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Balancing software asset management with an efficient ... - Softcat

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Case Study<br />

<strong>Bal<strong>an</strong>cing</strong> <strong>software</strong> <strong>asset</strong> <strong>m<strong>an</strong>agement</strong> <strong>with</strong> <strong>an</strong><br />

<strong>efficient</strong> me<strong>an</strong>s of monitoring <strong>an</strong>d controlling costs<br />

M<strong>an</strong> Group plc<br />

With 225 years of trading experience, M<strong>an</strong> Group plc<br />

has evolved into one of the world’s largest independent<br />

alternative investment m<strong>an</strong>agers, driven by <strong>an</strong> objective<br />

to deliver strong <strong>an</strong>d stable returns for investors.<br />

Headquartered in London <strong>with</strong> some 1300 employees<br />

worldwide, the business is responsible for m<strong>an</strong>aging<br />

$54.8 billion of investments (as at 31 March) <strong>an</strong>d is part<br />

of the FTSE 250 Index.<br />

The Challenge<br />

For a global operation like M<strong>an</strong>, strict cost <strong>m<strong>an</strong>agement</strong> is fundamental<br />

to its business. With a considerable <strong>software</strong> estate, they believed there<br />

was a big opportunity to better m<strong>an</strong>age <strong>software</strong> <strong>asset</strong>s <strong>an</strong>d create a<br />

more <strong>efficient</strong> me<strong>an</strong>s of monitoring <strong>an</strong>d controlling costs.<br />

Following consultation <strong>with</strong> IT <strong>an</strong>alyst Gartner <strong>an</strong>d <strong>with</strong> the buy-in from<br />

a cross functional steering group composed of Procurement <strong>an</strong>d IT, the<br />

business decided to go out to tender on a bold project to outsource<br />

<strong>software</strong> <strong>asset</strong> <strong>m<strong>an</strong>agement</strong> <strong>an</strong>d overhaul how <strong>software</strong> would be<br />

m<strong>an</strong>aged <strong>an</strong>d acquired across their business. The intention was to identify<br />

<strong>an</strong> expert partner who would become their <strong>software</strong> Centre of Excellence.<br />

Adri<strong>an</strong> Clewley Head of Global Procurement at M<strong>an</strong> explains the<br />

project origins. “There are some excellent Software Asset M<strong>an</strong>agement<br />

tools on the market but you still need someone to m<strong>an</strong>age the <strong>software</strong><br />

<strong>asset</strong>s <strong>an</strong>d interpret the data generated by the tool. We had heard<br />

about comp<strong>an</strong>ies not deploying the right resource around their project<br />

then finding it failed”.<br />

By outsourcing the project M<strong>an</strong> would obtain the Software Asset<br />

M<strong>an</strong>agement tool needed, complemented by technical expertise to<br />

m<strong>an</strong>age it plus vital knowledge of the complex licensing models they are<br />

Key Facts<br />

• One of the world’s largest<br />

independent alternative investment<br />

m<strong>an</strong>agers<br />

• 225 trading history<br />

• $54.8bn under investment<br />

• 1300 employees worldwide<br />

Critical Success Factors<br />

• Create a more cost effi cient<br />

me<strong>an</strong>s of monitoring, m<strong>an</strong>aging<br />

<strong>an</strong>d controlling Software Assets<br />

• Establish <strong>software</strong> Centre of<br />

Excellence in business<br />

• Deploy best-of-breed Software<br />

Asset M<strong>an</strong>agement tool<br />

• Outsource to <strong>an</strong> expert partner<br />

<strong>with</strong> the right blend of expertise<br />

who could join process <strong>an</strong>d<br />

technology<br />

<strong>Softcat</strong> | Fieldhouse L<strong>an</strong>e | Marlow | Buckinghamshire | SL7 1LW<br />

W: www.softcat.com | T: 01628 403 403 | E: sales@softcat.com


subject to. The partner would also be expected to use the<br />

information collected on their estate <strong>an</strong>d experience in Software<br />

Licensing to successfully negotiate vendor <strong>software</strong> audits <strong>an</strong>d<br />

obtain the best possible value for M<strong>an</strong> from future <strong>software</strong><br />

acquisition <strong>an</strong>d license renewals.<br />

The Solution<br />

As a partner to GLG, M<strong>an</strong>’s discretionary investment <strong>m<strong>an</strong>agement</strong><br />

business, acquired in 2010, <strong>Softcat</strong> were delighted to be invited to<br />

tender, following a recommendation from Andy Archer, IT Director at<br />

GLG. Liam Dennison, Account Director at <strong>Softcat</strong> picks up the story<br />

