Software Capacity Planning with License Usage Data

1
Software Capacity Planning with License Usage
Data

• Barbara Vervenne
• Manager, EDA Software, CAD Systems Engineering
• October 2004

2
AMD Overview

• A leading global supplier of innovative
  semiconductor solutions for the personal and
  enterprise computing, communications and consumer
  electronic markets
• Founded 1969
• Headquarters Sunnyvale, Calif.
• Employees 15,189 worldwide (Aug. 2004)
• Sales Mix 80 international

Q3 04 Sales Microprocessors 673M Flash Memory
538M Other 28M Total 1.239 Billion
3
Software Capacity PlanningCentralized EDA
Software Business Operations

• My team handles the license business..keeping
  EDA tools available on demand for every AMD
  design engineer 24/7
• Software Purchase Contract negotiations
• Team with AMD Procurement AMD Legal
• Not limited to end of term
• Contract Management
• Keys check and install
• Invoices check and authorize payments
• Usage Tracking, Management Reports Charge
  backs
• Capacity Planning Budgeting

4
Software Capacity PlanningLicense Operations
Boston, Massachusetts
Tokyo, Japan

• FlexLM License server configurations
• 32-bit/64-bit --- production license redundant
  triplets
• 32-bit --- evaluation license triplet
• Software licenses are served from Austin, TX to
  AMDs Engineering Design Centers in all three of
  AMD business units at AMD locations worldwide
• 50 EDA Suppliers
• 80 license daemons

Aizu-Wakamatsu/Tokyo, Japan
Sunnyvale, California
Frimley, UK
Bangkok, Thailand
Dresden, Germany
Suzhou, China
Longmont, CO
Austin, Texas
Singapore
Banglore, India
Penang/Kuala Lumpur, Malaysia
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Software Capacity Planning

• Capacity Planning is an ongoing process
• Annual Budget Cycles
• Quarterly Suppliers Contract reviews
• Quarterly Customer usage and financial reviews
• Monthly expense allocations and direct charge
  backs
• Monthly internal capacity
• Ad hoc license utilization checks
• Trouble tickets

6
Software Capacity PlanningThe License Usage
Reports

• Weekly data is created from SAM raw report
• Peak usage
• Usage over time
• Job Profiles
• Available for ad hoc analysis
• Monthly updates to the License Pool Usage
  Database which comprehends
• SAM reports filtered by location and business
  unit
• Price list of all tools (products features)
• Demand forecast per business unit

7
Software Capacity Planning The Process
License Pool USAGE DATABASE
License Servers
Usage Reports

• CUSTOMER MEETING
• License Usage - history is the best teacher
• Project Schedules
• CAD Methodology
• Staffing

8
Software Capacity Planning Pulling it all
together

• Having reliable license usage data keeps us in
  the drivers seat with our vendorsand gives us
  credibility with our customers and our
  management.
• Usage data in hand makes it easier to evaluate
  license policy and pricing changes when proposed
  or announced by our vendors.
• Actual data can help reduce financial risk and
  budgetary exposure on new purchases.
• Well-understood historical usage data provides a
  baseline for more accurate forecasting.
• Staffing changes
• Project starts
• Budget cuts
• Historical usage data helps us predict how
  improvements in compute technology will affect
  our capacity requirements.

9
Software Capacity Planning

• Before we close - lets take a quick look at some
  software licensing trends that could have an
  effect on software capacity planning in the
  future.
• Some of these trends are being driven by
  innovative processor technology being developed
  by AMD.

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Software Licensing and Dual-Core Technology

• Margaret Lewis
• Commercial Software Strategist
• October 2004

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Software Licensing Trends
The industry is facing a major shift in pricing
models with several technology trends pushing
against traditional software licensing methods.

• Multi-core processors - How do you count cores
• Virtualization - Separate licenses for every
  virtual machine
• Computing on demand and hosted computing - How to
  calculate time and resource use

Customers are demanding software licensing to
reflect the amount of work done and not the
characteristics of the processor.
12
Software Licensing TrendsMulti-core Processors
The size, energy consumption, performance needs
of today's computers require new innovations in
semiconductor design
Memory bandwidth?
Pipeline Length?
Processor Performance (IPC)?
Cache Size and Hierarchies?
Execution cores (physical or logical)?
I/O bandwidth?
Multi-core processor technology allows AMD to
continue to offer a competitive performance
roadmap while meeting the system architecture
demands of our customers.
13
Software Licensing TrendsDual-Core
Recommendations
For the initial AMD64 dual-core product release
planned for mid-2005, AMD is taking a leadership
position in recommending that ISVs license by
processor instead of by processor core.

• Only applies to soft licensing methods that rely
  on processor count - there are many software
  licensing models that do not count processors
  today
• Helps ensures software compatibility with
  existing x86 and AMD64 operating systems and
  applications seamlessly whether they are
  single-threaded or multi-threaded applications.
• Meets the requirements of
  our customers

Processor
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Software Licensing Trends

• Microsoft server software that is currently
  licensed by the number of processors on the
  server will continue to be licensed in that model
  for server hardware that contains dual-core and
  multi-core processors.
• This policy helps ensure that customers will not
  incur additional software licensing requirements
  or fees when they choose to adopt multi-core
  processor technology.

AMD applauds Microsofts decision which will make
this new enterprise computing technology
affordable to customers, including mid-size and
small businesses.
15
Software Licensing Trends

• Other AMD64 dual-core milestones
• Demonstration of AMD Opteron dual-core
  processor-based systems on August 31, 2004
• Worlds first demonstration of x86-class
  dual-core processor
• 4 processor/8 core systems running Windows and
  Linux
• Software-related dual-core press release on Sept
  7, 2004
• Included support quotes from Novell, Red Hat and
  Sun
• Included recommendation from Gartner
• More details of dual-core technology highlighted
  at Microprocessor Forum on Oct. 5, 2004

16
Cautionary Statement

• This presentation contains forward-looking
  statements, which are made pursuant to the safe
  harbor provisions of the U.S. Private Securities
  Litigation Reform Act of 1995. Forward-looking
  statements are generally preceded by words such
  as plans, expects, believes, anticipates
  or intends. Investors are cautioned that all
  forward-looking statements in this presentation
  involve risks and uncertainties that could cause
  actual results to differ materially from current
  expectations. Risks include the possibility that
  the companys future multi-core processors will
  not be introduced on their current introduction
  schedules, will not perform pursuant to their
  design specifications, will not achieve customer
  and/or market acceptance, will not be produced in
  the volume and performance grades demanded by
  customers, and will not be supported by solution
  provider infrastructure, including operating
  systems, applications and licensing models. We
  urge investors to review in detail the risks and
  uncertainties in the company's Securities and
  Exchange Commission filings, including but not
  limited to the Annual Report on Form 10-K for the
  year ended December 28, 2003, and the Quarterly
  Report on Form 10-Q for the quarter ended June
  27, 2004.

17
Trademark Attribution

• AMD, the AMD Arrow Logo, AMD Athlon, AMD Opteron,
  and combinations thereof are trademarks of
  Advanced Micro Devices, Inc. Windows is a
  registered trademark of Microsoft Corp. in the
  U.S. and other jurisdictions. Other names are for
  identification purposes only and may be
  trademarks of their respective companies.