Microsoft Volume Licensing Customer Solution Case Study



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Microsoft Volume Licensing

Customer Solution Case Study















ISV Simplifies Software Management, Saves 40 Percent, with Volume Licensing Agreement








Overview

Country or Region: United States; Central and Eastern Europe

Industry: Professional services—Information technology
Customer Profile

EPAM Systems, a leading global software engineering and IT consultant, has 4,500 employees providing IT and software development, support, and delivery services in the United States and in Central and Eastern Europe.


Business Situation

The company needed to simplify software licensing and reduce acquisition costs for its Microsoft® software licenses, while having the flexibility to change quantities as project needs changed.


Solution

The company signed a Microsoft Enterprise Subscription Agreement through which it leases software licenses for a three-year term and can increase and decrease license count at any time.


Benefits

  • Optimized infrastructure

  • Adjustable license volume

  • Up to 40 percent licensing savings

  • Immediate access to software

  • Simplified compliance










“With the Enterprise Subscription Agreement, we can order Professional Desktop Platform licenses based on our current requirements and if those needs change we can adjust the quantity to match.”

Mikhail Kazouski, IT Manager, EPAM Systems










Ranked among the 2009 Global Services 100 “Top 10 Best Performers,” EPAM Systems provides IT and software development services based on Microsoft® technologies to customers around the world. To reduce costs while maximizing flexibility and simplifying license management, EPAM signed a Microsoft Volume Licensing Enterprise Subscription Agreement. Under this agreement, the firm leases Professional Desktop Platform licenses for three years and reports and pays for those licenses annually. It also takes advantage of Software Assurance benefits such as Training Vouchers, the Home Use Program, 24x7 Problem Resolution Support, and New Version Rights. As a result, EPAM is optimizing its infrastructure, saving up to 40 percent on software licenses, and streamlining management and compliance. It also has immediate access to the software necessary to better serve its customers’ changing needs.


























Situation



EPAM Systems, the leading software engineering and outsourcing services provider in Central and Eastern Europe, was ranked in the 2009 Global Services 100 “Top 10 Best Performers” for both IT services and outsourced product development. The ranking, based on the results of an annual study conducted by Global Services and neoIT, identifies leading companies around the world that are making an impact in global IT services.
Founded in 1993, EPAM has a global staff of more than 4,500, with support and delivery operations in the United Kingdom, Sweden, and Germany, and software development centers in Russia, Hungary, Belarus, and Ukraine. The company’s global headquarters is located in Newtown, Pennsylvania.
EPAM helps its customers extend their operational capabilities and improve efficiency by taking advantage of offshore and near-shore IT outsourcing services. With more than 15 years of experience, the firm’s expertise lies in minimizing outsourcing risks through transparency, security, and intellectual property rights protection. The company has deployed projects in more than 30 countries and in 13 languages.
EPAM is a long-time Microsoft® Gold Certified Partner and has earned four Microsoft Competencies: Advanced Infrastructure Solutions, Custom Development Solutions, Business Intelligence, and Service-Oriented Architecture (SOA) and Business Process. EPAM typically evaluates new Microsoft products and new versions of existing products starting at the beta stage. This proactive approach allows it to stay ahead of the technology curve and to deliver solutions that are optimized for new versions of Microsoft software as soon as they are available. In addition to building solutions to run on Microsoft software, EPAM uses a rich set of Microsoft products in its development, testing, and administrative operations.
Due to the dynamic nature of its business, EPAM faced several challenges regarding correctly licensing its Microsoft software: The firm works on many projects that require the latest technology and other projects that require older technology. Its operations are geographically distributed and have grown organically and through a series of mergers and acquisitions. As a result, the company was acquiring Microsoft software through multiple licensing methods and agreements, which were time-consuming to manage. In addition, EPAM has a large presence in developing countries where licensing culture and laws are not always up-to-date, so proving compliance was sometimes difficult. And, perhaps the biggest challenge, because the company’s work is subject to its customers’ changing needs, predicting their annual software requirements was difficult.
To simplify software license management and consolidate its software licensing acquisitions to receive better pricing, while being better able to prove compliance, EPAM wanted to acquire licenses for all of its Microsoft software through a single agreement. Within that agreement it wanted the same fixed volume price per desktop license for all of its locations, centralized license management with a single point of contact, and the flexibility to increase or decrease the number of desktop platform licenses acquired each year.
Solution

In 2006, based on input from the Microsoft account team EPAM signed a Microsoft Enterprise Subscription Agreement. Like the Microsoft Enterprise Agreement, the Enterprise Subscription Agreement provides a single agreement that simplifies license tracking and budgeting and provides a fixed annual price per desktop for a three-year


“The Training Vouchers we used for Exchange Server 2007 training helped us successfully plan and execute the migration of our quite complicated messaging infrastructure from Exchange Server 2003 to Exchange Server 2007.”

