Software Asset Management (SAM)

10 Reasons to Implement SAM

  • Smoother Operations

Your entire organization runs better with SAM. SAM lets you focus on running your business and takes your mind off things like unsupported programs, viruses and security problems stemming from a lack of patches or updates.

  • Better Price Points

SAM will improve relations with your software resellers and give you an advantage in future negotiations. A better knowledge of your software needs can enable you to buy in volume and let you take advantage of the price benefits associated with bulk purchases.

  • Better Market Position

Up-to-date licensing and an extensive, comprehensive media library can result in faster, easier mergers and acquisitions. SAM also gives you a faster time-to-market with streamlined software functionality and a thorough knowledge of your existing database.

  • Financial Security

A good SAM program gives you financial security from unexpected licensing costs as well as providing tax benefits associated with software depreciation.

  • Eliminate Waste and Redundancy

Thorough software reconciliation, one important step in any good SAM plan, will show software that’s not being used but is still being maintained. That software can then be removed and used elsewhere along with its associated license.*

* Please note that certain license agreements may limit the transfer of software. Check your agreement(s) before transferring software.

  • Volume Discounts

SAM gives you a better understanding of how many and what types of licenses are needed. Should you buy on a per-person, per-PC basis, or look into volume license acquisition? Your SAM plan will tell you exactly what you need and save you money when it comes to purchasing your licenses.

  • Every Employee Benefits

Software that functions as it should and is trouble free will result in better overall employee moral. A centralized SAM program will also cut down on individual training for managers and lower the costs associated with it.

  • Liability

A proper SAM program limits your legal liability due to poor licensing practices and helps prevent any potential damage to your reputation that could arise from a lawsuit.

  • Future Benefits

SAM gives you better insight into your future software needs. Instead of buying all the newest software and updates available, you’ll be able to decide exactly what software is needed and when you’ll need it. With SAM you can plan for your future software needs now. This can also help you when deciding if new hardware is needed as well.

  • Corporate governance

There are two basic steps towards ensuring good corporate governance: identifying the risks, and controlling and mitigating these risks. SAM can help you identify and control your software risks.

 

Benefits derived from SAM

 

Risk Management:

A properly implemented SAM solution facilitates better management of the following business risk areas:

  • risk of interruption to IT services
  • risk of deterioration in the quality of IT services
  • legal and regulatory exposure
  • risk of damage to public image arising form any of  the above

 

Cost Control:

SAM facilitates better cost control and negotiating ability through:

  • reduced direct costs of software and related assets, e.g. by negotiating better price through optimum use of the volume contracting agreements, and by avoiding purchasing new licenses when existing ones can be redeployed;
  • reduced time and cost for negotiating with suppliers owing to readily available, up to date information;
  • reduced support costs that are significantly affected by the quality of SAM processes, both directly within IT and indirectly within end-user areas;
  • improved financial control through better contract knowledge and charge reconciliation, resulting in more accurate forecasting and budgeting;
  • reduced infrastructure costs through managing software and related assets and ensuring that assets are efficiently and effectively utilized;
  • constant up to date view of IT Assets, allowing for more informed decisions

 

Statistics

Company expenditure on IT is escalating with a higher percentage of this tending towards software. The estimates below are based on Gartner's review of IT environments and Software Asset Management.

  • IT Expenditure: 5% of an organization's annual turnover is realized as its IT investment. An estimated 25% of the IT investment is allocated to software.
  • ROI Calculation: an organization could experience of cost saving of 25%-30% of the cost of software in the first year after successfully implementing a SAM solution.
  • Potential Cost Saving: organizations that have been marge or rationalized could be over licensed by 15%-25%.
  • Potential Compliancy Risk: up to 35% of desktops could potentially be under licensed.