session One: Minimizing Exposure to Punitive Software Non Compliance Audits

Are You Watching the Secret ACTA Debacle?

2010-03-12T14:14:00.004-05:00

Are you a business owner? An executive manager? Are you at all concerned about external controls over your business technologies? Does it bother you that your children have become easy audit targets for copyright compliance sharp practices?

Well, here's yet another threat to your so-called "peaceful use" options for literally any technology that can be covered under copyright laws. Even the European Parliament is threatening the European Union with legal action if the drafting group doesn't quit hiding details to the agreement.

Yet another draconian copyright law... Written in secret so the consumers won't understand until it's too late. Wonder what they're working so very hard to hide?

The ultra-secret Anti-Counterfeiting Trade Agreement (ACTA) is multinational in scope and continues to cruise under the radar of virtually everyone except a select number of copyright holder representatives.

As usual, this one is being instigated by the same folks who gave us the Digital Millennium Copyright Act (DMCA), the No Electronic Theft Act (NETAct), the Super Digital Millennium Copyright Acts (SDMCA), and who did their best to shove the Uniform Computer Information Transactions Act (UCITA) down our collective throats.

As I continue to suggest:

"If you don't wake up and become clearly aware of copyright reform activities, you will soon find out that what is being done isn't being done FOR you, it's being done TO you!"

And, yes, you should be pulling that blanket up over your eyes.

Update ACTA... More resources you need to read!

2010-01-22T12:11:00.003-05:00

If you haven't followed up on my suggestion to look into the Anti-Counterfeiting Trade Agreement, here are several more links to perspectives you might want to consider. This thing is well out of hand and only through clear and effective public demands will the onerous terms of ACTA be avoided.

Excellent materials on the We Rebuild web site.

Free Software Foundation link on the Linux.com site HERE.

ComputerWorld, New Zealand HERE.

Great Statement by Mark Harris on ACTA Lemming-Brothers HERE

As I have said since the first attempts to pass DMCA and UCITA: "If we do not start monitoring what is being done in terms of special interest lobbying, we are ALL going to discover too late that what is being done is being done to us."

Once these laws, acts, regulations, and agreements are passed, they will be impossible to counter.

Anti-Counterfeiting Trade Agreement (ACTA) – DMCA & UCITA on steroids?

2010-01-17T20:24:00.011-05:00

You say that you're too busy to follow pending legislation? Understandable. You were probably busy while the Uniform Computer Information Transactions Act (UCITA) and the Digital Millennium Copyright Act (DMCA) were under consideration, too. Yet... Both of these - as well as ACTA - have direct and serious implications for you and your business.

Well, just in case you are bored (or if you are at all concerned about your future access to the Internet) you may want to take at least a surface look at the latest attempt to establish more draconian oversight on the parts of the digital content providers. It's called the Anti Counterfeiting Trade Agreement (ACTA) and this one represents the absolute cutting edge in “stealth legislation.”

Quick Discussion?

First, we'll take a very quick view of how easily stealth legislation comes into being.
Next, we'll discuss UCITA, a basic example of stealth legislation in action.
You'll also want to take a close look at the Digital Millennium Copyright Act. This second example of stealth legislation was more successfully accomplished by the special interest groups.
Then, just so you aren't left hanging, we'll show how the example legislation will impact your business – AND how you can stonewall its influence.
Finally, we'll take a very quick look at the latest stealth attempt and provide links you can follow to review further information.

Stealth Legislation!

Occurs when special interest groups (and their lobbying groups) gain dominant access to willing political figures,
The special interest groups “help assemble” legislative proposals that favor their interests,
Actually “help” is a relatively benign word for an environment in which, sometimes, the special interest groups actually draft the proposed legislation,
Once crafted, the legislation is either grafted on to another, less controversial, document, or it is quietly passed (usually late on a weekday evening) when the C-Span cameras (and public scrutiny) are focused elsewhere,
The real key – an issue that should chill you to the absolute bone – is that these legislative acts are conducted very silently behind the scenes without the benefit of public oversight.
You wake up one morning and discover that you are legally bound by a law you've never heard of.

