Software Asset Management: Your Compass in the Cloud
The cloud has changed everything. But does it promise new dangers or clearer skies for your bottom line and your Software Asset Management program?
Smooth Sailing: The cloud is an easy and efficient solution for your software, platform, and infrastructure needs. And you don’t have to wait for central IT and procurement — with long approval and deployment processes — to access top-of-the-line solutions.
The cloud empowers your business units and employees to make IT decisions better and faster.
Rougher seas: But ease and flexibility come with a big price tag. Increased flexibility can cause costs to spiral quickly out of control. If you don’t know what you’re using, how much you’re using, or if you’re not taking advantage of benefits included in your licensing, in short, if you’re not managing your environment, your cloud investment could turn into a money pit. With cloud license management, navigate your way past the dangers of high costs to the safe havens of increased revenue.
The basics of cloud licensing
The cloud offers a variety of options for your business. It’s flexible, easy to access, and demands fewer in-house resources. You don’t have to host, maintain, install, or even deploy most of your services. Just log into a local or web-based client, and you’re ready to go.
There are three main types of cloud services: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Each comes with its own licensing types, benefits, and challenges. And then there’s the hybrid cloud, which combines the best of cloud and on-premises services. Let’s look at these options and how they are licensed.
Compliance is still a risk in the cloud
Dodge compliance pitfalls. Even without audits, compliance is still important in the cloud. Learn about cloud compliance risks and how to secure your environment against them. Read our white paper, SAM Mythbusters: Debunking the Cloud Compliance Myth, to learn how to keep your cloud compliant.
4 types of cloud services
Software as a Service
SaaS is a browser-based application that you might use for normal daily work. You log in to the vendor’s website and use software that is hosted remotely by that vendor.
Examples: WebEx, HubSpot, Salesforce, Google Apps, SmartTrack
Benefits: Low initial costs, continuous upgrades and support, easy customization.
Infrastructure as a Service
IaaS gives you a virtual server OS environment or raw computing capacities. You rent offsite servers and monitor them with applications as if they were on-premises.
Examples: Amazon EC2, Microsoft Azure, Rackspace Cloud
Benefits: Easily scalable, enhanced flexibility, better disaster recovery infrastructure.
Platform as a Service
PaaS gives you an environment to run custom applications without having to maintain the underlying platform.
Examples: Microsoft Azure, Oracle Cloud, Force.com, Google AppEngine, Kubernetes
Benefits: Enhanced agility, maximized uptime, easily scalable.
Hybrid Cloud
Hybrid cloud is a blend of SaaS usage and physical installation. Some hybrid products are subscription licenses, some are a cloud workspace.
Examples: Microsoft Office 365, Adobe Creative Cloud
Benefits: Can be used on-premises and on-the-go.
The challenges of Cloud Software Asset Management
In order to reduce software costs, Selen Ülver Mjumjunov explains why it's important for organizations to monitor cloud use now that consumption is spiking in the newnormal.
Licensing models in the cloud
The cloud’s flexibility and ease can be paid for in different ways depending on the service you need, the contract’s duration, or the capacity. The different payment models are an essential part of making “as a Service” solutions responsive to your organization’s needs. Instead of buying a one-size-fits-all solution, you can adjust the speed, size, and terms of service as you go, so you can keep pace with your changing business needs.
The four main licensing models are:
Subscription model
You pay monthly or yearly for access to a cloud service. You’re not tied to long-term and expensive contracts, and you can cancel at the end of a project or if you’re dissatisfied with the service.
Pay-as-you-go model
You pay for the use of a specific instance, such as CPU capacity, memory, or storage. You’re charged only for how much you use.
Pay-by-instance model
You pay for each server or server instance the vendor spins up for you. These Reserved Instances are contracted for specific periods of time (1 to 3 years), and they run 24/7.
Bring-your-own license
You can use cloud software for which you already have a “perpetual” license, a license that never ends. Keep the terms and conditions you know, so there are no hidden or accidental costs.
Cloud License Management: What to watch out for
Fewer audits can still mean increased costs
Cloud providers know what you’re using. Everything is hosted on their servers, so they don’t need to do invasive and costly audits. The benefit is your organization saves time and money in audit preparations and associated costs. But it’s not because cloud vendors want to be nice. Your servers are their servers, and they can see your consumption and configurations without leaving their office chairs. The cloud is also a steady source of revenue, so providers don’t need audits to generate more profit.
According to Gartner, between 2015 and 2020, “SaaS growth will be 19.3%, and can be expected to reach $76 billion by 2020.”
And that’s just for Software as a Service (SaaS). That’s serious money for cloud providers, and a significant investment for your organization. Protecting that investment means going back to the basics of SAM: Know what you have, how you’re using it, and how it’s configured.
