- Jun 08, 2017
- Martin Thompson
ITAM in a Cloud Era: 3 Future Predictions
What does the future hold for IT Asset Managers? As we fast approach the 2020’s, I look at cloud trends likely to impact the ITAM team.
Publisher expectations in a cloud era
You might not be spending huge amounts on cloud, and maybe over the next ten years your total cloud spend will not exceed 50% of your software budget – but we are very much living in a cloud era for IT Asset Management and Software Asset Management.
All the large software publishers you buy from have cloud-based subscriptions as strategic products. The cloud is their future, so even if your company can’t use cloud at all – we still need to learn how to manage expectations with software publishers about their cloud offerings, because the vendors will become increasingly aggressive about pushing their strategic products.
Review the list of seven large software publishers below, and you’ll see that cloud subscriptions are key to their future. So whether you like cloud or not, get used to it, learn how to negotiate around it and decide whether your company is adopting this technology because it's absolutely strategic to the vendors.
Customer uprising against software publisher behavior
Software audits have become a business as usual aspect of everyday life in the IT department but they are getting out of hand.
Recent penalties mentioned in the headlines include £60M license compliance exposure for Diageo, and $600M for ABInbev. Whilst these are just the opening headline figures and will undoubtedly be negotiating downwards, they are not sustainable.
To give the ABInBev $600M license exposure some context, their annual software and maintenance budget is $140M, so they have received a risk equivalent to four years of their software budget from one vendor, in this case SAP.
The stature of these penalties is not sustainable for an organization. This will hit the Share price. This will hit the efficiency of the whole IT department, and ultimately for ABInBev and Diageo, the price of a pint of beer.
Traditionally organizations have done everything possible to keep things quiet and paid up to make things go away. But the size of these penalties is not viable. I predict an uprising as organizations begin to bite back against increasingly desperate behavior from software publishers.
Outside ITAM – Taking ITAM beyond the IT department
IT Asset Management has two major strategic growth areas – the increased use of Internet connected devices and assisting the trend of increasing spend outside the IT department.
As leading organizations are digitized, we can transfer our existing skills and processes in managing IT assets to manage business assets connected to the internet to help our organizations mitigate risk, save money and make smarter decisions.
Similarly business units outside the IT department are increasingly buying their own turnkey software solutions. Again we can help these business units make the right decisions, reduce risk, apply governance and save money.
The reach and impact of the IT Asset Management department has great potential and we’re proud to be the community that unites and educates the ITAM profession.
To learn more about ITAM in a cloud era come and join the ITAM Review team at our conferences in UK, USA and Australia.