License Software Negotiation and Audit Advisory

Service brief License Software Negotiation and Audit Advisory

Introduction

There are few things as time-consuming, disruptive, and risky to a business as a software license negotiation or software audit defense. With a significant risk of millions in costs, you should never attempt to handle it without expert representation. Whether you’re with Oracle, Microsoft, IBM, or Adobe, we have the expertise to significantly lower the total cost of ownership of your enterprise software licenses. With WGroup, you’ll realize cost savings (or cost avoidance) without compromising the integrity of your license compliance obligations to your software vendors. In this paper, we will cover the many service offerings in our License Software Negotiation and Audit Advisory practice, which includes:

License review

Audit advisory

Cloud migration planning

Retainer

We’ll also explore our proven 3-step audit and license optimization approach that has produced significant savings for our clients over the years.

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License Review

According to IDC, almost 75% of software vendors believe their customers do not manage software license entitlements effectively or properly.

A license review is a point-in-time assessment of an organization’s software license estate with a detailed strategic report that outlines various licensing options. License reviews establish the baseline required for building or resetting a software asset management (SAM) program. Client inventory (i.e., entitlements) is compared to deployments, applying the appropriate licensing rules for the edition and version of each product.

This deliverable reveals shortfalls, surpluses, or both, and recommends strategies for addressing them.

We’ll work with you to design a strategic plan with an established primary negotiation position and acceptable secondary or tertiary positions. This is used in preparation for and during the course of negotiations with the vendor. Our principals can participate either directly or indirectly in the negotiation sessions.

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Benefits

License Review

Optimize, customize, and simplify your organization’s software license agreements and support contracts

Decipher, decode, and simplify your organization’s software licensing and business practices

Ensure cost-effective procurement of licenses and support

Create flexibility within your software license agreement (SLA)

Offer licensing alternatives based on your organization’s business model

Migrate outdated software licenses and costly support

Rebalance software licenses to enhance and maximize value from your organization’s existing software investment

Provide various software license options based on your organization’s needs and various business scenarios

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Audit Advisory

Formal audit response

The initial audit response is one of the most critical parts of the audit mediation process. When an official vendor audit is initiated, the target organization will receive a formal notice of audit from a vendor, or an informal notice from a representative accounting firm, or authorized auditing proxy. WGroup helps the target organization by managing the formal audit response process, limiting and controlling the information sent to the auditor, and establishing the scope of the audit. Without a detailed and savvy audit response letter, organizations open themselves up to a higher degree of risk in regard to scope and compliance penalties.

Friendly audit

A friendly audit is a license review that parallels the vendor’s license compliance assessment. While many organizations have active software management programs, their teams often interpret the vendor’s policies and rules differently than the software vendor. This leads to situations where the organization assumes it’s fully compliant when it’s not. WGroup bridges the gap between these interpretations and helps organizations understand where they may have significant compliance issues.

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Asset repository

Audit Advisory

proof of ownership is vital for establishing a defense against a software audit. An asset repository in the form of software licensing agreements (SLAs), subscriptions, invoices, and other renewal or procurement documents establishes proof of ownership. We will help the target organization collect, organize, and interpret these documents.

Modification impact

We will provide a detailed impact analysis report showing how the suggested changes will affect the organization’s licensing estate.

Action plan

We will provide a detailed plan of action to achieve the transition from the current licensing situation to the new recommended position.

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Cloud Migration Planning

When an organization is looking to migrate to the cloud, WGroup can provide comprehensive licensing and subscription advisory regarding cost savings, licensing impacts, and future planning. We have assisted many clients in determining if a cloud migration is right for their business, and how to best plan to use new and existing on-premise licenses, also known as bring-your-own-license.

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Retainer

Our retainer service grants organizations access to our expert analysts in a flexible and customized manner to proactively and effectively manage their software assets. Organizations that actively manage their software assets often require detailed expert advice on the policies and contract interpretations of vendors. It can be challenging to count users, processors, cores, threads, servers, licenses, and subscriptions the correct way as they pertain to various vendor contracts and policies. We can provide expert feedback and analysis on issues, and answer questions about the organization’s software licensing, compliance, and future business planning.

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Our 3-Step Approach

1. Friendly audit

This confidential audit is shared only between WGroup and the client. WGroup conducts a comprehensive license assessment for the organization and compares it to its entitlements to establish a baseline compliance position.

2. License optimization

WGroup provides various options to optimize an organization’s software deployment and procurement based on the organization’s needs and future planning.

3. Strategy execution

License procurement, negotiations, migrations, upgrades, co-termination, deployment, and redesigns may be required to keep the organization in compliance or to execute its future strategy.

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Vendor Specific Services

License Review

Audit Advisory

Retainer

Cloud

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Lower Your Total Cost of Software Ownership

Visit us at thinkwgroup.com or give us a call at (610) 854-2700 to speak with a software licensing and auditing expert.

About WGroup WGroup is an IT consulting firm with a peer-to-peer approach to IT strategy, cost optimization, and operational improvements. The team is comprised of consultants with over two decades’ experience as former C-suite executives and IT leaders. The firm boasts a clientele that includes more than 200 Fortune 1000 companies across a wide range of industries. WGroup is known for an outcome-driven, customer-specific, agnostic approach that optimizes IT operations and minimizes costs.

Crossing the Digital Transformation Chasm

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