There are a number of new articles on the hidden costs of virtualization on the Scalable site. These articles will be of interest to any IT Asset Manager or IT Finance team whose organizations are planning to add more virtual machines (VMs) this year.

One article discusses VM License Costs, and the five areas that might lead to unexpected costs:

  1. Vendor audits of software usage increasingly touch virtualized environments
  2. The use of outsourced service providers
  3. Licenses that don’t cover common use cases, such as proof of concept or the test use of virtualized environments
  4. “VM sprawl”
  5. The impact of “shadow IT”

Another article discusses the explosive growth of virtualization in the data center, and some potentially significant negative impacts on projected business value in virtualized environments.

From the article:

“The complexity of licensing models, and the difficulty in precisely identifying which virtual machine (VM) has which application running at which time, can lead to spectacular license compliance issues … in a recent IDC report, one IT executive noted that for every $1M virtualization saved on hardware, their company spent $13M resolving software license compliance overages.”

Scalable’s Asset Vision® offers new approaches to managing and monitoring the potential impacts of virtualization on license compliance and business value. For a self-demo of Asset Vision, register here. Or to read more articles on IT Asset Management and virtualization, see our articles listing here.

Resources for IT Finance and Procurement

K-12 Common Core technology demands are top-of-mind for US K-12 IT management. According to a recent survey conducted by O’Keeffe & Company for CDW, roughly 83% of school district IT teams list meeting the technology requirements of Common Core is one of their top three priorities, and 29% report that it’s their first priority.

But Common Core places new technology demands on schools and districts. Not surprisingly, budget concerns were a top IT concern, shared by 76% of those surveyed.

Even if the Pioneer Institute of Public Policy Research has overestimated the 7 year total for technology investments needed by K-12 schools (they show it to be a staggering $6,867,889,169), it is clear there will be some investment needed.

But how will districts and schools fund the necessary technology?

In this brief web article, K-12 CIOs, IT teams, and finance teams can learn ways to identify IT waste with greater precision to help fund the technology requirements of Common Core. K-12 Common Core technology demands can be met, once IT waste is precisely identified and IT spending optimized.

Of course, Scalable’s Asset Vision can help K-12 IT enable IT Cost Optimization and free up budgets to support Common Core. In addition, Asset Vision can help schools and districts “find” resources by reducing IT waste, enabling new technology investments that support improved outcomes for more students.

New approaches to software usage metering (a subset of software asset management) and the business value of these new approaches are detailed in a new customer case report from Scalable Software.

Findings from this customer case showed that, of installed applications analyzed, an average of 30% were underutilized or never used. Using Scalable’s approach to software usage metering, over three years, roughly $450,000 in total savings are projected with an ROI for enterprise-wide deployment of <12 months.

The challenges faced by this customer included a limited ability to optimize their application portfolio, because they lacked:

  • A business intelligence reporting system designed for software asset management and cost reduction.
  • Complete and accurate inventory of all software products installed on each device.
  • Actual usage of the software on each device, including browser-based applications.
  • Total cost impact of the software portfolio based on end user demands and usage patterns.

The case shares answers to these questions:

  • Can a software usage metering solution provide reliable information for what is installed and used on each endpoint?
  • Can it be deployed with no disruption to the company’s associates and customers?
  • How significant is the opportunity to optimize the licensing strategy and cut wasteful spending?
  • Can the solution provide a shared information platform for Procurement and IT Operations teams to monitor asset utilization, compliance, inventory, and cost containment?
  • Can this approach to IT cost optimization provide future savings?

Find out how this customer mastered the challenge of getting material business value from software asset management. No registration is needed to download the PDF, “IT Cost Optimization POC Highlights: Creating Business Value from Software Usage Metering.”

New Article on IT Cost Transparency

Posted by Lori Witzel on November 22, 2013

Hardware IT Asset Management from Scalable SoftwareWritten as part of the IT Asset Management Definition series, the article (you can read it here) discusses some high-level elements comprising IT cost transparency. These include:

  • IT Asset Baselines
  • Correlations to Business Systems
  • Configuration Intelligence
  • Usage Intelligence for Decommissioning

Both “IT Cost Transparency, Defined” and “IT Cost Optimization, Defined” will be of particular interest to IT Finance, procurement, and contracts teams as they become more involved in IT asset management initiatives.

As Gartner notes in a recent news release and in “Use Five Techniques to Defend the IT Budget and Demonstrate the Value of IT,” IT cost optimization and the associated cost transparency needed require ongoing effort. In their view, “Most CFOs view IT as a cost center and, therefore, very seldom link investment in IT with value creation.”

By improving IT cost transparency, IT can communicate its business value more effectively to Finance and the CFO, and can engage Finance as a partner in cost optimization efforts. The trust built by making IT costs more transparent will support conversations between IT and Finance on how IT can use “extra funds” found via cost optimization to drive more business value.