1E License Management Software Report

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Software License Optimization provided by 1E AppClarity, sort’s usage into three categories - frequently used, occasionally used and unused. Once visibility of this is achieved, organizations can begin to right size the number of licenses they own and maintain. As part of an active process of discovering and reporting on usage, AppClarity enables an automated reclaim mechanism to optimize the number of licenses.

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1E.COM REPORTS IT AIN’T WHA T YOU DO IT’S THE WA Y THA T YOU DO IT SOFTW ARE LICENSE OPTIMIZA TION REPORT 2013 SOFTWARE LICENSE

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1E.COM 2 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Forrester Research Inc 1 “Software asset management is obsolete. Its base processes come from a bygone era of foppy disks and unique license keys whereas today’s software licensing challenges include virtualized systems and a focus on usage instead of installation...” 1 Introducing Software License Optimization Forrester Research Inc September 2011 Duncan Jones Vice President Principal Analyst

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1E.COM 3 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Software Asset Management SAM isn’t easy – and many organizations spend time and a great deal of money looking back at their software purchases in an effort to work out what they’ve paid for and what they have installed. According to recent research conducted on our behalf by Vanson Bourne more than half 51 of organizations are still struggling with traditional Software Asset Management tools or even manual processes which enable IT decision makers to identify the number of licenses deployed but importantly they do not address usage or reclamation. Software licensing represents a major cost is an administrative burden and a hidden license liability for many organizations and often it consumes far more of the IT budget than necessary according to Forrester 16 of an enterprise organizations IT budget was spent on Software in 2012 and 12 of the IT budget is spend on application maintenance accounting for 75 of the software budget. According to our own research in 2011 there is 12.3bn of preventable and on-going costs associated with unused software and shelfware within organizations in the US. It’s now evident that every organization needs a single and comprehensive view of software licenses and usage to manage this issue. It comes as no surprise then that software asset managers continue to struggle with issues related to software entitlement and license compliance especially when we learn that more than three quarters said that they’d been audited by a software vendor at least once and that the average across the UK US and France was between three and four times each year. Today it is no longer a question of whether or not an organization will be audited but when. Increasingly software vendors are actively using the threat of audits as sales opportunities. In the US 57 of IT decision makers told us they have been audited more than once in the past year compared with 54 in France and 46 in the UK. However many organizations do not have robust processes to manage audits leaving them open to fnes and unexpected additional costs. With the right tools any organization can get an instant picture not of only entitlements and install counts but also usage so that they can maximize the effciency of their software budget as well as ensure compliance. Software License Optimization such as that provided by 1E AppClarity sorts usage into three categories - frequently used occasionally used and unused. Once visiblity of this is achieved organizations can begin to right size the number of licenses they own and maintain. As part of an active process of discovering and reporting on usage AppClarity enables an automated reclaim mechanism to optimize the number of licenses. Please talk to us to fnd out more about how our software license optimization solution could help your organization T wo birds with one stone Vendor audit compliance and optimal effciency for both server and desktop software licenses is a must for every organization Sumir Karayi CEO United Kingdom Tel: +44 20 8326 3880 United States Tel: 1 866 592 4214 France Tel: +33 1 56 60 52 35 India Tel: +91 120 402 4000 Web www.1e.com Email info1e.com Forrester Research Inc. 2013 IT Budget Planning Guide for CIOs By Craig Symons December 2012. Insight from the Forrsights Budgets and Priorities Tracker Survey

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1E.COM 4 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Vanson Bourne on behalf of 1E Dec 2012. “More than four ffths 84 of organizations have been the subject of a software license audit in the last 12 months”

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1E.COM 5 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 It is no longer a question of whether or not an organization will be audited by a software vendor but when and which vendor will make the request. Increasingly software vendors are actively using the threat of audits as sales opportunities. Our survey reveals that in the US 53 of IT decision makers told us they have been audited at least twice compared with 50 in France and 44 in the UK. And according to 1E 2011 Software Effciency Report there is 12.3bn of preventable and on-going costs associated with unused software and shelfware within organizations in the US alone. But many organizations do not have robust processes to manage auditsleaving them open to fnes and unbudgeted costs. It’s important that organizations can mitigate the risks and be able to rapidly assemble the information for an audit through software license optimization. If You Use it They Will Come Software license audits are on the increase How many times have you been audited by a software vendor in the last 12 months Most organizations have been audited at least once in the last twelve months but more than half 52 have been audited at least twice Base: All respondents TOTAL UK USA FRANCE None 17 19 18 12 Once 27 25 19 30 2-5 Times 35 36 31 42 6-10 Times 14 8 22 8 11-15 Times 3 2 4 4 More than 15 times please specify how many times 0 0 0 0 Don’t know 7 10 6 4

