Whether or not to sign or renew an Enterprise Agreement with Microsoft is a sticky question that many organizations face. For many companies out there, their spend on Microsoft licensing can be a significant portion of a company's IT budget, whether it be Enterprise Agreements or Select License agreements. Some of you may be directly responsible for the negotiation of the agreement, but many more of you work with your sourcing professionals who negotiate the agreements with Microsoft or resellers. The increasing complexity around Microsoft licensing decisions require more heads at the table. For Infrastructure and Operations pros, your voice is critical in the decision process. Certainly, your current state of Microsoft products and your future rollouts over the life of the agreement (and beyond) play a role, but there are other factors to consider. Some of the other key questions you’ll face include:
I get this question all the time because, let’s face it, it’s a significant decision. For example, an Enterprise Agreement (EA) renewal for an enterprise with the main desktop suite on, say, 10,000 PCs could cost around $1,500,000 per year. So what do you get for this outlay? You’ve already purchased a perpetual license for the relevant Microsoft products via your original EA, so the renewal is merely an extension of the maintenance element, which Microsoft calls Software Assurance (SA). Like most terms in Microsoft licensing, SA looks like an industry standard concept, but has sufficient Microsoft-specific nuances that confuses customers. The key differences from most vendors’ software maintenance offerings are that SA:
Is not tied to product support. Customers that aren’t paying SA still get access to patches, and can purchase additional support services from Microsoft or its partners on a time & materials basis.
Delivers upgrade rights that live on after the agreement expires. Customers earn rights to any version that Microsoft releases while they are on SA. So, for example, a customer paying SA on Microsoft Office for the next 12 months will earn the right to the next version, Office 14, due out at the end of 2009, even if it doesn’t intend to actually upgrade to that version for another 3 or 4 years
Includes many additional benefits that, though hard to value, are far from worthless. For example, the extra training, online e-learning and rights to use the same version on a home PC will certainly translate to more effective use of the software and enhanced user productivity, but it's very hard to give that a dollar value.
It is often difficult to step back from the flow of news coming out from Barcelona but here's a quick take on the main announcements.
- new handset makers such as ACER are entering the mobile space highlighting the fact that boundaries between computers and mobile phones are being blurred. Toshiba, HP are already here and Dell or Lenovo could well follow. Will they succeed? Well they need to master not only the hardware but also the software, offer scalability/economies of scale, negotiate with operators and revamp their brands. This will not happen in one night but some of them have bold long-term objectives
- As always a great autumn/winter device collection from the usual suspects: Nokia E75, SE "Idou", LG Arena or Smasung Beat DJ. Despite few announcements (2 devices with Android OS), Google and Apple cast their shadow over the congress though. Apple because most phones were still compared to the iPhone even though the device was announced 2 years ago. If many visitors were disappointed not to see more Android handsets, one should bear in mind this is still the early days and that there is a strong support from the Open Handset Alliance. No doubt this is a long-term play and that Android is here to stay.
- Appstores are the new retailing/merchandizing paradigm. Many handset/OS vendors announced their own "vertical" solutions but operators also joined the dance such as Orange with its Application shop. The parntership between T-Mobile and OVI is one of the most interesting announcements at it shows that operators can also offer an "horizontal" layer and offer a large reach/distribution to developers. Not everybody will succeed but it is likely that both types of stores will co-exist.
The open source hypervisor landscape got a lot more interesting today after the latest announcements from Red Hat and Citrix. Both were shots across the bow of VMware’s juggernaut, but Red Hat’s volley may have overshot and struck Xen.org in the stern.
Citrix, the flag bearer for Xen.org, recently announced that two significant hypervisor features would be made available in the free version of its Xen distribution, XenServer – live migration and multi-node management. Neither of these capabilities are provided in the free version of VMware ESX and live migration won’t be available in Microsoft Hyper-V until Windows Server 2008 R2. Citrix is also busily placing calls to the major Linux distributors hoping to sign them up to commitments to replace the free Xen.org hypervisor with the free XenServer.
On Friday, Forrester published new research on one of the most active groups of people ever seen when it comes to social participation -- buyers of technology products in the business-to-business (B2B) sector.
