Optimization – the way to cut software spending

20 Jul 2016 | SAM/SLO, Uncategorized

A March 2016 Gartner report called Cut software spending safely with SAM stated that organizations can save 30% on their software licensing spend in the first year. This, together with subsequent savings of 5% a year provides a very compelling ROI and argument for Software Asset Management (SAM).

That said, how do you actually realize these savings?

License optimization is the key to cut software spending

Many organizations make the mistake of presuming that achieving an Effective License Position (ELP) is nirvana and any further SAM work is not needed. Although an ELP is an important step, certainly in terms of proving your license compliance and defending against what are becoming more aggressive vendor audits, it should be viewed as a means to an end, rather than the end itself.

It is now commonly accepted that the key to realizing these savings is achieved through software license optimization (SLO). Broadly, this can be broken down into the following steps:

  1. Discovery & inventory of all hardware and software – vital first step as, to use the old adage, “if you can’t measure it, you can’t manage it.”
  2. Normalize hardware and software – reducing the huge and varied amount of data produced by stage 1 to a standardized list of hardware and software, including licensable products and their install counts.
  3. Understand your entitlement – what licenses you own and which versions of a product you are entitled to use.
  4. Compare the results – of stage 2 with your entitlement, this will produce your ELP
  5. Leverage Product use rights – upgrades, downgrades, secondary use etc. For more information see this article.
  6. Automate with policies & procedures – covering areas like software acquisition, use, check-in and a DR plan

If you have any questions about how SAM can safely help you cut your software spending,  get in touch.