FedEx’s impressive IAM ROI

FedEx spent $277,000 on an IAM project and saved $500,000 in real costs along with $1.2M in soft costs. This article in CIO Magazine because speaks to how FedEx integrated their security badge management system into their IAM system for both better security and compliance. Clearly, FedEx not only had some clear goals in mind (improve security & regulatory compliance, cut costs and improve operational efficiency) but they also had a very clear picture of the ROI potential associated with the project and what their criteria for success was. I especially appreciated the fact that FedEx quantified both the hard savings ($500K) and the soft savings ($1.2M) associated with the elimination of 23,000 annual hours of a administrative work related to managing their badging system.

One important factoid was how FedEx decreased the time to get a badge to a new hire from three weeks to near real-time. I’m willing to bet that FedEx employs some contractors so that’s probably something that could figure into their overall ROI calculation also. What percentage of those contractors – who you are paying by the hour – would have been impacted by a three week wait for a badge? Multiply that out and I’m willing to bet that FedEx may have saved even more.

This is a good example of some of the upfront work that needs to be done to help measure the impact of an IAM project before you spend the money to do it. The only bit remaining is to re-examine all of the numbers a year after-the-fact to see if, in fact, those savings actually materialized.

Technorati Tags: identity management,IDM,IAM,Jackson Shaw,FedEx

-- updated/fixed the article link.

Attachmate/NetIQ’s acquisition of Novell

I just had to comment on Earl Perkins (Gartner) blog entry on this topic:

http://blogs.gartner.com/earl-perkins/2010/11/23/additional-observations-on-the-attachmate-acquisition-of-novell/

In the midst of all of this of course is the identity and access management impact. I see challenges for Quest Software ahead, since they often go head-to-head with Attachmate-NetIQ for Microsoft centric administration customers. I see some relief for the “Big Three” in IAM now, CA, IBM Tivoli, and Oracle, now that a spoiler in many ways may be out for a bit during the ‘absorption’ phase of acquisition. I see advantages for smaller and more nimble players such as Courion, as well as obvious beneficiaries like Microsoft. What will be interesting to see in the days ahead is the impact this has on Novell partners: Verizon in cloud security, VMWare in virtualization, SAP in IAM, and Deloitte in IAM consulting and system integration. One would expect Attachmate not to shoot the goose that lays golden eggs, but you never know.

First, I take this as a great compliment. A few short months ago Quest Software would never have been mentioned from the perspective of “identity and access management”. That shows how far we have come with respect to IAM especially in light of the acquisition of Voelcker Informatik and their ActiveEntry product. Second, in a perfect world, I would be more concerned about this but fortunately (or not) this is not a perfect world…

1. NetIQ has virtually disappeared from our radar. Sure, the acquisition of Novell could change that but will it?

2. When we do run into NetIQ it is almost 100% because the customer has decided to migrate off of their product versus being in a competitive situation.

3. There will be 12-36 months of “spinning” while Attachmate/NetIQ/Novell gets their respective acts together.

4. The smart people at Novell have been and are currently looking for seats in the life boats and those life boats do not have “S.S. NetIQ” stenciled across them. In fact, we’re already interviewing lots of top quality sales and product management talent from Novell.

So, to Earl, the “Big Three” and everyone else: Game on! (Yes, and to quote Earl again: “And buckle your seatbelts.”)

Technorati Tags: Quest Software,QSFT,identity management,Novell,NetIQ,Attachmate,Gartner Group,Earl Perkins

What IP has Microsoft purchased from Novell/Attachmate?

Just checked Microsoft's press releases and nothing there (yet) about this $450M purchase!

Novell also announced it has entered into a definitive agreement for the concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash, which cash payment is reflected in the merger consideration to be paid by Attachmate Corporation.

Mary-Jo Foley doesn't know what this is either?

http://www.zdnet.com/blog/microsoft/whats-microsofts-role-in-the-novell-attachmate-deal/8041

Novell acquired by Attachmate!

http://www.novell.com/news/press/novell-agrees-to-be-acquired-by-attachmate-corporation

Novell, Inc. (NASDAQ: NOVL), the leader in intelligent workload management, today announced that it has entered into a definitive merger agreement under which Attachmate Corporation would acquire Novell for $6.10 per share in cash in a transaction valued at approximately $2.2 billion. Attachmate Corporation is owned by an investment group led by Francisco Partners, Golden Gate Capital and Thoma Bravo. Novell also announced it has entered into a definitive agreement for the concurrent sale of certain intellectual property assets to CPTN Holdings LLC, a consortium of technology companies organized by Microsoft Corporation, for $450 million in cash, which cash payment is reflected in the merger consideration to be paid by Attachmate Corporation.

The $6.10 per share consideration represents a premium of 28% to Novell's closing share price on March 2, 2010, the last trading day prior to the public disclosure of Elliott Associates, L.P.'s proposal to acquire all of the outstanding shares of Novell for $5.75 per share and a 9% premium to Novell's closing stock price on November 19, 2010.

"After a thorough review of a broad range of alternatives to enhance stockholder value, our Board of Directors concluded that the best available alternative was the combination of a merger with Attachmate Corporation and a sale of certain intellectual property assets to the consortium," said Ron Hovsepian, president and CEO of Novell. "We are pleased that these transactions appropriately recognize the value of Novell's relationships, technology and solutions, while providing our stockholders with an attractive cash premium for their investment."

Mr. Hovsepian continued, "We also believe the transaction with Attachmate Corporation will deliver important benefits to Novell's customers, partners and employees by providing opportunities for building on Novell's brands, innovation and market leadership."

"We are very excited about this transaction as it greatly complements our existing portfolio," said Jeff Hawn, chairman and CEO of Attachmate Corporation. "Novell has an established record of innovation, impressive technology and brand assets, and a leading ecosystem of partnerships and talented employees. The addition of Novell to our Attachmate and NetIQ businesses will enhance the spectrum of solutions we can offer to customers. We fully support Novell's commitment to its customers and we look forward to continuing to invest for the benefit of Novell's customers and partners."


Attachmate Corporation plans to operate Novell as two business units: Novell and SUSE; and will join them with its other holdings, Attachmate and NetIQ.

Technorati Tags: Novell,identity management,NetIQ,Attachmate