November 20, 2008, 10:26 AM — If cutting IT costs is at the top of your list, then managing software assets should be, too. Itâ€™s rare to see an IT program with an ROI of 6 months to a year, but an effective Software Asset Management (SAM) program can do just that and a whole lot more. If your company hasnâ€™t jumped on the SAM bandwagon yet, here are five good arguments you can give your CIO to initiate a SAM program, now.
5. Keep Your Company Reputation Clean
If the CIO isnâ€™t bothered by license compliance issues and the threat of a vendor audit with a hefty fine, maybe the thought of a tarnished corporate reputation will catch his attention. Today, piracy is a big No-No and getting caught is an even bigger no. If your company doesnâ€™t know what software is installed and being used on its computers, itâ€™s time you found out and did some spring cleaning.
4. Streamline Software Management, Purchasing and Deployment Processes
There are SAM tools on the market, such as SmartTrack from Aspera that can be integrated with the procurement departmentâ€™s ERP system and with deploymentâ€™s EDS system to streamline and automate the entire process, which in CIO speak means efficiency and avoiding human error.
3. Take a Proactive Approach to Server License Management
Many companies are confronted with server license issues when making the crossover to virtualized machines. Software license management can help your company make sense of the different types of server licenses and make the transition to virtualization smoother and less expensive.
2. Improve Your Negotiation Standpoint with Manufacturers
Keeping track of your software licenses means knowing exactly what you need now and being able to accurately project what you'll need later. This puts your company in the driver seat when it comes to negotiating contracts with software vendors. The CIO can negotiate better prices, eliminate over licensing in the company, secure better maintenance terms, and utilize opportunities to purchase software in volume. The cost savings here can be monumental.
And the #1 reason isâ€¦
1. Reduce Your Total Cost of Ownership
An effective SAM program and the right tools help you identify cost saving strategies such as standardizing corporate software, which leads to reduced help desk costs, re-allocating software licenses (and not re-allocating when in violation of contract terms), purchasing upgrade rights instead of expensive full versions, and eliminating obsolete maintenance contracts.
With todayâ€™s economy hitting rock bottom IT departments are going to have to work with reduced budgets and staff. Implementing cost saving policies to improve profitability is key to survival. What are you going to suggest to your CIO at the next budget meeting?