Example of Stealth Legislation

Uniform Computer Information Transactions Act (UCITA)

UCITA started out as a modification to the United States Code,
The committee responsible for updating the Code refused to include the UCITA segment after closely reviewing both the document AND the process by which it was assembled,
As far as content, UCITA would have made an enormous number of content provider sharp practices 100% legal,
The “rights” of the technology consumer were simply not covered within UCITA in any manner,
Link HERE for a quick review of the UCITA sharp practices.
As to the manner in which the detailed language of UCITA came about, one witness reported that, during any session in which the public was invited to attend the review, the number of content industry lawyers & lobbyists in the speaking line outnumbered the public by 60 to 1.
When the review committee refused to include the UCITA content in the updated U.S. Code, the digital content providers & their friends immediately began a focused effort to get the regulation passed at the individual state levels.
UCITA was passed and is currently part of state law in Maryland & Virginia.
When word of UCITA content finally leaked to the public, the groundswell of local opposition grew so rapidly that many states considered the UCITA regulation onerous enough to pass Anti-UCITA legislation.

How will UCITA get to you?

Every significant contract and/or license includes a clause titled “Governing Law.”
To counteract your rights under UCITA, the content provider simply cites Maryland or Virginia as the State of Governing Law.
If your state does not have an Anti UCITA Law in effect, your relationship with that provider will be governed by UCITA. (For the moment, we'll assume your state does not have a legal UCITA barrier.)
The only way to effectively counteract the UCITA threat is to read every technology-related agreement (Yes, licenses, too!) and strike out any attempt to make Maryland or Virginia the state of governing law.
If your provider is attempting to insert this venue into its licenses you can be very certain that the supplier is aware of its powers under UCITA and intends to take advantage of those powers in your relationship.

Anti Counterfeiting Trade Agreement (ACTA)
As stealth legislation, ACTA is building an entirely new methodology. This time around, instead of appealing to individual legislators, the special interest groups have managed to serve their uniquely brewed fruit punch to the executive leadership of multiple countries.

The result? In its incarnation as a “Trade Agreement” ACTA does not have to be approved – or even reviewed – by elected legislators. There exists virtually no oversight in terms of content, focus, or legality. As an agreement between national leadership, ACTA becomes a sort of binding international regulation by default.

In keeping with its stealth legacy, ACTA has been maintained as a carefully guarded secret from the public. Unbelievable as it seems, in the United States, details of this agreement are being hidden behind a secrets of “National Security” blanket. Attempts to gain access to working documents under the Freedom of Information Act have been routinely met with refusals citing National Security. The U.S. Trade Office, which seems to be spearheading the agreement.

Even more chilling are the number of digital rights group representative who HAVE had access to the language of the agreement. As with DMCA, it appears that the majority of input is being delivered by digital content special interest groups – versus consumer rights advocates. Reading between the lines should bring to mind the intense efforts of the software, music, and motion picture groups in their efforts to gain more control over access, distribution, and use of related products.

For a list of private sector individuals who have gained access follow this LINK to the Knowledge Ecology International web site. These folks appear to have the most comprehensive review.

I'd love to tell you more about this interesting little load of nitro but, frankly, there just isn't any clear information to go on. So, instead, my goal is to just get you moving forward toward other web sites – many of which focus on tracking these types of activities. So, here's a list of links to check out:

Wired Magazine – Always one of my favorite sources.

http://www.wired.com/threatlevel/2009/12/feds-fear-acta-scrutiny/

http://www.wired.com/threatlevel/2009/03/obama-declares/

Electronic Frontier Foundation – Another great resource.

http://www.eff.org/search?text=ACTA

http://www.eff.org/deeplinks/2009/11/leaked-acta-internet-provisions-three-strikes-and-

Public Knowledge -

http://www.publicknowledge.org/issues/acta

Virtual Review -

http://virtualreview.org/tech/zoom/1298179/report-us-fears-public-scrutiny-would-scuttle-acta

U.S. Trade Representative -

http://www.ustr.gov/sites/default/files/uploads/factsheets/2009/asset_upload_file917_15546.pdf

European Commission -

http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/index_en.htm

http://ec.europa.eu/trade/creating-opportunities/trade-topics/intellectual-property/anti-counterfeiting/

UCITA Links – Be careful with some of these. Some were (are) developed by fruit punch salesmen for public consumption. Review multiple perspectives before you take action.

