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17.12.2020

FOUR WAYS TO REDUCE IT BUDGET BY MEANS OF SAM – SOFTWARE ASSET MANAGEMENT

What will be the benefits for organisations upon implementation of the software asset management process (SAM)? We will explain in more detail one of undeniably the greatest contributions of SAM to organisations and companies – the reduction of the IT budget.

1. EFFICIENT MANAGEMENT OF LICENCES

SAM identifies all software in the organisation’s IT system – the installed computer programs, software and cloud services subscriptions. Smaller organisations often look for more advantageous solutions to improve IT processes, frequently unintentionally stockpiling software not being able to see the complete picture of the purchased software. Expenses on cloud services subscriptions can also duplicate, because two identical services have been purchased. Therefore the SAM solution helps companies to get an overview of the owned software and reduce the costs, and also to avoid exceeding the IT budget. The experience of the data technologies enterprise “Squalio” indicates that using the SAM (Software Asset Management) solution it is possible to save 10 – 30 % of funds allocated for the purchasing of software in the IT budget.

The IT research leader in the world – information technology research and consultation services enterprise   “Gartner”  advises of three ways to reduce the software costs: 

  • optimisation of software configuration;
  • renewal of software licences;
  • use of SAM services.

2. SOFTWARE RENEWAL REMINDERS

In large companies keeping track of software licences manually consumes a lot of IT specialists’ time, which is a resource. In addition manual tracking of software licences could involve human errors, which would mean a violation of the software use conditions and the risk of being fined in case of a software audit. The SAM tool provides automatic, timely reminders about the necessity of purchase or renewal of the software. As a result a company has more time to spend on negotiations with software vendors to agree more advantageous terms and avoid fines during a software audit.

Among other things, BSA Global Software survey shows that 57% of software used around the world is used without a licence!

3. Avoid SOFTWARE DUPLICATION

The SAM process helps to avoid the purchasing of redundant licences. Correct software management ensures close monitoring of software requests and purchases, thus reducing unsubstantiated software purchase requests and licence duplication. Use of the SAM tool reduces superfluous use of software licences and thus decreases costs.

4. THE elimination OF UNNECESSARY SOFTWARE

It is hard to track the purchased software without a SAM tool, especially at times, when employees’ responsibilities in the company change or an employee is moved to another position within the organisation. As a result the company continues to pay for the software, which is not used or is installed on computers that are not used any more. In such cases the SAM tools identifies the unused software automatically placing it with the free licences. These licences can be used for the needs of other employees, or the company can surrender them, thus creating another opportunity to reduce the IT budget and redirect the funds to other goals of the company. Maintenance and support costs of licences usually amount to 20-22% of the total annual licence fees.

The worlds leading enterprise in IT solutions development “1E” reports that 38% of software licences purchased by companies are not used.

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