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W H I T E PA P E R

FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generation Software Asset Management

FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generation Software Asset Management
Executive Summary
Flexera Software boasts a long history of partnering with Microsoft to deliver solutions that add value to Microsoft products such as Microsoft System Center Configuration Manager (SCCM), Windows 7, App-V, MDOP, Visual Studio, etc. Flexera Software’s flagship InstallShield and AdminStudio product lines are essential tools in the tool belts of Systems Center administrators. Flexera Software’s FlexNet Manager Suite for Enterprises provides next generation Software Asset Management (SAM) and license optimization capabilities that also complement Microsoft solutions. This paper provides an introduction to best practice software asset management using FlexNet Manager Suite and illustrates the value-add for Microsoft and its customers.

Leverage Flexera Software and SCCM to Manage the Full Lifecycle of the Enterprise Software Estate
Application Readiness
A Single Solut ion for MSI Packaging, App-V, and Windows 7 Migrat ions

Enterprise License Optimization
Software License Management and License Compliance
Discovery, Inventory & Usage Tracking Purchased vs. Installed Reconciliation Chargeback, License Reharvesting Optimize License Consumption via Entitlements Forecast Future Needs

Workflow Manager

Identify Rationalize Assess Compatibility Plan Fix & Package Deploy

Speed Adopt ion of Windows 7/8, App-V, IE 8/9

Monetize Business Relevance of SCCM

Rat ionalize Value of Enterprise Agreement

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

Effective Software Asset Management (SAM) provides organizations with many tangible benefits including reduced risk of unbudgeted expenses for software license non-compliance, contract optimization, and “right sizing” IT software spend. An effective SAM practice within customer environments also greatly benefits their software providers such as Microsoft. With the knowledge that customers are accurately managing their software portfolio and continuously maintaining license compliance, Microsoft can trust the true-up process, avoid unlicensed software installations, avoid use rights violations, ensure the proper contractual agreement level, and ultimately drive more revenue. Given that software applications comprise over 30% of the typical IT budget, organizations are anxious to track these expenses, reduce their software costs, and eliminate risk in their software portfolio. Microsoft customers want to be in compliance, but in today’s world of complex license models and product use rights, organizations encounter significant challenges in understanding their license position and achieving continuous compliance. Flexera Software’s FlexNet Manager Suite provides a comprehensive and robust solution to automatically reconcile licenses across the organization. Flexera Software’s next generation software asset management and license optimization solution leverages Microsoft SCCM as a foundational component for enterprise

device inventory, application usage data, and configuration management. Building on Microsoft SCCM’s discovery and inventory capabilities, Flexera Software’s products provide reconciliation of information from multiple data sources— Microsoft SCCM, Contracts, HR, Purchasing—to provide an optimized license position in accordance with the vendor product use rights that apply to a given software title. FlexNet Manager Suite produces actionable data for (i) vendor negotiations—avoid over-buying and under-buying licenses; (2) annual Enterprise Agreement true-ups; and (3) ongoing license compliance.

Enabling Application Lifecycles with SCCM

Unlike the fairly simple lifecycle of hardware assets, software asset management involves a complex lifecycle in the organization. Applications: • Must be packaged and deployed • Can become shelfware • Can be upgraded or migrated to new platforms • Come with product use rights that govern installation and usage • Have ongoing costs associated with maintenance and support Applications follow two distinct lifecycles within the organization: the operational lifecycle and the contractual/ governance lifecycle. Microsoft SCCM is central to both the operational and contractual application lifecycles and forms the foundation for successful application management.

Upgrade/ Migrate Manage

True-Up Maintenance

Applicat ion Operat ional Lifecycle

Reconcile

Applicat ion Contractual Lifecycle

Deploy Upgrade Test Package Contract

Procure

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

On the operational side, applications must be packaged, tested, distributed to the proper users, inventoried, and managed for high availability. As applications move through their lifecycle, the computing environment is constantly changing. Legacy applications need to be migrated to ensure compatibility with new operating systems and technologies such as Windows 7, 64-bit, Internet Explorer 8/9, Office upgrades, etc. Newer technologies such as App-V emerge requiring applications to be re-packaged and re-deployed under different formats. Flexera Software delivers solutions to automate packaging for deployment through Microsoft SCCM and automates the adoption of Windows 7 and App-V with our Application Readiness product line. Using AdminStudio, organizations are able to adopt Windows 7 and App-V faster and more cost effectively. AdminStudio also enables organizations to realize the full value of Microsoft SCCM by providing a fast and flexible packaging solution for all applications in the organization. At the same time that applications are progressing through their operational lifespan, the procurement arm of the organization is managing the contractual or financial lifecycle of the software estate. The contractual lifecycle includes price negotiations, selection of the most efficient procurement channel, agreement on terms of Master License Agreements and other contracts, procurement, organizational chargeback, true-ups and renewals, license reconciliation, vendor management, and ongoing maintenance payments. Most importantly, both the operational and financial roles within an organization have an obligation to ensure