“M<strong>an</strong> w<strong>an</strong>ted to deploy a best-of-breed Software Asset M<strong>an</strong>agement tool<br />

<strong>an</strong>d create a Software Licensing Desk (SLD) to then m<strong>an</strong>age all <strong>software</strong><br />

<strong>asset</strong>s. With a business the size of M<strong>an</strong> we felt it import<strong>an</strong>t that our<br />

proposal demonstrate a high degree of flexibility <strong>with</strong> the opportunity to<br />

evolve as knowledge on the estate became clear over time”.<br />

The objectives for the Software License Desk were clear; m<strong>an</strong>age the<br />

<strong>software</strong> <strong>asset</strong>s, provide a consistent ordering platform <strong>an</strong>d maintain a<br />

<strong>software</strong> inventory. With a vast amount of experience in Software Asset<br />

M<strong>an</strong>agement <strong>an</strong>d Software Licensing, <strong>Softcat</strong> believed that the success<br />

of the project would be dependent on the right mix of resources. Liam<br />

Dennison continues “M<strong>an</strong> w<strong>an</strong>ted the Software License Desk to be the<br />

‘go to people’ for <strong>an</strong>ything <strong>software</strong> related <strong>an</strong>d w<strong>an</strong>ted it to inspire<br />

<strong>an</strong> attitude ch<strong>an</strong>ge surrounding <strong>software</strong> use <strong>an</strong>d acquisition. We knew<br />

large chunks of the task would be operational; me<strong>an</strong>ing we could, on<br />

the whole deploy more cost effective resources to undertake the day-today<br />

responsibilities, supplemented by a senior Software Consult<strong>an</strong>t as<br />

part of the govern<strong>an</strong>ce committee M<strong>an</strong> proposed to set up. Crucially,<br />

this resource mix kept our response commercially attractive”.<br />

“<strong>Softcat</strong> stood out from the other three bidders” comments Adri<strong>an</strong><br />

Clewley on the <strong>Softcat</strong> response to the tender. “They were energetic,<br />

enthusiastic <strong>an</strong>d creative. The people we met were very motivated,<br />

very keen <strong>an</strong>d very eager to win the business. Conversely, the other<br />

bids were very traditional, very corporate <strong>an</strong>d very rigid which did not<br />

give us confidence in how the service might need to develop”.<br />

Solution Highlights<br />

• Onsite outsourced service to<br />

create Software Licensing Desk<br />

• Highly fl exible service capable<br />

of ch<strong>an</strong>ging <strong>with</strong> dem<strong>an</strong>ds of the<br />

business<br />

• Mix of experienced operational<br />

staff <strong>an</strong>d SAM experts<br />

• Utilised leading Software Asset<br />

M<strong>an</strong>agement tool; SNOW<br />

Software<br />

M<strong>an</strong> was also very impressed <strong>with</strong> SNOW; the Software Asset<br />

M<strong>an</strong>agement tool <strong>Softcat</strong> recommended in its bid. “We have a strong<br />

track record working <strong>with</strong> SNOW” says Liam Dennison “<strong>an</strong>d believed<br />

it offered everything M<strong>an</strong> required <strong>an</strong>d more”. “<strong>Softcat</strong>’s close<br />

relationship <strong>with</strong> SNOW was very reassuring” adds Adri<strong>an</strong> Clewley.<br />

The Benefits<br />

As the chosen partner <strong>Softcat</strong>, has been operating the Software License<br />

Desk for over two years, <strong>an</strong>d a recent contract extension is testament to the<br />

achievements made <strong>with</strong> the <strong>software</strong> estate during this time. <strong>Softcat</strong> has<br />

audited 1,273 applications from mainstream br<strong>an</strong>ds such as Microsoft<br />

<strong>an</strong>d Sym<strong>an</strong>tec to more exotic ISV’s like Dart Communications <strong>an</strong>d US<br />

<strong>Softcat</strong> | Fieldhouse L<strong>an</strong>e | Marlow | Buckinghamshire | SL7 1LW<br />

W: www.softcat.com | T: 01628 403 403 | E: sales@softcat.com


ased Business Intelligence provider Splunk. Furthermore, <strong>Softcat</strong> is now<br />

m<strong>an</strong>aging 1300 users <strong>an</strong>d 5250 devices at <strong>an</strong>y one time.<br />