Software Asset Management Services, Inc. - Good info and more links to UCITA – I can say that because I wrote them...

http://www.samsrv.com/ucita.htm

Americans for Fair Electronic Commerce Transactions (AFFECT) – Good resource.

http://www.ucita.com/what_problems.html

Bad Software – Interesting perspectives

http://www.badsoftware.com/uccindex.htm

The “party line”

http://www.ucitaonline.com/

New to technology asset management? Want to succeed? Here are some things to consider.

2009-11-20T12:55:00.003-05:00

Technology asset management - software asset management - It's all about putting a stop to status quo - putting a stop to "This is the way it's done...". If you are a "go along with the program" kind of person, you may get the job but you probably won't get the results. If, on the other hand, you are a "cut the the core" kind of individual, you probably have the capabilities to get the results but you probably won't get the chance to do the job.

Interesting quandary? Been there. Done that.

So here's my challenge to you: If you are willing to step up to the plate and change the asset management world, I'll help you all I can. How will you know if joining forces with "The Network!" and "The Institute!" would be right for you? Measure against your honest responses to the following items - don't present your corporate face - present your OWN. Answer as a buyer and use the word "Agree" for "I accept" or use the word "Disagree" for "I'll be taking this acquisition to your competitor" (I'll interpret your score when you have finished...)

This software contract is not negotiable...
The hardware agreement is not negotiable...
The provider reserves the right to change the agreement at will and without notice...
This product is sold "as is"...
You can only purchase a new computer with this specific operating system...
Our product is the only one of its kind...
Our services are supplier-neutral...
Subscription-based licensing is less costly than perpetual licensing...

Remember, "Agree" if you would accept or believe the clause or statement, "Disagree" if you would not accept or believe. Once you are finished, I'll explain how we can help you create a more cost-effective technology environment.

Here's the bottom line:

If you answered "Agree" to ANY of these items, you are an easy target for over-priced & under-delivered technology goods and services. You are a victim of the "this is the way it's done" mindset. You'll pay whatever the supplier asks and accept whatever product they plop down on your desktop. (Scary, isn't it?)

If you answered "Disagree" on these items, there is hope for you... You are on the road to getting actual value for your tech dollars. Consider:

This software contract is not negotiable...
1. Bull. While the suppliers want you to THINK this, it isn't true. If it is, you need to find new suppliers.
The hardware agreement is not negotiable...
1. Wanna bet? Re-read the item above.
We reserve the right to change the agreement at will and without notice...
1. No... You do not and you WILL not.
This product is sold "as is"...
1. Wrong. I purchased this product to perform specific tasks. If you cannot back the product - in writing - to do those tasks, don't come here trying to sell it.
You can only purchase a new computer with this specific operating system...
1. No. That's you're agreement with the software publisher. You make money on every one of THEIR operating systems you force consumers to accept. There are alternatives. I want to know what they are & I do NOT expect to pay more to select an alternative.
Our product is the only one of its kind...
1. Not in THIS century. There are plenty of alternatives that fit my needs & I'm perfectly willing to move to one of your competitors.
Our services are supplier-neutral...
1. If a supplier taking money from a specific systems or software company, or if the supplier is investing money in becoming "certified" through a specific company then I'd be pretty ignorant to believe you weren't going to recommend (push?) that company's goods or services.
Subscription-based licensing is less costly than perpetual licensing...
1. Let's see... A perpetual license means I pay one fee and use the product until "I" chose to change or I move to a subscription agreement, paying you a repetitive yearly fee to use whatever product "YOU" are pushing at the time. If version 1 works for me, I shouldn't have to move up to versions 2, 3, 4, and 5 just because you quit supporting them. (I rarely used your support anyway.)

These are VERY simple responses to these very common statements and/or licensing clauses. (Don't believe me? Take time out to read three licenses for products on your computers. Many of these clauses are going to be right there in your hand & you're already legally bound to them.)

Businesses are constantly spending too much for too little in terms of software assets, hardware assets & support / maintenance agreements. Not only do we spend too much, we have also been carefully trained to accept whatever products or services are slapped with a "cutting edge" label. If you want to get serious value for your technology dollar, you need to be part of The Network and The Institute.

Our core purpose is to teach you - YOU - how to change your relationships with technology suppliers. If you do not get proactive on this you'll continue to be a helpless victim of tech sharp practices in licensing & related agreements. Get what you expect & only pay for what's delivered.

Reducing Costs With Software As a Service? (SaaS) Just Like Your Cell Phone Bills!