contractual compliance, eliminate under-buying, and avoid over-buying. Flexera Software’s FlexNet Manager Suite automates the software asset management function and optimizes ongoing software spend throughout the contractual lifecycle of the software estate. FlexNet Manager Suite leverages Microsoft SCCM as the basis of the SAM process and provides detailed license consumption reports based on the actual license model or license metric. Flexera Software is the only organization that provides solutions for both the operational and financial asset management lifecycles of applications and seamlessly integrates with Microsoft SCCM. Microsoft SCCM is the intersection of Flexera Software’s enabling solutions including AdminStudio and FlexNet Manager Suite. Flexera Software works with Microsoft SCCM customers to drive cost savings, eliminate risk, and effectively manage the software portfolio. With AdminStudio and FlexNet Manager Suite, Flexera Software moves organizations from a state of SAM chaos to a state of control.

Expanding the Community of SCCM Stakeholders

Effective SAM encompasses several areas of the enterprise including Purchasing, Finance, Operations, Legal, and Governance. Information pertinent to software licenses in most organizations is silo-ed from both a technology and process perspective. The Purchasing, Contracts/legal, internal Governance, and Operational IT groups typically do not have the technologies or processes in place to share critical information about software purchases, installations and license entitlements.

Best Pract ice SAM

Software Asset Management
Purchasing IT Operations Legal Internal Audit

The purchasing department is responsible for purchasing the business applications the company needs to achieve maximum productivity. The IT department is responsible for delivery and ongoing support of business applications. The legal or contract management department is responsible for protecting the company’s best interest when negotiating contracts with software providers. The internal audit department or corporate governance

committee is responsible for ensuring the company is fiscally responsible and safe from litigation and fines related to non-compliance issues. These groups all play key roles in the software asset management lifecycle. Each department is accountable for maintaining license compliance, but has no method to collaborate. FlexNet Manager Suite provides the

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

collaboration technology for these groups to share critical information, align licensing intelligence, and implement effective SAM. Although some SAM solutions provide “add-on packs” to Microsoft System Center for the purposes of asset management, business users who negotiate software contracts are not typical users of Microsoft SCCM. Therefore, the visibility and accountability into the success of Microsoft SCCM within the environment is limited to

IT Operations. FlexNet Manager Suite provides the best of both worlds – deep, out-of-the-box Microsoft SCCM integration with a business portal tailored to the needs of the financial and procurement community. By delivering business information to business users in a financiallyoriented web-interface, Flexera Software is able to expand the community of stakeholders with a vested interest in ensuring the successful rollout and expansion of Microsoft SCCM within the organization.

FlexNet Manager Suite customers typically realize 8-27% savings on their overall software spend after implementing FlexNet Manager Suite. It reduces risk and enables organizations to optimize their entire software portfolio. With these tangible benefits, business users become champions and drive executive sponsorship for the success of Microsoft SCCM. FlexNet Manager Suite protects an organization’s investment in Microsoft SCCM by making it an integral integration point for the strategic business function of SAM.

Managing Complex License Models

The major challenge for organizations in implementing a SAM solution is the pure complexity of licensing. Most organizations own thousands of applications provided by hundreds of software publishers. Each software publisher typically has five or more different license metrics to calculate the license consumption for their products. Without a solution to automatically calculate license position, it becomes impossible for organizations to manage their entire software portfolio.

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

Licensing generally falls into five broad categories of license models – Desktop, Datacenter, Concurrent, Enterprise Applications, and Company Metrics licensing. Each

licensing category has multiple license metrics, varied levels of risk, cost, and remediation techniques.

