In today’s digital world, software runs your organization, and need acquiring, updating, and accessibility to software has become more complex. It’ estimated 20% of IT budgets, are dedicated to software management for many companies, and that figure is probably low due to the number of departments buying SaaS outside of IT procurement. Software publishers have also added to the challenge with more complex licensing and compliance needs they need to fulfill. For example: the US Army paid compliance related fines of up to $50 million in 2013 in relation to installing unlicensed applications? Improper software management can be costly for you too.
Software asset management (SAM) refers to the optimization of software applications for maximum performance. Using SAM, not only can you manage your software licensing and compliance better, but also, get the most out your software investments. Here, we list 10 reasons why, you need SAM.
Reason 1) Saving Money
A proper SAM stategy and operation tracks and analyses your purchased, deployed and used software to determine the most cost-effective licensing agreement for your specific requirements. This allows you to have the right capacity at the right time. Many organizations have defaulted to just over-spending, and now that is starting to really add up. Companies can reduce software related costs by as much as 30%, through decrease in maintenance costs or re-deploying licenses through SAM processes.
Reason 2) Trust and Predictability
It is one of the worst feelings for a CIO to have to walk into the CFO and ask for money to true-up on a failed audit. This is cash that was not budgeted and adds zero value. A proper asset management (SAM) program allows you to easily predict and forecast your software costs based on your usage and alignment with business goals. With more predictable costs at your disposal, you can focus better on your overall business strategy.
Reason 3) Reclaiming some costs
While failed audits are painful, the opposite situation where CIO’s can reduce their spend, is a great opportunity to show the business IT is in control. Through powerful business intelligence features, an SAM solution can significantly reduce hardware and software expenditures, as well as improve productivity of employees through simpler operations. Many SAM programs have a 100% ROI by reclaiming spend on mis-configured licenses, or over-deployment of unused licenses.
Reason 4) Improved Security
A SAM program that integrates full-lifecycle, ensures that sanctioned applications and programs are properly released into the environment. They tie the usage to business services and users, allowing for proper controls. Using an SAM solution, you gain complete control over what is deployed on your network and you can filter out vulnerabilities and better prevent breaches like viruses, malware, etc.
Reason 5) Vendor optimization and Negotiations
With your SAM program providing full transparency, you can now see where you are spending money and who you are spending it with. This allows you to come to the negation table for new projects, true-ups, or volume purchases with more strength in the negotiation. By integrating this into your ITSM program, you can also show the rate of impact on those assets.
Reason 6) Improving Employee Experience
Using SAM tools, you gain insights into how your software is being used and understand what you’re paying for. This also allows you to craft training programs, knowledge management and best practices based on the driving business results of the key assets.
Reason 7) “Best-Fit” Licensing
Access to the best possible data will ensure you only buy what you need to align with your business roadmap and compliance needs. Orchestrating real-time licenses management allows automation to help drive compliance on demand. Request fulfillment processes automatically check to see if the license are available, and if they are not, will trigger management approval, or reclaim them from unused systems.
Reason 8) Empowerment
Leading SAM solutions like Servicenow, give you the complete view of the asset lifecycle. This enables IT to work effectively as a partner with the business planning budgets, spending and managing growth. In a digital world we are a data driven organization. SAM analytics leads to better decision making and better ROI.
Reason 9) Measuring Project Success
SAM solutions can track valuable data like budget costs, adoption rates, etc. that help you measure the success of your project and forecast future plans accordingly. Combine this with the powerful federated data of the CMDB, and IT can finally hep showback the true cost of services.
10) Planning for the Future
The advantages of software asset management, which are easily demonstrable can help you justify strategies and develop plans going forward accordingly. Effective software usage not only creates huge cost savings but also creates a dynamic employee base who are sound at using the best technologies in the market today.
ServiceNow, a leading global enterprise software giants, provides an SAM solution for endtoend software life cycle management on a single platform. ServiceNow SAM helps you optimize software expenses, reduce compliance risks, control your licenses through automated procurement, management, and optimization and aligns your software needs with your overall business goals.
ProV are preferred partners for ServiceNow products and services and provide a host of services that help manage your software licenses, usage and compliances better so you get the most out of your investment each time. To get started on your effective SAM journey, take our FREE Consultation today!