2009-08-10T14:47:00.003-04:00

I know that I've referred to Software as a Service (SaaS) as the prelude to a wide variety of onerous licensing tactics--and substantial hikes in technology spending. The most serious problem - and one we should ALL fear - is that a great deal of money is being spent to convince us that SaaS will reduce IT costs.

Answer me this: Since when does ANY software industry player want us to reduce spending on their products? Remember how well Software Advantage worked out (For Microsoft--not for the consumer)?

If you think software costs are out of line with value, here's another concept to consider:

You're aware of how you get to pay for every minute; every message; and, seemingly, every breath you take on your cell phone, right?
You know how the cell companies do business, right? How about AT&T long distance?
Now, picture the same model in terms of software...

First they arrange to completely OWN the access - you just pay to use it;
They initially charge a flat rate per user - Not much, but then again, we want EVERYONE completely addicted as quickly as possible;
After you are hooked, and the costs to back out are prohibitive, they begin "adjusting" the rates to include per minute charges; per user charges; bandwidth surcharges; named user accounts; and so on...
Then they move to additional service fees (as in the banking industry); access fees; data recovery fees; data storage fees; billing fees; license surcharges; Billy's vacation fees; and so on...

Eventually, your software bill will read like a cell phone bill on a bus load of invoicing steroids - along with a "screw with us and we cancel your access" attitude. How quickly would your business drown without access to your computer systems? THAT is the question you need to ask - and develop honest answers for - prior to falling into the SaaS quagmire.

Oh...wait! Mr. (or) Ms. Software Billionaire says, "WE would never do that to our customer base." Right...

Business Technologies: You are Paying WAY Too Much!

2009-06-21T20:46:00.006-04:00

Chad Walter recently asked a very good question that taps into the knowledge core of technology asset management. (It's here: Blogger)

"Does your business drive technology or does technology drive your business."

Great question, and it hides an enormous amount of detail that could easily translate into a unique value transformation of your enterprise technology environment. Here are my comments about how your company winds up spending the bucks on WAY more technology than you need.

The really serious key in this comment is that, with very low-tech, and highly cost-effective, technology asset management processes and procedures, you could reverse the costly trend of reactive buying and put business needs up front where they belong.

After nearly ten years of teaching technology asset management, tech portfolio management, negotiations, project management, and related programs to business professionals from around the globe, I would suggest that - for the average enterprise - technology is not merely driving the business but is also driving their "potential."

Want to reduce your company tech spending and build business value through tech?

Stop buying what you WANT and start buying what you NEED!

Altogether too frequently, an enterprise will contact me with operational problems brought about, not by IT as such, but by a slavish focus on "techno-best" at all costs. As a result, we see too many companies with very costly IT environments that have significantly outpaced user needs or abilities in their capacity.

It's called feature bloat and it means you are NOT in control--the supplier is.

When the users do not use - need - or want - a given level of functionality, then the enterprise has invested money in the wrong technology for its business model. Instead, you are conforming to the business needs of a supplier that convinced someone within your purchase/acquisition process that they MUST HAVE the new product or service.

As a direct result you will find yourself...

Over-spending by a factor of as much as double,
Under-utilization by factors of 10X and more,
Constantly in reactive acquisition mode, rather than strategic acquisition mode,
Paying enormous sums for unnecessary complexity that pushes the limits of your tech support, hardware, and systems compatibility,
Modifying hardware as well as software simply because supplier "X" changed their product to "latest toy" stature,

Sometimes these problems are caused by C-suite personnel who "must have" the latest and greatest at all costs. Frequently, I meet with tech personnel who show me piles of new technology that far exceed the user abilities of the personnel. Sometimes these products were purchased for no more valid reason than "..an executive on the airline was using one and we should have it, too."

Or, the problem can be caused by techies who are under the same impression. Don't forget that techies, God love their strangely assembled brains, have invested a great deal of their time and personal efforts in learning a specific range of technologies. When the provider of that particular technology changes to a new product, sometimes the techs have no choice but to upgrade--or they could lose their certifications.

Now... There's a couple great justifications for business technology acquisitions.

The most common source of problems is a combination of many diverse factors and, in every client environment, we spend focused time sorting these out to find the root causes. But, there is another issue we should consider: As long as the enterprise is channeled into internal technology life cycle management decisions based on external pressures by suppliers, there will be - can be - no resolution to unnecessary IT spending.

