Implement Software Asset Management

Go beyond tracking licenses to proactively managing software throughout its lifecycle.

Table of contents

1. Title
2. Executive Brief
3. Execute the Project/DIY Guide
   • Phase 1: Assess & Plan
     • Step 1.1: Assess current state
     • Step 1.2: Build team and define metrics
     • Step 1.3: Plan and budget
   • Phase 2: Procure, Receive & Deploy
     • Step 2.1: Request and procure
     • Step 2.2: Receive and deploy
   • Phase 3: Manage, Redeploy & Retire
     • Step 3.1: Manage and maintain contracts
     • Step 3.2: Harvest, redeploy, or retire
   • Phase 4: Build Supporting Processes & Tools
     • Step 4.1: Compliance and audits
     • Step 4.2 Communicate and build roadmap
4. Next Steps
5. Appendix

Analyst Perspective

“Organizations often conflate software asset management (SAM) with license tracking. SAM is not merely knowing how many licenses you require to be in compliance; it’s asking the deeper budgetary questions to right-size your software spend.

Software audits are a growing concern for businesses, but proactive reporting and decision making supported by quality data will mitigate audit risks. Value is left on the table through underused or poor-quality data, so active data management must be in play. A dedicated ITAM tool can assist with extracting value from your license data.

Achieving an optimized SAM program is a transformative effort, but the people, processes, and technology need to be in place before that can happen.” (Sandi Conrad, Senior Director, Infrastructure & Operations Practice, Info-Tech Research Group)

Software license complexity and audit frequency are increasing: are you prepared to manage the risk?

This Research Is Designed For:

• CIOs that want to improve IT’s reputation with the business.
• CIOs that want to eliminate the threat of a software audit.
• Organizations that want proactive reporting that benefits the entire business.
• IT managers who want visibility into their software usage.

This Research Will Help You:

• Establish a standardized software management process.
• Track and manage software throughout its lifecycle, from procurement through to retirement or redeployment.
• Rationalize your software license estate.
• Improve your negotiations with software vendors.
• Improve the quality of your SAM data gathering and reporting.

Executive summary

Situation

• Organizations are aware of the savings that result from implementing software asset management (SAM), but are unsure of where to start the process. With no formal standards in place for managing licenses, organizations are constantly at risk for costly software audits and poorly executed software spends.

Complication

• Poor data-capture procedures produce an incomplete picture of software lifecycles.
• No centralized repository exists, resulting in fragmented reporting.
• Audit protocols are ad hoc, resulting in sloppy reporting and time-consuming work.

Resolution

• Conduct a current state assessment of existing SAM processes to form an appropriate plan for implementing or improving your SAM program.
• Build and involve a SAM team in the process from the beginning to help embed the change.
• Define standard policies, processes, and procedures for each stage of the software asset lifecycle, from procurement through to retirement. Pace yourself; a staged implementation will make your ITAM program a success.
• Develop an internal audit program to mitigate the risk of costly audits.
• Once a standardized SAM program and data are in place, you will be able to use the data to optimize and rationalize your software licenses.

Info-Tech Insight

A strong SAM program will benefit all aspects of the business.
Data and reports gained through SAM will enable data-driven decision making for all areas of the business.

Don’t just track licenses; manage them to create value from data.
Gathering and monitoring license data is just the beginning. What you do with that data is the real test.

Win the audit battle without fighting.
Conduct internal audits to minimize surprises when external audits are requested.

Build the business case for SAM on cost and risk avoidance

You can estimate the return even without tools or data.

The Business Benefits of SAM

• Compliance: Managing audits and meeting legal, contractual, and regulatory obligations.
• Efficiency: Reducing costs and making the best use of assets while maintaining service.
• Agility: Anticipate requirements using asset data for business intelligence and analytics.

Poor software asset management practices increase costs and risks

Failure to implement SAM can lead to:

High cost of undiscovered IT assets

• Needless procurement of software for new hires can be costly.

Licensing, liability, and legal violations

• Legal actions and penalties that result from ineffective SAM processes and license incompliance can severely impact an organization’s financial performance and corporate brand image.

Compromised security

• Not knowing what assets you have, who is using them and how, can compromise the security of sensitive information.

Increased management costs

• Not having up-to-date software license information impacts decision making, with many management teams failing to respond quickly and efficiently to operational demands.

Increased disruptions

• Vendors seek out organizations who don’t manage their software assets effectively; it is likely that you could be subject to major operational disruptions as a result of an audit.

Poor supplier/vendor relationship

• Most organizations fear communicating with vendors and are anxious about negotiating new licenses.

54% — A study by 1E found that only 54% of organizations believe they can identify all unused software in their organization.

28% — On average, 28% of deployed software is unused, with a wasted cost of $224 per PC on unused software (1E, 2014).

53% — Express Metrix found that 53% of organizations had been audited within the past two years. Of those, 72% had been audited within the last 12 months.

SAM delivers cost savings beyond the procurement stage

SAM delivers cost savings in several ways:

• Improved negotiating position
  • Certainty around software needs and licensing terms can put the organization in a better negotiating position for new contracts or contract renewals.
• Improved purchasing position
  • Centralized procurement can allow for improved purchasing agreements with better pricing.
• More accurate forecasting and spend
  • With accurate data on what software is installed vs. used, more accurate decisions can be made around software purchasing needs and budgeting.
• Prevention of over deployment
  • Deploy software only where it is needed based on what end users actively use.
• Software rationalization
  • SAM data may reveal multiple applications performing similar functions that can be rationalized into a single standard software that is used across the enterprise.
• License harvesting
  • Identify unused licenses that can be harvested and redeployed to other users rather than purchasing new licenses.

