Software Asset Management, commonly referred to as SAM, is the process by which organisations manage and control their software applications. This mainly involves the streamlining of IT processes and infrastructure such as purchasing, implementation, licensing, utilisation, maintenance, and disposal of the software assets within an organisation. As a part of the broader IT Asset management within an organisation, SAM has the primary role of increasing productivity, by reducing the overall information technology costs, and mitigating the risks associated with software ownership and usage.
Increasing Productivity through Software Asset Management
As mentioned above, the main purpose for an organisation to implement software asset management is to increase productivity. This is because SAM helps to protect the software investments made by the organisation, by tracking all software applications that the organisation owns, where it is being used, and the efficiency of use. A summary of how SAM increases the productivity in an organisation is given below.
1. Software Licensing Costs
By using Licence Management software, an organisation is able to track all matters relating to the purchase and renewal of its software licences, such as transfer rights, upgrades, and downgrades. Therefore, an organisation is able to save on costs, by ensuring that it only purchases or renews software licences that are beneficial to the business. For instance, SAM will help in identifying software that is rarely used. Instead of renewing or purchasing a new licence for such software, the organisation might choose to downgrade or dispose of the software, thereby making significant cost-savings.
2. Security Risks
Using Licence Management software as part of the SAM process helps an organisation to prevent security risks, which are associated with unauthorised usage of software, or using illegal and unauthorised software. Such software includes games and internet downloads that malicious employees might install without express permission from management. Therefore, business productivity and efficiency is improved, since employees are only restricted to using software that is licenced and authorised by the organisation.
3. Legal Risks
Implementing SAM, in particular Licence Management Software, ensures that an organisation only uses software applications that are properly licenced. Proper licensing includes compliance with software vendor licence agreements, as well as meeting the necessary regulatory requirements. Therefore, the business is protected from unwarranted legal disputes, over the ownership and usage of software, which is both costly and time-wasting for an organisation.
4. Uptime
Software asset management increases the uptime of an organisation's IT infrastructure, since they are able to enforce maintenance schedules. Therefore, routine updates and software patches are installed in a timely manner, thereby limiting the likelihood of software crashes, and other issues that may cause downtime.
5. Other Capital Assets
An organisation may choose to use SAM, for managing other capital assets, such as investments, plant, and equipment. This is particularly useful for small businesses, which do not have sufficient resources to implement a parallel system for managing these assets. In addition, integrating both systems makes it easier for an organisation to manage their assets, and improves on accuracy in generating financial reports.
The use of software asset management systems is therefore, very important to an organisation that wishes to increase its productivity, make considerable cost-savings, and protect itself from business and legal tussles over ownership and licensing of software. Thus, a business should implement SAM, as part of its IT business strategy.
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