In other words: Just because the supplier upgrades doesn't mean your business will benefit from the changes.

Pack all this together and couple it with the fact that the majority of companies simply does not have their own long-term & enterprise-loyal technical team. When all of these issues align the chances are pretty solid that you'll wind up with technology driving the enterprise potential for operational excellence instead of business strategies driving the tech environment.

Somehow, tech BECOMES the business because the business is too focused on keeping up with tech.

Here's How You Can Cut Costs on Software or on Hardware Support / Maintenance

2009-06-16T23:19:00.004-04:00

Why are auto-renewal licenses and support / maintenance agreements an incredibly costly problem?

A majority of very typical enterprises:

Have no trained individual responsible for closely monitoring auto-renewal agreements.
Simply have no idea which auto-renewal licenses and agreements they have present in their technology environments.
Do not know when the auto-renewal takes place.
Do not know the process for canceling the auto-renewal.
Have no process for determining if they should cancel the agreement.
Try to purchase and implement costly and overly complex supplier-specific solutions or try to implement just-as-costly generic global standards.
Have no executive support within the enterprise to extend the responsibility and authority to take action to reduce costs in a strategic manner.
Honestly believe that they can purchase a silver-bullet solution that will resolve all their problems in one fell swoop.

Real World - Most auto-renewal agreements are crafted in such a manner that, if you do not cancel precisely in accordance with the terms and conditions, you will still have to pay for another year. (Yes, even if you tried to cancel.)

How do you prevent your company from being hammered by auto-renewal software or hardware support and maintenance agreement sharp practices?

If this initiative isn't important to executive management, it isn't going to happen. If you are an owner / board member / executive manager, it is absolutely vital for you to get behind this individual asset management process. The savings can be enormous--with little or no negative impact on operations.
Ensure that one of your people becomes trained in the methods and processes for closely monitoring the terms and conditions of licenses and agreements. No, you do not necessarily need a lawyer for this--an advanced clerical worker or paralegal could manage these on a day to day basis. (We do not teach law or profess to provide legal advice. We do, however, provide basic common sense methods for understanding the day to day requirements of technology agreements.)
Ensure that your designated asset manager has the infrastructure present to gain access to the operational information required to effectively manage these materials.
Ensure that all auto-renewal dates are clearly documented as well as the lead time for notification.
Ensure that a VERY clear documentation process is in place to identify the precise dates and processes required to cancel an auto-renewal.
Ensure that the asset manager has a credible and measurable process for evaluating the need to continue or cancel a given agreement.
Ensure that you complete the simple, cost effective, and common sense ground work prior to considering new software, standards, or teams of consultant experts.
Oh... And there IS no silver bullet solution. You're just gonna have to apply brain power.

There's more but you should get the idea. Remember, you have a choice in implementing technology asset management initiatives.

You can choose to use the expensive-to-purchase and expensive-to-implement supplier-hype solutions involving costly international standards.

You can use a plain old normal, common sense, and a cost effective phased approach that makes sense for your unique environment. Once this ground work is in place, you can move on to more complex options.

I suggest you use option #2.

European Union Considering Software Value Legislation

2009-06-12T21:31:00.002-04:00

This is a great follow-up to my last post. It seems that the European Union is considering legislation to require software publishers to be responsible for their code. OMG!! What a unique concept!

Anyone care to guess which international software houses are becoming very upset? It'll be interesting to see the way these folks spin their righteous indignation to this--obviously unfair--proposed legislation.

Let me think. How much do you suppose your company has spent over the years in cleaning up sloppy code on the part of software publishers? What was your ROI on all that effort? How much of the real work of your enterprise was set aside during those reactive emergency fix-fests? At what point in the history of product value did we all decide that software and operating systems do not have to deliver quality workmanship (or work-womanship)?

I'm sure we all agree that our well-funded legislators in D.C. will never produce such a consumer-friendly act--the technology product lobbyists who apparently make national policy would never permit it. So, how do we go about putting a stop to this very expensive sharp practice? It's actually quite easy (But few companies have the courage to follow up.)

Vote with you wallet. Start, today, keeping track of your costs--real or imagined--relating to repairing products containing defective or insecure code. Next time you make a volume purchase--or negotiate a support/maintenance agreement--explain (very gently) to the re-seller how you expect compensation for these hidden costs. Would you actually have the commitment to do this? Would you be courageous enough to drop this provider in favor of a competitor who actually produces a quality product and is willing to work with you on price? Probably not. If that's the case, don't complain when you pay out enormous sums of scarce resources on defective products.

