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Background of the SKU
Most folks are familiar with the bar codes. Every time we go to the grocery store and check out, the cashier scans our groceries one at a time and the register automatically knows what we purchased, how much it is, and they probably even trigger when they need to reorder these. Part of that bar code is the SKU (Stock Keeping Unit), which is a uniform method of tracking products sold. As the name implies, the SKU is intended to help producers track inventory in stock, but it can also be used by resellers, and even the people who purchase the item to keep track of what they’ve purchased. So a box of 50 yellow widgets would have one SKU because it can be sold as a box, while one blue widget might have a separate but related SKU because it can be stocked and sold individually as well.
Click here for a more detailed definition of the SKU.
SKU for Software
Software is similar to any product that uses SKUs. You can buy one copy, or multiple copies… Some software can be purchased with a license for a specific number of machines, while other times you would purchase the same software to be licensed for a specific number of users. Each of these is a unique instance that needs to be tracked separately. It’s because of the uniformity and broad use of SKUs that it’s imperative that any Software Asset Management (SAM) tool include capabilities to track software and hardware by SKUs.
Most publishers reference their software using a SKU (Stock Keeping Unit). This SKU is usually attached to every purchase order line to clearly identify which software or package is purchased by a customer. Even if there are very small differences between two software titles sold by a publisher/reseller, such as, the publisher program or in the maintenance, they usually carry two different SKUs.
For instance here are two SKUs.
- SKU810-03324;
- Publisher= Microsoft, Product = Microsoft SQL Server Enterprise Edition Win-64Bit 1 Processor German 2 Years Software Assurance OPEN C
- SKU810-03537;
- Publisher= Microsoft, Product = Microsoft SQL Server Enterprise Edition Win-64Bit 1 Processor German 2 Years Software Assurance OPEN NL
When we import PO information into ECM, one of the biggest challenges is to normalize the PO data and understand which applications they are related to. Most of the time (not always), purchasing department tend to write a short description manually when issuing a purchase order that is never the same across two identical POs. They also attach –may be done by the reseller – the exact SKU related to the purchase.
Using the SKU data will help ECM to automatically:
- Normalize and translate incoming PO data
- Understand what applications, license metrics, and basic maintenance terms that are included in the purchase.
- Generate new licenses or attach new PO line to existing licenses in ECM
SKU Data Management
ManageSoft has developed a SKU database based on information available from software publishers and years of experience. All new customers purchasing ECM version 8.0 and higher will be entitled to the SKU feature; existing customers may purchase it as an option to ECM.
The SKU (Stock Keeping Unit) database is maintained and updated regularly by ManageSoft. The SKU database is estimated to have around 100,000 entries. Each SKU entry has the following information:
- SKU number
- Manufacturer
- Description
- Family
- Level (Select & Open licenses)
- Group (Microsoft contract: Box, select, open)
- Language
- Type
- Version
- Metric
- Usage Right
- Pool
- Point
- Maintenance Type
- Maintenance Duration
To take full advantage of the SKUs, a link must be built between SKUs and application recognition library entries. This work is performed by our ARL team. The SKU database is delivered to our customers on a monthly basis, along with the ARL update.
Using SKUs in ECM
SKUs are used in ECM during a post PO import process. POs are imported into ECM using the financial importer or are manually created. This process requires user intervention in ECM, but is automated as much as possible. ECM always tries to suggest a solution to the ECM administrator.
If a new license is created from the PO using the SKU:
- License type will be suggested/used accordingly to SKU definition
- SKU normalized data: description, publisher, version… will be used
- PO will be tied to the license and licensing info (quantity) reported in the license
- Application(s) from the ARL will be attached to the license. The next inventory import will try to use this license and tie computers/users to it
Existing candidate licenses for POs containing SKU are the same license with the same SKU in the database. The benefit is to avoid redundant data entry by the end user. If a SKU is unknown or the link cannot be found automatically, the first time the SKU appears, the end user will manually select the existing license. ECM has now “learned” about this SKU and second time the same SKU is used in a PO, the link will be suggested in the “Previously used” tab.
What you can do today
To take advantage of managing licenses and purchases using SKUs, a good first step is to check with your purchasing department to see if indeed they do record the SKU for each and every software purchase. If this is the case, then you are half way on your way to automating the linking between purchases and licenses. If not, you might ask them to start.
The second step is to assure your SAM tool can process the SKU data from your purchases. If you have any questions concerning how ManageSoft incorporates SKUs into the overall Software Asset Management process, please contact us at
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