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Confused about
Cloud Licensing?
By Bernhard Boehler and Christof Beaupoil
Aspera GmbH

Aspera The Company
� Founded in 2000, Legal form: GmbH (LLC)
� Managing partners: Christof Beaupoil, Bernhard Boehler,
Keith Sauvant
� Further shareholders: USU Software AG (51%)
� Employees: 45
� Partners in the Netherlands, UK, Denmark, and USA
� Portfolio: Tools, Managed Services, Content, Consulting, Integration
� Customers: Fortune 500, very large, large, and medium sized organizations, government
and civil services bodies
� Excerpt of customers: adidas, BMW, Daimler, T-Mobile, Jacobs Engineering, DHL,
Volkswagen PS, Robert Bosch, ZF, Deutsche Bank, Bayer, BASF, Nokia Siemens
Networks, Siemens SEN, QVC, MAN, RWE, Orange, o2 Telefónica, Bank of England,
Alliance & Leicester, Plan International, Allianz, Atena Engineering, Phoenix Contact,
WWK, Tognum (MTU), Mercedes-AMG, Kaiser’s Tengelmann, BMVBS, Bahlsen, KRZN,
Bitzer, Bitmarck, Macquarie Bank, Gwinnett County Public School System, Denver
Water, Faegre & Benson

Confused About Cloud Licensing ?
What is the
difference between
external and internal
cloud /public and
private cloud?

The Cloud
Definition, Internal / External – Public / Private ?
“Cloud computing comes into focus only when you think about what
IT always needs: a way to increase capacity or add capabilities on
the fly without investing in new infrastructure, training new
personnel, or licensing new software.”
Public cloud / external cloud = cloud infrastructure is owned and made available to endusers
by an organization selling cloud services.
Private cloud / internal cloud = cloud infrastructure is operated solely for a company. It
may be managed by the company or a third party and may be on premise or off premise.
Cloud computing = any subscription-based, consumption-based or pay-per-use
service provided over the Internet

Confused About Cloud Licensing ?
Where are the
potential savings,
if any?

Confused About Cloud Licensing ?
“The dirty little secret is that people buy a lot more
[software] than they use, generally. Most prudent
businesses tend to overbuy because they don't want to
have to think about compliance. Vendors know there's
going to be some delta between what [customers] buy
today and what they would buy in a consumption model.
But the size of that is unknown.”
— Amy Konary, IDC's research director of software pricing, licensing and delivery

Cloud Computing Options
Infrastructure as a Service
IaaS — Provides processing, storage, networks, and other fundamental computing
resources where the end-user is able to deploy and run software, which can include
operating systems and applications.
The end-user DOES NOT control:
� Underlying infrastructure
The end-user CONTROLS:
� Operating systems
� Storage
� Deployed applications, and possibly
� Select networking components (e.g.
host firewalls)
In other words creating an internal company cloud. Only savings are
those that come from the delta between how efficient your data
centers are run vs. those that Amazon (for example) runs.
For large, well-managed traditional data centers operating at scale,
it's plausible that the savings from creating an internal cloud are
not significant.

Cloud Computing Options
Platform as a Service
PaaS — Can deploy end-user-created or acquired applications onto the provider’s cloud
infrastructure.
The end-user DOES NOT control:
� Underlying infrastructure
� Network
� Servers
� Operating systems, or
� Storage
The end-user CONTROLS:
� Deployed applications, and possibly
� Application hosting environment
configurations.
Computational power for rent. There could be significant savings
because you don’t need to take up additional data center (physical
or virtual) resources or maintain infrastructure software (database
and app servers).
� Check your license agreements before moving software to the cloud.

Cloud Computing Options
Software as a Service
SaaS — Uses the provider’s applications running on the provider’s cloud infrastructure.
The applications are accessible from various client devices through a thin client
interface such as a web browser (e.g., web-based email).
The end-user DOES NOT control:
� Underlying infrastructure
� Network
� Servers
� Operating systems
� Storage, or
� Individual application capabilities
High saving potential since you get all the benefits of PaaS, plus,
since you’re not purchasing a license, but instead renting it, you’re
freed from 22% maintenance and costly upgrades every 3-5 years.
� Reporting on usage is very important (at a granular level!).
The end-user CONTROLS:
� User-specific application configuration

Confused About Cloud Licensing ?
How will the Cloud
effect licensing
models?

