1st Annual Summit on CloudDelivered Software:
Emerging Licensing Trends and
Best Practices for Community
Colleges
January 21 - 22, 2010
Charles A. Coleman, Jr., Ph.D.
Co-Host
Senior Practice Strategist
Higher Education
SAS Institute
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“ You can’t there from here. . . .”
The emergence of Consortium-based
licensing results from a convergence
of
(“It’s the Internet, Stupid.”Bill Clinton)
SaaS
ASP
SOA
Distributed Computing Paradigms
Broadband & Distance Learning
Dynamically provisioned services
Private/Public Cloud-based Delivery
Results in the
Demand and Supply: The Vendor
Conundrum
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Where are we? . . . Commercial vs Academic
Software Vendor Licensing Police
NCSU
Wells
Fargo
GM
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VT
UCLA
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PROVEN UNIVERSITY-WIDE COMPUTING
PARADIGM:
Centralized Management of Distributed Computing
COMPUTING
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Decentralized Centralized
MANAGEMENT
Centralized
Too Costly
Not Scalable
Weird
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Distributed
Computing
“Sweet Spot”
Chaos
Now. Introduce the Role
of Governance.
Q: What is Governance
on Campuses and How
Does it Impact Licensing?
A: Diver’s Licensing
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Data Quality/Data Governance Discussion
 Data Governance
• What is data governance, and how does it relate to data
quality?
• Goals for Data Governance
− Enable better decision-making
− Reduce operational friction
− Consolidate Software Licensing
− Build standard, repeatable processes
− Reduce costs/increase effectiveness through
coordination
− Ensure transparency of processes
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CCCAC TOPIC: GOVERNANCE
From The Chronicle of Higher Ed, July 23, 2009
Exactly What Is ‘Shared
Governance’?
Click on link below:
http://chronicle.com/article/Exactly-What-Is-Shared-Gov/47065/
By Gary A. Olson
Provost and Vice President
Idaho State University
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Collision or Convergence? It’s all about the
Vocabulary!

Internet

Broadband

Social Networking

Cloud Computing

ASP

SaaS

Grid

HPC

SLA

Virtualization

Objects

Licensing

Commoditization

Collaboration

Cost-Benefit

Overhead

Governance

Master Data Management
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Software At Odds: Missions and Mandates in Conflict
Vendors
 Margin
Campuses
 Quality
 Revenue
 Value in the classroom
 Profit
 Access & Availability
 Market Share
 Ease-of-Use
 Mind Share
 Low Maintenance &
Overhead
 Marketing and
Advertising
 Low Cost
 Use
 Minimal Support costs
 Control
 Simple, Flexible
Licensing
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But Licensing . . . ? Problem or Soultion?
 Licensed to a CPU, an appliance or server
 To an End User(s)
 To an Entity
 To or through an Application (e.g. OEM)
 To a Services Provider and/or VAR
 To a Means of Distribution . . . . (e.g. extranet)
 To an Environment (cancer marker research)
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Licensing in Flux . . .
 Concurrent Use
 Unlimited use—”all you can eat”—Red Lobster/Golden
Coral License
 Shared with like entities (e.g. departments)
 Consortium-Base (multiple institutions)
 Use-based (software “leash law”)
 (The “old” Groupworks or ShareWare)
 Collaborative/ Teaching vs Research (T&R co-licensed to
instructors, PIs, and researchers)
 Utility Computing and Licensing (metered used)
 Grant-based (one project, one license, one term)
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It's time for seat-based software licensing to end
25-Mar-2009 -- Kas Thomas, Analyst
Economic downturns tend to accelerate change in the IT world: People with budgetary authority
find themselves taking a fresh look at what they're spending money on, how and whether IT
investments are paying off, why bad investments are not paying off, and what to do differently
going forward.
Given the situation we're in, now might be as good a time as any for potential buyers of
software systems -- and licensees whose contract renewals are coming up -- to declare war
on per-seat pricing.
Seat-based pricing has been declining in popularity for some time (everyone I know hates it),
but like a weed growing out of a crack in the sidewalk, it never seems to go away entirely. In
theory, per-user pricing is rational because it allows costs to scale in a predictable (and
fair) fashion, according to an organization's size. But in reality, there are many problems with
the "headcount equals usage" notion, the most obvious being that if nine people touch
the system once a month and one person uses it eight hours a day, seven days a week, you
still need 10 seat-licenses even though nine out of ten users are offline at any given time.
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Another popular scheme is the "named user" approach. Here, the vendor
requires you to list the names (and quite often the roles) of each and every
person and process that will access the system in question. But questions
arise: What if User A changes roles (or leaves the company)? If a whole
department is laid off, will you get reimbursed for unused licenses? Are
licenses transferable across departments -- or geos? Even if you can abide
the basic terms, named-user licensing tends to be a compliance
nightmare -- especially for large organizations, where administering partially
overlapping license pools for dozens or hundreds of users and products can
be hideously time-consuming, even when the process is semi-automated.
In general, seat-based licensing is burdensome, complex, and
difficult to manage. It also encourages overbuying. One
wonders: Why does it still exist?
OK. WHY? . . . . Discussion, please .
...
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With Virtualization Comes New . . .
 Image-based licensing?
 Cluster or “Pallet-based” (drag and drop images
you need in order to create a custom computing
suite of OS, apps, code, etc.)
 Open Source-to-Proprietary “bridge” licensing
(API Facilitators—Could be built on the iPhone
Model.)
 Image “time/use sharing” across multiple owners
and image generators (like the VCL as an image
“factory
”
 But, ultimately . . . .
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Model: Motel-Based Licensing –The Foundation for
Consortium-Based Licensing
 “Rooms” (partitioned blades) are pre-furnished
with generic images, apps, etc. Users “check in”
and use the room on a lease basis, (plus “room
service”) = low-budget, (one-night stand)
personal cloud.

