FM Logistic completed development of strategy of licensing of software

On November 23, 2016 the press service of ITERBI company announced the project of development of strategy of licensing of software for logistic holding FM Logistic.

Project Tasks

Defining the long-term development strategy, the management of group needed to create an IT infrastructure status picture for simplification of financial planning of purchases of software of FM Logistic group and optimization of use of the software of Microsoft.

Advertizing FM Logistic, (2014)

For accomplishment of this task FM Logistic addressed experts in SAM of ITERBI company.

The FM Logistic group is serviced by one IT department, in the head company. The IT department buys workstations and the consumer software within the corporate license agreement Open License and in a boxed type (more than 1.2 thousand boxes) transfers to temporary use to the organizations within group that increases labor input in management of the packaged software.

Before carrying out the project of the organization as a part of group purchased the server hardware and the software independently that complicated appointment, distribution between legal entities, the general accounting of licenses and, as a result, resulted in risks of lawful use of products of Microsoft.

Project objective of SAM - identification of the operating position on licensing and determination of legitimacy of use of software products of Microsoft, providing recommendations about further licensing on the basis of collected information on the purchased licenses, the number of the software products installed and used in corporate infrastructure in the long term 3 and 6 years.

Main objectives of the project:

• information analysis about the operating licensing rights;
• comparison of collected information to requirements of license agreements of Microsoft;
• identification of exact number of the used software of Microsoft;
• analysis of the current legal and license risks;
• development of recommendations about optimization of licensing and to purchase planning;
• providing recommendations for reduction of risk of vulnerability when using software products;
• preparation of recommendations about standardization of procedures of transfer of licenses to affiliates.

Project Progress

Examination was conducted within FM Logistic infrastructure in the territory of Russia. On the basis of the acquired information experts prepared the detailed report containing recommendations about process optimization of management of lifecycle of software.

Consultants of ITERBI:

• provided a complex of recommendations about reducing costs of the software,
• offered five scenarios of further licensing
• created the strategy of further development of infrastructure of the company
• recommended to optimize use of SQL infrastructure.
• gave an assessment of a maturity to the operating management system for program assets
• provided the solution allowing to move to higher level on the SOM model (SAM Optimization Model) developed by Microsoft corporation.

Project Results

Number of the inspected automated jobs ~ 2 thousand. During the project the affiliation of several legal entities is revealed.

For optimization of accounting and control of licenses, reduction of legal and financial risks, according to the recommendations of experts of ITERBI, the decision on transfer of all server hardware and all software licenses of Microsoft in head company FM LOZHISTIK VOSTOK Ltd was made.

After carrying out the project the server hardware and licenses belong to the head company, affiliates rent the equipment and capacities that increases efficiency of accounting of licenses and helps to optimize costs for IT.

In the license analysis of groups there is always a question of establishment of degree of affiliation between them. In the Russian legislation and license agreements of many software makers these concepts have different determinations whether and strongly depends on affiliation correctly the company purchased licenses and whether it has is right to use them. For this reason the majority of projects begins with determination of affiliation in group. Lilia Lemzakova, head of IT consulting of ITERBI company

Experts of ITERBI company developed for us five scenarios of further licensing for six years ahead, considering nuances of our internal regulations and specifics of business. Thanks to cooperation with ITERBI we can plan the current and future costs for software and IT infrastructure that is strategically important for us. We will undoubtedly adhere to the recommendations of consultants and we will cooperate with ITERBI for further improvement of our IT processes. Nival Sebastian, the director of information technology of FM Logistic in Russia