How often have we come across CEOs/CTOs staring blankly at crowds or fidgeting collars on queries related to IT infrastructure in the entire organization? How many times, have we come across replies like, let me talk to the respective department and get back to you?
These concerns are genuine - but it makes one wonder, whether bigger organizations working on multiple software do keep a track of their assets? Is there somebody for software asset management (SAM)?
It very often happens that the CEO/CIOs are not aware of all the business processes in an organization. Most organizations have various forms of applications from multiple players, and integrating all these could be a tough task.
Companies are evolving every day. For example, a start up organization with five PCs has grown into a big company with over 200 PCs. Though the evolution is faster, the processes are not in place and the IT chief has no clue as to how many operations are running in his organization. This is one of the chief reasons that retard progress.
Corporates like Microsoft enter the picture here. Its SAM of Software Asset Management provides opportunities to SMEs and big corporates to partner review their software assets. Being ISO certified, the technique is proven and is being utilized by customers worldwide. Microsoft that launched the program in India April 2005 is now aggressively marketing it to the SME segment here for business opportunities. It has partnered with over 4,000 companies so far.
It has tied up with KPMG as a knowledge and domain expertise partner.
Brian Campbell, director, genuine software initiative at Microsoft India says, "We are educating CAs. Besides explaining SAM benefits, we also discuss business opportunities."
He notes that though the PC industry is a little over 30 years old in India, PCs were a highly distributed option. It is only off late that India has started taking advantage of personal computing.
Campbell opines, "Since large enterprises have a global presence, they are more sensitive towards licenses because their reputation and brand name is at stake. It is the SME segment that uses non-licensed software. In India, 40-45 percent of the enterprise is not fully licensed and in the SME segment, six million PCs do not have a full license, he states.
Campbell opines that assets that are not managed well increase cost to a company. There are also consequences associated with liabilities and compliance issues.
Piracy is a major problem plaguing the software industry. According to a Business Software Alliance report, overall software piracy is 72 per cent. In raids across the country, it seized pirated software valued around $2.1 million in 2006.
Reinforcing the compliance aspect in SAM, Campbell states, "It essentially supports IPR. Instances of piracy occur because of lack of education, inability to better manage IT environment and resources, as also malicious behavior."
He notes, "Piracy, therefore is a bigger opportunity for us here."
Explaining the methodology, he avers, besides increasing TCO and ROI, SAM looks at software as a business asset. "We run an inventory on software assets in a company that matches licenses with entitlements, inventory with licenses, finds gaps, reviews the process, creates an on-going SAM plan and reduces burden on the help desk."
He says, "All these help an IT chief streamline applications. He can focus on identifying vendors and products and other business related activities. He can play a significant role in signing volume agreements, add value to customer and in corporate governance- where he ensures that the corporate adheres to policies defined by global standards."
Navin Agarwal, executive director, advisory sales at KPMG warns, "Besides regulatory and non regulatory issues, duplication allows a non native code to enter a PC. It proactively reports what's happening and these reports are monitored elsewhere."
He adds that clauses such as SOX 70 and clause 49, as also amendments in the Indian Copyrights Acts will come in handy, for companies even looking at acquiring local partners. "Compliance will then be a mandate."
The two companies recently concluded a training program with chartered accounts. To a query on why train CAs, Campbell and Agarwal reply; "SAM is a business opportunity for them as well. A survey has revealed that not many CIOs and CEOs are unaware of SAM and its usefulness. CAs play a vital role as consultants in financial matters to a company, and they can suggest SAM for ROI and TCO."
Mircosoft refused to disclose investments into the project. Campbell informs, "We have invested into human resources in the form of hiring experts and in-house training."
He however, reveals that Microsoft will have dedicated resources specially for SAM in SMEs in India-under the sales, marketing and service group head, in its budget for 2008. He says, "At present, I cannot quote figures, because we still at planning and strategizing stage. The company would also look at investments into infrastructure, support system and head count."
On future plans, Campbell states, "Retail is also an exciting sector. We do SAM for Wal-Mart and would tap for opportunities in this sector even in India."
On whether, the training programs have impacted the mind set of any SME, Campbell says, "Even if we see a three to four percent reduction in piracy year on year, it would be fantastic."
