Software Asset Management Case Study
/ / Solutions Firm Uses SAM to Gain Licensing Compliance and Simplify IT Asset Management
Overview
Country or Region: India
Industry: Engineering and Consumer Durables
Customer Profile
Founded in 1954 and based in Mumbai, India, Voltas Limited is an engineering, air conditioning and refrigeration company. Part of the Tata Group, the company employs over 4,000 personnel and has an annual turnover of over U.S.$ 1 billion in 2009-10.
Business Situation
Voltas sought to gain more accessible information about its software licensing. It wanted to improve both software licensing compliance and the management of software assets.
Solution
Voltas engaged in a Software Asset Management (SAM) program to regain control of its IT assets, and improve licensing purchase decisions.
Benefits
n Improves compliance, gains total license visibility
n Streamlines IT management, strengthens security
n Improves inventory process
n Saves money / “We can plan, budget and manage our software requirements effectively. We will save approximately 10 percent annually in future software and licensing purchases.”
Mr. Moiz Miyajiwala, Executive Vice President (Finance), Voltas Limited
Voltas Limited offers engineering solutions for a wide spectrum of industries with expertise in areas such as heating, ventilation and air conditioning and refrigeration. However, rapid growth made it difficult for the company to maintain control over its software inventory and to determine license compliance. Voltas decided to implement a Software Asset Management (SAM) program to conduct an inventory of software assets and to review licensing policies and procedures. It worked with KPMG to conduct a Software Asset Management (SAM) consultation. With SAM in place, the company has complete visibility into the software and licenses it owns. It has not only improved compliance, but also reduced costs of infrastructure projects, and saved money by identifying over-licensed software.
Situation
Founded in India in 1954, Voltas Limited is one of the world's premier engineering solutions providers and project specialists. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.
The company's strengths lie in the design and manufacture of industrial equipment, the management and execution of air-conditioning and public work projects, the procurement, installation and servicing of technology based systems, and in being a representative of global technology leaders.
Headquartered in Mumbai, India, Voltas has factories at Thane (Maharashtra), the Union
Territory of Dadra, and Uttaranchal. Its overseas offices are located in Dubai, Abu Dhabi (UAE), Doha, Qatar, Hong Kong and Singapore.
At Voltas, IT is an integral support function for its business and revenue. The company uses a number of key applications for carrying out its business processes. However, with rapid growth, the company faced significant challenges in its commitment to industry best practices in Software Asset Management (SAM). Software licenses and deployments were being tracked through a register maintained in a Microsoft Office Excel sheet, a manual process that often created difficulties. Hardware registry was tracked and maintained by SAP and software purchases were controlled through centralized procurement using approved vendors.
It was difficult to track actual deployment as many users worked from project sites. At the end of the projects, these assets were scrapped and the company was not able to reuse the software licenses. Additionally, lack of clarity on licensing policies also resulted in over licensing of some of the products. New license purchases were driven by assessment of individual projects, without considering the existing inventories and usage thereof.
Some other key findings noticed by the company were:
n A number of unused machines and scrapped assets were found in the workspace.
n Instances of ad- hoc asset allocation during transfer of individuals, upgrade of machines, and allocation of new machines were observed.
n Asset management in terms of hardware mapping may not be accurate as there are instances of unauthorized exchange of assets.
n Instances of multiple Windows operating systems deployed on a single machine were observed.
“In the absence of a rationalized Software Asset Management (SAM) process, we were missing important asset management data and, licensing for software,” says Ms. Asmita Junnarkar, Chief Information Officer, Voltas.
The company realized that it needed to gain control of its software assets and IT environment. It needed help tracking its licenses, maintaining compliance, and strengthening its policies and procedures. To achieve these, Voltas began to consider a professional Software Asset Management (SAM) engagement.
Solution
Voltas identified the gaps in the current processes and decided to take remedial actions to mitigate risks. It recognized the need to include SAM as a fundamental part of its IT operations. “We had realized that the company would significantly benefit from a SAM engagement,” says Asmita Junnarkar. “It would help us gain insight into the IT management and infrastructure.”
