Gartner’s recent release, 3 Ways to Cut Software Costs, highlights how CIOs and senior IT leaders can significantly reduce software spending by incorporating three best practices. In fact, the leading IT firm reports that in an 800 client inquiry, there was an average 30% reduction in software expenses within a 10-month period when respondents implemented these practices. We should all take notice, as news of global software spending is expected to reach $332 billion in 2016. With economic uncertainty causing business leaders to tighten IT budgets, spending wisely and optimizing ROI are mandatory requisites to maintaining relevancy.
As a global SAP services company, specializing in providing innovative solutions, we are compelled to provide partners, clients and associates with information to help you succeed
in this intensely competitive and innovative industry. We have chosen to expound on Gartner’s helpful tips in order to provide additional detail on the benefits, and to encourage you to act upon these budget-saving best practices.
GARTNER’S 3 WAYS TO CUT SOFTWARE COSTS:
Best Practice #1: Optimize software configuration
It’s up to IT leaders to seek opportunities for savings in the often complex configuration of software. Here lies an opportunity to increase efficiencies, stability and control. By having knowledge of the elements of configuration, IT leaders are able to quickly detect and correct performance reducing configurations, thus improving productivity. Optimizing software configurations also allows for faster problem resolution and greater levels of security. It’s a win-win!
Best Practice #2: Recycle software licenses
Part of software license management, this involves recycling and re-harvesting your licenses for maximum savings. Many companies fail to keep track of the licenses they are purchasing and using, resulting in unnecessary software spending. Make sure that you keep track of your company’s software usage, and check software license agreements on a quarterly basis. Metering is a useful way to identify unused licenses, cut spending and support maintenance costs, and so is the next best practice.
Best Practice #3: Use SAM tools
Software Asset Management (SAM) tools allow you to organize and control software inventory. They frequently include license management and optimization capabilities. With SAM tools in place, companies can reduce the chances of getting slapped with non-compliance fees. Cut back on the complexity involved in optimizing licenses by deploying a SAM tool to simplify the process.
“Companies can expect to achieve 30% savings in the first year and between 5-10% annually with an effective Software Asset Management (SAM) program.” – Gartner
By implementing these straightforward practices, companies have successfully managed to substantially reduce software spending. Your path to implementing these practices may require additional resources in the short-term, but the long-term savings are apparent. Hank Marquis, research director at Gartner summed it up best – “Automated software license optimization is a relatively new discipline and most organizations are at lower levels of maturity. The variety of license entitlements also makes it tough for IT leaders to spot savings, especially in environments with many software publishers and titles. But it’s worth pursuing, as spending reductions contribute directly to the bottom line as gross profit.”
Contact Auritas today to speak with one of our data experts. We’d be happy to discuss the challenges your company faces as it relates to software spending, or any data challenge you encounter.
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