Microsoft Software Asset Management Customer Solution Case Study Electronics Manufacturer Gains Fast Access to New Software, Streamlines Purchasing Overview Country or Region: Germany Industry: Manufacturing—Electronic components Customer Profile RAFI Eltec, headquartered in Überlingen, Germany, is part of the RAFI Group, working in electronics equipment and testing. The manufacturer posted sales of €25 million (U.S$34 million) in 2005. Business Situation After a change in ownership, RAFI Eltec was left without software licenses and lacked comprehensive documentation about the software in use. The scope and costs of license acquisition were unclear. Solution KUMAtronik Systemhaus implemented Software Asset Management at RAFI Eltec and inventoried the company’s existing software. Benefits Eliminates liability risk Streamlines the purchasing process Reduces software costs Improves the IT infrastructure “We cut administrative expenses for client-server operations in half after introducing central licensing management.” Peter Skonieczny, IT Manager, RAFI Eltec Electronics manufacturer RAFI Eltec in Überlingen, Germany, wanted to get an accurate count of its software licenses after it was acquired by another company. RAFI Eltec needed a comprehensive inventory of its Microsoft® Office 2003 Professional Edition software and Windows Server® operating systems, as well as an overview of the software packages and license documentation for programs that had yet to be installed or used. To avoid overlicensing and prevent the use of illegal copies of software, RAFI Eltec performed a full inventory of its software and introduced a centralized Software Asset Management program that took advantage of the Microsoft Select License volume licensing program agreement. Microsoft Certified Partner KUMAtronik Systemhaus implemented the complete licensing model, together with centralized software and licensing management, within 30 days. Situation RAFI Eltec manufactures electronic components and signal generators for industrial electronics. Headquartered in Überlingen, Germany, the company employs about 160 people and has annual sales of €25 million (U.S.$34 million). Originally part of the Finnish electronics company Elcoteq SE, it was sold to the RAFI Group in 2005. At that time, all software licenses reverted to Elcoteq. “We literally found ourselves without licenses overnight,” says Andreas Stiefel, Project Manager at RAFI Eltec. “For the first time, we got a complete inventory so we could make sensible plans.” Peter Skonieczny, IT Manager, RAFI Eltec The company needed to relicense all of its software. However, RAFI Eltec did not know what software was being used on each computer. Until the company was sold, it had paid Elcoteq a flat fee for IT services and received no breakdown of licensing for its workstations and servers. Solution RAFI Eltec decided to implement a Software Asset Management (SAM) program. With help from Microsoft® Certified Partner KUMAtronik, it conducted an inventory of the software that was in use as well as software that had been purchased but not yet installed. “For the first time, we got a complete inventory so we could make sensible plans,” says Peter Skonieczny, IT Manager at RAFI Eltec. The inventory revealed a surplus of previously acquired licenses for Microsoft SQL Server™ 2000 database software. When relicensing the software, the company placed orders based on specific needs so that no unnecessary costs were incurred. Together with DATALOG Software, a Microsoft Gold Certified Partner based in Munich, KUMAtronik Systemhaus proposed that the electronics company take advantage of the Microsoft Select License program and Microsoft Software Assurance. Through these Microsoft offerings, RAFI Eltec would have access to the latest Microsoft technology along with phone support, training, and IT tools. Within 30 days, RAFI Eltec implemented a complete licensing model along with centralized software and licensing management supported by SQL Server 2000 running on Windows Server® 2003 Standard Edition. RAFI Eltec gained an unprecedented level of visibility into its software environment, including its Microsoft Office 2003 Professional Edition software and Windows Server operating systems. Benefits RAFI Eltec now has control over its software acquisition, costs, and technology. With Software Asset Management and the Microsoft Select License program, risk of legal liability is eliminated, software purchasing is more efficient, costs are lower, and the IT infrastructure is improved. Eliminates Liability Risk By using Software Asset Management to ensure that all copies of software used by employees are licensed, RAFI Eltec protects itself from legal liability. Unlicensed or illegal copies are eliminated, providing the security that comes with correct licensing. A regular software scan of the company’s computer network, along with a database-supported software installation history, gives system managers at RAFI Eltec a precise overview of its current deployment status. Streamlines the Purchasing Process IT staff at RAFI Eltec can download test versions of new programs from the Microsoft portal without paying licensing fees. If they decide that the company should purchase the product, RAFI Eltec can use New Version Rights to spread the procurement cost over a longer period of time. This gives users full functionality immediately, but the company can pay the licensing fee in installments. “We only have to register our new licenses once a year, but we can get the latest products and updates at any time,” says Stiefel. “We only have to register our new licenses once a year, but we can get the latest products and updates at any time.” Andreas Stiefel, Project Manager, RAFI Eltec Reduces Software Costs RAFI Eltec can now make smarter purchasing decisions that reduce software costs. The company’s improved internal licensing procedure reduces costs because no unnecessary expenditures are made for double licenses or superfluous program packages. Administrative costs associated with software purchasing are also lowered. Software Asset Management uses a value-oriented process, which means that the company’s use is determined and quantified as much as possible before purchasing licenses and implementing software. The central procurement office at RAFI Eltec reports the purchase of new products to Microsoft once a year and receives a statement that includes a detailed software purchase history. This greater efficiency reduces the administrative expense tremendously. “We cut administrative expenses for client-server operations in half after introducing central licensing management,” says Skonieczny. Improves the IT Infrastructure As a result of more efficient purchasing and licensing processes, users can benefit very quickly from new software with access to all updates, expansions, and new versions on the product’s release date. The company’s IT architecture is completely licensed and can be adapted flexibly to any changes in function or versions. RAFI Eltec used the opportunity provided by Software Asset Management and a new licensing agreement to make immediate improvements to the company’s infrastructure. “We fully exhausted the licensing program’s offering and upgraded all our systems to the latest versions,” Stiefel says. By using Microsoft partners and adapting the available licensing models to meet the company’s requirements, RAFI Eltec simplified the migration. The option to pay by installments, coupled with a specially customized leasing model, gave the company enough financial latitude to lay the foundations for a high-performance IT environment in only one month. The reduced budget pressures achieved by distributing costs over three years has motivated the IT managers at RAFI Eltec to invest in further consolidation of the IT infrastructure. “Easy access to the latest technology and improved cost control are an invaluable addition,” Stiefel says. In the future, the software inventory will be reviewed every year and compared with the documented inventory. Using this procedure, RAFI Eltec will not only make sure that it has the correct licenses but also be able to better recognize ways to save money. For More Information For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 4269400. In Canada, call the Microsoft Canada Information Centre at (877) 5682495. Customers who are deaf or hard-ofhearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com Microsoft Software Asset Management Software Asset Management (SAM) is a program to help optimize your technology investment. Software is an asset, and knowing what you have, acquiring only what you need, and establishing current and ongoing policies and procedures to track and maintain software are critical functions of any organization. For additional information, including free tools and resources, visit: www.microsoft.com/sam For more information about KUMAtronik Systemhaus products and services, call (49) (0) 7544 966-236 or visit the Web site at: www.kumatronik.de For more information about DATALOG Software products and services, visit the Web site at: www.datalog.de For more information about RAFI Eltec products and services, call (49) (0) 7551 8000-0 or visit the Web site at: www.rafi-eltec.de Software and Services This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Document published July 2007 Microsoft Server Product Portfolio − Windows Server 2003 Standard Edition − Microsoft SQL Server 2000 Partners KUMAtronik Systemhaus DATALOG Software