Desktop Licensing

Datacenter Licensing Per-Processor Per-Core Tiered Processor Value Units Microsoft SQL Server Windows Server Symantec Veritas Line

Concurrent Licensing Network Concurrent Use

Enterprise Applications Licensing Professional Developer Employee ERP CRM SFA Medium

Company Metrics Licensing Company Revenue Product Revenue Number of Employees Microsoft Exchange CAL Flexera Software InstallShield Low

Example License Metrics Example Applications Risk of NonCompliance Potential Cost Savings License Mgmt Techniques

Per-Device Per-User Named User OEM Microsoft Visio Microsoft Office Adobe Professional

Autodesk Cadence Bentley

High

High

Low

Medium Recycle, Reharvest Apply Entitlements

High Apply Entitlements, Rearchitect, Outsource

High Track Usage, Optimize License Counts, Remix, Lease

High License parking, Accurate User Assignment

Low Renegotiate

Amount of Software Spend FlexNet Manager Suite

Each of the categories presents unique license management challenges. In the desktop environment, organizations have limited visibility and control over installations, increasing the amount of risk. The datacenter environment is highly virtualized, heterogeneous, and is comprised of expensive applications adding to the pre-existing challenges of accurate consumption calculations for complex license models. Expensive concurrent licenses are typically assigned to the organization’s valued knowledge workers, so finding the optimal license count and application mix is critical to preventing productivity loss while avoiding overspend. Enterprise Applications are critical and strategic to the organization, but licenses are frequently over-bought and under-deployed. In today’s world of M&A, outsourcing, and divestitures, licenses based on company attributes such as number of employees need to be negotiated and managed carefully as well. An enterprise-caliber SAM solution must meet the sophisticated license management needs and challenges across all licensing categories. However, most SAM solutions in the market only support the simpler desktop licensing scenarios. Desktop-only license solutions are less strategic and do not reconcile licenses for the most expensive applications within the organization thereby limiting their ability to meet an organization’s true SAM business needs.

FlexNet Manager Suite provides customers with the ability to ensure compliance with all of their software vendors, including Microsoft. For Microsoft, whose products span multiple categories of license metrics, implementing FlexNet Manager Suite enables Microsoft’s customers to deliver the business outcomes of transparency and accuracy in licensing. Customers will be able to see the full breadth of their Microsoft relationship and stay in continuous compliance. With FlexNet Manager Suite, organizations are immediately and continuously aware of necessary Microsoft software purchases and can true-up based on accurate numbers. Ultimately, FlexNet Manager Suite drives more software revenue for Microsoft products within enterprise environments. Service Provider License Agreements (SPLA) In addition to helping enterprises stay in compliance, Flexera Software also provides solutions to large service providers to accurately calculate SPLA fees for hosted software and services. FlexNet Manager Suite provides a SPLA license model and calculates monthly SPLA usage based on user access to hosted server farms. The SPLA licensing capability within FlexNet Manager Suite enables Microsoft to easily capture revenue from service providers.

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

Product Use Rights

In addition to verifying purchased versus consumed, companies must also ensure they are in compliance with license entitlements, such as Product Use Rights (PUR). Most software vendors believe they lose more revenue

from violation of Product Use Rights than by software piracy itself. Product Use Rights are extremely complex across all licensing categories:

Desktop Licensing

Datacenter Licensing Per-Processor Per-Core Tiered Processor Value Units

Concurrent Licensing Network Concurrent Use

Enterprise Applications Licensing Professional Developer Employee Transaction Type Restrictions, Upgrade Categories, License Level Remix Rights, Role Restrictions, License Parking Rights

Company Metrics Licensing Company Revenue Product Revenue Number of Employees Merger, Divestiture, and Subsidiary Language, Average vs. Watermark, Calculations, Employee vs. Contractor Usage

Example License Metrics

Per-Device Per-User Named User OEM

Example Product Use Rights

Downgrade, Upgrade, License Mobility, Multiple Installation, Virtualization Rules, Secondary Use, Clustering Rights, “90 Day” Rules, Hot/Cold Backup Use, Transferability Disaster Recovery, Installations, Production vs. Non-Production Rules, Platform Restrictions

Geography or Site Usage, Overdraft Rights, Feature/Product Bundle Use, Virtualization Rights, Named User Recycling Rules

Product Use Rights may also differ across agreement levels, for example, customers on Microsoft’s Software Assurance program often enjoy expanded Product Use Rights. Product Use Rights in the datacenter licensing category are especially daunting. These include: number of virtual servers allowed per edition, license consumption rules for cold backup or disaster recovery (DR) servers, license rules for non-production servers, provisions for multiple-node active/passive cluster servers under single licenses, etc. The intricacies of datacenter Product Use Rights compound the complexity of capacity-based license models (e.g. processor, core license metrics). As a simple example, to accurately calculate a license position for Microsoft SQL Server, below are just a few of the questions that need to be answered: – How many SQL Server entitlements do we own? – Edition of each entitlement? – How many entitlements are CAL-based and number of CALs? – How many entitlements are processor-based and number of processors for each? – Where is SQL Server installed? – Edition of each installation? – Is there a corresponding entitlement match for each installation? – Is the installation/entitlement covered by downgrade/ upgrade rights? – Number of processors on the hosting machine of each installation?