The results have been both powerful <strong>an</strong>d immediate. Within only a few<br />

months of running the Software License Desk <strong>Softcat</strong> examined a large<br />

provider’s licensing position <strong>an</strong>d helped them avoid a multi-million pound<br />

mainten<strong>an</strong>ce renewal as a result of accurate data on what was deployed.<br />

“The project has accomplished every goal we set out to achieve. Every<br />

year <strong>Softcat</strong> has more th<strong>an</strong> covered their costs in real savings. Add to this<br />

what we have achieved in cost avoid<strong>an</strong>ce <strong>an</strong>d the return is in excess of<br />

10 times their <strong>an</strong>nual fee for the service!” enthuses Adri<strong>an</strong> Clewley.<br />

With SNOW agents deployed on every desktop <strong>an</strong>d nearly every server<br />

in the estate <strong>Softcat</strong> is able to monitor application usage <strong>an</strong>d challenge the<br />

business on how much or whether <strong>software</strong> is even needed. The result is<br />

<strong>an</strong> accurate <strong>software</strong> inventory <strong>an</strong>d a ‘pool’ of <strong>software</strong> licenses that c<strong>an</strong><br />

be re-purposed rather th<strong>an</strong> buying further <strong>software</strong> unnecessarily.<br />

All of this information is available to business stakeholders in a dashboard<br />

which feeds into a quarterly forecast on <strong>software</strong> renewals, prompting<br />

cost centre m<strong>an</strong>agers to confirm import<strong>an</strong>t estate information like licensing<br />

levels <strong>an</strong>d support contract requirements. This is finally run past the CTO<br />

<strong>an</strong>d CFO for final approval.<br />

Armed <strong>with</strong> <strong>an</strong> Effective Licensing Position <strong>an</strong>d gr<strong>an</strong>ular intelligence on<br />

the <strong>software</strong> estate, <strong>Softcat</strong> then proactively approaches M<strong>an</strong> <strong>software</strong><br />

vendors to negotiate the best possible commercials on <strong>software</strong><br />

renewals <strong>an</strong>d related support.<br />

The flexibility <strong>Softcat</strong> promised at the outset has proved invaluable to<br />

the project. From the original service scope they are now m<strong>an</strong>aging<br />

10 times more <strong>software</strong> vendors th<strong>an</strong> initially <strong>an</strong>ticipated, <strong>an</strong>d are<br />

responsible for overseeing the uninstallation of <strong>software</strong> from machines<br />

demonstrating how quickly a project of this kind c<strong>an</strong> grow.<br />

At a Gl<strong>an</strong>ce:<br />

• Inst<strong>an</strong>t benefi t avoiding multimillion<br />

pound contract renewal<br />

<strong>with</strong> Oracle<br />

• 10x ROI on <strong>an</strong>nual fee for the<br />

<strong>Softcat</strong> service in real savings<br />

<strong>an</strong>d cost avoid<strong>an</strong>ce<br />

• Subst<strong>an</strong>tial savings in time <strong>an</strong>d<br />

resource deployed<br />

• Successful audit of 1273<br />

applications<br />

• M<strong>an</strong>aging up to 1300 users at<br />

<strong>an</strong>y one time<br />

Why <strong>Softcat</strong><br />

According to Adri<strong>an</strong> Clewley, <strong>Softcat</strong> has fundamentally ch<strong>an</strong>ged<br />

<strong>software</strong> <strong>m<strong>an</strong>agement</strong> <strong>an</strong>d acquisition <strong>with</strong>in M<strong>an</strong>. “Cost centre<br />

m<strong>an</strong>agers now don’t need to try <strong>an</strong>d carry all of the knowledge<br />

surrounding <strong>software</strong> themselves – they simply go to the Software<br />

License Desk <strong>an</strong>d c<strong>an</strong> be assured they know what’s deployed <strong>an</strong>d<br />

what’s needed”.<br />

Like <strong>an</strong>y service there have been hiccups but Adri<strong>an</strong> Clewley believes you<br />

c<strong>an</strong> always tell the integrity of a supplier by the way they react when there<br />

is a problem. When this occurs “<strong>Softcat</strong> listen, they are not defensive,<br />

they talk to us <strong>an</strong>d they take remedial steps quickly”.<br />

The flexibility <strong>Softcat</strong> promised at the outset has proved invaluable to the<br />

project. From the original service scope they are now m<strong>an</strong>aging 10 times<br />

more <strong>software</strong> vendors th<strong>an</strong> initially <strong>an</strong>ticipated, <strong>an</strong>d are responsible for<br />

overseeing the uninstallation of <strong>software</strong> from machines demonstrating<br />

how quickly a project of this kind c<strong>an</strong> grow.<br />

<strong>Softcat</strong> | Fieldhouse L<strong>an</strong>e | Marlow | Buckinghamshire | SL7 1LW<br />

