1. Federal Software Asset Management Initiative Concept of Operations Report to the Executive Steering Committee March 8, 2004 Implementing the President’s Management Agenda for E-Government NOTE: Oct 30, 2008 original slides #4, 7, 8, 9, 10, 11, 12, 14, 15 and 16 were removed to condense document for the Federal ITAM website.

2. 2 Overview Federal SAM Framework Concept Governance Structure Assumptions Federal SAM Framework Discussion Metrics –Key Metrics Roadmap to the End State –Ten Commandments of Change –Notional Implementation Timeline Federal SAM Challenges and Recommendations

3. 3 Federal SAM Framework Concept Vision: –To be the leader in software investment management by providing enterprise policy, acquisition, deployment, utilization and security strategies to ensure the Federal Government’s software assets provide the maximum value to its citizens. Team Goals: –Develop a vision statement for Federal-wide SAM –Recommend SAM policy and communications strategies –Develop and recommend key Federal-wide SAM metrics –Develop a high-level framework required to implement software asset management as defined by the President’s Management Agenda eGov Strategy. –Develop a recommended model for Federal SAM governance

4. 4 Assumptions Federal Agencies continue to perform SAM for their own Agency (desktop management, auto-discovery, maintenance scheduling, etc.). Federal SAM repository will be fed information by current and future implementations of Agency SAM systems –Asset data is shared as required. –Repository collects data that has already been captured from the individual Agency SAM systems/processes. –Agency SAM systems will initially use a variety of technical approaches to share data (batch update capability, transaction processing, data translation, etc.) Savings achieved through Software Asset Management will be retained by the Agencies for reallocation to high priority efforts.

5. 5 Federal SAM Framework High-Level Diagram (1. Agency S/W Asset Inventory Repository; 2. Federal S/W Asset Inventory Repository; 3. Integrated Acquisition & eMarketplace; 4. S/W Asset Procurement; 5. S/W Asset Testing & Acceptance; 6. S/W Asset and Upgrade distribution; 7. S/W Asset Production & Maintenance; 8. S/W Asset Retirement; 9. S/W Asset Requirement) 9. S/W Asset Requirement 2. Federal S/W Asset Inventory Repository 3. Integrated Acquisition Environment and eMarketplace 4. SW Asset Procurement 5. S/W Asset Testing and Acceptance 6. S/W Asset and Upgrade Distribution 7. S/W Asset Production & Maintenance 8. S/W Asset Retirement 1. Agency S/W Asset Inventory Repository

6. 6 Distribution Integrated Acquisition Environment and eMarketplace Federal S/W Asset Testing and Acceptance Process Federal SAM Framework Testing, Acceptance, and Distribution Component Procurement Filled Software Accepted Software products: Tested for security and functionality Accepted for federal use

7. 7 Key Metrics Cost Avoidance Description: Per unit and total cost of ownership (TCO) Goal: 10% - 30% reduction in costs Data Source: Contracts (prices and terms) and Federal SAM Repository Methodology: Aggregate savings accrued through improved procurement, redistribution, and inventory control Asset Usage Description: License usage rate/re- distribution Goal: 80% active usage of available licenses Data Source: Contracts and Federal SAM Repository Methodology: % difference between installed licenses and total licenses available in inventory Inventory Accuracy Description: Percentage accuracy of license data in the Federal SAM Repository against the actual installed license base Goal: 60% - 80% of Federal software inventory tracked via SAM Data Source: SAM auto-discovery tools, and legacy procurement databases Methodology: A formal comparison between the physical inventory and the inventory of record. Metrics...

8. 8 Ten Commandments of Change Analyze the organization and its need for change Create a shared vision and common direction Separate from the past Create a sense of urgency Support a strong leader role Line up political sponsorship Craft an implementation plan Develop enabling structures Communicate, involve people and be honest Reinforce and institutionalize change Source: “Change Management in the IT Function,” Working Council for Chief Information Officers, Issue Brief, July 2003

9. 9 Notional Implementation Timeline Roadmap to the End State... SMARTBUY PMO negotiates contracts & licensing agreements Timeline of Federal SAM Initiative

10. 10 2008 100% of all agencies submitting Timeline of Federal SAM Initiative Activity Timeline Results Timeline Charter SAM Framework Team 1/04 OMB MEMO SMARTBUY 2/27/04 Phase I Phase 2 Managing Partner sets up SMARTBUY PMO 4/04 SAM PMO & Governance Structure established by 12/04 Concept of Operation 3/04 – 7/ 04 Phase 3 AGENCY DAY 1/05 Find “modelers” & volunteers 1/05 SAM.gov website with Shared Database operable 2/06 Phase 4 75% of all agencies submitting data and checking asset lists online 6/07 SMARTBUY PMO negotiates contracts & licensing agreements 1 st 5 Categories of the OMB MEMO business lines are negotiated and available for use 2 nd 5 Categories of the OMB MEMO business lines are negotiated and available for use Identify next potential business lines available for savings 2 nd Cycle Agreements OCTOBER 2004 OCTOBER 2005 3rd Cycle Agreements DECEMBER 2005 -Better prices -Accurate sales & usage info -Point of Sale info rolls up into SAM PMO SBuy ESC Brief CIOC 7/ 04 Data elements identified and agreed upon 12/04 Define & disseminate standards for activities, e.g., “used” vs installed applications 3/05 Take initial inventory Draft policies that need changing SBuy PMO negotiates agreements Roadmap to the End State...

11. 11 Federal SAM Challenges and Recommendations  Resources to Fund, Implement and Manage  Establish Federal SAM PMO and OMB Champion  Implement study to derive estimated costs and identify funds for inclusion in the SAM business case  Aggressive Schedule  Adopt and execute Federal SAM Action Plan based on notional implementation timeline  Assign resources to Support Plan  Articulate and Communicate Federal SAM Vision  Develop and implement Federal SAM Communications and Outreach Plan  Coordinate w/PMA eGov Efforts  Collaborate and coordinate Action Plan with key stakeholders  eGov membership on Federal SAM Working Group