Why SAM?

Why SAM?

Financial risks and cost saving opportunities are associated with all software licensing contracts your organisation owns: you could have deployed more software than purchased, in which case you are non-compliant and at risk of vendor audit penalties, substantial unbudgeted spend and in extreme cases, criminal proceedings; you could have also deployed less software than you are entitled to, in which case you can make instant savings from reducing support and maintenance levels and recycling spare licences.

Very rarely organisations are in complete balance, i.e. owning quantities of software licences that exactly match the level of software deployments. An effective Software Asset Management (SAM) practice will eliminate unintended software deployment (cost avoidance) and optimise utilisation of existing software licences (cost saving), thereby aligning software licensing liability and licensing spend to the business value delivered by software assets.

In our experience, the total value of SAM (cost avoidance and savings combined) is typically between 20% and 40% of an organisation’s annual expenditure on software (or between 5% and 10% of its IT budget).
Cost Avoidance Objectives
Licence Compliance & Audit Risk Management
On-going visibility & control over software deployment
Security & Regulatory Compliance
Cost Saving Objectives
License recycling & maintenance reduction
Effective vendor relationship management (better prices)
Software strategy aligned to business objectives
Software
liability
How much you should pay to cover your actual software deployment
Software
Spend
How much you are paying for software today
Software
Value
How much business benefit your software delivers