5 Ways to Cut IT Costs with Software Asset Management

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Software Asset Management (SAM) relates to the control, management and optimization of software assets and their related expenses in an organization. While a good Software Asset Management system is necessary to stay ready for audits and ensure compliance, it also plays a huge part in bringing down year-by-year software spend.

When companies implement fragmented systems that require manual consolidation such as spreadsheets for SAM, they struggle to face audits due to lack of preparation and lack of transparency of their software assets. In addition, they fail to minimize surplus IT spending with these fragmented systems.

Software can comprise over 20% of a company’s budget, and thousands or even millions of dollars can be spent on underutilized licenses and penalties for lack of compliance. A good Software Asset Management system can ensure compliance, optimize software utilization and provide substantial savings for organizations. Christopher Germann, a senior research analyst at Gartner, states that organizations can achieve cost savings ranging from 5 to 35% through focused Software Asset Management practices.

Let’s look at 5 ways to cut costs with Software Asset Management:

  1. Minimize Audit Costs

Being unprepared for a software audit will increase the duration and cost of an audit due to lack of preparation. It also raises the likelihood of fines to be paid due to lack of compliance. An active SAM system will keep you prepared for audits and give you a clear picture of your compliance position. When you maintain accurate and up to date records on software licenses, entitlement, number of installations, and other relevant details, you reduce the spending required to demonstrate proof of entitlement when it’s time for an audit. You also save by avoiding hefty fines for lack of compliance.

  1. Remove Undesirable Software

When you have a SAM program or system in place, maintaining a catalog of current software will enable you to easily spot non-compliant software applications. Such undesirable software could be a nuisance to IT support and even pose security risks in some cases. You can cut IT costs by eliminating these undesirable applications before they turn into bigger problems.

  1. Tame IT Expenses

A SAM system provides a clear picture of an organization’s actual software requirements. This clarity enables you to take advantage of discounts on volume orders and reduce the ongoing cost of handling several vendor relationships. A standardized software catalog with a standardized approach to software applications and their lifecycle management will help organizations realize greater savings by optimizing IT management and support.

  1. Reduce Surplus Software

A single source of truth – a centralized catalog of software assets, will provide visibility of your current assets and enable you to leverage your license base to maximum value. This encompasses licenses in procurement as well as harvesting licenses from devices that are in repair, storage or retirement. You can redeploy software assets from these licenses, which impacts your IT spend, providing more value for money. Instead of languishing in waste on such idle devices, software licenses are re-deployed for maximum value which reduces the need to buy more licenses that seem necessary, but would actually be a surplus.

  1. Monitor Renewal Dates

A centralized SAM system or other form of up to date, reliable records of your software assets will highlight software that is at the end of its lifecycle. Monitoring and tracking renewal dates will provide sufficient notice to minimize maintenance costs when software is at the end of its lifecycle, and effectively manage software and any necessary renewals.

There are a number of Software Asset Management (SAM) solutions available on the market. A cloud-based system such as ServiceNow®, which offers a SAM module, can provide the centralization and transparency necessary to take control of your software assets, and enable cost cutting measures to lower your IT spending.

If you’re wondering where to begin with Software Asset Management, please feel free to contact us for a free consultation. Our experts at abhra Inc. are experienced cloud solution providers including SAM solutions.

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