Mikhail Kazouski, IT Manager, EPAM Systems






period. This price represents a savings over the non-subscription Enterprise Agreement, however, because with the Enterprise Subscription Agreement, licenses are leased only for the term of the agreement. Also, subscribers have the flexibility to increase or decrease their desktop license count on an annual basis.
“With the Enterprise Subscription Agreement, we can order Professional Desktop Platform licenses based on our current requirements and if those needs change we can adjust the quantity to match,” says Mikhail Kazouski, IT Manager for EPAM Systems. “W

“The Training Vouchers we used for Exchange Server 2007 training helped us successfully plan and execute the migration of our quite complicated messaging infrastructure from Exchange Server 2003 to Exchange Server 2007.”

Mikhail Kazouski, IT Manager, EPAM Systems






e order as many licenses as we need based on our employee count on the date the agreement was signed, and if that count changes, we can add desktop licenses anywhere within our organization.”
A Standardized Infrastructure

The EPAM infrastructure relies on more than 1,000 servers and most of them run on the Windows Server® operating system. Of that number EPAM has 300 physical servers and 700 virtual servers. The company also deployed a highly distributed Microsoft Exchange Server 2007 messaging and collaboration environment and it implemented Microsoft SQL Server® 2005 database management software.


The company has approximately 4,200 client PCs, approximately 3,700 of which are used for development, testing, and support. The rest are portable computers used by managers and sales people. EPAM employees use Microsoft software applications for all aspects of the business. EPAM developers use Visual Studio® 2008 development system tools as a part of the MSDN® Professional developer subscription license, and Microsoft Office SharePoint® Server 2007 to develop solutions for a range of customer needs, ranging from real-time sales support, order entry, and warehouse management, to customer relationship management. Its IT staff uses Microsoft System Center products to monitor and manage both internal systems and customer operations.
EPAM has standardized on the Microsoft Professional Desktop Platform, which includes:

  • Windows Vista® Enterprise Edition upgrade

  • Microsoft Office Professional Plus 2007

  • The Microsoft Core Client Access License (CAL) Suite, which includes CALs for Windows Server 2008, Exchange Server 2007 Standard, and Office SharePoint Server 2007 Standard in addition to a Configuration Management License for System Center Configuration Manager 2007

More than Volume Pricing

EPAM manages its Enterprise Subscription Agreement, accesses product keys, and downloads software for all of its offices online through the Microsoft Volume Licensing Service Center (VLSC) Web site. Each office adds new licenses as needed by contacting the company’s license manager. The license manager collects orders from all locations and transfers them to the company’s large account reseller (LAR), which has branches in all the countries that EPAM serves.
EPAM also makes full use of the Software Assurance benefits provided through the Enterprise Subscription Agreement, further increasing the value of each license. Most notably, EPAM has taken advantage of:


  • Training Vouchers to attend courses on the latest Microsoft products, including Exchange Server 2007.

  • Home Use Program to allow employees to install Microsoft software licensed by the company on their home PCs so that when they need to interact with customers in other time zones, they can work from home and keep projects moving.

  • New Version Rights to update its desktop operating systems to Windows Vista, and to obtain CALs for its upgrade to Windows Server 2008, Exchange Server 2007, Office SharePoint Server 2007, and System Center Configuration Manager 2007.

  • 24x7 Problem Resolution Support to get a timely response from Microsoft if a mission-critical problem occurs in the infrastructure.

  • Cold” Backups for Disaster Recovery to help ensure 99.999 percent uptime for its critical systems by providing a “cold” backup server license for every production license acquired through the Enterprise Subscription Agreement.

“The combination of benefits from the Enterprise Subscription Agreement with Software Assurance, and our Microsoft Gold Certified Partner status puts us in the position to provide even better service to our current and future clients and optimize our software expenditures,” says Kazouski.


Benefits

With its Microsoft Enterprise Subscription Agreement, EPAM has been able to optimize its infrastructure and enhance its ability to meet its customers’ service level expectations. In addition, EPAM is better able to match its software use to its customers’ requirements, reduce licensing costs, gain immediate access to software licenses, and prove license compliance.


Optimized Infrastructure

By building its infrastructure on Microsoft technology, EPAM is maintaining a highly reliable and manageable system that helps it meet customers’ service level expectations. “By building the robust core of our IT infrastructure on the Microsoft software platform, and getting timely security updates, we are able to deliver up to 99.999 percent uptime and maintain it centrally across multiple time zones,” says Kazouski. “And, with System Center Operations Manager, we can proactively monitor all critical infrastructure components to help maximize the uptime for all critical systems for our customers and our employees.”


