originally published in Microsoft Momentum
From one Vancouver store ten years ago, lululemon has stretched its iconic yoga wear brand to 80 stores across three continents.
But lululemon needs to stay as limber as it was when it was small. This includes keeping each of its 450 computers lithe and legitimate with licences for Microsoft Windows, Microsoft Office and a variety of other software.
So lululemon now seeks to straighten out records of the software it uses. That’s where software asset management comes in. Once implemented, SAM spreads peace of mind by keeping software piracy concerns at bay.
“They recognized the importance of managing their assets,” said Stephen Sweett, president of Mississauga, Ontario-based Microsoft Gold Partner Buchanan Associates Canada. “That’s why they engaged us to implement Microsoft System Centre Configuration Manager for them.”
“It’s important for us to be able to control what we’re doing,” said Mike Flood, lululemon’s CFO. “We see SAM as essential because of the financial, added-value and control aspects that are associated with it.”
But what, precisely, is SAM?
SAM starts not with software but with policies and procedures that govern a company’s software life cycle management. In many ways, SAM differs little from the management of other types of assets that a company uses to achieve its objectives.
Software itself does differ from other assets. For instance, few organizations record software assets as diligently as they manage things like buildings, inventory, furniture and other types of assets. The importance of doing so stems from a key characteristic of software; unlike most other assets, software is usually licensed, not owned.
Microsoft took a leadership role when it created a SAM Solution Provider competency in 2006. Microsoft Gold Partners such as Buchanan have both achieved certification and are spreading awareness of the need for SAM among Microsoft clients.
The most receptive audiences include newly anointed CIOs, CEOS or CFOs, as well as companies that have either merged with or acquired other firms. Interest is also high among organizations that need to troubleshoot unstable network-based systems where software has not historically been managed. And then there are companies like lululemon which strive to stay proactive.
“But control over your assets is a starting point,” said Diana Piquette, licence compliance manager for Microsoft Canada. “Once people have that, they try to optimize their software assets.”
For instance, SAM helps IT departments learn who precisely uses software licences. IT then uses that knowledge to prevent licensing overlap and redeploy unused software elsewhere.
Such steps, according to a 2004 Gartner Report entitled “Life Cycle Management Underpins IT Asset Management,” can reduce the cost per asset up to 30 percent in the first year of SAM practice and five to ten percent in subsequent years.
Centralized software purchasing becomes possible across an entire organization, leading to better compliance and volume purchasing discounts.
“Lululemon had stores buying software individually,” said Piquette “so buying centrally via a Microsoft Enterprise Agreement saved the company a lot of money.”
“Like any other IT organization, what we’re looking towards doing is running our group on a shoestring,” lululemon’s Flood said. “SAM lets us do this by being able to control our environment while at the same time helping us to minimize our costs.”
IT support staff also lightens its load. SAM often results in standardization of software, so issues prove easier to troubleshoot and rectify. Indeed, all five steps of the software life cycle – requisitions, procurement, deployment, maintenance and retirement – happen faster and at a lower cost. Disaster recovery planning becomes simpler when IT knows what software resides on which device.
That’s “device” and not merely “computer” since SAM systems like Microsoft’s System Centre Configuration Manager can track handheld devices like today’s popular smartphones, increasingly used as laptop replacements in the field.
Once policies are set, the SAM system is configured to automatically handle many tasks throughout the software asset life cycle. For instance, IT staff use SAM to “push” software to a computer via the network and, where necessary, “pull back” licenses. Purchasing receives an automated notice whenever software requests are approved. Links to accounting systems automate the tracking of both new and retired assets.
“Lululemon are targeting an ROI,” said Sweett. “SAM will eliminate a lot of manual steps they take now.”