Datacom's Tech Knowledge Blog

How Software Asset Management Lowers IT Costs

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Software asset management offers enterprise organisations a smarter approach to software licensing and deployment.

Previously, on our Australian Enterprise IT Blog, we've discussed how software asset management can reduce enterprise risk. But software asset management (or SAM) also helps enterprise organisations lower IT costs, in both their Microsoft volume licensing process and the deployment of other software assets across the enterprise.

In our experience, the strategic nature of SAM allows organisations to target efficiencies in their Microsoft volume license arrangement, as well as in software licensing arrangements with other vendors. Armed with detailed information about their existing software license assets and enterprise needs, organisations are more prepared to enter the enterprise agreement (EA) renewal process and to minimise new purchases through the redeployment of owned Microsoft software licenses.

Saving money on software licensing is just one of many ways that SAM can lower IT costs. SAM also allows organisations to reduce the management costs associated with software and related assets, streamlining processes and creating a more efficient IT environment. For example, compliance is usually a resource-heavy and labor-intensive activity. But by utilising SAM technology and methodologies, organisations can automate compliance monitoring and management functions, creating a much more cost-efficient software licensing compliance programme.

Some of the other ways a carefully designed software asset management programme can deliver cost savings can include improvements in the organisation's ability to forecast software needs and to track ROI on software licensing investments.

As an added bonus, for companies that leverage Microsoft software extensively, as is the case with many of our Asia/Pacific Datacom clients, we find that improving Microsoft desktop and technical support is an important element of a comprehensive SAM programme and is another way to tap into significant cost savings. Training and support help the organisation maximise the value of deployed software assets and avoid the high costs of underutilised or malfunctioning software assets.

While all of the cost savings we've discussed can add up, the real value of a SAM programme lies in its ability to accurately align people, technology and processes across the enterprise. Organisations that prioritise the deployment of the right people and the right technologies (as well as processes that emphasise best practices) have the greatest potential to achieve big cost savings through optimised software asset management.

Ready to get started? Talk to our experts about our software asset management services.