I teamed up with Oliver Young to write the report, "The Social Technographics of Business Buyers," based on a survey conducted online between December 2008 and January 2009; you can access the full report if you're a Forrester client, or arrange to buy it if you are not. You can also register to download the slides or hear the replay of our Webinar on the topic.
You've heard it once and you'll hear it again: You can't manage what you can't measure. This adage is relevant to any IT project — especially if you're getting serious about green IT. Forrester advises that before investing a single dollar, measure your green IT baseline — an annual estimate of the energy consumption, carbon dioxide (CO2) emissions, and financial costs of operating your IT within and outside of the data center.
With that in mind, I would like to introduce Forrester's online green IT baseline calculator — an intuitive, online tool to help IT professionals calculate their green IT baseline.
The tool walks you through the key green IT baseline assumptions, including the number of IT assets, energy draw, and hours of up-time. For additional accuracy, you can customize your price and CO2 emissions per kilowatt. The tool will then automatically calculate your green IT baseline for your review. From there, you can email the results to yourself for future reference (and you can also help guide our research agenda).
Daily, we hear about more layoffs and downsizing. Along with this comes scrutiny of all internal budgets including learning and development. Companies are not lopping off learning as drastically as in previous recessions. Companies know that skilled employees make their business successful. But, at the same time, some budget cuts are inevitable. This is where eLearning comes in. Most organizations already have some eLearning but they are not using the full capabilities like the rapid eLearning tools or the virtual classroom from their Web conferencing provider, or the informal learning using collaboration tools like blogs, podcasts, and wikis.
Yes, classroom training will be cut since travel costs are a quick savings. But this doesn’t mean you can’t have effective learning . . . via a different approach! This is good time to take stock of what tools and features you have but haven’t used from your LMS or your online meeting providers and exploit these online synchronous and asynchronous forms of learning.
Recently, I’ve had a number of conversations with CIOs and senior IT staff on the pressures caused by business belt-tightening.
This, of course, has cascaded to IT in the form of the need to cut. Favorite targets: new investments, whether for business-sponsored projects or infrastructure, followed by ‘IT overhead’ – travel, training, IT improvement programs, followed by opportunistic cuts in the operations budget. For most I’ve talked with, they have their budget for 2009, but are still watching for the request for further cuts.
Now, the hard part has started for them. As one said “having less to spend means I need to work harder to make sure it’s spent wisely’. The problem isn’t just one of picking areas to spend on, but also in making sure that the business execs who are getting more involved in these decisions agree it’s being spent wisely.
I constructed this formula to help the conversation. It basically lays out what I call the IT’s ‘cost/capacity/demand’ challenge. Perceived business value is business management’s belief that they are getting good value from overall IT spend. It’s a function of aggregate business demand; not just projects but also tactical requests for application enhancements, or expectations for service quality - spread over available capacity; both staff, external services and infrastructure capacity - at a particular cost. The cost is IT spend, and when spend goes down, capacity goes down.
To date, IT pros have given very little attention to the “greening” of the network. Why? Three words: follow the money. According to recent Forrester research, the top motivation for pursing Green IT is to “reduce the energy-related costs of operating IT.” And when compared to other IT energy-drawing assets – like servers, data center cooling or PCs – the energy consumption of the network falls at the bottom of the list, meaning that the ROI to reduce energy use is less compelling.
But the launch of Cisco’s EnergyWise technology is likely to raise the “greening” status of the network. EnergyWise is a free software upgrade to Cisco’s entire line of Catalyst switching gear. The technology allows customers to monitor, manage and ultimately reduce energy consumption of anything “connected” to the network. As Cisco describes, EnergyWise will evolve over three phases, adding new functionality with each iteration:
In the first phase (February 2009), Network Control, Cisco EnergyWise will be supported on Catalyst switches and manage the energy consumption of IP devices such as phones, video surveillance cameras and wireless access points.
In the next phase (Summer 2009), IT Control, there will be expanded industry support of EnergyWise on devices such as personal computers (PCs), laptops and printers.