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Software Asset Management tools vendors have been spreading the FUD (fear, uncertainty, doubt) as thick and as fast as they can. It’s not that they’re wrong in their claims of the risks. It’s just that mitigating these risks is not a matter of technology. SAM is a matter of process. It’s a matter of maturity. And here lies a problem with how software asset management is currently being positioned in Australia.

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Conclusion: Microsoft’s Software Assurance should not be viewed as a monolithic software maintenance and ‘upgrade path’ for existing solutions. Instead, it should be viewed as a collection of additional licences that extend product usage rights, and grant features for enterprise scale deployments. Knowing which Software Assurance licences to procure, and which to reject, can result in significant savings.

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Related Articles:

"Understanding and Optimising Software Assurance: Part 2" IBRS, 2014-10-31 17:57:54

Conclusion: Amazon Web Services (AWS) dominates the IaaS market, witha commanding market share lead over all other vendors. Since there are no clear market forces that will change this in the next few years the question is who will become second and third?

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While IBM is planning to invest A$1.4 million to grow its global datacentre facilities, its focus remains on private cloud with no serious public cloud offerings, As a result, IT organisations under traditional outsourcing contracts with IBM should examine the feasibility and cost-effectiveness of third party public cloud alternatives prior to renewing the existing outsourcing contracts.1

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Over the last 2 years, there has been an explosion of all things cloud. Infrastructure in the cloud, cloud services and of course cloud providers.

Many organisations are moving to the cloud, planning to move to the cloud or at least thinking about ways that they can leverage what the new wave of services can give them. Combine this with a very competitive commercial world where winning a portion of the available ICT spend is becoming harder and harder and you can see why no ICT company wants to be seen with yesterday’s present.

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Conclusion: Debate over Microsoft’s mixed record of successes and slow innovation during the last decade has incited conjecture as to its long term durability. As many highly successful vendors have disappeared very quickly, the same inference for Microsoft is a reasonable one.

While Microsoft has been ‘disrupted’ in the sense that it has not adjusted smoothly to new conditions, its demise is not imminent. The corporation has to fix several parts of its business, which will not be easy, but it’s financially sound and growing. Microsoft customers need not fret over its longevity. However, they ought to examine how much they depend on Microsoft or other flexible options over the next five years.

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The drama surrounding Microsoft's new CEO has been something akin to the reality TV show ‘The Bachelor’. Who would be the perfect match for the rich, handsome, but somewhat socially awkward hunk?

In order to answer this question, it became publicly clear that there was confusion both within Microsoft and in the market in general as to what role the organisation would – indeed should – take in a rapidly changing technology market. The choice of Satya Nadella says as much about the company's final direction as it does about the man.

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Conclusion: Utilising vendor products entails a cost to the user above the licence fee. This cost, which is hidden, is mostly unaccounted except when dealing with a vendor that imposes vexatious conditions. Such conditions may alter usage rights and prolong the negotiation period to conclude contracts. That adds costs to an organisation it should not bear.

Where a vendor has myriad and confusing contractual terms it is a cause for organisations to assess their lock-in with that vendor. In reassessing their connections with vendors, organisations ought to strategically move out of deep lock-in towards more flexible relationships with vendors. For a user organisation to be overly dependent on a limited number of vendors is a potential problem. Reducing dependencies on single or groups of vendors may also deliver more efficient business relationships. It also serves as a signal to vendors that an organisation wants an efficient arrangement.

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Synopsis: In the previous millennium some CIOs claimed they could reduce their IT costs by not producing printed reports for business managers and only recommencing them if the manager complained. If they said nothing the application software and documentation were put on the back burner in case they were needed and after a decent period given a ‘quiet burial’.

In this millennium the approach above will not work as business professionals and managers can access their data and prepare management reports online when needed. This begs the question, how can CIOs reduce their costs in 2013 while managing risks?

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Conclusion: Vendor performance evaluation is a critical component of successful contract execution and has been an area of difficulty for the ICT industry. Deciding what to evaluate, when and how often to evaluate, how to collect the data necessary to undertake the evaluation and fulfilling the responsibilities of a customer requires commitment, planning and active participation. However, CIOs will be rewarded with improved supplier relationships and more successful contract engagements.

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Philip Nesci, IBRS adviser and former CIO, has warned that agencies will need to get their information management sorted out to capitalise on the new rules. ‘‘Agencies need to identify their...
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Centrelink crashes under demand for crisis payments - Australian Financial Review - 23 march 2020

IBRS workforce transformation advisor Joseph Sweeney said many government departments had to navigate difficult IT environments that were only part-way through their digital transformations, with...
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Inside EY's security work at ANZ - Australian Financial Review - 3 March 2020

"There is more security work to go round than there are resources. So I don't think the market is that crowded. It's important to remember that security is not something you buy and then it's done;...
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