How would you handle a new automobile full of defects? (Can you spell Lemon Law?) How about a poorly built home? A passenger aircraft with defective parts? A poorly designed and maintained highway bridge? Get my point? Are you the customer--or the clueless cash cow? You decide--it's your money after all.

Technology licenses & agreements are killing your business.

2009-05-21T10:35:00.004-04:00

Here's the thing: The technology agreements that legally bind your company are not merely onerous; they're downright deadly. And the most chilling factor is that most enterprises are not even aware that they're in trouble--frequently paying serious money for phantom value.

Don't believe me? Try this simple test: Look at the license for any item of software your company uses. Look under "Disclaimer of Warranty" for the phrase "fitness for use" and tell me what it says. Can't find it? Here's a hint...

The software publisher "...makes no warranty or representation, either express or implied, with respect to (the) software, its quality, performance, merchantibility, or fitness for a particular purpose...and you're assuming the entire risk of quality and performance..."

This clause is pretty much standard in nearly every operating system or software licensing agreement. It's meaning is clear:

This mission critical product doesn't have to do anything we said it was going to do. It can be completely defective and, when it fails to deliver value, it isn't our problem, it's yours.

Let me ask a simple question series. Maybe it will bring home the message.

Would you purchase a car with this warranty?
How about purchasing a ticket on a cross-country flight where the aircraft was covered under the same warranty?
Any chance you'd accept the services of a hospital or surgeon with this one?
Then why are you permitting the software industry players to force this clause on you?

I suggest you look over the Knowledge Briefings on the BizTechNet.org site covering Acquisition Criteria, Product Functionality, and/or Acceptance Testing. When you spend money--invest serious company revenue in a product that purports to deliver a specific value--you deserve to GET that value.

Is your enterprise in the business of financially supporting the technology industry vendors/suppliers? Or are you in business to deliver a specific product or service using the productivity tools provided by these vendors/suppliers? Are you working to improve your business, or theirs?

Reduce Business Technology Costs: Avoid Superceding Licenses

2009-05-14T18:46:00.005-04:00

We should all know better--but, for some odd reason, we don't. According to some industry experts, we fail to negotiate as much as 75% of software license agreements. As a result, the typical enterprise is leaking serious cash from the technology budget.

Real World - We gain as little as $1 in actual business value from every $14 we spend on technologies.

Consider the following risk to your budget:

You finally invest a little time negotiating a software license agreement. You get favorable terms and conditions as well as a decent price (decidedly NOT typical).
Six months later an employee downloads an update to the product and you discover that your carefully negotiated license has been superceded by a conveniently stealthy click wrap license.

Yes, Virginia, it happens quite frequently. The software industry is very aware that your employees and technical consultants rarely take the time to read license agreements. The result is a distinct set of considerably onerous clauses slipped quietly into alternative licenses that legally supercede your existing agreements.

For examples of how these alternative licenses can cause serious financial damage to your business, check out the brief article covering shrink wrap and click wrap embedded in the title link. (Sign in is necessary but it costs you nothing.)

Is that Free Software Download a Deal?

2009-05-03T19:38:00.002-04:00

I'm not so sure. Keep in mind that, in the average corporation, nearly ANY employee could easily bind you to the license coupled to the product I am going to discuss.

Last week I found a seriously useful "free download" product that enables you to manage the power consumption of your computer--great idea, right? As one of the world's more slightly pessimistic IT consumers, I carefully reviewed the web site for functionality details. Everything looked pretty good so I decided to try it out. I initiated the "free download" and we were immediately off to what I prefer to call the software licensing sharp practice races.

For those of you who may not be aware, a majority of those free software downloads from the Internet have a licensing process entitled "click wrap" as part of the download. Most of these licenses are acceptable (barely) but many of them are deadly when placed on an enterprise computer.

My first hint that this might be a problem download was when the pre-load license popped up in its tiny little box. You know the license box I mean? It usually measures about two inches high by four inches wide on your monitor and conveniently hides three to thirty pages of highly complex and legally binding license terms and conditions. (And, yes. It has been tested in court.)