Cloud Licensing
Basics
Metrics: Consumption based (e.g. per CPU-hour, per GB, per database)
Operating System License: Can be included (e.g. MS Azure Platform)
Software License: Needs to be suitable for cloud service (e.g. user based)
License Model: Needs to allow for external hosting (e.g. Microsoft SPLA)
Compliance: “Pay As You Go” (True-up)
Vendors can be classified according to:
� How they approach the cloud
� How they make money (licensing models) 5

Example: Microsoft Windows Azure

Example: Microsoft Windows Azure

Example: Microsoft Windows Azure
PRODUCT: Microsoft Windows Azure
Compute Large instance CPU-hour
DEVICE Type: Windows Server 2008 R2 image
(VHD)
DEVICE Type: Windows Azure VM role
(VM roles can run user provided Windows
Server 2008 R2 images)
Inv_device
1: q=400h
is mounted on
VHD 1 VHD 2
Role 1
Inv_device
2: q=480h
is mounted on

Confused About Cloud Licensing ?
How can I spend the
least amount of
money for just the
capacity I need?

Confused About Cloud Licensing ?
“Someone [at a vendor] told me the other day: "We know
what we sell to customers, but we don't really know what
they deploy, and we have no idea what they use." That part
is pretty frightening for vendors when they think about
customers moving to a consumption-based model.”
— Amy Konary, IDC's research director of software pricing, licensing and delivery
"By 2012, 80 percent of Fortune 1000
enterprises will be paying for some
cloud computing services."
— Gartner.com

What Data is Relevant
Entitlement-centric Approach to License Management

What Data is Relevant
Usage Data

What Data is Relevant
License Data

Metric
What Data is Relevant
Tools
Device
Named User
Concurrent
User/Device
CPU/
Cores/
Units
Environment
Windows Unix Terminal Server
ARP/File Scanner
(e.g. SCCM)
ADS / User reports
(e.g. MotioPI)
SIG Scanner
(e.g. TAD4D)
LS Report & Application
Matrix
Virtual
(Server)
vCenter
Virtual
(Client)
License Server (e.g. FlexLM, Rational License Server, Citrix License Management Console)
CAL (e.g. EMC 2010)
Virtual
Instance
SCCM iQSonar
Capacity ILMT SAP LAW
Configuration Deep scanner (e.g. iQSonar)
Microsoft
SQL Server:
SP
vCenter
Outsourced Cloud
License demand reports
Capacity reports

What Data is Relevant
Look at your overall needs
� At different workloads
� At how the software are used
� Seasonality associated with workload fluctuations
Figure out:
� Where does the pay-per-use cloud approach make sense?
� Where does running the traditional in-house deployment work better?
� Where does a subscription-licensing agreement make the most sense?
Should the agreement include a traditional per-user or pay-per-use metric?
Find out what kind of information you can get out of your environment
right now… And what amount of effort it takes to get it.
*Start with the higher end value applications.*

Conclusion
Then you'll be able to say: These are the usage patterns
in the company and these are licensing options
available to me. Given those, I can calculate that Option
B is going to be the best choice, given X, Y and Z.
Without having that information, you're relying on the vendor to tell you
what's best for your environment, and they don’t know what’s best for every
customer. They also might just tell you what's best for them.

Questions ?
Aspera GmbH
Dennewartstr. 25-27
52068 Aachen
Germany
Tel.: +49 241 - 963 1220
Christof Beaupoil
Email: beaupoil@aspera.com
Bernhard Boheler
Email: boehler@aspera.com
Internet: www.aspera.com
Aspera GmbH checks and updates the information in this presentation on an ongoing basis. Despite this, data may have changed. Therefore, Aspera cannot be held liable for the up-to-dateness of this document. The content and structure of this document are protected by
copyright. Any reproduction of the information and data contained herein, especially the use of texts, text passages or illustrations, requires written prior consent of Aspera GmbH. Aspera, SmartTrack, FlowControl, ICM, CMM, FM, and the license management logo are
registered trademarks of Aspera GmbH in Germany and/or other countries.

Sources and Resources
“Cloud Computing Savings - Real or Imaginary?”
Appirio, April 16, 2009
“The NIST Definition of Cloud Computing” Version 15, October 7, 2009
“Clash of the Clouds”
The Economist, October 15, 2009
Azure Pricing: http://www.microsoft.com/windowsazure/offers/popup/popup.aspx?lang=en&locale=en-
US&offer=MS-AZR-0003P#compute
Windows Licensing on Azure (SPLA): http://cida15ee65c6ac53df4.office.live.com/browse.aspx/.Public/Monthly%20Hosting%20Partner%20Live%20Meeting/101117%
20W2008R2%20SP1%5EJ%20Azure%20VM%20Role%5EJ%20msXsms