História do cliente | Como a Maersk Oil (agora Total) gere proactivamente os seus activos de software

[0:00] Lynn: Welcome, everyone, to the ITAM Open iT webinar, Projects SLOE, Software License Optimization and Entitlement at Maersk. My name is Lynn Weiss, and I am going to be your host for today. And I have with me Klaus Moeller, who is the Simplification Specialist at Maersk Oil.

[0:26] For over 17 years, he has been passionate with the evolution and refinement of global portfolio management of technical applications and IT support services for subsurface disciplines in Maersk Oil, thus enabling staff to operate their business in an efficient and effective operational environment. He holds an MSc in Computer Science and Engineering, Mathematics and Computer Science from the Technical University of Denmark, and he has previously worked with GE Capital and Eric Venn Incorporated. So before we get things moving, I want to let everyone know that their mics are muted, and if you have any questions, please type them into the chat window. So to get things moving, I am going to turn the microphone over to Klaus.

[1:22] Klaus: Hello, everybody. My name is Klaus Müller. I’m going to present the project SLO, as we call it in Maersk, and it is Software License Optimization and Entitlement.

[1:34] If you go to the next page, it should be a short introduction about myself. There is the agenda, but the next page again is a short introduction. Myself, I’m a global simplification specialist. I have optimized the processes within the business. I know which application is in each processes and how the data are moving from each process to the next process within our business. And it’s these application and data moves that we have specialized ourselves in to optimize for our. Go on to the next slide.

[2:25] Our project had some drivers to kick in this project. And of course, it was the downturn in the oil industry that set the low oil price. We are a mid-sized oil company, so we have no influence in how the oil prices are effecting on the market.

[2:46] So our company went in and need to focus on being cost competitive so we have to lower our production price on a barrel of oil so that led to that we had to have a new license agreement together with Schlumberger the old license agreement is the old way of purchasing license and then paying the early maintenance fee in order to keep up with the version that the vendor releases every year. And of course we had to increase our maturity level on how we are managing and administrating all our technical licenses. Go to the next page.

[3:33] The oil price had a dramatically drop from June 2014 down to January 2016 and there was actually no end to how low the bottom would be. It was a drop from $110 per barrel to $30 per barrel. Price dropped on almost 72%.

[3:59] I know that recently it has climbed up again. It’s around $60 at the moment. But our project was launched in this period of time where the oil price has a very heavy drop from the sky.

[4:19] On the next slide, you can see that we are operating mostly in the UK sector. So our cost per barrel of oil is almost, it is $44 per barrel. So when the oil price was down in 30, we had a huge task ahead of us in order to make our company more cost competitive. Focus on all area where we can lower the cost. Of course also on the license area and domain.

[5:02] Next slide. Our new license agreement together with Schlumberger focusing on three major pillars and that is we need to have global licenses so we can have this following the SON principle and where it’s a peak demand in one area, one business unit that maybe has a lower demand on the license in another. So the license freely could move between the offices.

[5:33] And then we have to have a significant lower cost and we will only pay for what we’re using. So we actually pay per business hour that we are using.

[5:50] Also, all the features beneath all the core licenses should be enabled for all our licenses. So for those of you who know what Petrel is, there’s a core license, a base license, and then there’s 30 or 35 features beneath it. And we saw before this new license model is that we have enough base license, but maybe not enough seismic well-tie modules beneath it. So all of a sudden we have denials on Petrel licenses because everybody needed this special function seismic well-tie.

[6:36] On top of these three core pillars, we need a new monitoring system, new monitoring tools, and we went out to the market and try to find what was best for our needs we had a monitoring tool before it was like Sarah it is very good to administrative all your licenses but when it comes to report and analyzing all the data you gain from this tool it was not so strong so we went into the market and with a new set of requirements and trying to find a new monitoring tool for licenses. Next slide.

[7:21] We also needed to have a stronger maturity model. This is from Gartner. You can also find it on Open iT’s website. Before we launched the project, we were in a measure where on these four steps we as a company was and we found ourselves maybe on step one not quite on step one but close to being step one with this project our aim is to be a strong number four or strong on the fourth step in this maturity model so we can understand how the applications are used on the desktop and we have a higher data analytic approach and we can understand how all the licenses are utilized and truly used on the desktops.

[8:25] This is a view of how Open iT has organized their software and what is highlighted in colors. That is the ones that we are focusing on. We have the LicenseAnalyzer™, we have the application tracker, and we have the license optimizer. You can see the orange is the CLIMBS module that Open iT has almost got ready, and that is how you can administratively manage your license through the Open iT portal. You cannot do that today, so that is a manual task outside Open iT.