The second hint was when I wasn't permitted to copy the license text out of the box so I could read it--printing was acceptable, NOT immediate reading. (The setting on this permission, in my experience, is one of the most significant flags that you do NOT want to place this product on your system.)

So... I printed the license out. (Remember, 99 out of 100 employees--even a majority of your techies--never bother to read this type of license.)

Guess what? One of the most blatant clauses in this license is that the software publisher could download information about your computer at any time and without notifying you. Don't get me wrong. Naturally, the license included clear statements of "Oh, we're not going to..." yadda-yadda. But, in reality, this free download opened your system up for inspection by both the original software publisher AND any secondary publishers who contributed code.

What's more, and it's also very typical of these licenses, the document was absolutely loaded with onerous terms and conditions. I immediately stopped the download and removed all trace of the product from my system. Maybe you would stop it, too, but how about other personnel in your company?

Might be something to consider...

Business Technology Asset Management: How SaaS is Going to Cost a Bundle!

2009-04-15T17:47:00.003-04:00

Listen in as Al Plastow discusses how software as a service is going to cost your company more money while taking away your control over the software you depend on. This quick audio excerpt was taken from a Business Technology Consumer Network software life cycle management training session.

The subject matter includes:

Loss of perpetual licenses,
Increased costs due to yearly software “rental,”
Denial of service for non compliance...

Software Asset Management (SAM) is one of the core professional service areas within the over-all scope of enterprise Technology Portfolio Management (TPM). Virtually any company, of any size, could reduce the costs of business technologies by as much as 25%-30% through simple low cost changes to the business processes governing technology spending.

Click to listen to this 30 second audit cut: Business technology: How SaaS is going to cost you more—in cash and in lost control over tech!
It's Al in your head! (Now, THAT is a chilling thought...)

Lead, Follow, or Get Out Of the Way!

2009-04-14T12:04:00.003-04:00

Every time I teach a course, be it software life cycle management, asset management, project management, negotiations, or some related business process improvement content, I run into the same problem. Way too many of the people attending the course make the same comment:
Committment: Our company wants to improve the way we do (this or that) but, when it comes down to actually making the move, there isn't any executive support--no follow-through.

I'm sure you've seen this, too. The enterprise--as a whole--is aware that there are more effective ways to accomplish certain tasks or projects, but it has no formal process for approaching, planning, and implementing a change initiative. What's more, executive management--leadership?--does not, or will not, take a visible role in enacting the business process improvement or change. THIS is where my title content comes into play.

My politically incorrect message to management is this:
Lead, Follow, or Get Out of The Way!

Result? How many times have you heard the lament:

Employee Quote: "I spent the time and effort attending this training, or that seminar, (or the company spend the money) and identified a specific way (or two, or ten) that we could improve business processes in our company. Then, when I came back to work, I wasn't encouraged (permitted?) to make anything happen."

In this tough economy--in ANY economy--a company lives and/or dies by its abilities--its willingness--to evolve. To read more of this post, go HERE

Dell RIFs 8,000+ Employees: Does It Make You Wonder About The Value of That Tech Career?

2008-04-14T13:35:00.000-04:00

Let's See: Dell is eliminating 8,000+ North American employees in an effort to cut costs and increase shareholder revenue. Most of the newly unemployed are from the U.S. but there are many Canadians in this unfortunate group. Is this a credible socio-economic move by Dell, or just another leap in the international money game?

These conveniently ghostly figures also mean that as many as 8,000 family members are now scrambling to find new jobs--yes I mean simply JOBS--because these folks certainly won't have the creditor grace period to re-establish their careers--so they can continue paying their bills. How many of these people are highly experienced and well qualified? Having met a large number of Austin, TX employees of Dell while delivering instructional programs there, I would guess that these folks are excellent representatives of the American technology work force.

In the coming months, how many of these key American and Canadian technology workers will be forced to take whatever job comes along--or face losing everything they worked so hard to accomplish for their families?

Here's The Rub: I'm sure you will join me in questioning Mike Dell's attitude--if not financially--then ethically. Did these same workers--or did they not--essentially build the company that enables Mr. Dell to wheel and deal on the international level? Is this the way Dell employees are rewarded for their dedication to the company? More interestingly, is this the habitual way that our corporations are learning to deal with enhancing the bottom line: By dumping emloyees (or facilities) in one country in favor or lower priced employees (or facilities) in another country?

