By Gwen Lyons
The benefits of a proactive, strategic Software Asset Management (SAM) and License Optimization program extend beyond the management of IT assets alone. Real time visibility, with a single integrated view of software utilization and license consumption, provides critical enterprise data points that enable not only longer-term IT planning, but the ongoing support of day-to-day IT service management. In essence, SAM and License Optimization become an information-broker to facilitate Information Technology Infrastructure Library (ITIL) processes and capabilities.
Some IT functional areas of note with specific SAM interdependencies include:
- Enterprise Architecture– the ability to understand not only what software is currently being used in your IT environment, but who is using the software, and where, provides a more efficient manner to understand gaps in software governance. It also allows for better planning for software retirement and legacy software replacement, as well as IT architecture/roadmap planning. Furthermore, application rationalization is no longer a painful, resource-intensive project, but becomes a maintained program with the ability to govern version control and rein in renegade activity.
- Strategic IT Planning– migrations to a new platform and/or new capabilities often have associated negative ramifications that are not reviewed or known during the benefits analysis phase of a business case assessment. Visibility into potential contractual liabilities (penalties) if a legacy environment is retired prior to contract end allows organizations to get in front of supplier negotiations to mitigate the risk. In addition, knowing the systems and applications on which the organization is still dependent provides an opportunity to address transition concerns and smooth the oft-times painful resistance to pending change.
- Capacity Planning– visibility to current usage and location of usage are critical data points in planning future capacity requirements.
- Budgeting/Forecasting– being able to adequately forecast based upon historical trends is a gap in most organizations. Providing data points that not only help identify actual license consumption but provide an understanding of available license inventory in organic/inorganic growth scenarios provides for more informed decisions in the budget or forecast process.
- Vendor Management/Risk Management– strategic SAM and Software License Optimization puts companies in the driver’s seat in management of supplier relationships. More effective communications can occur with the supplier when the vendor manager is operating from an informed and empowered position. Optimization of supplier portfolios also becomes easier as continuous visibility into your IT environment provides report views to facilitate business decisions regarding suppliers providing “like”-type functionality across the enterprise.
- Contract Management– continuous visibility of actual license positions and potential risk enables IT contract managers to more strategically position contract negotiations, proactively address software maintenance renewals and select optimal support levels. Contract managers have the data at their fingertips to quickly understand the opportunity and/or risk throughout the contract lifecycle.
- Business Continuity Planning– if you know where your business-critical apps are sitting and who is using them, you can better plan for effective disaster prevention and recovery for the organization.
- Service Management & Problem Resolution - a consolidated, robust, centralized view of IT asset information provides for quicker identification and resolution of issues.
As the SAM and License Optimization program matures in an organization, the data that it provides becomes a powerful enabler for operational and financial management of the IT enterprise. Cost savings identified through optimized license management as well as process efficiency gains can fund additional IT projects. Organizations that are currently operating in a reactive, fire drill-driven mode are able to move to a more proactive and strategic planning mode of operation.
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Achieve Breakthrough Results with Your Software License Optimization Program