[9:14] Flexera are strong in this area, but not strong in the other areas. So we selected Open iT and said that we could leave that the CLIMBS model will be available at a later stage. Next slide.

[9:34] Before we started, we produced a heat map over how the licenses in one of our most expensive product, Petrel, was used throughout our organization. Just not to go into too much of the details, more look at colors and how heated this map are. Then we introduce the license optimizer and the license optimizer will go in and analyze how are the users actually using the application. If the application we have set it to half an hour on 10 different parameters, small stroke, keystrokes, are the program doing something, saving, reading, has it spawned another process and waiting for data transfer for something completely different.

[10:32] If these values are below a certain threshold, it will hibernate the application for the user and free up the license. Because we went into this license agreement that we would pay per hour that we are using our applications. This is before picture and the next slide will show after picture.

[11:02] This is the picture after we implemented license optimizer and as you can see all the red colors are more into the business hours and you can clearly see where the weekends begin and end and you can see that outside hours it is not that many licenses in use.

[11:29] That 35% difference between the first picture and this picture in dollars, it is roughly $2.2 million in yearly maintenance fee. That is the difference in between these two pictures. So here we have on one product clearly gain a lot of value from Open iT and this module here that is presented is the license optimizer.

[12:06] You will never be finished reading of numbers if you really are going to look into all the numbers because you can see at the 3rd of August at one hour to midnight there is 11 licenses checked out. If you check the 4th of August, you can see the 13 licenses checked out. So someone has checked two licenses out at midnight. So we went in to analyze why was this behavior like this, and we found out there was an automated script and some server that was checking licenses out in order to do some analytics on the Petrel project themselves.

[12:54] So we went in and optimized that one, so it is not checking licenses out, at least not to anyone. Also something you can use. What is also more notable, the other picture you saw before, it was 130 licenses in max available, now we’re down to 85 license marks available. So this is also a mean. So if you don’t have a pay-per-use license scheme, you can still use the optimizer and still gain benefit from it because it can save around 20% of a license pool. And I will come back to that and how we did that in other areas. If you take the next slide.

[13:51] One thing that the Open iT also can bring is it can create a user profile on each application. And here is a RockDoc. And the RockDoc is used for geoscientists and geologists. And we can see that the profile for this project matches what we thought about this application and falls under that. It is used where we think it is used in the business. Press one slide forward.

[14:28] Here’s another example. It is a 2D Move, a 4D Move from Midland Valley. And we can see there is something that is not how it should be. It is a product used by geologists, but all of a sudden we have external consultants using the product most of the time.

[14:52] And we went in to analyze what is, why is this behavior on this product? And we found out that our help desk in India, they launched a program through C-Tricks and they closed C-Tricks down, but C-Tricks never released the license itself. So we have went in and make sure that as soon as you close the C-Tricks connection to Audimove, it will also release the license.

[15:26] The help desk should have the ability to go in and help people and start the program itself, just that this C-Tricks connection should immediately close off the license if they close off the C-Tricks connection.

[15:43] It’s also a mean or a helpful method to go in and see how your projects are used are they used in the right areas fixing the small errors that might be in tuning up the licenses and next picture in order to use these user profiling that means that we have done a high level process and software mapping so we know all our software and how they are mapped into the business and in which area of the business our software are used and who are the users are is it geologists reservoir engineers or geoscientists it’s a comprehensive work but with the software mapping has benefited us so many times so the payback on these maps are tremendous.

[16:44] Next slide. This is another report I’ve taken from Open iT for the presentation today. It can analyze a lot of local servers, if you have distributed local servers in your company, and it can take all this in this example is three. You can take all three and compress all the time zones scale so they will match and then you can make a graph similar to this saying that, okay, if you have one global license service, you can settle with six license instead of the eight local license that you have. On top of this analysis we did on this particular example, we also, on the next picture, used something called Efficiency Chart.

[17:46] So we can go to that one. The Efficiency Chart will go in and look at how are the licenses used for how much of a time spent is it used. On the other picture, you saw there were six licenses max, but in this picture, you can see six licenses are used so rarely, only 1.6% of the time.

[18:14] And to the very left, you can see that it’s a lot of time where there is no license in use. So we operate with something we call this 5% rule. We got the business to agree that if a license are not used more than 5%, we will discontinue the license and do the saving.