W: www.softcat.com | T: 01628 403 403 | E: sales@softcat.com


Summary<br />

Now that the original objectives have been achieved M<strong>an</strong> is<br />

continuing to develop the service further. “50% of the tasks<br />

we undertake today were not on the original scope of work –<br />

demonstrating just how much the service has evolved in the time we<br />

have been m<strong>an</strong>aging it. We started <strong>with</strong> one License Administrator<br />

<strong>an</strong>d now have two” comments Liam Dennison.<br />

The project <strong>an</strong>d the experience gained have also enabled <strong>Softcat</strong><br />

to enh<strong>an</strong>ce its Software Asset M<strong>an</strong>agement services. “Working <strong>with</strong><br />

M<strong>an</strong> has been a step ch<strong>an</strong>ge to our traditional SAM services. As<br />

people <strong>an</strong>d consult<strong>an</strong>ts my team has matured as has SAM <strong>with</strong>in<br />

M<strong>an</strong>’s business. We now have multiple Software License Desks<br />

around the square mile <strong>an</strong>d know we c<strong>an</strong> make a real difference<br />

to <strong>an</strong>y business <strong>an</strong>d more import<strong>an</strong>tly show a good ROI almost<br />

immediately” declares Matt Ward, SAM M<strong>an</strong>ager at <strong>Softcat</strong>.<br />

“Working <strong>with</strong> <strong>Softcat</strong><br />

has been a real<br />

pleasure...”<br />

”...We are very<br />

pleased <strong>with</strong> the<br />

service they deliver for<br />

us <strong>an</strong>d look forward<br />

to developing it further<br />

in the future”.<br />

Adri<strong>an</strong> Clewley<br />

Head of Global Procurement<br />

MAN GROUP PLC<br />

Adri<strong>an</strong> Clewley concludes “Working <strong>with</strong> <strong>Softcat</strong> has been a real<br />

pleasure. From the word go they have delivered t<strong>an</strong>gible benefits<br />

to the business <strong>an</strong>d have proved themselves to be straight talking,<br />

responsive <strong>an</strong>d dynamic. We are very pleased <strong>with</strong> the service they<br />

deliver for us <strong>an</strong>d look forward to developing it further in the future”.<br />

About <strong>Softcat</strong><br />

<strong>Softcat</strong> is a leading provider of <strong>software</strong> licensing, hardware, security <strong>an</strong>d related IT services. <strong>Softcat</strong> was founded in 1993 by<br />

Peter Kelly, remains privately owned <strong>an</strong>d currently employs over 500 people. It achieved a turnover in excess of £300 million<br />

in its last fin<strong>an</strong>cial year <strong>an</strong>d has been profitable since inception, resulting in a strong bal<strong>an</strong>ce sheet <strong>an</strong>d very firm fin<strong>an</strong>cial<br />

foundations. The comp<strong>an</strong>y sells <strong>an</strong>d supports products <strong>an</strong>d solutions from all the world’s leading IT comp<strong>an</strong>ies. On all its<br />

portfolio products <strong>an</strong>d solutions it offers a full r<strong>an</strong>ge of services, including advice <strong>an</strong>d guid<strong>an</strong>ce, technical design, product<br />

sourcing, implementation, support <strong>an</strong>d project <strong>m<strong>an</strong>agement</strong>. It enjoys a trading relationship <strong>with</strong> over 5,000 longst<strong>an</strong>ding<br />

customers, predomin<strong>an</strong>tly from the UK corporate sector but also including large enterprises, small businesses <strong>an</strong>d public sector<br />

org<strong>an</strong>isations. As <strong>an</strong> org<strong>an</strong>isation <strong>Softcat</strong> cares passionately about two things – outst<strong>an</strong>ding employee satisfaction <strong>an</strong>d world<br />

class customer service. It believes the former drives the latter.<br />

<strong>Softcat</strong> | Fieldhouse L<strong>an</strong>e | Marlow | Buckinghamshire | SL7 1LW<br />

W: www.softcat.com | T: 01628 403 403 | E: sales@softcat.com

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