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ARTICLE: Driving Down Software Costs with Software Asset Optimization – High Level Business Drivers (Part 3/6)

This article series has been contributed by Colin Bartram of Vector Networks.

In this series Colin looks at how organisations can drive down software costs with proactive software management.

Driving Down Costs with Software Asset Optimization
Part 1: Extending Audit Horizons
Part 2: Software Asset Optimization Defined
Part 3: High Level Business Drivers
Part 4: Optimization’s Potential Benefits
Part 5: Three Phase Optimization Process
Part 6: Fast Track to Optimization Benefits

PART THREE – The High Level Business Drivers

Once data has been collected and analyzed, optimization decisions can be made and prioritized in accordance with the organization’s objectives.

The key business drivers to consider are –

Compliance
It is not uncommon for an organization to revert to its initial objective of ensuring compliance, but with the usage information indicating where unused copies are installed, there is now the opportunity to reduce the cost of compliance by ensuring maximum use of the copies already owned. I.e., where an application is under-licensed compared to the deployment, the first focus should be to ensure that the deployed copies are being used, before any additional copies are bought.

Reduction of ongoing costs of ownership
Each PC can carry a significant cost in the annual maintenance of the applications. When the application copy is not being used, or an alternative provision can be made for occasional use, then the copy should be de-installed, and its maintenance cancelled unless the copy is needed elsewhere. Either way, the objective is to not pay for maintenance on unused software.

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Application ownership ROI
A first priority under this heading would normally be the redeployment of unused copies of applications, but it may also be appropriate to assess whether usage would increase if user training were increased. Going down this path requires an organization to understand that application software can and should be a source of user productivity, and not just a pure overhead.

It may also be appropriate to purchase additional application copies to match requirements, to increase organization productivity without compromising compliance.

Colin Bartram

Colin Bartram

About the Author

Colin Bartram is VP Technology with Vector Networks Technology Group. He has been involved in the evolution of IT asset management since its inception in the 1980s, holding positions primarily in marketing and product management. Further information regarding Vector Networks can be found here.

Read part four here.

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About Martin Thompson

Martin is owner and founder of The ITAM Review, an online resource and community for worldwide ITAM professionals.

Martin is also author of the book "Practical ITAM - The essential guide for IT Asset Managers", a book that describes how to get started and make a difference in the field of IT Asset Management.

On a voluntary basis Martin is a contributor to ISO WG21 which develops the ITAM International Standard ISO/IEC 19770.

Learn more about him here and connect with him on Twitter or LinkedIn.

2 Comments

  1. KJ Fowler says:

    Good point that software is a source of user productivity – I’ve had to point that out any

    number of times to people who hesitate to purchase a £50 piece of software that could save them hours of time. Given the internal labour

    costs of our company, £50 is paid back in about a quarter of an hour!

  2. KJ Fowler says:

    Good point that software is a source of user productivity – I’ve had to point that out any number of times to people who hesitate to purchase a £50 piece of software that could save them hours of time. Given the internal labour costs of our company, £50 is paid back in about a quarter of an hour!

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