.
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Model: Motel-Based Licensing–The Foundation for
Consortium-Based Licensing
 Other rooms are more lavish, and have preconfigured images at-the-ready and are
provisioned dynamically by the motel’s
image/software “room service” depot. These are
in steady-state, private “rooms” and always
ready for your “occupancy” and use. Your
configs remain “static” until re-activated or
modified by you = state-room cloud.
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Model: Motel-Based Licensing–The Foundation for
Consortium-Based Licensing
 Other floors are completely “wired” with multiple
rooms for your use and the use of others as
allowed by you. These are fully-customized ondemand lavish work environments populated
with your images, HPC and GRID platform and
access. You write your own sub-lease for others
to “use” your cluster of rooms = custom condo
cloud.
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Open Source and Proprietary Software in Cloud
Computing
 Peaceful co-existence
 Proprietary vendors need to provide “bridge” mechanisms
and new licensing provisions for users to shuttle
seamlessly between OPS and PS
 API code libraries and Open Access to and from PS
software is a good starting point; &/or “open” some low end
apps
 Consortium and project-based licensing models will be “a
must” if proprietary vendors want to leverage the OPS
marketing opportunity (“try it—you’ll like it” upgrade to
PRO)
 Drag and drop “write your own” licenses
 Vendors must come up with a “creative commons” type
universal platformCompany
licensing
agreement (“boiler plate”)
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HPC ON-CAMPUS CLOUD COMPUTING PLATFORM
HighDensity Use
Each of the colored circles represent virtualized images of SAS software, competitors’
software and Open Source software currently being used in a typical university
setting that has adopted a centrally-hosted management implementation of a shared
(distributed) computing environment in which users (teachers and students) “call”
applications, tools, operating systems and “raw” onto bare metal in a tightly controlled
and regulated partitioned-blade HPC environment in an ad hoc manner for teaching
and learning. The partitioned blades are either accessed via previous. The colored
circle represent “images” or “objects.
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“Why Can’t We All Get Along. . . .”
Rodney King
= SAS “high-end” solutions, or “A” product line. Image creation is more complex, use more
sophisticated, and cost is higher to the University both in terms to LEASE from SAS and to operate
on the University computing platform.
= SAS “medium-end” solutions, or “B” product line. Image creation is less complex, easier to run and
use, and less cost to LEASE and less overhead of the University to host and maintain.
= SAS “commodity” tools, or “D” product line. Image creation is even simpler, easier to run and use,
and less cost to LEASE and less overhead of the University to host and maintain. These tools are
FREE for ANY PROFESSOR or STUDENT to use at no cost, provided that they have the Master
License in place. These might be GRAPH, for example. They are NOT open-sourced but are free in
this licensing and lease agreement context.
= Competitor’s software
= Open Source Software
.
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Fractional Licensing—Shared Ownership?
NETJETS FRACTIONAL AIRCRAFT OWNERSHIP
In 1986, NetJets pioneered the concept of fractional aircraft ownership.
Today, NetJets is the worldwide leader with the most Owners, the largest
fleet, and the most experience. With NetJets Fractional Aircraft Ownership,
you gain all the convenience, access, and time advantages of owning
a whole aircraft but at a fraction of the cost and without any of the
responsibilities. NetJets hires the pilots, maintains the planes, attends to
the logistics, and ensures your safety. To oversee your needs on every
flight, a dedicated Owner Services Team is assigned to you. And we back
up your investment with the financial strength of Berkshire Hathaway.
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Licensing and Provisioning for Community
Colleges in Virtualized Cloud Computing
Environments—Standing Committee
 Create a proprietary vendor “task force” to meet and convene
around these issues (SAS, IBM, Maple, etc.)
 Solicit a volunteer committee of NC Community College
administrators, faculty, IT and technical professionals for input and
guidance
 Representation of members and technical staff of NC State’s VCL
 Establish a NC Community College Governance Board to insure
compliance and uniformity of policy and process implementation as
we move forward
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