Strategic Benefits of Software Asset Management

Hardware and software purchases make up about 20% of an organization's IT budget. However, a significant percentage of this budget is spent on unused IT procurements. Officers who oversee sales cause unexpected budget increases to comply with audit demand and increased spending by purchasing missing licenses. This is where Software Asset Management (SAM) comes into play. It includes all the processes and infrastructure necessary to plan, track and protect investments in enterprise software throughout every stage of the Software Asset Management lifecycle.

What is SAM and what are its 3 strategic benefits, let's examine them together.

What is Software Asset Management (SAM)?

Software Asset Management (SAM) is a business process for controlling the entire lifecycle of software applications within an organization, from acquisition to disposal. Mainly intended to be part of an organization's information technology and business strategy, the goal of SAM is to reduce the burden on information technology. Especially for large companies, SAM is essential for managing legal risks such as license redistribution and software ownership. Software Asset Management technologies allow company software to work harmoniously by tracking the license period. This situation can be important to both eliminating unnecessary costs and a company's reputation management strategy. Therefore, SAM is critical to the long-term business strategies of large companies.

Software Asset Management is an aspect of a broader business discipline, which includes controls of the software and hardware that make up an organization's network.

3 Strategic Benefits of Software Asset Management

Decreases IT Costs

Many companies see actionable savings of 20% or more in the first year and reduce costs with SAM. SAM allows identifying reuse opportunities by continuously monitoring the usage of applications. In this way, companies do not need to spend more money they need. Moreover, Software Asset Management monitors software and applications full-time, enabling organizations to purchase software assets based on their use and future needs. Additionally, SAM helps limit fake purchases and maximizes efficiency.

Reduces Risks

The data collected with Software Asset Management, organizations identify IT security risks and help find faulty or unsupported software. That is why companies can have the updates they need by eliminating the security risks that may arise regarding their software assets. SAM also reduces the compliance risk that may occur. SAM, which helps to eliminate the risks that may occur during the audit, thus reducing the legal liability of the companies. A good SAM practice reduces risks and saves organizations from any possible legal, financial and reputational damage.

Negotiating Strategically

Knowing exactly what companies have and needs are important for negotiating from a position of strength. This improves company reputation and maximizes efficiency. SAM allows for searching and definitive decision-making for the company data it obtains. This includes having a service provider managed by SAM and guiding companies on issues that need to be strategized. At the same time, SAM helps to focus on important contract demands and favorable terms.