Did you know that software can represent more than 20% of a company’s IT budget? And thousands or even millions of dollars can go down the drain through spending on underutilized licenses or as fines for non-compliance?
Despite these financial ramifications, many companies struggle with a rudimentary and fragmented approach to Software Asset Management (SAM). This approach typically requires manual consolidation of spreadsheets, and lacks up-to-date data, leaving companies unprepared for software audits that can lead to a nasty surprise like a massive fine for lack of compliance.
This is where a good SAM system comes into the picture. Such a system is essential to stay prepared for audits, ensuring compliance, optimizing software utilization and, most important of all, drastically bringing down your annual software spend. According to Gartner, organizations can save up to 30% through best practices for SAM. Clearly a good SAM system that facilitates these best practices is a worthwhile investment.
4 Ways Software Asset Management Cuts IT Costs:
1. Minimizes Audit Costs
One of the consequences of not having a SAM system in place is being unprepared for software audits. This reactive approach can cost organizations in multiple ways. Lack of preparation can increase the time frame and cost of the audit. It also raises the risk of non-compliance and fines that must be paid for this issue.
The solution is an active SAM system that keeps you one step ahead of the game. A proactive approach keeps you prepared for audits, with transparency that gives you a clear and accurate picture of your compliance status. Such accurate records minimize the spending necessary to demonstrate proof of entitlement when it’s audit time. Your organization also saves massively by avoiding large fines for non-compliance.
2. Helps You Manage Renewal Dates
It is vital to monitor renewal dates in order to minimize your IT costs. A centralized SAM system will highlight software that is nearing the end of its life cycle and needs renewal. This transparency allows you to track renewal dates, giving you advance notice so you can minimize support and maintenance costs for software that is reaching the end of its life cycle. This also helps you manage your software better and plan for any necessary renewals. In case of a bulk renewal, a vendor could possibly consider a discount.
3. Makes Recycling Software Licenses Easier
Recycling entails recovering unused license rights for reuse, thereby avoiding unnecessary new license purchases. In addition to cutting spending, it also reduces support and maintenance expenses. Sounds simple, but this requires strong SAM tools that can help you implement robust process control. Monitoring through such tools helps you pinpoint software that is unused or underutilized, or even misused.
Perhaps a user has software installed but never uses it. That license can be reused by another user. Or perhaps a user has software but only requires viewing capabilities and does not make use of the other functionality the software provides. Such issues can be quickly remedied with SAM tools to help minimize IT costs.
Sometimes software is resting idle on devices that are in storage, repair or retirement. A clear software catalog helps you identify these licenses and recycle them for active use, which reduces your IT spending.
4. Provides Real-Time Visibility
One of the biggest advantages of a SAM system is the clear, real-time snapshot of your organization’s actual software requirements and utilization. This knowledge means you can reduce the cost of multiple vendor relationships and get discounts on large volume orders. In addition, you can also reduce IT costs by optimizing IT management and support through a software catalog that facilitates a standardized approach to life cycle management of your software assets.
While there are various Software Asset Management (SAM) solutions available on the market, a cloud-based system like ServiceNow provides extremely convenient and powerful:
- Real-time Visibility
This empowers you to take control of your software assets across the entire company, and facilitates cost-cutting and optimization measures that lower your spending on IT.
At Aptris we handle all things ServiceNow. Think of us as your ServiceNow maesters – where would any of the houses on Game of Thrones be without their faithful maesters who handled a myriad of duties to keep things running. Heck, Cersei’s blacklisted maester Qyburn was almost single-handedly responsible for getting her back in the game after she seemed completely beaten. And what about Ser Jorah, saved from imminent death by Samwell Tarly, maester in training?
What we’re trying to say is that we’re passionate about helping our customers leverage ServiceNow for maximum value. In addition to being an Elite ServiceNow partner, we’re proud to be 100% laser-focused on ServiceNow. Let us bring our industry-leading laser precision and dedication to your organization and get you started with SAM or any other ServiceNow module that you’re interested in. Get in touch with us to learn more.