1. Info-Tech Research Group1 1 Info-Tech Research Group, Inc. is a global leader in providing IT research and advice. Info-Tech’s products and services combine actionable insight and relevant advice with ready-to-use tools and templates that cover the full spectrum of IT concerns. © 1997-2016 Info-Tech Research Group Inc. Take Control of Microsoft Licensing and Optimize Spend Review and assess your Microsoft contract to build a strategy that leads to dollars saved.

2. Info-Tech Research Group2 2 Understanding Microsoft’s licensing can be like learning a new language and to add a twist, the rules of the language change from year to year. The push to the cloud has added another layer of complexity as the traditional on-premise IT services now have to build their strategy for the inevitable move. This calls to action the need for a documented licensing strategy to position the organization for success and negotiate with vendors from a positon of strength. Scott Bickley, Senior Research Director, Vendor Advisor Info-Tech Research Group Your renewal is here. Are you ready to negotiate your next agreement? ANALYST PERSPECTIVE

3. Info-Tech Research Group3 3 This Research is Designed For:This Research Will Help You: This Research Will Assist:This Research Will Help You: This Research Is Designed For:This Research Will Help You: This Research Will Also Assist:This Research Will Help Them: Our understanding of the problem IT managers scoping their Microsoft licensing requirements and compliance position. CIOs and IT directors negotiating licensing agreements and looking to save money. Software asset managers looking for a better way to track and manage Microsoft licensing. IT and business leaders seeking to better understand Microsoft licensing and evaluate cloud options. Understand and simplify licensing per product to help optimize spend. Ensure agreement type is aligned to needs. Navigate the purchase process to negotiate from a positon of strength. Manage licenses more effectively to avoid audits and unnecessary purchases. Understand the future of the cloud in your Microsoft licensing roadmap. CFOs and the finance department Vendor management Organizations examining a move to the cloud Have a standardized cost per employee and ease budgeting for following years. Compare and select a licensing reseller. Understand Microsoft’s on-premise licensing and whether moving to the cloud is a viable option.

4. Info-Tech Research Group4 4 Resolution Situation Complication Info-Tech Insight Executive Summary Microsoft licensing is often one of the top five expense items in enterprise software budgets. Many organizations are unfamiliar with licensing terms, relying on a reseller to provide direction, and end up over-purchasing. In a survey by Cherwell, with 178 respondents from organizations of various sizes stated, 67% had been audited by Microsoft in 2013. Software can be licensed, purchased, and deployed in a variety of ways and it's difficult to know which way is best. Licensing models can change annually and product updates are released on a three-year cycle, making it difficult to keep an up-to-date understanding of the best way to be licensed. Having a reactive strategy to the cloud makes it difficult to build a licensing roadmap and negotiate from a position of strength. Adopt a quarterly approach to reviewing Microsoft licensing. Define business requirements and actively manage licenses. Have a reference and strategy document to track your software needs, understand why past decisions were made, and plan for the future. 1. Focus on needs first. Conduct a thorough needs assessment and document the results. Well- documented needs will be your best asset in navigating Microsoft licensing and negotiating your agreement. 2. Establish licensing surpluses and deficits early on. You may already have enough licensing for your new projects or you may have a substantial shortfall that needs to be addressed. Fill in existing gaps before adding new licenses. 3. Assign a dedicated license and software administrator. With someone to keep tabs on the licensing, review and purchase planning become easier – reducing time and money spent on requirements gathering and budget.

5. Info-Tech Research Group5 5 PQR Corporation PQR, a financial services firm based in the United States, had over 2,000 employees and an Enterprise Agreement with Microsoft. The agreement had been renewed twice as is, under the assumption that because it was aligned to the organization previously, it must still be. Licensing renewal John had been appointed CIO and shortly thereafter received an email stating PQR’s contract renewal occurred in six months. Unsure of where to begin, and due to unfamiliarity with licensing, John reached out for help in optimizing his contract. CASE STUDY Industry Location Finance United States Results $500,000 in costs were realized. Software Assurance (SA) on Office was dropped as neither the upgrade rights nor the Roaming Use Rights were used. Endpoints still had Office 2007 installed, and the organization had rights to Office 2016. The upgrade cycle was 5–6 years, with the plan was to move to Office 2013 in a few months. SA on Windows OS was dropped as well, as an OEM license was all the organization needed. MSDN Ultimate licenses were also being purchased where Professional functionality was being used. John decided to enter a component enterprise agreement and make the rest of his purchases from a Microsoft Products and Service Agreement (formerly Select) without Software Assurance. MS licensing? Which MS agreement? Am I compliant? Licensing in virtual environments? Licensing on premise or in the cloud? Align the licensing strategy to the organizational roadmap

