Software Asset Management

Software Asset Management explained

Companies that use a lot of software are often not ‘in control’. They are not sure exactly how much software they are using, if they are being compliant to the licensing agreements, if they might be over licensed and overspending, etc. They clearly lack a good understanding and a good overview. To structurally manage the process of Software Asset Management these issues can be taken care of. Implementing SAM can give clarity, direction and reduce software costs and spending. Thinking about software usage, a lot of people immediately think of end users. But SAM is more broad than this. Put shortly, SAM is the total process around the management and optimisation of planning, buying, implementing, maintaining en getting rid of software. It is active within the whole software lifecycle. The purpose of SAM is to effectively manage IT in an organisation. It is important for companies to recognize the importance. Nowadays, the real risk for companies is to nót be in control of SAM.   

Reasons to use Software Asset Management

Applying Software Asset Management can broadly cause 3 main benefits for companies. I will explain these 3 main benefits below:

1)     Efficiency advantages: think about smarter decision making because it is finally organized what the needs are concerning software usage. SAM can also make it possible that new functionalities can be rolled out and used quickly. A transparent SAM strategy assists in easier mergers and acquisitions for both parties because employees are spending less time on software audits.

2)     A reduced chance of negative financial outcomes due to license reviews causes a controlled risk of a non-compliance situation. Another risk that SAM minimizes is a security risk. This also means less chance of interruption of daily business.

3)     Being ‘in control’. This also means having a better negotiation position when talking to software vendors because all available licenses and software is clear. The chance of renewed buying of licenses that the company already possessed is also reduced. On top of this, the company is also able to make an inventory of new software and maintenance needs.

These benefits are perfect for companies and IT organizations that keep evolving and becoming more professional. Besides this, laws en regulations require companies to provide insight into the value of the most important company operating assets as part of the trustworthiness of their financial reporting.