Executive Summary
The Sr. Sourcing Manager from a leading national retailer sought help from LicenseFortress to address significant licensing challenges ahead of its Microsoft renewal with a complex IT infrastructure that ranged from supply chain management to point-of-sale (POS) systems. LicenseFortress conducted a thorough audit, uncovering issues with VDI setups, Office 365 inefficiencies, and outdated Windows Server licenses. LicenseFortress saved the retailer nearly $4 million in potential penalties and enhanced their operational efficiency, showcasing the value of proactive compliance and expert guidance in complex licensing scenarios.
$35K
Project Cost
$4M
Savings
11.3K%
ROI
Challenges
In the digital age, ensuring that software licensing adheres to legal and organizational standards has become paramount for businesses of all sizes. However, the complexity of software infrastructure, especially within large corporations, often leads to inadvertent oversights and inefficiencies that can result in substantial financial and legal consequences.
At a Glance
Office Productivity Suites
During their detailed investigation, LicenseFortress found that the retailer was inadvertently infringing on Microsoft’s Office licenses due to their complicated Virtual Desktop Infrastructure (VDI). Frequently, this is an issue amongst large organizations. VDI setups are often intricate, often leading to an oversight in licensing requirements. In this specific case, the failure to comply could have resulted in legal fees and penalties estimated to be around $2 million. Notably, according to a 2019 study, about 30% of corporations with VDI setups have experienced similar challenges.
Office 365
The retailer’s Office 365 licensing, although abundant, was inefficiently used. A gap between allocated and actual usage was hemorrhaging money, a problem quite prevalent in organizations with more than a thousand employees. Fortunately, LicenseFortress identified that by optimizing these licenses, the retailer could save around $300,000 annually. Industry data reveals that approximately 35% of businesses with expansive workforce sizes face similar inefficiencies, potentially costing them millions annually.
Individual Office Applications
Instances of misuse concerning standalone applications like InfoPath and Access were highlighted. Such infringements, common across approximately 25% of large-scale enterprises, could have culminated in a hefty $400,000 penalty for the retailer.
Windows Server Environment
With the retail market’s fast-paced nature, it’s unsurprising that their Windows Server environment displayed outdated Client Access Licenses (CALs). Industry insights suggest that 40% of rapidly growing businesses experience such oversights, risking potential fines – in the retailer’s case, around $1.2 million.
Solution
In today’s multifaceted digital landscape, ensuring complete software license compliance is no trivial feat. The intricate and dynamic nature of IT infrastructures, especially for large-scale retailers, demands tailored solutions that not only address immediate compliance issues but also optimize operational efficiency and financial outlay. LicenseFortress meticulously crafted a suite of solutions that had a singular aim: to fortify the retailer’s licensing strategy.
LicenseFortress’ comprehensive audit reviewed all the Microsoft products under the retailer’s existing Enterprise Agreement (EA) and Server Cloud Enrollment Agreement (SCE), purposely leaving out Azure costs. Specific metrics were scrutinized, encompassing over 25,000 desktops and around 4,500 servers, active within the last 45 days.
Office Productivity Suites
A complete overhaul of the VDI setup was promptly recommended, focusing on proper licensing to avoid the estimated $2 million in penalties.
Office 365
LicenseFortress advised real-time monitoring of their Microsoft compliance with the ArxPlatform to keep tabs on active vs. allocated licenses, providing a potential saving of about $300,000 per annum.
Individual Office Applications
By consolidating standalone apps like InfoPath and Access into complete Office installations, the retailer avoided approximately $400,000 in penalties.
Windows Server Environment
An immediate upgrade of the CALs for Windows Servers was advised, saving an estimated $1.2 million in compliance penalties.
Notably, the retailer not only sidestepped potential legal and financial quagmires but also elevated their operational efficiency to new heights. In conclusion, these insights serve as a guiding light for businesses navigating the intricate waters of software licensing.
Results
Licensing can be tough, especially for large companies. When this retailer faced big challenges with its Microsoft renewal, LicenseFortress stepped in to help. Together, they not only avoided a huge $4 million fine but also made the company’s operations smoother and more efficient. This story shows with the right help and a proactive approach, businesses can solve licensing issues and come out stronger. It’s a win not just in saving money but also in working smarter.