The training and support benefits included with Software Assurance also helped the firm efficiently upgrade its infrastructure components. “The Training Vouchers we used for Exchange Server 2007 training helped us successfully plan and execute the migration of our quite complicated and highly distributed messaging infrastructure from Exchange Server 2003 to Exchange Server 2007. This allowed our organization to benefit from the improved features such as SPAM filtering and redesigned Outlook Web Access,” says Kazouski.
Adjustable License Volume

The ability to increase and decrease the number of licenses covered under the Enterprise Subscription Agreement makes it easier for EPAM to align its licenses to its current projects and to avoid paying for licenses it doesn’t need. “The subscription model definitely lowers our cash flow burden because we can expand or shrink our license volume with the size of the company or projects we’re working on,” says Kazouski. “For example, one year we may have a lot of customers that require .NET development and so we would need to equip our developers with Microsoft Visual Studio tools. The next year we may have a lot of Office SharePoint Server 2007 projects. The world is changing rapidly, and the ability to quickly react to those changes helps us grow.”


Up to 40 Percent Licensing Savings

EPAM saves licensing acquisition costs through the volume discounts gained with the subscription agreement and through the flexibility to add to and subtract from its total number of licenses each year. “The Enterprise Subscription Agreement saves us between 35 and 40 percent annually compared to the multiple licensing methods we used before,” says Kazouski.




“Now that we have the Enterprise Subscription Agreement, we only have to think about Microsoft Desktop Platform licenses once a year, when we count the number of eligible desktops.”

Mikhail Kazouski, IT Manager, EPAM Systems







The Enterprise Subscription Agreement also saves hours of management time. “Now that we have the Enterprise Subscription Agreement, we only have to think about Microsoft Desktop Platform licenses once a year, when we count the number of eligible desktops,” says Kazouski. “Before, it took two people to track and manage the licenses. With the Enterprise Subscription Agreement, it takes only about 40 hours annually, compared to the more than 1,900 hours per year it took before.”


Immediate Access to Software

Before having the Enterprise Subscription Agreement, EPAM had to wait at least a month between ordering and receiving licenses. “Now, with the Enterprise Subscription Agreement, we can deliver software licenses to our users immediately and then place the order with our LAR in the same month that the software is installed,” says Kazouski. “Delivering licenses quickly allows us to be more flexible and react faster to customer demand.”


In addition, the New Version Rights benefit included with Software Assurance ensures that EPAM employees can access the latest versions of software as soon as they are released. “Being able to upgrade immediately to new software versions without having to find extra budget to pay for it helps to enhance the security of our systems and productivity of our employees,” says Kazouski.
Simplified Compliance

Before signing the Enterprise Subscription Agreement, EPAM found that proving licensing compliance was a difficult and time-consuming task. The Enterprise Subscription Agreement and the online license management and tracking tools available on the Microsoft VLSC Web site have greatly simplified that process. “We have offices around the world, and we’re able to cover all of them with the same agreement,” says Kazouski.” When new offices are opened or new companies are acquired, we can quickly add those new entities to the agreement. And our ability to demonstrate full license compliance is a big benefit for our customers.”



For More Information

For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 426-9400. In Canada, call the Microsoft Canada Information Centre at (877) 568-2495. Customers who are deaf or hard-of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com


For more information about EPAM Systems products and services, call (267) 759-9000 or visit the Web site at: www.epam.com


This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.
Document published June 2009










Software and Services

  • Microsoft Office

  • Microsoft Office Professional Plus 2007

  • Microsoft Office SharePoint Server 2007

  • Microsoft Server Product Portfolio

  • Windows Server 2003

  • Windows Server 2008

  • Microsoft Exchange Server 2007

  • Microsoft SQL Server 2005

  • Microsoft System Center Operations Manager 2007

  • Microsoft System Center Configuration Manager 2007



  • Microsoft Visual Studio

  • Microsoft Visual Studio Team System 2008 Team Suite

  • Windows® XP Professional

  • Windows Vista



  • Services

  • MSDN Professional

Hardware


  • HP








Microsoft Volume Licensing

Microsoft® Volume Licensing offers customized programs that are designed to meet the needs of your business. Tailored for companies of different sizes and purchasing preferences, these Volume Licensing programs provide simple, flexible, and affordable solutions that can help you manage your licenses with ease. Whether you have five or thousands of desktop PCs, Microsoft Volume Licensing has the right program for you.   


To acquire the latest Microsoft technology at a significant cost savings through Microsoft Volume Licensing, contact your Microsoft Partner or local reseller.
To learn more about Microsoft Volume Licensing, visit:

www.microsoft.com/licensing
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