Benefits of Software Asset Management – reducing costs
In our second blog on the benefits of SAM we will be looking at how it can help to reduce costs across the organization. The first article on managing risks can be found here.
Cost reduction (along with compliance) is typically cited as a major factor for investing in SAM. The most obvious saving being on the licenses themselves. As a good SAM program will track the usage of software (as well as installed instances), it enables license optimization and ensures an organization only buys and uses that software which it actually needs, thus reducing overspend.
SAM still needed in the cloud
This is particularly so for cloud-based licensing, or Software as a Service (SaaS). Many people make the mistake of thinking that with a cloud-based subscription, you no longer need SAM. Don’t fall into this trap. If anything SAM is needed more with a cloud-based subscription as organizations tend to overbuy to ensure that all employees can gain access to the software they need to do the job.
License spend though is not the only area where SAM can help reduce costs. The necessary disciplines of SAM will also help reduce hardware costs as well as it will enable the identification of unused hardware and servers that can be consolidated.
Improve your negotiating position
The detailed and rich information that SAM delivers puts organizations in a stronger position to negotiate a better agreement with their software vendor(s) come renewal time. By being able to show that you are compliant it essentially weakens the software vendor’s hand and prevents them from being able to strong-arm you into unfavourable and costly agreements that specifically favour them.
Also, by unifying your software buying across the organization, the increased volumes you can offer the software vendor will enable you to get a better deal than if you had several people/departments across your organization negotiating independently.
The final area that SAM helps with cost reduction is infrastructure. A well-designed infrastructure (a necessary by product of a good SAM program) will help reduce costs both in terms of forward planning and also in problem resolution on a day-to-day basis.
So, investing in a good SAM program can deliver significant savings in a number of areas, some of which may not be apparent at the outset of the project.
If you would like to find out more about how SAM can help you both cut costs and manage risks, please get in touch.