For Instance: In what ways does Dell contribute to our economy by removing all these people from the tax base? Is this by any chance the same Dell that pledged to spend $70 million on Chinese hardware across 2008?

Big News, Mike & Friends: Eventually you are going to run out of genuinely dedicated employees and, when that occurs--as it must--you and all like-minded executives are going to be forced to use more costly employment mercenaries who will respond with dedication commentary along the lines of, "Quite frankly, Scarlet..." And Mike, if you're by any chance wondering why your company is having trouble being competitively innovative, you might reflect on the reasons why ANY employee would want to contribute to YOUR bottom line--a bottom line of which THEY are not a key element.

One Might Ask: Would this also be the same Dell that spends around $60 million in executive salaries and perks. In precisely what ways have those of you Enron-wanna-bees served your enterprise--other than cruising the world in the corporate Lear?

Guess What: If it weren't for the talent that helped you grow that enterprise, the enterprise is not going anyplace. You might want to keep in mind that these folks you recently disposed of, their families, and everyone they know are also your customers--for now.

Wake Up America: If our enterprises continue to be dedicated only to their corporate bottom lines and lining the pockets of major executives, our places as world innovators and leader are very much at risk. As long as the enterprise is not dedicated to its employees--truely dedicated to them--those employees are not going to be dedicated to the enterprise.

Oh... And China, India, and all the others who are jumping on the wagon: This kind of corporate behavior is also right there in your future.

By your examples, precisely what are you teaching our kids?

Gartner says 90% of us will use open source in 2012...

2008-04-07T10:51:00.003-04:00

In a recent report, Gartner has predicted that 90% of business technology consumers will be using open source software by 2012. When it comes to software asset management, our abilities to identify and pursue cost cutting alternative products is key to the professional abilities of life cycle managers.

Personally, I use OpenOffice for ALL my desktop productivity needs. It does everything I need it to do and the costs is, well, roughly, $300+ cheaper than the most popular alternative proprietary product.

Does your company use open source? Have you used or evaluated such products as OpenOffice? What was the experience like?

What will we find out?

2008-04-06T15:55:00.004-04:00

This blog is all about managing technologies as business assets. Up until now, the vast majority of companies manage their incredibly valuable business technology assets in one of the following ways:

They don't manage it at all,
They manage technology assets only in an ad hoc manner,
They only use periodic software asset management & only when forced to do so by a software audit or software piracy audit,
They expect their technical personnel to manage everything...

The day your company begins using formal business processes to manage the entire life cycle of business technology assets is the day you begin reducing costs and risks by as much as 50%.

Failure to do so simply means that you will continue to be exposed to software piracy audits, software license non compliance penalties, font violation audits, graphics violation audits, even copyright violations of MP3 and video products. Also, you might want to check your systems for games. Yep! The gaming industries are also more than willing to dip into your bottom line for copyright violation settlements.

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Read The Contract!

2008-04-06T15:31:00.005-04:00

Technology asset management cost and risk reduction concept:

Read The Contract, License or Other Document...

I have been working as an adviser, corporate coach and certification trainer since the mid-90's and I can honestly state that the vast majority of companies have absolutely no idea what the terms and conditions are of the dozens--even hundreds--of legal documents to which the company is bound.

Guaranteed Cost Reduction Idea:

"Begin, immediately, reading and summarizing every software license for every product your company uses."

Why? Because software licenses are permissive documents. They clearly specify precisely how you are permitted to use the copyright protected product covered by the license. If you do not know what the licenses say you cannot possible be compliant with those licenses.

How much could you really save? The average settlement for license non compliance for an American SME is around $60,000 (plus up to 6 times that amount in punitive audit fees). You could side-step this potential loss of vital business revenue by simply matching up your permissions with your actual usage of those copyrighted products.

Kicking Off...

2008-04-06T14:45:00.002-04:00

This is the beginning of a personal blog site for Alan L. Plastow. For now, I will be discussing ideas you can use in identifying and implementing effective initiatives in the following areas of technology portfolio management:

Software & Copyright Compliance Assurance
Software Asset Management / Software Life Cycle Management
Technology Asset Management / Hardware Life Cycle Management
Technology Project Management

Please feel free to let me know if you have a problem or issue you'd like me to cover. Since this is my personal blog, I will also periodically include personal perspectives and links to areas of interest such as career improvement and professional development.