The benefits of Software Asset Management

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Why is software management worthwhile?

The benefits of Software Asset Management

March 2018

Software management, its legality and cost have become a burning issue among individuals in charge of the IT area. We are observing it on a daily basis and it turns out that many organizations are not fully aware how to approach this topic. Let’s start with an attempt to answer the following question - Why is software management worthwhile?

Cost Optimization

Software management affects costs incurred by an organization. Software-related expenditures constitute 20-40% of IT budgets. Conscious software management allows to avoid the purchase of unnecessary licenses and the use of software without relevant entitlements. This means savings for the company, especially in the event of costly, sudden purchase resulting from the audit. SAM (Software Asset Management) is a balance between ensuring license compliance and limiting expenditures to the current needs.

By controlling the usage of software the company knows which programs are used by the employees in a given moment, which ones are available and what the current needs are. This allows to reduce costs by re-using the licenses that are not being used but are still active.

 

SAM (Software Asset Management) strengthens the bargaining position

Another area impacted by software management is the possibility to reduce the cost of software by making the purchase directly from the producer. Excellent knowledge about IT environment provides organizations with insight into what and how is used and thus significantly strengthens their bargaining position during purchase. What is more, the company can observe and standardize the way in which applications are used. This also will bring real savings.

 

SAM reduces the risk of negative audit results

If the company knows what programs and applications are used, it is able to control costs, buy cheaper and limit purchase to the necessary items only. This mitigates the risk of license non-compliance which could be costly when identified during an audit performed by the producer. Based on our observations, companies bear considerable costs relating to the preparation of data required by an auditor. Even if the data are prepared with the use of the company’s own resources, still it is a cost for an organization. Whereas if the company decides to involve an external company, the costs are much higher, with no guarantee that the sub-contractor will “defend” the enterprise from negative audit results.

 

Exponential growth

Organizations will continue to use more and more software. The current terms “the cloud” or IoT (Internet of Things) make the software management theme even more difficult and complex. The complexity of licensing models will also continue to grow. Similarly as the number of audits. Therefore, it is worth starting the preparations right now.

 

Author: Roman Stachnio

Software Asset Management

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