Save costs now, be better prepared for a brighter future

Matt Fisher, VP Centennial Software, examines how organisations can adopt Software Asset Management to both help them through the tough times and be in a better position to capitalise on the upturn.

Times are tough for IT departments. The threat of recession has had a huge effect on organisational spending. When crisis threatens, CEOs must maximise revenue while reducing outgoings and often the IT department is the first to suffer cutbacks, despite its ability to increase efficiency and provide significant cost savings. However, when it comes to software licensing, ignoring the issue in the short-term can leave organisations in a precarious situation and create an unsteady foundation on which to prepare for the brighter economic times on the horizon.

CIOs are looking for ways to save on outgoings, yet many of the suppliers they work with are also seeking out ways to minimise revenue losses. For software vendors, this means getting tougher on software licenses – exercising their legal right to audit customers’ software usage and dealing severely with firms in breach of licensing conditions.

As a result, it is crucial to ensure the organisation is correctly licensed, as a fine could be incredibly harmful or potentially devastating, in the current climate. The trick is to avoid two common mistakes – under-licensing or over-licensing. It sounds simple , but in truth, managing licenses is somewhat more demanding. While there will always be a minority of CIOs who ignore licensing laws, in hope that the savings will outweigh the risk of an audit, it is more likely that mis-management of software is done through ignorance.

Software Asset Management (SAM) offers the key to minimising the risks associated with under-licensing as well as eliminating wasted software purchases or renewal of unfavourable maintenance contracts. SAM is based on having technology in place to understand what’s happening on the network as well as adopting best practices to manage IT operations, thus forming the foundation for effective Software License Compliance.

Adopting best-of-breed SAM technology can quickly provide CIOs with a clear understanding of the IT assets deployed across their IT infrastructure – which in its own right can lead to a significant return on investment (ROI) as redundant purchases are avoided and under-used assets are re-deployed.

The right SAM tools make it far easier for senior IT staff to record license entitlements and compare these against actual usage, giving an at-a-glance view of whether money is being wasted through unused software or whether the firm is at risk through under-licensing. In reality, it is likely that both under and over-licensing will be found – meaning that while some new licenses will need to be purchased, the cost of this can be offset by savings in surrendering unnecessary software or renegotiating support contracts.

Not only is this just the remedy a CIO is looking for to soothe the IT department’s financial ailments, but it can also bring a real advantage to the organisation when the gloom begins to lift. Implementing SAM now can bring ROI at a time when the world’s markets are getting back on track. This extra income can then be reinvested into the areas of the business that have contributed to the recovery and are bringing the most value.

The main thing, however, is that armed with this information, CIOs can rapidly take steps to put the situation right – simultaneously avoiding risks and driving savings.

In a time of uncertainty, organisations cannot afford to take a gamble on software licensing, and with effective Software Asset Management in place, not only can this situation be easily resolved, but the CIO can actually demonstrate tangible ROI. By taking advantage of this technology now, businesses can make short-term gains, while ensuring that when the economic upturn hits, the IT network will be secure and transparent for future purchases.

About Centennial Software
Recently acquired by FrontRange Solutions, Centennial Software is a leading developer of asset discovery and software license management solutions as well as a strong advocate of SAM best practices. To learn more about how to make SAM work for you, visit www.centennial-software.com/sam.