6. Info-Tech Research Group6 6 Consulting “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” Guided Implementation “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY Toolkit “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” Workshop “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Diagnostics and consistent frameworks used throughout all four options Info-Tech offers various levels of support to best suit your needs

7. Info-Tech Research Group7 7 Best-Practice Toolkit Assess current state and align goals; review business feedback Interview key stakeholders to define business objectives and drivers Review licensing options Review licensing rules Determine the ideal contract type Review final contract Discuss negotiation points License management Future licensing strategy Guided Implementations Perform a scoping call Assess the current state Determine licensing position Review product options Review licensing rules Review contract option types Review vendors Finalize the contract Determine negotiation points Discuss license management Evaluate and develop a roadmap for future licensing Onsite Workshop Module 1: Establish Licensing Requirements Module 2: Evaluate Licensing Options Module 3: Evaluate Agreement Options Module 4: Purchase and Manage Licenses Phase 1 Results: Have a baseline for requirements Phase 2 Results: Product mix Software Assurance Phase 3 Results: Best agreement types Phase 4 Results: Optimized purchasing Management plan Future roadmap Establish Licensing Requirements Evaluate Licensing Options Evaluate Agreement Options Purchase and Manage Licenses Take Control of Microsoft Licensing – project overview

8. Info-Tech Research Group8 8 Workshop agenda Deliverables 1.Effective Licensing Position Template 2.Purchase Reference Guide Note: This day can be provided offsite if preferred, after the Microsoft contract has been signed. 1.Microsoft Strategy Document Day 1Day 2Day 3Day 4Day 5 Preparation 1.1 Send workshop agenda to all participants. 1.2 Review licensing documents and any proposals provided by Microsoft vendors. 1.3 Review Microsoft deployment information. 1.4 Assess current state; perform gap analysis. Workshop Day 2.1 Introduction to frameworks and workshop. 2.2 Assess current state and align goals to workshop; review business feedback. 2.3 Meet with stakeholders to determine IT strategy as it relates to Microsoft licensing. 2.4 Meet with “asset manager” to discuss compliance concerns. Workshop Day 3.1 Meet with server product owners to determine product strategies. 3.2 Discuss licensing rules and application to current environment. 3.3 Understand the importance of documenting changes. 3.4 Meet with desktop product owners to determine product strategies. Workshop Day 4.1 Discuss recommendations and overall contract strategy. 4.2 Discuss negotiation strategies. 4.3 Licensing management. 4.4 Introduction of Software Asset Management (SAM). 4.5 Leverage the work done on Microsoft licensing to get started on SAM. Workshop Debrief 5.1 Preparation of final deliverables. 5.2 Create a schedule and role/responsibility matrix for future monitoring activities. Activities

9. Info-Tech Research Group9 9 Info-Tech’s Microsoft licensing advisory service provides help in reviewing licensing for on-premise product pools and cloud-based options, examining the potential for cost savings and obtaining an unbiased third-party perspective. Aspects Examined Licensing Comparing a complex “licensing rulebook” against VAR proposals to determine the best type and quantity of licenses. Specs and Features Comparing needs against proposed hardware specs and software feature set to validate solution design to meet needs without over- purchasing. Terms of Service Comparing requirements against proposed service plans and details to identify gaps and suggest opportunities peers may be using. Cost per Unit Comparing VAR proposals against peer pricing to identify item-level negotiation opportunities. Discount Levels Comparing VAR proposal discount levels (institutional, program or channel discounts) against reseller program information and peer experiences. The avenues of value behind a Microsoft licensing review