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software asset management
(SAM) review
Given the increasing importance of the
software resource where software expenditures generally increase
with rapidly growing IT infrastructures, it therefore follows that
Software Asset Management (SAM) is now a key task within any
organization, but especially the larger business. However the
role of SAM has not necessarily been clearly defined within
organizations, often either fulfilled on a part-time basis by either
the centralized procurement or specialized IT departments.
Inevitably procurement personnel don't necessarily understand how
the software should be deployed, while the IT personnel don't
necessarily have the requisite negotiation or commercial contractual
skills to secure a solid and cost efficient software price.
Therefore historically and even as of today, many organizations could be
paying far too much for their software and often find themselves
subject to "Software
Stiffing" scenarios...
Software expenditure has increased
from ~10% of the overall IT expenditure in the early 1990's to
~40%+ as of today. Without a SAM function it becomes
impossible to identify "shelfware", paying for products that are
not used, or indeed identify low use products or products where
functionality has now been superseded, or is now included in base
products (E.g. RDBMS, Operating System, Etc.). Equally
from a polarized viewpoint, there is a need to safeguard that
deployed software is actually being paid for as per the legal
guidelines outlined by bodies such as
Federation Against
Software Theft (FAST).
Value-4IT have considerable skills
both technical and commercial that provide a platform for
practicable SAM delivery and have considerably reduced software
expenditure for many of our customers. From a simplistic
viewpoint a SAM process is based upon the following:
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Inventory Management (Software Resource - Product Portfolio,
Contracts, et al) |
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Supplier Management (Contractual License
- Negotiation, Renewal, et al) |
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Asset Management (Software Product - Audit, Metering,
Acquisition, Retirement, et al) |
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Security Management (Software - DR Usage, Historical Records, et
al) |
The "Discovery" phase facilitated by
the inventory process is pivotal for establishing the possibilities
for reducing and controlling software expenditure costs. It is
also important to note that software costs can be controlled without
the requirement for product displacement by conversion, which should
always be a last resort when observing the Keep It Simple Stupid
(KISS) methodology, as per:
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Displacement - Eradicate any unused or duplicate products |
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Negotiation - Renegotiate software
contracts armed with function usage data |
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3. |
Simple Conversion - Increased function and lower price
with minimal risk |
In conclusion, the strategic and
value-added software supplier will be focussed on maintaining their
client relationships and so will not necessarily be phased by their
client wanting to renegotiate contracts. Ultimately SAM
outputs provide the client with the requisite information to have an
informed pricing discussion with their suppliers...
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