Software Asset Management (SAM) is the practice of managing and optimizing the use of software licenses, applications, and resources across an organization. SAM can help you reduce costs, improve compliance, and enhance performance. But how do you measure the return on investment (ROI) of SAM in the cloud?
Cloud computing offers many advantages for businesses, such as scalability, flexibility, and innovation. However, it also presents challenges for SAM, such as complex billing models, dynamic environments, and vendor lock-in. SAM in the cloud can help you overcome these challenges and make the most of the cloud's benefits. This can be done by streamlining your software inventory and license management, optimizing your cloud spend and usage, enhancing your security and governance, and aligning your IT strategy with your business goals.
BYOL (Bring Your Own Licensing) can be a great way to reduce costs in the cloud but it relies on good SAM to a) understand what's possible and b) to navigate the agreements and licensing rules to ensure compliance and optimal ROI.
Software Asset Management (SAM) in the cloud offers a multitude of benefits. It ensures cost efficiency, compliance, and security in cloud environments. It enables you to optimize cloud spending, maintain licensing compliance, and enhance security by tracking and managing software assets effectively. Additionally, SAM in the cloud supports scalability and flexibility, aligning software resources with business needs. This strategic approach to SAM is essential for maintaining control, reducing costs, and ensuring the smooth operation of cloud-based applications and services.
1.Robust SAM controls within cloud, prevents shadow IT taking root within the environment 2.SAM can save an organization from rude surprise of cloud bills by keeping track of the usage of cloud resources 3.SAM process can help identification of "Low" and "No" usage users and can help reharvestation of license to cater future demand and maintain the subscription cost
"Streaming is now just as expensive and confusing as cable. Ubers cost as much as taxis. And the cloud is no longer cheap." We've also noticed a shift: despite the cloud hype, some companies have found that cloud solutions aren't always cost-effective in the long run, sometimes opting to revert to on-prem or hybrid solutions. A robust SAM strategy can effectively counteract these financial pitfalls.
I'd like to share a bit, considering a practical view of Microsoft solutions for the company... Use Microsoft Azure Cost Management and Billing to simplify cost management and optimize cloud usage. This tool allows you to monitor and control cloud spending, identify savings opportunities, and ensure you're using resources efficiently.
To measure the ROI of SAM in the cloud, you need to compare the costs and benefits of implementing SAM with the costs and benefits of not implementing SAM. You can use the following formula to calculate SAM ROI in the cloud:
(SAM benefits - SAM costs) / SAM costs x 100%
SAM benefits are the positive outcomes of SAM in the cloud, such as cost savings, risk reduction, and value creation. SAM costs are the negative outcomes of SAM in the cloud, such as implementation expenses, operational overhead, and opportunity costs.
Measuring the Return on Investment (ROI) of Software Asset Management (SAM) in the cloud involves assessing the financial impact of your SAM program and understanding how it contributes to cost savings and risk reduction in your cloud environment. A comprehensive approach to measuring ROI in SAM for the cloud includes evaluating cost savings, risk mitigation, operational efficiency, security, user productivity, cloud optimization, and long-term strategic planning. By tracking these metrics and continuously refining your SAM strategies, you can ensure that your cloud investments are aligned with your business goals and maximize the benefits of SAM.
Here's a basic yet effective formula that’s always helped me: {(SAM benefits - SAM costs) / SAM costs x 100%} One cool trick I've picked up is to not just focus on the dollars saved but really dive into the value creation and risk reduction aspects. It's like hitting a gold mine when you see how strategic investments in SAM can actually fuel innovation and growth.
I'd like to share a bit, considering a practical view of Microsoft solutions for the company... The Azure TCO Calculator can be a useful tool to compare the costs of implementing SAM in the cloud with the costs of not implementing it. It allows you to estimate the total cost of ownership (TCO) and the financial benefits of migrating to the cloud, considering factors like reduced operational costs, increased efficiency, and risk mitigation.
SAM benefits in the cloud can help you save money by avoiding over-provisioning, under-utilization, and duplicate purchases of software licenses and cloud services. You can also negotiate better deals with vendors and leverage discounts and incentives. Additionally, SAM can reduce the risk of non-compliance, audits, fines, and lawsuits by ensuring that you have the right licenses and permissions for the software and cloud services you use. It can also improve your security and privacy by managing your access and data policies. Moreover, SAM can create value by enhancing your productivity, performance, and innovation. It can help you align your software and cloud portfolio with your business objectives and needs, as well as leverage new features and capabilities that can improve customer satisfaction and competitive edge.
In my experience , Cost savings ( Finops) , better compliance, Increased efficiency and better budgeting and planning including forecasting are some of the value benefits for SAM in cloud. The list and depth is endless if done right.
One thing I found extremely handy is leveraging SAM to dodge nasty audits and compliance issues. While it may not be common knowledge, I've noticed that SAM not only helps in saving bucks but actually turbocharges innovation and performance. An example I've seen? Over time, it finely tunes your software arsenal, giving you that cutting-edge advantage, something I'm passionate about bringing to companies of all scales, budgets, and maturity through Licenseware.
It’s not about avoiding audits but to demonstrate that all the good practices are being followed so why would the auditor fees being spent when all the information is readily available. It also demonstrates good governance
I'd like to share a bit, considering a practical view of Microsoft solutions for the company... With Microsoft Azure Hybrid Benefit, the company can save money by reusing its on-premises Windows Server and SQL Server licenses in the cloud. This avoids over-provisioning and duplicate license purchases.
When implementing SAM in the cloud, you may need to invest in tools, processes and people, as well as integrate SAM with existing IT systems and workflows. Additionally, there is an operational overhead associated with maintaining and updating SAM in the cloud, as well as monitoring and reporting on software and cloud usage and compliance. It is important to note that implementing SAM in the cloud may also lead to some opportunity costs, such as a loss of flexibility and agility due to standardizing your software and cloud portfolio, or resistance from stakeholders and users due to change management issues.
One substantial cost we observed was the manpower needed to keep things updated and compliant. But you know what was a lifesaver? Automating wherever we could, saving hours of manual analysis work. Another hiccup was integrating SAM with existing systems - yeah, that bit was a financial and time investment. But seeing the smooth, harmonized operations now felt totally worth it.
I'd like to share a bit, considering a practical view of Microsoft solutions for the company... Implementing SAM in the cloud may involve costs for tools like Microsoft Endpoint Manager, which helps manage devices and applications in your organization. There may also be costs associated with integrating SAM with existing systems and ongoing maintenance.
To maximize your SAM ROI in the cloud, you need to optimize your SAM strategy and execution. This should involve defining your SAM goals and metrics, assessing your current state and gaps, developing and implementing an action plan, and reviewing and adjusting your SAM performance. You must analyze your software and cloud inventory, usage, and compliance to identify any issues or opportunities for improvement. Furthermore, you should prioritize and execute initiatives such as consolidating vendors, optimizing licenses, and migrating applications. Finally, evaluate the results of your SAM program and make any necessary changes or enhancements.
Improving SAM ROI in the cloud isn't just a one-time setup. One tactical move companies make is consolidating vendors, which significantly cut down costs (but may also lead to lock-in). It's all about that continual adjustment to stay ahead in the game.
I'd like to share a bit, considering a practical view of Microsoft solutions for the company... To maximize the ROI of SAM in the cloud, you can use Azure Advisor to get personalized recommendations on how to optimize your cloud resources. It can help identify savings opportunities, improve performance, and enhance security.