Software asset management (SAM) is a fundamental business practice with immense potential to significantly optimize a company’s IT budget. It encompasses the effective management and optimization of software asset procurement, deployment, maintenance, and organizational utilization.
With enterprise software licensing and maintenance spending accounting for nearly a quarter of a company’s IT budget, implementing effective software asset management strategies can lead to substantial cost savings. Let’s delve into what software asset management looks like for businesses.
Track Costs
One of the primary reasons businesses use software asset management is cost tracking. Each software license, renewal, and maintenance contract comes with its costs, including initial purchase fees, annual subscriptions, and periodic updates.
Tracking these costs effectively requires a robust software asset management tool that provides real-time visibility into all software expenses, enabling businesses to analyze and categorize spending across different software vendors and products.
By having a comprehensive view of their software costs, businesses can identify unnecessary expenditures, evaluate the value of different software investments, and make informed decisions to reduce costs and optimize their software usage.
Approve and Organize Licenses
Source: happay.com
Software asset management isn’t just about cost management; it’s also about balancing and accounting for software licenses and agreements. Each piece of software used within an organization needs a valid license.
A software asset management tool helps businesses improve and organize these licenses, ensuring compliance with various software agreements. This can prevent legal issues related to non-compliance and avoid hefty fines.
Team Collaboration
Effective software asset management also promotes team collaboration. With a unified platform, IT teams can track and manage software licenses across the enterprise. This fosters a collaborative environment where team members can collaborate to align software use with business needs. Software asset management can improve overall business operations by enhancing communication and cooperation.
Budgeting
As mentioned earlier, software licensing and maintenance can consume a substantial portion of a company’s IT budget, making budgeting a crucial aspect of software asset management.
By providing a clear and comprehensive overview of current and future software costs, software asset management tools empower businesses to plan their budgets more accurately, considering various factors such as licensing fees, maintenance expenses, and potential upgrades or renewals.
This meticulous approach to budgeting can result in improved financial forecasting, allowing organizations to make informed decisions and allocate resources more effectively. Ultimately, implementing software asset management practices can streamline cost management and optimize IT spending, enhancing operational efficiency and maximizing return on investment.
Customize Your Team
Source: infraon.io
Finally, a good software asset management solution allows businesses to customize their teams based on their unique needs. Different departments within an organization may require additional software tools. With a customizable software asset management tool, businesses can ensure each team has the software they need to perform their tasks effectively.
Here’s What Software Asset Management Looks Like For Businesses – In Conclusion
Software asset management plays a crucial role in businesses. It helps track costs, manage licenses, promote team collaboration, aid in budgeting, and enable team customization. By leveraging a robust software asset management tool, businesses can optimize their IT budgets, ensure compliance, and improve efficiency.