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1E.COM 6 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Gartner Research Inc 1 . “Without the appropriate understanding of audit impacts and management processes organizations risk providing inaccurate or inappropriate data such as information about IT architecture or the use of competitor products that may be used for sales purposes.” 1. Gartner Research Inc. Research Note: Surviving a Software Audit. Publis hed: 20 March 2013 by Victoria Barber

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1E.COM 7 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Optimizing software licenses is not just about managing usage on PCs and laptops it also means managing usage on servers. Although nearly half of organizations 49 use a tool which highlights unused software on PCs and laptops that number falls by 10 to 39 of organizations which are using a tool to track unused software across PCs laptops AND servers. This number falls further in the UK to 37 and to just 28 in France. The ability to identify unused server software enables an organization to reclaim or decommission the server software as well as optimize their license allocation. Indeed a third of companies are still using ad hoc and manual methods to track software usage a surprising fgure given that according to the 1E 2013 IT Effciency and Innovation report 2013 48 of IT decision-makers say that cutting IT costs is one of their top priorities. With Software License Optimization a continuous process of discovering and reporting on usage enables an automated reclaim mechanism to optimize the number of licenses. Used or Unused Over three ffths 61 of organizations are not looking for unused software on servers as well as PCs and laptops How are you currently tracking usage of software Only 39 of organizations use a tool to highlight unused software on PCs laptops and servers Base: All respondents TOTAL UK USA FRANCE We use a tool which highlights unused software on PCs and laptops 49 45 57 42 We use a tool which highlights unused software on PCs laptops and servers 39 37 47 28 Ad-hoc and manual methods with information stored in a fle e.g. spreadsheet 33 30 31 42 Other please specify 1 2 1 0 Base 250 100 100 50 Other please specify: “About to purchase tracking software””Don’t currently track” “We only monitor if software is on the computer but not usage”

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1E.COM 8 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Centralized software license optimization puts organizations in the best possible place to review recover and recycle unused software licenses. By centrally monitoring what is used and then correlating that usage to deployment IT decision makers can begin to right size the number of licenses that they own and maintain. Software License Optimization sorts usage into three categories – frequently used occasionally used and unused. Once visibility of this is achieved organizations can right size the number of licenses they own and maintain. As part of an active process of discovering and reporting on usage an automated reclaim mechanism cam be triggered to optimize the number of licenses. Centralize and Optimize More than half of organizations manage all their signifcant software purchase centrally How centralized is your software purchasing 91 of organizations centrally manage the purchasing of core software applications Base: All respondents TOTAL UK USA FRANCE All signifcant software purchasing is managed centrally 56 54 60 52 All core applications are purchased centrally with only rare specialized aaplications purchased by business units 35 36 31 42 Some core applications are purchased centrally while the others are purchased by business units 8 10 8 6 All software is purchased and owned by business units 0 0 1 0 Base 250 100 100 50

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1E.COM 9 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 Virtualization has spread way beyond the desktop into the data center and increasingly organizations and IT decision-makers are highlighting this exponential growth as their major source of concern with respect to their approach to software license management and compliance. This is especially true in France where 44 if IT decision makers highlighted server virtualization as a major concern compared with their counterparts in the US 31 and the UK 27. Next on the list comes desktop virtualization raised by 28 of IT decision-makers in France 23 in the UK and 20 in the US. Getting application licensing right is hard enough in the physical world but in a world of desktop and server virtualization many organizations probably aren’t properly accounting for their software licenses. A blessing and a curse Virtualization and especially server virtualization is the single greatest impact on managing software licenses and compliance What aspect of virtualization is having the greatest impact on your approach to managing software licenses and compliance Almost one third 32 of IT decision-makers tell us that server virtualization is having the greatest impact on software license management Base: All respondents TOTAL UK USA FRANCE Server virtualization 32 27 31 44 Desktop virtualization 23 23 20 28 Application virtualization 13 9 20 6 They are all equally having a signifcant impact 28 32 27 22 Virtualization is having no impact on licenses and compliance at all 4 9 2 0 Base 250 100 100 50

