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Software Asset Management
Reducing costs, mitigating risk and gaining control
Hardware and software purchases typically form 20% of an organisation's IT budget, where significant portions go to unutilised service and support costs. Software licensing is a risk that needs to be addressed, as vendor audit compliance and purchase of missing licenses can lead to unexpected costs.
Software Asset Management (SAM) includes all the necessary processes and infrastructure to plan, control and protect your investments in enterprise software throughout each phase of the lifecycle.
Challenges and benefits
Managing software assets can be a daunting challenge. The technologies involved are complex and constantly changing. Multiple stakeholders are involved in the purchase, installation, deployment, maintenance, utilisation and disposal of software. And license agreements are increasingly complicated and multi-layered.
Many organisations may lack the skills, resources and budget to implement a complex SAM program. Seeking a simple fix, some companies often rely solely on a SAM tool. But technology solutions alone are incomplete, falling short of sustainable management and leaving the organisation open to operational, financial and security risks.
An ongoing SAM program can help:
• Realise cost savings (which can be re-invested to make a SAM program self-funding)
• Improve your budgeting process and financial controls
• Meet regulatory requirements
• Increase operational efficiency
• Gain and maintain long-term control over software assets
Software licenses and maintenance costs represent a significant portion of an organisation’s Information Technology (IT) budget. Without managing your costs and software usage, you could be putting yourself at risk of:
• Unplanned payments to software vendors for non-compliance, particularly as vendors increasingly rely on software audits to meet revenue goals
• Over-subscription—paying for more software licenses than you need, especially as your organisation and environment change
• Security threats, due to the use of unauthorised software or the inability to manage your IT assets
A software asset management (SAM) program can help you reduce these risks, while also optimising the full lifecycle of your organization’s software assets.
The Deloitte approach
Deloitte knows the ins and outs of SAM. We helped write the SAM standards, developed a distinct methodology and approach, and perform hundreds of license baseline reviews per year. We have also implemented SAM programs for numerous end-user organisations around the world. As a neutral third party, we provide a truly objective perspective on monitoring and governing software assets.
Our skilled practitioners can assist you in managing the multi-layered complexity of SAM programs, from focused diagnostics and software baseline to full SAM implementations. We offer a distinct approach that encompasses not just tools, but also people and processes—helping you put the right skill sets, accountability and governance in place to effectively manage your software assets throughout the entire lifecycle.