Why Software Asset Management (SAM) will help you reduce costs

There are a number of areas in which implementing SAM will help you reduce your costs:

Licensing

This area is probably the one that many people will expect to see the most savings due to SAM. But, surprisingly it typically doesn’t match the cost savings of the other areas.

SAM will enable you to take full advantage of the terms of your licensing agreement in order to reduce license purchases. It will also enable you to implement pooling to identify and transfer licenses without the need to purchase extra.

Maintenance

Maintenance reductions follow on directly from your licensing. So an anticipated 5% reduction in license costs will flow through to maintenance costs at the same rate. However, this is not the end of the end of the savings in this area. The detailed information produced by SAM will enable you to implement a thorough maintenance strategy that will reduce the need for unnecessary maintenance and could save you as much again.

All the data produced by SAM will also enable you to get rid of maintenance contracts that are no longer providing you with any value. These include:

  • Those with missing base licenses
  • On wrongly migrated product licenses (see 4 below)
  • Undocumented licenses
  • When a software vendor acquires another vendor

Vendor Audits

The main issue with vendor audits is the financial risk from the need to purchase additional licenses and associated penalties for non-compliance.

With SAM you will have more visibility of, and control over, your license estate and as such can expect a major reduction in this financial risk.

Migrations

As you manage and reduce your licenses due to SAM (see 1 above), the number of migration licenses you require will also reduce.

With a good understanding of your licensing position that SAM delivers it should be possible to reduce migration costs by keeping licenses under maintenance and purchasing only the migration licenses you really need.

Reinstatement’s

Reinstatement’s will result from the poor management of your maintenance agreements. This is covered in 2 above. Consequently these costs can also be reduced in line with anticipated savings in the maintenance area.