The present business environment has undergone a significant digital revolution over the past few decades. The average company is estimated to rely on over 500 software applications for efficient output.
Unfortunately, despite this figure indicating just how crucial different software are to business, companies still don’t manage these assets as well as they should.
Software Asset Management (SAM) is a crucial business strategy that provides businesses with a clear understanding of their assets in order to ensure the company makes the most out of its software investments and that the working staff all have the required tools to do their jobs efficiently.
Read on to learn five fundamental benefits your company can expect from implementing a solid SAM strategy.
1. Boost Asset Visibility
As mentioned earlier, companies use various software during business operations. Moreover, the bigger it grows, the more software assets it will require. Thus, a clear picture of your deployed software is crucial to identifying what software is in use and its impact on the company.
This can improve communication and decision-making within the IT team and across the business. It can also increase the agility of IT operations and their ability to support business objectives. For instance, if a particular software isn’t performing as expected, management can discontinue the license or look for a more efficient alternative.
2. Cut Down on Operational Costs
Companies tend to overspend on software procurement. They often invest in a license irrelevant to business functions or even invest in too many licenses.
For this reason, businesses need a thorough software asset management plan with detailed asset-tracking information, such as;
- Name of the software
- The software vendor/provider
- The number of licenses bought and their respective costs
- The type of license and renewal date, if one exists
3. Better Cybersecurity
As the business landscape ushers in digitized means of handling operations, cybercrime has emerged as a pressing issue for both small businesses and conglomerates. Cybercriminals no longer attack robust firewalls but instead use overlooked software to penetrate a company’s network.
Therefore, having a streamlined software asset management strategy can help protect your business from cybercriminals.
For instance, a well-detailed SAM plan can reveal unauthorized software and make sure management is aware of every employee with allowed access.
4. Ensure Compliance
A company using different software licenses can be easily caught off guard when asked to prove compliance with licensing agreements or even, at the very least, using an expired license.
Oftentimes companies in such scenarios often receive hefty fines. These unexpected expenses can disrupt certain business operations or even tarnish the company’s reputation. But with good software asset management practices, you can avoid such situations by ensuring conformity to licensing requirements.
What’s more, SAM delivers rich and detailed information about software assets, which can be used to negotiate better agreements with software vendors. By demonstrating compliance and understanding of software needs, businesses can negotiate from a position of strength and secure more favorable terms when acquiring or renewing their license.
5. Better Facilitating Mergers and Acquisitions
Mergers and acquisitions are expected in business. All assets, including software, must be verified during these processes. If not appropriately licensed, companies can expose themselves to various risks since some software assets can easily run into the millions of dollars.
A good software asset management strategy can help businesses avoid such risks and ensure the relevant assets are transitioned seamlessly during a merger or acquisition.
SAM is not just about knowing when a license is about to expire. It’s a strategic approach that promises plenty of benefits to businesses. By implementing solid SAM strategies, companies will be better poised to unlock the potential of their software and, ultimately, drive business success.