– Number of CALs required by the hosting machine of each installation? – Is the installation on a virtual machine? – Number of processors dedicated to the virtual machine? – Virtual machine rules per the edition and agreement? – Role of the machine where installed? – Are the entitlements covered under Software Assurance (SA)? – If under SA, does “cold backup” use right apply? FlexNet Manager Suite provides the needed automation to arrive at the accurate license position for Microsoft SQL Server and thousands of other products. The probability that Microsoft customers can arrive at an accurate license position without an automated solution that incorporates Product Use Rights is low. FlexNet Manager Suite is the only SAM solution that calculates license compliance according to actual Product Use Rights and agreement levels. License Mobility Product Use Right In July 2011, Microsoft will launch a License Mobility Product Use Right enabling enterprises on current Software Assurance to move licenses for specific products to off-premise cloud or service providers. Only FlexNet Manager Suite incorporates this product use right into compliance calculations and tracks the off-premise consumption of licenses. FlexNet Manager Suite provides the transparency Microsoft requires to enforce the License Mobility product use right.

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

FlexNet Manager Suite Overview

FlexNet Manager Suite is a next generation Software Asset Management (SAM) and license optimization solution that allows organizations to effectively manage software assets throughout their lifecycle. FlexNet Manager Suite provides out-of-the-box integration to Microsoft SCCM to import software and hardware inventory details. FlexNet Manager Suite also gives license administrators the ability to turn application usage collection on and off based on licensing events and dates. FlexNet Manager Platform, the core software asset management foundation of the Suite, is built on Microsoft technologies including Microsoft Server, Microsoft SQL Server, and Microsoft IIS.

FlexNet Manager Suite delivers unprecedented levels of automation for management of software assets within the organization, producing the highest possible return on investment (ROI). With FlexNet Manager Suite, organizations optimize application spend and eliminate under-spending scenarios. The FlexNet Manager Suite solution manages software recycling, re-harvesting, software allocation analysis, cost center chargeback, license compliance remediation, optimized software procurement, and optimized maintenance renewals.

With FlexNet Manager Suite, organizations achieve: 1. Accurate, Automated License Reconciliation FlexNet Manager Suite automatically compares purchased versus consumed licenses (i.e. the software balance sheet). License consumption is calculated according to the appropriate license metric or license model (per processor, per user, etc). Understanding the number of available licenses is a crucial decision point in the procurement process and enables organizations to reduce risk of non-compliance. 2. Audit and True-up Preparedness Without an automated solution, software audits and true-up processes become large projects for the enterprise resulting in static data that cannot be leveraged for ongoing decision making. FlexNet Manager Suite enables organizations to be continuously compliant, ready for software audits, and builds confidence in the accuracy of the trueup process. For Microsoft, the benefits of customer compliancy results in increased revenue and cost savings from audit prevention. 3. An Optimized License Position FlexNet Manager Suite provides a Product Use

Rights library to apply the use rights and accurately count licenses consumed by applying upgrade/ downgrade rights, secondary use rights, multiple use rights, machine roles, virtualization rights, etc. FlexNet Manager Suite also provides a SKU library to accurately identify entitlements based on the purchase agreement and other factors. Flexera Software understands that license management is much more complex than simply counting the number of installations in the environment. 4. Software Identification and Rationalization in preparation for Windows 7 and App-V migrations As organizations rapidly adopt Windows 7 and App-V, they rationalize the software portfolio and eliminate duplicate applications. FlexNet Manager Suite provides valuable reports that identify the applications which should be migrated to Windows 7 or App-V based on licensing rights and actual usage in the environment. This enables organizations to move to Windows 7 faster and more efficiently. Combined with the Flexera Software Application Readiness solutions, no company does more to propel Microsoft Windows 7 and App-V adoptions than Flexera Software.

