If your company uses licensed software on its systems, you have to make sure you’re doing everything you can to achieve full software license optimization. The best way to do this is to invest in software asset management.
What is Software Asset Management?
Software asset management combines tools, software and dedicated personnel to keep your software licenses in order. Software management systems optimize purchasing, deployment, maintenance, utilization, and disposal processes for software owned by a company. Software license management tools also shape policies and procedures concerning the acquisition, documentation and deployment of new software.
Managing software licences allows companies to represent themselves properly during negotiation procedures, especially when negotiating for package deals like Microsoft Volume Licensing. When a business has all its software on the table, it’s much easier to determine what software licenses are needed. It also helps to eliminate extraneous software and prevents the purchase of superfluous programs.
Why Is Software Asset Management Important?
Software licenses run the risk of falling into non-compliance if a company uses them improperly or illegally. Companies that are found in non-compliance for any reason face heavy fines and even lawsuits.
This is especially true for companies running Microsoft programs. Microsoft is the most aggressive auditor in the business for its second year in a row. In a survey of businesses that used Microsoft software, 58% received an audit from the company in the past year. 56% of the organizations audited reported fees of $100,000 or higher. 21% of organizations reported true-up costs of $1 million or greater.
Programs that manage software licenses keep companies from falling into non-compliance, ensuring that they don’t spend more on legal fees than they did on the original software.
They can also keep companies from purchasing licenses they won’t use, or that won’t be compatible with their systems. A college in Connecticut, for example, payed over $900,000 for software it couldn’t use for several years, until they purchased a platform for it to run on.
Software management saves your company money and lets you focus on your business.