What is Software Asset Management?
Software Asset Management is a process that encompasses all stages of the software lifecycle, from planning to retirement. The main objective of SAM is to :
- optimize the use of software licenses;
- guarantee legal and contractual compliance;
- reduce the costs and risksassociated with unauthorized or obsolete software.
Indeed, with the acceleration of digitization and growing dependence on software technologies, license control has become a strategic imperative for all organizations, whatever their size or sector of activity. Effective SAM is also an essential component of IT governance, providing a complete and accurate view of the software portfolio, facilitating planning and informed decision-making.
Contextual factors conducive to good software asset management
Compliance with laws and regulationsègulations on software use, data confidentiality and IT security is another reason why well-structured software asset management is essential, especially for organizations operating in highly regulated sectors.
A number of contextual factors favor the implementation of good software asset management within an organization.
Firstly, the growing complexity of IT environments, due to the adoption of technologies such as cloud and software as a service (SaaS), requires centralized management and an overview of software assets. Software licenses often represent a significant proportion of a company's IT budget, prompting CIOs to rationalize spending by avoiding unnecessary Procurement and license overruns, as well as negotiating better contracts with software suppliers.
What's more, the software audits regularly carried out by publishers require adequate preparation to avoid financial penalties in the event of non-compliance.
Compliance with increasingly stringent laws and regulations on software use, data confidentiality and IT security is another reason why well-structured software asset management is essential, especially for organizations operating in highly regulated sectors.
Finally, managing the security risks associated with unauthorized or obsolete software, which can present significant vulnerabilities in terms of data confidentiality and cybersecurity, is greatly facilitated by monitoring the software lifecycle and preventively planning its replacement or upgrade, provided by an effective SAM.
The 7 stages of the software asset lifecycle with Software Asset Management
Faced with these multiple contextual factors, it is essential to understand the software lifecycle for optimal SAM management and to guarantee ongoing compliance. The software asset lifecycle is a series of stages through which software passes, from creation to end-of-life. Typical stages in the software asset lifecycle include :
-
1. PLANNING:
Assessment of the company's software needs, identification of the software that meets these needs and planning of its acquisition. -
2. ACQUISITION:
Purchase software and appropriate licenses, understanding the terms of the license and ensuring that it meets the company's needs. -
3. DEPLOYMENT:
Installation and configuration of the software on the appropriate systems, including deployment on multiple devices or platforms if required. -
4. USE:
Use of the software to perform the tasks for which it was acquired. Monitoring its use to ensure that it is used efficiently and in accordance with the terms of the license. -
5. MAINTENANCE:
Regularly update the software with the latest updates and security patches, and resolve any problems that arise during use. -
6. OPTIMIZATION:
Analyze software usage and adjust deployment and licensing to maximize efficiency. For example, reducing the number of licenses if software is under-used. -
7. RETIREMENT:
Assessment of the company's software needs, identification of the software that meets these needs and planning of its acquisition.
Each stage of this lifecycle requires careful management to ensure that the company gets the most out of its software investments and remains compliant with its licensing obligations.
What are the benefits of Software Asset Management?
85%
of companies consider SAM to be a key element of their cost optimization and risk reduction strategy
By understanding and controlling the software lifecycle, companies can take full advantage of benefits ranging from license compliance and cost optimization to reduced security risks and improved operational efficiency.
The results of studies carried out on Software Asset Management point to tangible benefits.
According to a 2017 IDC study, organizations that have implemented effective software asset management have achieved average cost savings of up to 30% through license optimization and the reduction of unnecessary Procurement .
What's more, a 2019 Deloitte survey found that 85% of companies consider SAM to be a key part of their cost optimization and risk reduction strategy.
It's also important to note that a 2018 Gartner study revealed that nearly 70% of companies have suffered financial penalties due to software license audits, highlighting the importance of implementing SAM practices to ensure compliance and avoid unexpected costs.
Finally, research conducted by Forrester in 2021 showed that organizations that implemented SAM achieved an average return on investment (ROI) of 428% over a three-year period. These figures clearly demonstrate the significant benefits of implementing an effective SAM.
In conclusion
In conclusion, implementing Software Asset Management is essential in today's digital economy, offering efficient software asset management, legal and contractual compliance, cost optimization, security risk reduction and informed decision-making.
With SAM, companies will be able to successfully navigate a dynamic and ever-changing digital landscape, while making substantial savings and maximizing the efficiency of their IT resources.
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