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

Data Feeds
Agent & Agent-less Discovery for Windows, UNIX, Linux, MAC, VMs, etc. POs & Contracts Helpdesk/ Service Catalog Org/User Data

Optimization Engine

Reports & Alerts • Asset Reports • License Compliance • Entit lement Management

Application Recognition Library

b SKU Library

• Savings

Product U Use Rights Library

Key functionality provided by the FlexNet Manager Suite Enterprise License Optimization solution includes: • Reconciles entitlements to installations based on complex license models • Supports desktop, datacenter, concurrent, enterprise application, and business metrics licensing models • Provides an Application Recognition Library to translate raw inventory data into commercially-off-the-shelf software titles, versions and editions • Leverages Microsoft SCCM inventory • Ability to integrate into purchasing system to import software purchasing data • Provides a Stock Keeping Unit (SKU) library to normalize software purchase data and automatically map it to installations

• Correctly applies Product Use Rights and Entitlement information to calculate an accurate license position • Robust contract management functionality including the ability to track and alert based on terms and conditions • Provides Microsoft agreement wizards for Enterprise, Select/Select Plus, Open, and Software Assurance agreements. Integrates contractual, entitlement, and inventory data based on agreement terms • Tracks software maintenance payments • Provides License Breach and under-buying reports to reduce unbudgeted true-up risk FlexNet Manager Suite seamlessly integrates with Microsoft SCCM, purchasing systems, HR data, Active Directory, and service desks to provide hardware and software asset management for the enterprise.

Software Catalog
Deploy Software PO Purchased

Workflow
License Available?

Service Manager
Assset State

SCCM Configuration Management
Directory Inventory Usage

Purchasing HR Active Directory Core CMBD Federated CMBD
Reallocation/Retire Assets

Flexera Software FlexNet Manager Suite
Reports Optimization

• Vendors • Contracts • Maintenance • Installations • License Optimization • Usage Tracking • True-ups • Audit Prep • Compliance State • Exceptions

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

FlexNet Manager Suite also provides reports that detail the “cost of compliance” for Microsoft True-ups and license breaches. With FlexNet Manager Suite, customers take the guess-work out of Microsoft licensing events and are continuously aware of Microsoft license liabilities due to under-buying or use rights violations.

About Flexera Software

Conclusion

FlexNet Manager Suite provides complete and full integration with Microsoft SCCM and other Microsoft technologies to deliver optimized license management for enterprises. FlexNet Manager Suite is a complementary solution that customers can use to manage their entire software portfolio – from desktop to datacenter and concurrent licensing to ERP/CRM systems. Most SAM providers have a very limited desktop licensing focus and therefore do not meet the SAM business needs of enterprise organizations. FlexNet Manager Suite provides these advantages to Microsoft and its customers: • Protects client’s investment in Microsoft SCCM. Fully integrates with Microsoft SCCM to provide full contractual lifecycle management of software assets. • FlexNet Manager Suite uses Microsoft SCCM as a foundational component of the SAM solution and extends the Microsoft SCCM value proposition. • Introduces new executive sponsorship for Microsoft SCCM and creates business champions within the procurement, legal, and compliance groups. Increases the value of Microsoft SCCM to line of business executives. • Calculates license consumption based on license models. For example, accurately reporting SQL Server license requirements. • Leverages Microsoft Product Use Rights so both clients and Microsoft can feel comfortable that clients are using Microsoft applications in compliance with terms and conditions. • Enables clients to accurately plan for new and future investments with Microsoft • Shortens or eliminates Microsoft license reviews with clients • Increases customers’ confidence in the negotiation process. Drives new sales and revenue. • Transforms the Microsoft relationship to a strategic partnership with ultimate transparency and accuracy • Helps clients validate and justify investments in Enterprise Agreements and Software Assurance

Flexera Software is the leading provider of strategic solutions for Application Usage Management; solutions delivering continuous compliance, optimized usage and maximized value to application producers and their customers. Flexera Software is trusted by more than 80,000 customers that depend on our comprehensive solutionsfrom installation and licensing, entitlement and compliance management to application readiness and enterprise license optimization - to strategically manage application usage and achieve breakthrough results realized only through the systems-level approach we provide. Flexera Software is a privately-held company and an investment of private equity firm Thoma Bravo, LLC. For more information, please go to: www.flexerasoftware.com

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FlexNet Manager Suite Leverages Microsoft System Center to Deliver Next Generat ion Software Asset Management

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Flexera Software, Inc. 1000 East Woodfield Road, Suite 400 Schaumburg, IL 60173 USA

Schaumburg (Global Headquarters) +1 800-809-5659

United Kingdom (Europe, Middle East Headquarters): +44 870-871-1111 +44 870-873-6300

Japan (Asia, Pacific Headquarters): +81 3-4360-8291

For more office locations visit: www.flexerasoftware.com

© 2011 Flexera Software, Inc. and/or InstallShield Co. Inc. All other brand and product names mentioned herein may be the trademarks and registered trademarks of their respective owners. FPS_WP_TenSteps_Jun11