MathWorks Licenses: Cost Reduction Strategy

As your business expands, the demand for MathWorks licenses would inevitably increase. It would be imperative to ensure that you get the most of your entitlements and optimize costs as much as possible.

Visibility and Efficiency #

Visibility is the foundation for cost reduction. It is crucial that all entitlements are tracked regardless of license type and where they are installed. Out of licenses purchased, how many are installed? Out of those installed, how many are used efficiently and how many are left idle or unused? License usage should be visible at all times.

Cost Reduction Strategy for MathWorks Licenses #

There are four major areas where savings could come from.

Right-Sizing #

Right-sizing is making sure that the number of available MathWorks licenses matches the licensing demands. Over-licensing or going above the needs could result in unused licenses and wasted resources. Under-licensing or going below the needs, on the other hand, could result in excessive denials and loss of productivity. There should be just enough licenses to serve the user community, with enough flexibility to go up or down, depending on the need, without breaking the software budget or sacrificing productivity.

Consolidation #

Through effective software usage metering, it would be easy to spot which MathWorks licenses have zero distinct users since their date of purchase. And unless these licenses were given for free, it would be best to stop paying for them to save some money for licenses that you actually need and use.

Drilling down into the toolbox usage of all users, it should also be easy to spot which licenses are being sparsely used sometimes. If there are many users that use the toolbox infrequently, you may decide to purchase them a number of concurrent licenses based on the maximum concurrent usage of such licenses. Although concurrent licenses are more expensive than named user licenses, a few concurrent licenses used efficiently would be much cheaper than a hundred named user licenses that are barely used.

Concurrent licenses could further be reduced through license efficiency and impact analysis. A license efficiency chart could show you how many licenses are needed to cover 99% or 95% of the time. You may then run an impact analysis to see possible wait times or loss of productivity due to license denials if you are to reduce the number of licenses to cover only 99% or 95% of the time. If you are comfortable with that, then you may further reduce the number of licenses in your license pool and potentially save a lot of money.

Once you have the right number of licenses, then it becomes more important to have a system of continuous monitoring in place because a slight misuse, i.e., a bit of license camping or hogging, could spell denials and loss of productivity for other users. A tool for real-time monitoring would be very helpful to spot potential issues before they become major problems. With real-time data, you could also take advantage of proactive alerts that would provide automatic notifications of potential misuse based on thresholds that you set. Automatic harvesting of idle licenses is also an option to ensure that licenses are used efficiently.

Just in Time #

It would be best to defer software license purchases when it is actually needed. Find out first if the current MathWorks licenses are being used efficiently and purchase additional licenses only when the current licenses are already maxed out. Take advantage of flexible licensing agreements whenever possible. If feasible, try pay-per-use licenses or short-term subscriptions for short-term projects or temporary increase in demand.

User Involvement #

Like many initiatives, software cost optimization will work much better if you get the buy-in of the user community. Proactive alerts, for instance, can be sent to individual users who may have failed to check in their licenses for a long time or who may have checked out multiple licenses. If you have their full cooperation, they will immediately realize their mistake and make appropriate adjustments to ensure that they are efficiently using each of the licenses. This is especially helpful to reduce costs spent for MathWorks’ prorated user licenses.

Another way in which user involvement would be crucial is for chargeback. Aside from distributing the software licensing costs to business units, chargeback can be used to drive user behavior as well. With a solution like Open iT Chargeback that allows you to have flexible metrics, you can, for instance, choose to implement chargeback based on maximum concurrent licenses per group so that if they use more licenses than they are allowed for a given time, they will have to pay more. Other metrics or models could be also used depending on what user behavior you want to drive.

Giving users an idea on how much different licenses cost may instigate more user involvement in the process. This level of transparency allows users to decide for themselves if their license usage is justifiable and makes good business sense. With this information, users can help management decide which licenses they need and what type of licensing method best fits them based on their actual usage.

Conclusion #

With the right tool and an effective cost reduction strategy, maximizing your software licenses should be easy.

Consult with our experts to better understand your MathWorks license position and the different ways you could optimize your license usage.

See our complete webinar to learn more about MathWorks licenses and how to optimize in any licensing model.

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