“With Open iT we were able to evaluate and experiment with different chargeback methods. Open iT lets us run simulations on usage data to see how the changes in the chargeback fees will affect the various agreements in order to introduce a fair system for everyone.”
Projektengagemang AB is one of Europe’s fastest growing engineering firms, present in more than 30 locations. They provide consulting services and solutions for a variety of companies in the fields of oil & gas, energy, construction, design and others that rely heavily on PLM and G&G applications to support their production activities.
To stay lean and competitive, Projektengagemang wants to make sure they are using their significant software investments efficiently, and to have a correct picture of actual software usage. To accurately assess the needs and spending of each of its multiple subsidiaries around the globe, Projektengagemang chose Open iT® software. Read on to see how Projektengagemang AB improved its software cost-allocation processes and effectively facilitated an accurate chargeback system with reports from Open iT LicenseAnalyzer™.
This Stockholm-based company has been in the engineering business for many years, primarily serving the areas of architecture, construction, electrical and telecommunications engineering, HVAC and sanitation systems, energy, infrastructure and project management. The IT department is responsible for delivering software solutions to its 38 subsidiaries, mainly products from Autodesk, Solidworks and other 3D/production applications.
As is true for many companies, managing software costs had been a challenge for Projektengagemang AB. It used to count the number of users of each application from each subsidiary and then summarize the gathered information. The companies would then split the cost according to the number of users per software license. This process caused some subsidiary companies that were using the application for only 3 to 4 hours a week to pay the same as a subsidiary that was using the application for as much as 8 hours a day. The need for a fair cost allocation process compelled Projektengagemang AB to look for a software metering solution that would facilitate a fair chargeback process, and accurately charge each subsidiary company based on actual application usage.
After evaluating other software metering solutions, Projektengagemang AB decided to acquire the Open iT platform. The LicenseAnalyzer module was installed together with Base Enterprise, which includes SQL Analysis Services and MS Reporting Services.
The initial installation has since been expanded to 10 license servers around Sweden, and provides reports on 15 applications. Projektengagemang AB has now streamlined its cost allocation process by producing chargeback invoices that are itemized by user and cost center, delivered quarterly to each subsidiary company. “I liked the Open iT user interface. It is intuitive to work with and no training class is needed.”, said Jörgen Strömberg, IT Manager Projektengagemang AB. “Invoices specify the applications being used by each user and provide accurate information on the hourly cost of the application, and the number of hours that the application has been in active use. With Open iT we were able to evaluate and experiment with different chargeback methods. Open iT lets us run simulations on usage data to see how the changes in the chargeback fees will affect the various agreements in order to introduce a fair system for everyone.”
After implementing Open iT software metering solutions, Projektengagemeng AB learned that some of its subsidiary companies had been undercharged because they actually had more application user time than what was initially thought. With accurate software metering in place, they can now carry out a fair and effective chargeback process based on true usage. The companies have become aware of the actual costs of their software usage and can now establish an action plan in advance in order to effectively manage their resources. This also allows them to review annually their chargeback criteria, and they are now considering introducing an access fee for a certain percentage of the total costs to even out the expenses for each department.
Open iT helps us create accountability in IT in a way that we never had before
Jörgen Strömberg, IT Manager Projektengagemang AB
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