How can software asset management (SAM) reduce IT costs and risks?

I can’t stress enough the value of a trustworthy inventory of entitlements and the importance of maintaining it. You can’t effectively manage your software estate without this cornerstone. Not only will it enable advanced renewals planning and optimized renewals, but will also help get ahead of publisher audits and mitigate risk. Avoiding being blindsided by even one material software publisher audit could be enough savings to fund a new SAM program for the next year.

Some most well-known benefits of SAM 1.By eliminating waste from underutilized licenses (Cost savings) 2.By renegotiating contracts from a position of strength (Cost savings) 3.By Reducing the risk of software audits and Penalties (Cost avoidance) 4.By optimizes future software purchases (Cost savings + Cost avoidance) 5.Avoiding payment for extended support by keeping latest version of the software (Cost avoidance)

Speaking from my journey, one thing I found instrumental was using data-driven insights to negotiate better deals with vendors. Especially considering that a major part of the budget is often consumed by the top 3 or 5 vendors, typically representing > 90% of the expenses. An example I've seen is how a focus on analytics can sometimes reveal surprising opportunities to cut costs without cutting corners - it's like turning a lens on the finer details in a broad landscape. Leveraging SAM not just as a compliance tool but as a strategy enabler can open doors to substantial savings and efficiency.

1. By identifying blacklisted and prohibited software footprints 2. Visibility into vulnerabilities by identifying end of life software footprints 3. SAM can also be a contributor to patch Management process by capturing version , edition and patch level of targeted application and software

In my experience, incorporating SAM has often acted like a security blanket often taken for granted. One thing I've found especially beneficial is its role in automating updates and making sure only genuine and authorized software is installed, which almost functions as a frontline defense against vulnerabilities. Though, I disagree with the notion that it's a set-and-forget solution; it demands a strategic approach to be fully effective. An instance I've witnessed was when a company could promptly isolate a vulnerable application, thanks to its SAM tool. It's a testimony that adopting SAM is not only about compliance but building a resilient IT environment.

SAM really comes into its own in helping to comply with diverse regulations, acting as an essential toolkit for modern businesses. One helpful aspect I've personally embraced is its ability to streamline adherence to industry frameworks SOC, which sometimes can be a labyrinthine task. Though I somewhat disagree with the notion that it's just a tool to satisfy external expectations, it's also a vital instrument for fostering internal discipline and order. In the realm of startups, for example, it's not uncommon to witness companies scaling rapidly while maintaining compliance, a balance made possible significantly due to SAM.

I would not limit this point to external regulations. SAM can also reveal problems in many internal processes, such as governance, risk and compliance. The findings during the implementation of a SAM programme and in audits are rarely limited to excessive use of software or use without licensing. In cooperation with stakeholders from other areas, weak points can be identified in areas such as access management, software procurement and monitoring. If implemented correctly, SAM helps to raise internal processes and compliance to a new level. A former boss of mine once said, "Before you become incompliant because you use too many licences, you've already violated 10 other internal policys."

I've come to appreciate SAM as a tool that significantly elevates IT performance. One thing I found helpful is its ability to facilitate seamless digital transformations. It practically serves as a roadmap, guiding us to align software assets with overarching business goals meticulously.

Especially the aspect of the necessity to continuously work on and improve SAM processes and activities is one of the most important (and often underestimated) points for me. Implementing and optimising the SAM programme is a marathon, not a sprint. The SAM team needs management support, needs sufficient experienced staff and needs to be supported by internal stakeholders of the organisation to achieve the best possible outcome. It is a holistic task for the entire organisation, not just IT. Organisations that understand and embrace this in order to reap the benefits, such as increased security, increased productivity, etc., will create a competitive advantage.

An important consideration on implementing SAM is whether to look at an inhouse team, an outsourced managed service or a hybrid combination of the 2. This will shape your SAM adoption, and potentially affect timeframes (outsourcing can typically deliver more quickly), costs (inhouse will likely be cheaper) and also skills (a SAM specialist as a managed service will likely have a richer set of skills and broader vendor knowledge). Software vendors may also be more likely to accept data / compliance output from a specialist SAM partner rather than an internal resource!

In the initial stages, particularly during the setup, I've observed that companies often overlook the importance of involving representatives from different departments, not just IT. I think this multidisciplinary approach is critical because it helps in getting a holistic view and understanding of the software utilization across various units and its cost/value to the business. In one instance, an organization I was advising significantly improved its software allocation efficiency by bringing in insights on usage patterns from the finance and operations departments. It really underscores that SAM isn't just an IT initiative but a strategy with a business-wide impact.