Software Asset Management (SAM)
Reducing costs, mitigating risk and taking control
Challenges and Benefits
Data collected by Deloitte CIS revealed that companies spend about 25% of their annual IT budget on software licenses. About 15% of companies have software asset management systems in place; however, most companies are using these systems inefficiently, ineffectually or are not taking full advantage of them.
Many organizations may lack the skills, resources or budget to implement a complex SAM programme. Seeking a quick fix, some companies rely solely on SAM systems. However, a SAM system is best viewed as a technological component of the SAM approach, rather than a replacement. Without a proper approach to guide its use, a SAM system cannot ensure robust management, leaving an organization open to operational, financial and security risks.
How Can Deloitte Help?
As a neutral third party, Deloitte can provide a truly objective perspective on the software asset management process, helping companies obtain the accurate information needed to optimize the licenses of their IT environments.
Deloitte helps organizations:
- Reduce IT costs by:
- Setting up effective license management
- Eliminating payments for unused software
- Avoiding vendor fines from license audits.
- Monitor compliance with license agreements
- Reduce the time their employees spend on vendor audits
- Improve their budgeting process and financial controls over IT expenditure
- Achieve long-term control over software assets.
The Deloitte Difference
- We have a deep understanding of modern software license models
- We have experience calculating license positions for various software vendors for private and public sector companies in the financial, insurance and telecommunications industries
- Deloitte's practitioners helped develop the ISO/IEC 19770-1 standard
- We have developed our own proprietary methodology and approach to managing software assets
- We have performed hundreds of software license compliance audits
- Our experts have unique expertise in implementing industry-leading SAM systems such as SNOW, Aspera, Flexera and IBM License Metric Tool (ILMT).
Optimizing software costs
Corporate software licensing models are typically complicated, requiring expert knowledge to correctly analyse and apply them. Using software from IBM, SAP, Oracle, Microsoft , etc., entails the inevitable risks of incurring fines for violating license agreements and overpaying for unused licenses. We help our clients identify opportunities to optimize their software-licensing arrangements and determine where they can make savings on software they no longer use. This helps reduce license costs in the short and medium term.
- Software inventory
- Analysis of license agreements
- Calculation of the effective license position
- Development of recommendations for licensing optimization
- Preparation for negotiations with software vendors at the conclusion/extension/termination of license agreements.
Improving SAM maturity
We help companies identify risks inherent in the SAM process and develop an improvement plan to mitigate these risks. This plan will be aligned with and support their overall business and IT strategies, helping them optimize cost management, both in the short and long term.
- Analysis and evaluation of the current process in accordance with ISO/IEC 19770-1
- Process benchmarking
- Development of a target state
- Preparation of a roadmap.
Selecting a SAM system
Market leaders offer SAM systems with various features, architectures and price points, all of which have their pros and cons. We help clients select the system that is best suited to manage the software licenses they use.
- Creation of a business case for the SAM automation project
- Development of custom criteria for SAM system evaluation;
- Development of functional, architectural and information security requirements
- Implementation of a pilot project: the installation of SAM systems on a limited number of devices and evaluation according to the criteria developed.
Our experts will help you implement a SAM system that enables an accurate, automatic calculation of your effective license position, which will help you plan your software expenses well in advance and identify unused software.
- Installation and configuration of SAM systems
- Entering software entitlements into the SAM system
- Verification of the completeness of SAM system content and correctness of the system’s calculation of the effective license position.
Assisting with software vendor audits
Licensing audits by international software vendors are becoming a regular occurrence. We help companies develop their audit approach in a way that reduces the work required from employees and positions them for effective negotiations with software vendors.
- Development of an audit strategy
- Preparation for discussions on the best audit terms with software vendors
- Preparation for communications with auditors and software vendors
- Monitoring of communications between the client and the software vendor.
Trainings on SAM
- Administration and Use of SAM Systems;
- SAM Guidelines;
- Tough Call: Preparing for an Audit and Negotiations with a Vendor