|Publisher||Society of Petroleum Engineers||Language||English|
|Content Type||Conference Paper|
|Title||Cost Optimization Programs in Software Asset Management|
Signe Marie Stenseth, Vice President, OpeniT, Inc.
SPE Digital Energy Conference and Exhibition, 7-8 April 2009, Houston, Texas, USA
2009. Society of Petroleum Engineers
|3.5 Information Systems and Data Use
With the current uncertainty surrounding the price of oil, coupled with the global economic downturn, it is imperative that the oil and gas industry focus on cutting costs and optimizing IT user and asset efficiency. The industry is looking for innovative ways to optimize software assets – making sure users have the tools and services they need in order to maximize productivity and efficiency – in ways that do not waste time or money. A major challenge is reducing the amount of time spent on managing software assets.
Software usage reporting and optimization tools can help achieve large savings within the first six months following implementation. These tools have a quick payback period with minimal post-implementation effort. They capture usage throughout the entire life cycle of the assets and are able to automate much of the optimization of software assets. The tools give great decision-making support to stakeholders charged with managing their respective assets: budget holders, portfolio managers, and key staff involved in training and support, enabling each of them to allocate resources where they will have the greatest impact.
Cost optimization programs should examine the activity levels of critical applications, and automatically reclaim inactive software licenses that can be assigned to more active users. This approach not only yields cost savings, but also ensures that high-priority projects or owners are consistently prioritized for limited, high-end applications. A good reporting and optimization tool provides a global overview of a company’s assets and how they are used, by location, user-group or cost center, and can simulate usage by any entity, regardless how its infrastructure is configured.
Cost cutting in any industry is painful business; however opportunities abound for achieving optimized IT resource management by implementing three key steps to achieve cost optimization in this critical part of the business.
The first step is to capture usage 360, that is, capturing how the company uses currently all of their critical resources globally, as well as past usage trends. If you can measure it, you can optimize it. Unfortunately, the opposite is also true, which is why so many cost optimization efforts do not achieve the lofty goals set by one-off cost-reduction exercises. The second step is analysis. Once usage data has been collected, it is put to work, providing a picture of what resources are being used, by whom, when and where. Likewise, complete usage data reveals which resources are being under-used, and where shortages exist. The third and final step is to communicate and optimize – get all the parties involved to verify the analysis of usage data to begin implementing optimization strategies.
These three-steps then become an integral part of the management of IT resources, resulting initially in significant ROI as low-hanging fruit are identified and harvested, and ongoing, as usage data is tracked and analysed and investment decisions reflect real usage and evolving business needs.
|File Size||214 KB||5|