July 19, 2009, 6:30 AM — You know why you need an IT asset management (ITAM) solution, but convincing the senior executives at your company may not be so easy. In today’s tough economy, management teams are tightening their belts, and as a result, technology budgets are a mere fraction of what they used to be. In order to get the needed support and funding for your initiative, you’ll need to effectively make the business case for ITAM.
IT Asset Management Will Improve Your Business
Your organization has devoted a significant amount of resources to building its technology infrastructure. But, unless all components of that architecture are properly tracked and administered, the value realized from those efforts will be hindered. Therefore, the first step in selling IT asset management to senior management is to clearly convey the potential return on investment (ROI) it can deliver.
Because minimizing overhead expenses is a key priority for many organizations in the current financial climate, it is critical to demonstrate the specific, hard-dollar savings that ITAM can offer. Hardware and software asset management tools can deliver dramatic, measurable cost reductions in many forms, including:
* Reduced system support requirements
* Increased efficiency of IT audits
* Improved employee productivity
* Minimized risk of viruses, spyware, and other threats
Several variables, such as the number of employees or PCs, will determine just how much your company can save in each of the above mentioned areas. Using industry benchmarks, its clear that some smaller and mid-sized companies can realize annual cost savings of more than $277,000 with IT asset management.
SaaS Makes It Easy to Get Started
Next, you’ll want to consider the SaaS approach - also known as on-demand or Web-hosted - to IT asset management deployment. Why on-demand? Because SaaS-based ITAM requires a much smaller upfront financial investment compared to the on-premise alternative. In addition, the deployment of a SaaS solution is much faster than that of an on-site system. So you realize value faster and reduce the risks typically associated with deployment efforts. These reasons will help increase executive confidence, since they won’t need to incur a major expenditure, and can gain almost immediate benefit.
You’ll also want to call special attention to software license compliance, and the potential losses that can be incurred if your company isn’t adhering to contract terms. Non-compliance with software licensing agreements can result in stiff fines from vendors and regulatory bodies - penalties that can be so high, they’d strike fear into even the most seasoned executives. IT asset management significantly improves the accuracy and efficiency of software license management, so you can closely monitor software usage and ensure full compliance at all times.
Present Your ROI and Business Case
And, perhaps most importantly, you’ll want to present your case, and the estimated savings and ROI you expect to realize, in a clear, concise, easy-to-understand manner. To help you get started, we’ve created an ROI calculator and presentation template which you can use as a guide to effectively calculating and presenting your potential savings.
Continue reading the making the business case for ITAM white paper.