[18:37] Open iT can also come up with a report telling what is the saving on if you apply the 5% rule. And in this example, you can cut away three licenses, go down to five, and the saving will be 72,000 US dollars. These 72,000 US dollars we use those to uplift the remaining five licenses to global licenses so in the first year we didn’t have any savings but they will come in year two three and all because then our investment will be paid back as such.

[19:27] If you have typed in all the units cost for all your licenses, this report will of course be a lot longer. But that is a report that we use a lot to go in and find our savings and where the possibility they rely on. Next page.

[19:54] Open iT comes with a lot of dashboards, but we found that the Excel dashboards are one of the best dashboards that you can have. You can customize this so it fits your needs. It can be on the left side selection criteria and all the graphs will change independently of what you select on the left hand side.

[20:24] The Excel dashboard is connected directly into the database, so what you are looking at, at your Excel dashboard is the live data, as live as they can get. I think there is one day of delay on the data from the SQL into the cubes. Open iT operates with cubes. But it is never I did Excel because as soon as you open it, it will refresh the data so we can look at and see the trends, the max, the denials, the utilization as you wish to have it. And this is just an example of one of the first Excel dashboards that we created. Next slide.

[21:26] Open iT comes with a standard dashboard on just use your Internet Explorer. You connect to Open iT, you can set up a dashboard selecting a few criteria and you have a more simple dashboard than the Excel dashboard. We also use the Internet Explorer version, but not extensively for data analysis, as we use the Excel dashboard.

[22:04] Next slide. The cost benefit of the entire project was, of course, that Open iT cost something. The project, it was the implementation and we bought of course some license to operate Open iT and we just called that X. Our existing solution was FlexNet Manager and we discontinued that so of course there was a saving on that maintenance and support but around 20% of what we invested in Open iT.

[22:52] And then we did a lot of minor application savings from all the reports that we made and all the analysis and we saved a 85 percent of the investment we did it’s already here that we have a five percent bonus on the investment we did in Open iT in the new Schlumberger license agreement was really the one that we had aimed for and surprisingly it has saved over 2000% of our investment in Open iT.

[23:30] So a net benefit of 2100% of the investment we did in Open iT. So if you take 200,000 and put that in an X place, you can multiply 200,000 US dollars with 21 and you got a ballpark figure of what we saved the first year on maintenance and support by having Open iT as a tool to do all the analysis.

[24:10] Next page. Lesson learned is that if you invest in Open iT, and underestimate the time and effort needed for analyzing the data after your project are finished. Open iT will not give the company any benefit.

[24:28] Open iT can give you some data and some report. Someone has to sit and do the analysis and take the decision upon. We had an example from Houston back in 2019. They purchased some license to Open iT, they installed it and did nothing about it. Of course Open iT cannot save you the money, it can provide the foundation for your decision.

[25:01] One thing to be aware of is of course local worker unions can have different rules. Open iT are going to monitor a user’s behavior and how they work on applications and in some countries you need to have a permit from the worker union and also have described that we are not monitoring what they are typing in, we are just monitoring if they are typing something.

[25:37] Otherwise there could be some lawsuit against this and especially in Norway we experienced that we need to have approval from the worker union. It was not a problem to get it, you just need to have it in some countries.

[25:53] It is always wise to have a managed service with the vendor. We created a maintenance service with Open iT, so every month they will go in and check our system, check the databases, everything is running as it should be. Is there room enough here? Is the log file area space getting filled up? And they create a report and say this is the state of your system at the moment. Here is some recommendation to do in the future. Upgrading clients, whatever. Upgrading your SQL server because this new release is coming.

[26:44] In our case we found out that the business senior management shall be a part of this decision that it is a change for how the users are working. All of a sudden there is something from the IT department popping up on your screen and saying now you are not working in Petrel for 30 minutes, I will suspend it for a period of time until you resume it.

[27:12] In our case, it was the senior business management that did all the communications. Otherwise, it will end up in this discussion with the users that now, again, the IT department do something that we do not understand. I think the last slide will be next. We had a steering committee. We just do now. We had a steering committee that was guiding the project and as an IT organization we just did a guidance to this steering committee that consisted of senior business leaders. They did all the information down to the discipline leads and the IT department was advisor for these discipline leads that communicated down to all the team. We held knowledge session as the IT department to this team and the team did the information down to the end users and the IT department did the support of the users. We rolled our Open iT license optimizer and application tracker out to 600 users.

