Press Release

Flexera Software Added to US Department of Defense Enterprise Software Initiative (ESI) Approved Software Vendor List

Federal defense agencies can now use FlexNet Manager Suite to help implement new Software License Optimization provision in National Defense Authorization Act

Schaumburg, IL - Feb 14, 2013 - Flexera Software, the leading provider of Application Usage Management solutions for application producers, enterprises and governments, announced today that the Department of Defense (DOD) has added Flexera Software to its list of approved providers for IT Asset ManagementFlexNet Manager Suite is the only solution on ESI's approved-vendor list that provides Software License Optimization capabilities.

ESI is a joint initiative sponsored by the DoD Chief Information Officer and is designed to save time and money on commercial software, IT hardware, and services by lowering procurement costs and gaining greater visibility into IT assets. Flexera Software partners DLT and Immix Group were awarded rights to sell FlexNet Manager Suite under the ESI contract.

As a result of this award, federal military agencies have access to the leading solution that will enable implementation of Section 937 - the Software License Optimization provision - of the recently passed National Defense Authorization Act (NDAA). The law mandates the DOD's CIO to conduct a department-wide software asset inventory - an examination of current license utilization rates, and an assessment of the means by which the DOD can achieve the greatest possible economies of scale and cost savings in the procurement, use, and optimization of selected software licenses.

"Section 937 reflects bi-partisan congressional recognition of the tremendous savings the DOD can enjoy by implementing industry-recognized best practices around software license management and optimization," said Jim Ryan, Flexera Software's Chief Operating Officer. "The ESI contract awarded to FlexNet Manager Suite now makes it possible for the government to leverage the most trusted solution on the market to help it comply with the law and significantly reduce waste in software spend."

Overspend on software occurs when the government buys more software than it actually uses - shelfware; when it doesn't fully utilize the software it has a right to use based on its license entitlements; and when the government uses more software than it is entitled to, throwing it out of compliance with its contract and subjecting it to financial penalties from software vendors. According to the 2012 Key Trends in Software Licensing and Pricing Survey Report prepared by Flexera Software with assistance from IDC, 38% of organizations surveyed indicated that 11% or more of their application spend is associated with applications that are overused, and therefore out of compliance. Moreover, 56% of respondents said that 11% or more of their application spend is associated with shelfware.

"The federal government spends about $9 billion annually on software," added Ryan. "By implementing Software License Optimization through FlexNet Manager Suite, it could avoid billions in unnecessary waste by ensuring it only buys the software it needs, and uses what it has."

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About Flexera
Flexera is reimagining the way software is bought, sold, managed and secured. We view the software industry as a supply chain, and make the business of buying and selling software more transparent, secure, and effective. Our Monetization and Security solutions help software sellers transform their business models, grow recurring revenues and minimize open source risk. Our Vulnerability and Software Asset Management (SAM) solutions strip waste and unpredictability out of buying applications, helping companies purchase only the software and cloud services they need, manage what they have, and reduce license compliance and security risk. In business for 30+ years, our 1000+ employees are passionate about helping our 80,000+ customers generate millions in ROI every year. Visit us at www.flexera.com.

For more information, contact:

Flexera
Amanda Ingalls
(949) 241-1515
aingalls@flexera.com

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