SAM delivers many benefits beyond cost savings

Manage risk. If licensing terms are not properly observed, the organization is at risk of legal and financial exposure, including illegal software installation, loss of proof of licenses purchased, or breached terms and conditions.

Control and predict spend. Unexpected problems related to software assets and licenses can significantly impact cash flow.

Less operational interruptions. Poor software asset management processes could lead to failed deployments, software update interruptions, viruses, or a shutdown of unlicensed applications.

Avoid security breaches. If data is not secure through software patches and security, confidential information may be disclosed.

More informed decisions. More accurate data on software assets improves transparency and informs decision making.

Improved contract management. Automated tools can alert you to when contracts are up for renewal to allow time to plan and negotiate, then purchase the right amount of licenses.

Avoid penalties. Conduct internal audits and track compliance to avoid fees or penalties if an external audit occurs.

Reduced IT support. Employees should require less support from the service desk with proper, up to date, licensed software, freeing up time for IT Operations to focus on other work.

Enhanced productivity. By rationalizing and standardizing software offerings, more staff should be using the same software with the same versioning, allowing for better communication and collaboration.

Asset management is especially correlated with the following processes

Being highly effective at asset management means that you are more likely to be highly effective at almost all IT processes, especially:

	Configuration Management 76% more effective		Service Catalog 74% more effective
	Quality Management 63% more effective		Data Quality 62% more effective
	Performance Measurement 61% more effective		Organizational Change Management 60% more effective
	Portfolio Management 59% more effective		Enterprise Architecture 58% more effective

Why? Good SAM processes are integral to both service management and configuration management

To accelerate progress, Info-Tech Research Group parses software asset management into its essential processes

Focus on software asset management essentials

Software Procurement:

• Define procurement standards for software and related warranties and support options.
• Develop processes and workflows for purchasing and work out financial implications to inform budgeting later.

Software Deployment and Maintenance:

• Define policies, processes, and workflows for software receiving, deployment, and maintenance practices.
• Develop processes and workflows for managing imaging, harvests and redeployments, service requests, and large-scale rollouts.

Software Harvest and Retirement:

• Manage the employee termination and software harvest cycle.
• Develop processes, policies, and workflows for software security and retirement.

Software Contract and Audit Management:

• Develop processes for data collection and validation to prepare for an audit.
• Define metrics and reporting processes to keep asset management processes on track.

Asset management is a key piece of Info-Tech’s COBIT-based IT Management and Governance Framework

Follow Info-Tech's methodology to build a plan to implement software asset management

Thanks to SAM, Visa saved $200 million in three years

Case Study

Industry: Financial Services
Source: International Business Software Managers Association

Visa, Inc.

Visa, Inc. is the largest payment processing company in the world, with a network that can handle over 40,000 transactions every minute.

Software Asset Management Program

In 2006, Visa launched a formal IT asset management program, but it was not until 2011 that it initiated a focus on SAM. Joe Birdsong, the SAM director, first addressed four major enterprise license agreements (ELAs) and compliance issues. The SAM team implemented a few dedicated SAM tools in conjunction with an aggressive approach to training.

Results

The proactive approach taken by Visa used a three-pronged strategy: people, process, and tools. The process included ELA negotiations, audit responses, and software license rationalization exercises.

According to Birdsong, “In the past three years, SAM has been credited with saving Visa over $200 million.”

Info-Tech delivers: Use our tools and templates to accelerate your project to completion

SAM Standard Operating Procedures (SOP)	SAM Maturity Assessment	SAM Visio Process Workflows	SAM Budget Workbook
Additional SAM Policy Templates	Software Asset Management Policy	SAM Communication Plan	SAM FAQ Template

Use these insights to help guide your understanding of the project

• SAM provides value to other processes in IT.
  Data, reports, and savings gained through SAM will enable data-driven decision making for all areas of the business.
• Don’t just track licenses; manage them to create value from data.
  Gathering and monitoring license data is just the beginning. What you do with that data is the real test.
• SAM isn’t about managing costs; it’s about understanding your environment to make better decisions.
  Capital tied up in software can impact the progress of other projects.
• Managing licenses can impact the entire organization.
  Gain project buy-in from stakeholders by articulating the impact that managing licenses can have on other projects and the prevalence of shadow IT.

Measure the value of a guided implementation (GI)

Engaging in GIs doesn’t just offer valuable project advice, it also results in significant cost savings.

Info-Tech offers various levels of support to best suit your needs

Diagnostics and consistent frameworks used throughout all four options

Implement Software Asset Management – project overview

	Phase 1: Assess & plan	Phase 2: Procure, receive & deploy	Phase 3: Manage, redeploy & retire	Phase 4: Build supporting processes
Best-Practice Toolkit	Step 1.1: Assess current state Step 1.2: Build team and define metrics Step 1.3: Plan and budget	Step 2.1: Request and procure Step 2.2: Receive and deploy	Step 3.1: Manage and maintain contracts Step 3.2: Harvest, redeploy, or retire	Step 4.1: Compliance and audits Step 4.2: Communicate and build roadmap
Guided Implementations	Assess current state and challenges. Define roles and responsibilities as well as metrics. Discuss SAM budgeting.	Define software standards and procurement process. Build processes for receiving software and deploying software.	Define process for conducting software inventory and maintenance and patches. Build software harvest and redeployment processes and retirement.	Define process for internal and external audits. Develop communication and implementation plan.
Onsite Workshop	Module 1: Assess & Plan	Module 2: Map Core Processes: Procure, Receive & Deploy	Module 3: Map Core Processes: Manage, Redeploy & Retire	Module 4: Prepare for audit, build roadmap and communications

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