[28:36] I think today we have overall in this year, it has been running half the issue with three installations or four installations. But a very low percentage of the users had an issue with this. When you introduce a license optimizer where it has to go in to check all these parameters, there’s a lot of fine tuning and we found out we can never set it 100% correctly, so we would only suspend a user if the user is not using the program. There will always be something, cases where the users are using the program, but the optimizer cannot see it.

[29:21] But Open iT has an exception feature, so we can accept this user from suspension. So we did that to overcome this issue we had. But we didn’t have many. I think it was the last slide.

[29:43] Lynn: It was not. There was one more. Klaus, that was the last slide. So this is yeah this is the information slide of course we’ve got questions that have come up here are you ready for them.

[30:02] Klaus: Of course.

[30:02] Lynn: First question was how long did the implementation take and the transfer from one system to another.

[30:10] Klaus: The old system we just scratched and they did not keep anything of valuable information to the next system. So we said that we are having a new license model from Schlumberger that will start the 1st of January in 2017. The implementation phase did not take that long the project phase took a lot longer because we have a comprehensive project process in Maersk and if you take all the contract signing or the agreement the vendor selections the requirements has to be sent out to three windows and we have to get offers from all of them we have to answer questions back and forth for all these vendors to come. The implementation part when we selected Open iT took two months. That will include testing. The reason why it takes a bit longer for the testing period is because Open iT needs some data to test on. So you need to implement something to the users and then start to get data back and then you can see if all the reports are correct. How the defaults are reacting. So I’d say two months in implementation and testing.

[32:00] Lynn: Okay. All right, great. One comment here was interesting work. Did you also measure denials and specifically length of denials?

[32:14] Klaus: Yes, we do that. We have four reports that is focusing on denials. They’re focusing on why the denial occur. It can be many reasons for it. It can be simple that we do not have more licenses. Or it could be that there is no more licenses, but those that are taken, there is one person that has checked two or four licenses out by mistake. And so forth. All the denials, we went and looked at why that happened. We have implemented on both of these denials scenarios we had. We have implemented license optimizer. License optimizer has freed up 20% of the licenses. And in four cases, we are not seeing the denials after we have implemented that. In two cases, it was truly denied because the demand of the user has increased and we have purchased more licenses. So that is an area that we monitor weekly.

[33:33] Lynn: Okay. Another question is, how does Open iT group computers? Is it via Active Directory groups or some other means?

[33:45] Klaus: It is through Active Directory. Open iT can connect to a lot of information sources. Active Directory is one of them. SAP HI is another one. We have all our information through Active Directory, even the user’s information. Open iT can also interact with a lot of other systems, so we have created a link between Open iT and ServiceNow.

[34:19] Lynn: Okay, speaking of integration, another question on that topic. Does Maersk have CMDB and do they integrate the configuration management database with Open iT?

[34:35] Klaus: Yes, we are using ServiceNow as CMDB and we integrate together with Open iT and ServiceNow. Open iT has created a connector between these two. It is just an export and import, but it is automated. And every report that you have, you can export that report into whatever file format you wish to have it. And of course, CSV files is the best link between two systems.

[35:14] Lynn: Okay, one of the last questions that we have here is, can you give us an idea of how Open iT is different from the previous solution you had? A couple of items that would demonstrate how it is so much more of benefit to the Maersk organization.

[35:44] Klaus: Open iT, there’s a lot of solutions in the market. We found that Open iT was the best to create the reports and do this cubing of data. So you can get the reports that you as a company need to look at and get the benefit from these reports and you can actually set it up any way you like. The previous solution could also do reports, but it was, you could not change them, you could not do anything. This is the report, it can show you how many users are logged in, it can show you how many denies, but that is actually stopped, but it could, and the other solution is very strong in administering of the licenses, so you can, from that solution, you can change your license file and it will keep the old license file and all this, that was the strong side of the other solution, but Open iT won on the report side of it.

[36:37] Lynn: Okay. I just want to let everyone know that if you have any additional questions, you can reach out to this email address, and Open iT will make sure that Klaus gets them. And I want to thank everyone for participating in today’s webinar, especially our presenter, Klaus Moeller. As I stated earlier, all remaining questions will be answered via email or else maybe they’ll give you a call. The audio recording as well as the video will be available as early as next week since it is Monday on the ITAM website. We should have it up really within just a couple of days. And Open iT will make the presentation itself available to everyone via PDF after the session. This concludes today’s presentation, everyone. Like I said, send in your questions to the webinar or the web address on the screen, or you can also send in any questions to info@ITAM.org, and we will forward those on. Thank you, everyone, for participating, and this concludes today’s session.