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1E.COM 10 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 The survey was conducted in the UK USA and France by Vanson Bourne an independent research company in November 2012. It was commissioned by 1E and analyzes the results from 250 IT decision-makers. About this research A wide range of private sectors which an emphasis on the fnance sector Organisations with over 250 employees with an emphasis on 3000+ 251-500 employees 501-1000 employees 1001-3000 employees More than 3000 employees 39 49 49 113 89 59 51 51 Financial services Manufacturing Retail distribution transport Other commercial sector

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1E.COM 11 SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 AppClarity is the fastest most cost-effective way to establish visibility and control of your software landscape and spend. Do you know the truth about your IT landscape Waste should not be an acceptable part of enterprise software licensing. AppClarity provides a single accurate view of the software installed and active across the enterprise. An automatic process that enables you to proactively manage software and licenses across the enterprise and down to an individual user basis making IT delivery a leaner and more cost-effective proposition. Stop paying for software you don’t need. Stop letting your suppliers dictate vendor- audit negotiations. Get the truth about your IT landscape AppClarity: big picture binary detail How can 1E help “To date and that’s not even a month since deployment we have seen savings of 260000 which accounts for 3000 reclaimed licenses and that’s only for the frst letter of the alphabet of vendors.” - Cobie Nel IM Services: Manager Applications Sasol Group Services Benefts • Identifes unnecessary software across PCs and servers • Maximizes cost savings • Manages your organization’s software by region department or any way you want • Automatically removes unused software • Controls unwanted applications • Optimizes the license allocation for premium server software • Improves audit readiness Features • Accurate software inventory • Detects unused PC software • Detects unused server software • Financially quantifes waste • Automatically reclaims and recycles licenses on PCs • Restricts the use of prohibited applications • Simple traffc light compliance system • Measure usage of features

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1E.COM SOFTWARE LICENSE OPTIMIZA TION REPORT 2013 © Copyright 2014 1E. All rights reserved. The information contained herein is subject to change without notice. 1E shall not be liable for technical or editorial errors or omissions contained herein. About 1E 1E’s suite of disruptive IT operations management tools save billions solve problems and simplify the management of large complex IT environments – in record time. Designed with a singular focus to help drive down costs 1E’s solutions include tools for IT asset management Windows systems management and BYOPC. Contact us UKHQ: +44 20 8326 3880 US: +1 866 592 4214 India: +91 120 402 4000 info1e.com Share this Our headquarters are in London and New York and we have offces in Paris and New Delhi. With more than 20 million licenses deployed worldwide 1600 organizations in 42 countries trust us to help them to work effciently productively and sustainably. To date our customers make 1.4 billion in effciency savings. This includes 800m in energy costs alone and a reduction in CO2 emissions of 6.4 million tonnes. Our customers are drawn from public and private sectors across the world and include ATT Verizon Wireless Dell ING Nestlé BNP Paribas Ford Motor Company the US Department of Veterans Affairs and the UK Department of Work and Pensions. Our largest customers have more than 300000 seats our smallest just 500 1E is the pioneer and global leader in ActiveEffciency solutions. 1E’s mission is to identify unused IT help remove it and optimize everything else. 1E ActiveEffciency solutions help reduce servers network bandwidth constraints software licenses and energy consumption. Vanson Bourne creates and delivers compelling relevant content for technology brands to own and use in high value media relations demand generation and thought leadership marketing campaigns. We couple our specialist technology research expertise with our years of experience in helping tech brands communicate with their markets. The result is well-crafted independent and robust content for B2B and B2C marketing programmes. We adapt the delivery of our content to ft all your marketing communications and direct sales efforts. This makes it easier than ever to leverage our high- value content across both traditional and new social media channels creating news coverage market buzz and customer action.

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