Don’t fall for the cloud compliance myth
Are there no compliance risks in the cloud? Many people believe there aren’t. After all, if your software, platforms, and infrastructure are all hosted by the vendor, then how could you possibly violate the terms and conditions?
But it’s just a myth!
In order to ensure continued flexibility, cloud service providers don’t always build in hard technical restrictions. This means it can be just as easy to over-consume in the cloud as it is on-premises. Many other compliance risks, such as indirect access and unauthorized usage, are still risks in the cloud. It’s just as important to know your licensing terms and conditions and monitor usage in the cloud as it is on-premises. At the end of the year, your vendors will send you a bill for any usage not covered by your licenses. And because cloud vendors know exactly what you’re using and how, it can be harder to defend against non-compliance claims.
Ressources for your cloud management
An IT Leader's Guide to Managing Software in a Hybrid Cloud World
Discover how to get a complete view of your IaaS, PaaS and SaaS environments to identify cost-savings cloud cost optimization opportunities.
“Software in a Box”: The Best Way to Manage Software Assets in Containers
Learn how to protect against software licensing risks and identify cost-saving container options.
Microsoft Audits and the Subtle Art of Compliant Cloud Migration
Microsoft license compliance review can be an opportunity to find cost savings, prep your cloud migration strategy, and make your relationship with Microsoft a bit friendlier.
ITAM Review’s 2020
SaaS Management Market Report
Aspera rated Best for Discovery and Existing Customers
Aspera’s LicenseControl for Cloud was recognized for the breadth and depth of its inventory capabilities in the first-ever ITAM Review SaaS Management Market Report. Aspera is excited to be one of the leaders in the field included in this first of its kind market and tool analysis.
Getting the right cloud licenses
Find the right licensing model
Choosing the right licensing model requires knowing your goals and needs in the cloud. Each model comes with certain risks and benefits, so the most important thing is to know what those are and whether your organization can shoulder the financial burden if things don’t go as planned.
Let’s compare two infrastructure licensing models to see what the options are:
- Pay-by-instance: A pay-by-instance model for your servers gives you access to a dedicated instance. This is especially valuable if you have regularly high computing loads and need access to significant capacity around the clock. Choosing a reserved instance can also save you a lot of money, as the chart below demonstrates.
- But if you have predictable workloads that you squeeze in during regular workhours, then a Pay-as-you-go model is the better choice. This involves careful monitoring and turning your instances on and off at specific times, but it can help reduce costs and wasted capacity.
License only what you need
Deciding how to license your cloud assets can be tricky. Take too much, and you waste money on unused capacity and subscriptions. Take too little, and you can miss out on volume pricing and other hidden benefits. To get the best pricing on your services, take only what you need. Otherwise, your cloud costs will encourage license waste and eventually drive down revenue. As always, your goals are to get the licenses that meet your organization’s needs but also to keep costs down.
Use a SAM tool to migrate seamlessly
Moving to the cloud can be a tricky, complicated process, but with a license management tool, you can make the transition a smooth one. Monitor your progress and identify trouble spots early on:
Track migration progress
Use it to track which users have moved into the cloud and remove their on-premises software access.
Deactivate unused cloud licenses
As users move to the cloud, you might discover they no longer need the licenses assigned to them. Track usage and re-harvest unneeded licenses.
Centralized record your contracts
By storing them in one central location, your SAM tool gives you quick and easy access to your contracts, so you can ensure you’re sticking to the letter of the law.
Monitor
compliance
Compliance issues don’t disappear in the cloud. Use your SAM tool during the migration to make sure you don’t end up with unplanned costs, fines, and fees.
Make a smooth cloud migration
Chances are that you’re migrating to the cloud in the near future. With a license management program, you can ensure that your move is as easy as possible and reduce long-term licensing costs.
8 To Dos for SAM in the Cloud
SAM is your best strategy for navigating cloud licensing choices. Follow these seven to-dos to decide which license model best fits your business needs.
Boldly go where no SAM Manager has gone before
The cloud is the newest frontier for SAM managers and means many changes for your SAM program. What are the new processes that SAM managers need in order to steer SaaS costs? How should they best handle them?
Resources for getting the most out of your cloud
Stop SaaS from Eating-up your Software Budget
In this on-demand webinar, learn how SaaS licensing experts find huge cost saving opportunities in controlling enterprise-wide used cloud Apps.
TEI™ of Aspera LicenseControl for Cloud
Read the Forrester Total Economic Impact report to see how one organization saved millions with LicenseControl for Cloud.
SAP License Optimization in the Cloud
SAP has a “cloud-first” range of solutions. Learn how to create a healthy SAP licensing landscape that analyzes and optimizes your licenses efficiently.