Software Asset Management is a process by which a company can move towards treating software as an asset—knowing what the company has, where it is running, and how it is licensed. It is a set of guidelines, procedures and tools designed to help organizations realize greater value from their IT infrastructure.
Voltas chose KPMG, a global network of professionalfirms providing Audit, Tax and Advisory services, to facilitate the SAM consultation. KPMG performed a top-down analysis in order to better understand the current implementation and desired future state of SAM.
One of the first tasks the company undertook was software inventory. Software assets were properly allocated and de-allocated resulting in optimization of licensing, thereby reducing costs. With a thorough inventory, Voltas was able to see the number of machines, software, licenses, and versions of all software on its network.
As part of this exercise, the company also undertook the following tasks:
n Capacity planning and optimization of hardware resources during the deployment of server operating system on desktops.
n Integration of procurement related processes with the SAM process.
n Setting up necessary SAM process for retired assets.
n Business continuity and disaster recovery plan modified to include necessary SAM processes.
Finally, Voltas identified and streamlined strategic processes throughout the company to control the acquisition and improve the security of its software assets.
Asmita Junnarkar says, “The SAM program not only focused on counting licenses, but also on reviewing our policies and procedures to ensure that we were following industry best practices. This comprehensive exercise helped us to identify areas for improvement.”
Overall, the SAM program streamlines all software related processes and procedures thus yielding tangible benefits for the company. Moving ahead, Voltas plans to move from the Basic state to the Dynamic state of SAM maturity.
Benefits
By implementing a standardized SAM program, Voltas now has complete visibility into its software and license assets. The company has saved money by deploying software in accordance with usage requirements and by identifying areas of over-licensing. The SAM program provided benefits that support the continued success of the company.
Improves Compliance, Gains Total License Visibility
As a global company, Voltas was aware of the importance of compliance and the potential vulnerability that any licensing discrepancies might cause for the company. The comprehensive view of the company’s entire network made possible by SAM, allows Voltas to address any instances of over licensing or under licensing. The company is now sure that its licenses are fully up-to-date and that there are no disparities between the software and the licenses. “Because of SAM we are sure that our licensing position is under control and our systems are fully compliant,” says Asmita Junnarkar. “Our technology investments are optimized for what we need, thus minimizing the company’s liability and risk of noncompliance.”
Streamlines IT Management, Strengthens Security
Through the SAM program, Voltas was able to identify ways to streamline its IT infrastructure with a simplified network. It now has better insight into how to optimize new software purchases for the company, thereby making the most of its investments. “With better IT management practices due to SAM, our network has been simplified to run more effectively,” remarks Sanjiv Srivastava, IT Infrastructure Manager, Voltas. “This has greatly improved the efficiency of our IT workflow, increased system reliability, and strengthened security.”
Improves Inventory Process
Implementing a SAM solution has generated a fully centralized IT inventory for Voltas. Every new purchase is catalogued and updated in the company inventory. This comprehensive knowledge of the company’s software and hardware assets helps the IT team to control future software spending, which will allow the company to better manage compliance. “With high visibility into our systems, the amount of time, effort, and energy we save is unquantifiable,” says Asmita Junnarkar.
Saves Money
The SAM program enables Voltas to really understand and get the most out of its existing technology investments. As a result, the company has been able to eliminate waste, overlap and redundancy, helping lower the costs associated with buying and maintaining its software library.
Overall, the SAM audit has given Voltas greater understanding of its quantity and type of licenses; allowing the organization to streamline its spending. Moiz Miyajiwala, Executive Vice President (Finance), Voltas states, “We can plan, budget and manage our software requirements effectively. We will save approximately 10 percent annually in future software and licensing purchases.”
Software Asset Management
Software Asset Management often referred to as SAM, is a vital set of continuous business processes that can assist your company to control your software assets, optimize your licensing investments, and grow your business. A fully implemented SAM program plays an integral role in keeping your business agile, confident, and prepared for growth and change. This can help you to manage and reduce costs, minimize security risks, and empower your people by providing them with the tools and technology they need to be more productive.
For additional information, including free tools and resources, visit:
www.microsoft.com/sam